Parliament Session Live:

The Waqf (Amendment) Bill, which will amend the law governing Waqf boards, is likely to be introduced in the Parliament today. The bill aims to rename the Waqf Act, 1995, as the Unified Waqf Management, Empowerment, Efficiency and Development Act, 1995.

It also seeks to omit Section 40 of the current law relating to the powers of the Board to decide if a property is Waqf property. It provides for a broad-based composition of the Central Waqf Council and the State Waqf Boards and ensures the representation of Muslim women and non-Muslims in such bodies.

The monsoon session of Parliament commenced on July 22 and is scheduled to conclude on August 12.

Here are live updates on the Parliament Session:

The discussion on the Union Budget 2024-25, presented on July 23, will continue in both Houses of Parliament on Thursday.

The discussion on Budget of Jammu and Kashmir, 2024-25, which was also presented on Tuesday, will also continue today.

Union Minister Gajendra Singh Shekhawat, Jitendra Singh, Arjun Ram Meghwal and Kirtivardhan Singh will lay papers on the table today.

Union Minister Sukanta Majumdar is likely to make a statement regarding status of implementation of recommendations and observations contained in the 250th report of the department-related parliamentary standing committee on Home Affairs on action taken by the government on the recommendations and observations contained in the 243rd report of the committee on demands for grants (2023-24) of the Ministry of Development of North Eastern Region.

-ANI

The shift to renewable energy could lead to new vulnerabilities in the supply chains for solar panels and critical minerals, the Economic Survey 2023-24 said. File (representational image)
| Photo Credit: K. Murali Kumar

India’s path to sustainable development is fraught with challenges, as the country grapples with the twin imperatives of meeting burgeoning energy demands and reducing carbon emissions, the Economic Survey 2023-24 revealed on July 22.

Also Read:Economic Survey 2023-24 LIVE updates

Tabled in the Parliament, the Survey underscores the complexities of India’s green transition, emphasizing the need for a diversified energy portfolio to achieve ambitious growth targets while adhering to climate commitments.

“Balancing development needs with a low-carbon pathway is a tightrope, especially when financed predominantly through domestic resources,” the Survey noted, highlighting the financial strain of pursuing cleaner energy alternatives.

Click here to download Economic Survey 2023-24

The document stressed the critical role of non-fossil fuel sources in meeting India’s Nationally Determined Contributions (NDCs) and Net Zero goals. However, it also pointed out the challenges associated with renewable energy, including intermittency issues, waste management concerns for nuclear and solar technologies, and the potential impact of biofuel production on food security.

Acknowledging the importance of energy security, the survey advocated for a multi-pronged approach. It suggested diversification of energy sources, including renewables, nuclear, and biofuels; continued reliance on thermal power, particularly coal, to provide baseload support for renewable deployment; promotion of clean coal technologies like gasification and carbon capture, and enhanced international cooperation in R&D for emerging green technologies.

The Survey cautioned against over-reliance on imports, noting that while India’s dependence on petroleum imports is well-known, the shift to renewable energy could lead to new vulnerabilities in the supply chains for solar panels and critical minerals.

On a positive note, the report highlighted India’s significant progress in its mission-mode approach to addressing climate change. As of May 31, 2024, the share of non-fossil sources in installed electricity generation capacity has reached 45.4%, putting India on track to meet its updated NDC target of 50% by 2030.

The Survey called for a “more balanced approach” to climate change, suggesting policymakers focus on “nearer-term policy goals of improving human welfare” rather than being “excessively preoccupied” with long-term global climate management.

While acknowledging India’s achievements, the survey emphasized the need for financial support from developed countries.

With financing needs estimated at $2.5 trillion (at 2014-15 prices) for meeting NDC targets till 2030, access to finance and technology at reasonable costs is crucial to ease the resource constraints.

The agriculture insurance sector is likely to register growth from 2024 onwards. File
| Photo Credit: K.V.S. Giri

The agriculture insurance sector is likely to register growth from 2024 onwards, with an average real premium growth of 2.5% over the medium term, according to the Economic Survey 2023-24.

Also Read:Economic Survey 2023-24 LIVE updates

The survey, tabled in Parliament on July 22, noted that agriculture insurance, accounting for about 12% of the non-life insurance market, witnessed flat growth in FY23 due to a sharp decline in premium rates in the Kharif cropping season.

“However, this decline was more than offset by increased insured land area and farmer enrolments during the season,” it added.

