Government Working On New Industrial Policy

New Delhi: The government is working on a new industrial policy with a view to promoting and developing frontier technologies, innovation and enhancing competitiveness of domestic products.

“With the changing manufacturing scenario, introduction of new technologies, innovation, R&D, artificial intelligence and automation, there is a need to completely revamp the industrial policy of 1991. We are working on that,” a senior official said.

The official said the new policy would focus on several areas like ways to encourage innovation, further simplification of taxation system and address new challenges of the manufacturing sector.

The DIPP, under the commerce and industry ministry, is working on this proposal.

It would also be aligned with the government’s flagship programmes such as Make in India, Skill India, Startup India and the foreign direct investment policy.

The Department of Industrial Policy and Promotion (DIPP), under the commerce and industry ministry, is working on this proposal.

“The draft of the new policy should be ready by September this year,” the ministry official said.

As per the DIPP website, industrial policy since 1991 has been more for facilitating the industrial development rather than anchoring it through permits and controls.

Industrial licensing was abolished for most of the industries and there are only four industries, including defence and explosives, where licence is currently required.

It said that a number of initiatives have been taken for ease of doing business for industrial licensing, increasing initial validity period of those licences and simplification of application forms.

 

RBI Governor Cited ‘High Uncertainty’ On Inflation For June 7 Policy Review

Mumbai: Reserve Bank of India Governor Urjit Patel cited “high uncertainty” on inflation while holding the key interest rate for a fourth successive policy review, according to minutes of the June 7 meeting of Monetary Policy Committee released on Wednesday. It was the first time that a Monetary Policy Committee (MPC) member had voted against the majority decision. At its second bi-monthly monetary policy review of the fiscal year on June 7, the RBI maintained status quo on its repo rate, or short-term rate for lending to commercial banks, at 6.25 per cent. In doing so, the policy statement said the six-member MPC was guided by the risks to inflation.

“As the year progresses, underlying inflation pressures, especially input costs, wages and imported inflation, will have to be closely and continuously monitored,” Mr Patel said, as per minutes of the the MPC meeting.

“The risk of fiscal slippages, which, by and large, can entail inflationary spillovers, has risen with the announcements of large farm loan waivers,” he said.
“At the current juncture, global political and financial risks materialising into imported inflation and the disbursement of allowances under the 7th central pay commission’s award are upside risks,” he added.

RBI Governor Urjit Patel argued for avoiding premature policy action

The RBI governor argued for avoiding premature policy action.

“Considering the high uncertainty clouding the near-term inflation outlook, there is a need to avoid premature policy action at this stage. I, therefore, vote for holding the policy repo rate at the current level of 6.25 per cent and maintaining the neutral stance of monetary policy,” Mr Patel said.

“Premature action at this stage risks disruptive policy reversals later and the loss of credibility.”

“The current state of the economy underscores the need to revive private investment, restore banking sector health and remove infrastructural bottlenecks. Monetary policy can play a more effective role only when these factors are in place,” he added.

Instead, the sole dissenting external member and IIM-Ahmedabad faculty Ravindra Dholakia voted for a minimum a 50 basis point cut in the repo rate.

According to the minutes, Mr Dholakia said there were several noteworthy recent developments on the prices and output fronts that warrant a decisive policy action by the MPC.

“In my opinion, this is the most opportune time for the MPC to effect a major cut of 50 basis points in the policy rate to bring it down from 6.25 per cent to 5.75 per cent,” he said.

“All in all, the prevailing inflation and output conditions and prospects are such that there is enough space for a substantial rate cut of 50 basis points if not more,” he added.

Meanwhile, India’s annual retail inflation eased to a record low of 2.18 per cent in May on lower food prices. The wholesale price index (WPI), with the revised base year of 2011-12, also decelerated further in May 2017 to 2.17 per cent from 3.85 per cent in April as food prices eased.

 

CBSE also makes mistakes, should not have scrapped re-evaluation policy: Delhi HC

The Delhi High Court on Friday orally observed that the CBSE ought not have done away with its re-evaluation policy as it also makes mistakes in evaluation of answer sheets.

“You (CBSE) should not have done that. You too make mistakes,” Justice Sanjeev Sachdeva said while hearing a student’s plea for re-evaluation of her class 12 board exam answer sheets of English and Maths subjects.

In response, the lawyer for the Central Board of Secondary Education (CBSE) said the re-evaluation policy was scrapped as there were only 0.21% mistakes out of the 10 lakh students who undertake the board exams across the country.

CBSE

To this the court remarked that it would mean “careers of 2100 students are at stake”.

“We all know what happens on a fraction of a mark or percentage,” the court added.

While the court did not pass any order on the student’s plea for re-evaluation, it told CBSE that if she has made an application for a copy of the answer sheets it be provided to her.

Regarding the student’s plea for a direction to the board to carry out re-verification of her answer sheets, the CBSE lawyer said re-verification has been carried out and there is no change in her marks.

The lawyer said the outcome of re-verification would be uploaded on its website.

The court, thereafter, listed the matter for hearing on June 19 as the CBSE in another similar matter had submitted that it will on that date be challenging an Orissa High Court order directing it to re-evaluate answer sheets of 159 students of the state.

The Orissa High Court order had come after the CBSE lawyer there had submitted that re-evaluation can still be carried out.

In the other similar matter, the CBSE told the court that the submission made before the Orissa High Court was incorrect.