Indian Economy Quiz: Industry |27 Feb, 2021

In CY 2019, the world crude steel production reached 1870 million tonnes (mt) and showed a growth of 3.4% over CY 2018.

· China remained world’s largest crude steel producer in same period (996 mt) followed by India (111mt), Japan (99mt) and the USA (88mt).

· Per capita finished steel consumption in 2018 was 224.5 kg for world and 590.1 kg for China (Source: World Steel Association).

· The same for India was 73.3 kg in 2018 (Source: JPC) and 75.7 kg (provisional) in 2019.The per capita consumption of India in 2018-19 was 74.1 kg and that in 2019-20 was 74.6 kg (prov.)

Source: Sriram’s IAS

The Harmonized System, or simply ‘HS’, is a six-digit identification code developed by the World Customs Organization (WCO).

· Called the “universal economic language” for goods, it is a multipurpose international product nomenclature.

· Over 200 countries use the system as a basis for their customs tariffs, gathering international trade statistics, making trade policies, and for monitoring goods.

· The system helps in harmonizing of customs and trade procedures, thus reducing costs in international trade.

Source: The Hindu

A Real Estate Investment Trust or REIT is an investment vehicle that provides an opportunity to invest in various projects by only investing in the units of a sponsor entity that will manage the paperwork and may be, even the hindrances of investing in the real estate market.

· The biggest benefit is the ease of investment as investing in REIT is just like investing in direct equity that can be done through a demat account.

· The other big advantage is getting an opportunity to invest in commercial properties that will earn rental income.

· This is a significant advantage as commercial properties typically earn more rent than residential properties with built-in clauses of rent hikes at fixed intervals.

· Moreover, REIT regulations mandate the distribution of 90% of the rental income to unit holders. The remaining 10% can be used for business purposes.

· Also, since REIT is a publicly listed and traded instrument, liquidity should ideally not be a concern.

Source: Indian Express

Central government will aim to combine 44 central laws into four codes wages, industrial relations, social security and welfare, and the fourth – occupational safety, health and working conditions.

Source: The Hindu

The framework is being drafted by the Department of Investment and Public Asset Management (DIPAM). The policy framework lays down the Institutional framework for monetization of the following:

· Identified non-core assets of CPSEs under strategic disinvestment;

· Immovable Enemy Property under the custody of Custodian of Enemy Property (CEPI), MHA as per sub section 6 of section 8A of the Enemy Property Act, 1968;

· This framework is also available for use to monetize assets of other CPSEs/PSUs/other Government Organizations with the approval of the Competent Authority;

· Sick/Loss making CPSEs under closure normally follow the DPE closure guidelines dated 14.06.2018 in this regard. However, any sick/loss making CPSE can also adopt this framework with the approval of Competent Authority.

The objective of the asset monetization programme of the Government of India is to unlock the value of investment made in public assets which have not yielded appropriate or potential returns so far.

Source: The Hindu

Venture capital funds are investment funds that manage the money of investors who seek private equity stakes in startup and small- to medium-sized enterprises with strong growth potential.

· These investments are generally characterized as high-risk/high-return opportunities.

· In the past, venture capital investments were only accessible to professional venture capitalists, although now accredited investors have a greater ability to take part in venture capital investments.

Source: TMH Ramesh Singh

Mission Purvodaya in steel sector envisions creating an integrated steel hub in Eastern India.

· With abundance of raw materials, strategic geographical location and strong and developing connectivity, Odisha is well poised to be the heart of this eastern steel hub.

· The Mission is rolled out by Union Petroleum and Natural Gas & Steel Ministry.

· More than 75% of India ‘s envisioned incremental steel capacity will come from eastern India, with Odisha alone crossing 100 MTPA.

· In Odisha, Kalinganagar will be developed as the epicenter of Mission Purvodaya.

Source: The Hindu

Asian Development Bank (ADB) had prepared Conceptual Development Plan (CDP) for Vizag-Chennai Industrial Corridor (VCIC).

· The Andhra Pradesh government has mooted development of nodes in Visakhapatnam, Machilipatnam, Donakonda and on the Yerpedu-Srikalahasti stretch.

· The VCIC has been identified for development in the first phase of Kolkata-Kanyakumari East Coast Economic Corridor.

· The ADB, which prepared the concept paper, has agreed to give $500 million towards multi-tranch financing facility and policy-based loan worth $125 million.

Source: The Hindu

According to the economic survey 2018-19, the overall production of raw coal in India is increased from 2008 to 2018.

Source: Economic Survey

Annual Survey of Industries (ASI) is conducted by National Sample Survey Office (NSSO). ASI is principal source of industrial statistics in India. It does not cover unorganized or unregistered or informal sector enterprises.

· ASI, an annual event, not only facilitates suitable data collection based on appropriate sampling techniques but also ensures timely dissemination of statistical information to asses and evaluates the dynamics in composition, growth and structure of organized manufacturing sector.

· The structure and function of the industrial sector is an important perspective of Indian Economy. It is imperative for industries to grow both qualitatively and quantitatively to boost the economy.

· The well-being of the industries depends truly on the formulation and promotion of industrial policies framed by the policy makers.

· To frame suitable industrial policies the policy makers need to be aware about the quantified aspect of the existing scenarios in the industries in the country.

· This is where the Annual Survey of Industries (ASI) is conducted by National Sample Survey Office, Government of India.

Source: Sriram’s IAS