Click here to download Economic Survey 2023-24

“Agriculture premiums will likely rise from 2024 onwards, with an average real premium growth of 2.5% cent over the medium term, supported by improvements in insurance infrastructure such as mobile applications and remote sensing for crop loss monitoring,” the survey said.

To address current concerns around crop insurance, the government has launched various technological initiatives. These include the YES-Tech Manual, WINDS portal, and enrolment app AIDE/Sahayak to assess crop damage via satellite-based advanced technologies.

The survey also highlighted door-to-door enrolment initiatives aimed at making crop insurance more accessible to farmers.

These measures are expected to enhance the efficiency of crop damage assessment and improve the overall accessibility of agricultural insurance in the country.

Currently, the government is implementing Pradhan Mantri Fasal Bima Yojana and the Weather Based Crop Insurance Scheme.

The concept of green steel promotes the production of steel using green energy sources and minimizing the usage of fossil fuels. File (representational image)

Green steel will play an important role in reshaping the future of the industry as the world moves towards a low-carbon economy, the Economic Survey for 2023-24 said.

The concept of green steel promotes the production of steel using green energy sources and minimizing the usage of fossil fuels.

Also Read:Economic Survey 2023-24 LIVE updates

“As the world moves towards a low-carbon economy, green steel is poised to play a pivotal role in reshaping the future of the steel industry,” said the Survey tabled in Parliament on July 22.

“India’s steel sector accounts for 12% of India’s greenhouse gas emissions with an emission intensity of 2.5 tonnes of CO2 per tonne of crude steel compared to the global average of 1.9 tonnes of CO2 per tonne of crude steel,” it said.

The Survey also said, “India remained a net importer of steel during the first, second and third quarters of FY24 because of price differentials between international and domestic prices of finished steel.”

“Low prices in the international markets led to reduced profit margins for exports and made imports more affordable, affecting the trade balance in the steel sector,” it said.

Click here to download Economic Survey 2023-24

“The import dependence on coking coal, an essential raw material for steel production also went up from 56.1 MT in FY23 to 58.1 MT in FY24,” the Survey said.

The Survey also highlighted that many technologies required for global net zero are commercially unavailable, such as hydrogen-fuelled steel/cement, steel and aluminium production with (Carbon Capture, Utilization, and Storage) CCUS, etc.

“There is a need to enhance international cooperation in R&D, especially in the domains of distributed RE, offshore wind, geothermal, tidal energy, biofuels, compressed biogas, green hydrogen, energy storage, electrolysers, and nuclear power [including small modular reactors SMR],” it said.

An auction window is created under the NRS for making coal available for new coal gasification plants
| Photo Credit: G. N. Rao

The initiatives of the government for cleaner fuel such as coal gasification mission and exploring coal to hydrogen need to be promoted to reduce emission and increase environmental sustainability, the Economic Survey on July 22 said.

While phasing in renewables to the extent possible is crucial, in the short to medium term, the focus should also be on actively adopting clean coal technologies.

“With the arrival of ultra super-critical technologies for coal-fired power plants, it would be possible to bring down emissions and achieve higher efficiency,” the Economic Survey 2023-24 tabled in the Parliament said.

Also Read:Economic Survey 2023-24 LIVE updates

“In exploring the landscape for ensuring energy security, it has become evident that risks are not merely obstacles but also harbingers of opportunities. While uncertainties loom, they present avenues for innovation, adaptation, and growth for India. While phasing in renewables to the extent possible is imperative, in the short to medium term, the focus should also be on actively adopting clean coal technologies,” it said.

The government has launched the National Coal Gasification Mission to achieve coal gasification and liquefaction of 100 million tonne of coal by 2030. In line with the mission document, Coal India Ltd has signed pacts with BHEL, GAIL and IOCL to take up coal gasification projects in the country.

Click here to download Economic Survey 2023-24

To promote coal gasification, the coal ministry has formulated a policy wherein, a provision has been made for a 50% rebate in revenue share for all future commercial mines auctions for the coal used in gasification purposes provided the quantity of dry fuel used for gasification is at least 10% of total coal production.

Further, a separate auction window under the Non-Regulated Sector (NRS) has been created for making coal available for new coal gasification plants.

A view of an Apple reseller showroom in Mumbai. File
| Photo Credit: Reuters

US smartphone major Apple assembled 14% of global iPhones in India in FY24 and the country’s ranking in global electronics export improved by four positions, Economic Survey 2023-24 said on July 22.

The Survey, tabled in Parliament by Finance Minister Nirmala Sitharaman, said that the mobile phone segment within the electronics sector has experienced the maximum growth with exports to the U.S. rising from $2.2 billion in the financial year 2022-23 to $5.7 billion in FY24.

“Apple assembled $14 billion worth of iPhones in India during FY’24, constituting 14% of its global iPhone production,” the Economic Survey said citing third-party data.

Foxconn has started production of Apple mobile phones in Karnataka and Tamil Nadu, it added.

“India’s share in world electronics exports has improved from 0.63% in 2018 to 0.88% in 2022. As such, India’s exports (ranking) rose from 28th in 2018 to 24th in 2022 in global electronics exports. The share of electronics goods in merchandise exports of India rose from 2.7% in FY’19 to 6.7% in FY’24,” the survey said.

The survey recorded that India’s electronics manufacturing sector has experienced significant growth since 2014, accounting for an estimated 3.7 per cent of the global market share in FY22.

At the same time, the industry contributed 4% to India’s total GDP in FY22.

“Domestic production of electronic items increased significantly to ₹8.22 lakh crore, while exports rose to ₹1.9 lakh crore in FY’23. India has become an attractive destination for investments in this sector, and substantial manufacturing capacities have been established in the country over the past five years,” the survey said.

The economic survey sees smartphone manufacturing as one of the key sector when it comes to riding on geopolitical sentiments among global companies around “China plus one” strategy.

“In the electronics sector, there is a focus on smartphone manufacturing and assembly. The government’s PLI scheme, including tax breaks and subsidies, plays a significant role in attracting companies. The rise in India’s domestic smartphone demand is also a key factor in companies’ decisions to invest there,” the report said.

The survey said that while India may not be an immediate beneficiary of the trade diversion from China, it has witnessed a substantial increase in its electronic exports over time due to the roll-out of the PLI scheme.

“The implementation of the PLI scheme has been a key driver of this growth. For instance, India’s electronic exports to the US have transitioned from a trade deficit of $0.6 billion in FY17 to a trade surplus of $8.7 billion in FY’24, underscoring a significant increase in value addition,” the report said.

The survey cited a study by Centre for Development Studies which shows that there has been a significant increase in domestic value addition (DVA), employment, wages and salaries in the mobile manufacturing segment since FY17.

“The share of DVA in mobile phone output rose from an average of 8.7% in FY’17 to FY’19 (Phase 1) to 22% in FY’20 to FY’22 (Phase 2), indicating considerable increase in local participation,” the survey said.

It said that while the DVA as a ratio of exports may be low, participating in global value chains (GVC) increases in overall value added because of economies of scale in manufacturing for the vast global market.

“The direct workforce in the production of mobile phones has more than tripled between FY’17 to FY’22, particularly benefiting female blue-collar workers. Wages and salaries increased by 317 per cent between phase 1 and phase 2,” the survey said.

The Goods and Services Tax (GST) has played a remarkable role in bringing down the country’s logistics cost, Economic Survey on July 22 said. File
| Photo Credit: The Hindu

The Goods and Services Tax (GST) has played a remarkable role in bringing down the country’s logistics cost, Economic Survey on July 22 said.

The ‘One Nation, One Tax’ regime has ensured that trucks do not have to wait for hours on State borders, which has brought down the travel time by up to 30%.

“This has reduced the logistics cost and increased the average distance trucks travel from 225 km before GST to 300-325 km,” the Economic Survey 2023-24 tabled in Parliament said.

This has been a great value, adding to the ease of doing business and the growth of manufacturing in the country, it added.

The National Council of Applied Economic Research (NCAER) study of December last year has shown that the logistics cost in the economy has declined 0.8 to 0.9 percentage points of GDP between FY14 and FY22.

India’s position in the World Bank’s Logistics Performance Index (LPI) rose from 44th place in 2018 to 38th in 2023 out of 139 countries. This improvement is attributed to reduced logistics costs and better trade facilitation.

With the introduction of cargo tracking, dwell time in the eastern port of Visakhapatnam came down from 32.4 days in 2015 to 5.3 days in 2019. Additionally, the country’s position in international shipments climbed to 22 in 2023 from 44 in 2018 due to its modernisation and digitalisation efforts.

India moved up five places in infrastructure score and four places up to 48 in logistics competence and equality.

India aims to be in the top 25 countries on the LPI by 2030.

Image for representational purposes only
| Photo Credit: Reuters

As per the latest Economic Survey tabled in Parliament on July 22, India’s focus on maintaining macroeconomic stability ensured external challenges had “minimal impact” on the economy. It held that the economy carried forward the momentum it built in the preceding financial year into FY2024. The survey emphasised India’s real GDP growth by 8.2% in FY2024 – exceeding the 8% mark in three of the four quarters. 

Stark differences among global economies 

The survey stated that the Indian economy recovered and expanded in an “orderly fashion” post the coronavirus pandemic. It mentioned the real GDP in FY 2024 was 20% higher than the levels attained in FY 2020. The survey described it as a feat that “only a very few major economies achieved”. 

Read the full Economic Survey 2023-24

The survey goes on to state that growth prospects for the ongoing financial year “look good”, subject to geopolitical, financial market and climate risks. 

Referring to the International Monetary Fund (IMF)’s World Economic Outlook (April 2024) the survey observed that the global economic growth had been 3.2% in 2023. The outlook had also noticed “diverging growth patterns” among countries which were on account of domestic structural issues, uneven exposure to geopolitical conflicts and impact(s) from the tightening of monetary policies. In its latest edition published in July, IMF retained the outlook for FY 2024 and 3.2% for FY 2025. With respect to India, IMF revised upward the forecast for growth this year to 7%. This was attributed to the carryover trends and improved prospects for private consumption, particularly in rural areas. 

The investment thrust 

Gross fixed capital formation increased 9% in real terms in FY 2023-24, the survey mentioned. It argued that the government’s thrust on capital expenditure and sustained momentum in private investment boosted the capital formation growth. “Moving forward, healthier corporate and bank balance sheets will further strengthen private investment. The positive trends in residential real estate market indicate that the household sector capital formation is increasing significantly,” it held separately.

The survey further informed about fiscal balances of governments, both at the centre and state, improving “progressively” notwithstanding expansionary public investment. Tax compliances too have gained because of procedural reforms, expenditure restraint and increased digitisation, it argued. 

External balances subdued 

However, the report enumerated concerns about India’s external balance pressured by “subdued global demand for goods”, but claimed strong services export largely counterbalanced the scenario. As a result of the paradigm, current account deficit stood at 0.7% of the GDP in the now-concluded FY2024, improving from the 2% deficit (of the GDP) in the preceding financial year. For perspective, current account documents a certain country’s international transactions with the rest of the world. Trade is an important component of this indicator. 

A view of the toy shop.
| Photo Credit: K. Bhagya Prakash

The government’s steps such as mandatory quality norms and increase in customs duties have significantly helped the domestic toy players to boost exports and reduce dependence on Chinese imports, Economic Survey said on July 22.

It said that India’s emergence as a toy exporting nation can also be attributed to its integration into the global value chain and zero-duty market access for domestically manufactured toys in critical countries such as the UAE and Australia.

Economic Survey 2023-24 LIVE updates

The industry has long faced challenges in the global trade landscape, consistently being a net importer of toys for many years.

“Rising exports, coupled with declining imports, transformed India from a deficit to a surplus nation in the trade of toys,” it said.

For over a decade, India was heavily relied on China for around 76 per cent of its toy imports.

“India’s import bill for toys from China dropped from USD 214 million in FY’13 to USD 41.6 million in FY’24, leading to a decline in China’s share in India’s toy imports from 94 per cent in FY’13 to 64 per cent in FY’24, indicating India’s competitiveness in the international toy market,” the Survey said.

Economic Survey 2023-24: India’s growth back to pre-COVID trends, 7%-plus growth possible in medium term 

During the period from 2014 to 2020, focused efforts by the government also resulted in the number of manufacturing units doubling.

The measures taken by the government for the toy industry include the formulation of a comprehensive National Action Plan for Toys with 21 specific action points, an increase in basic customs duty on toys, sample testing of each import consignment to curb sub-standard imports, issuance of a Quality Control Order for toys, and support through cluster-based approaches.

Read the full Economic Survey

The government is considering a production linked incentive (PLI) scheme for the sector to further boost the domestic manufacturing.

Toy Association of India senior vice-president and CEO of Noida-based Little Genius Toys Pvt Ltd Naresh Kumar Gautam said that the country’s exports from the sector will further grow in the coming years.

The Survey also said that India has transitioned from an arms importer and found a place in the list of the top 25 arms exporter nations.

The defence industry, including the private sector and Defence Public Sector Undertakings (DPSUs), has made efforts to achieve the highest-ever defence exports.

There has been a rise in the number of export authorisations issued to defence exporters. From 1,414 export authorisations in FY23, the number has increased to 1,507 in FY24.

About 100 domestic companies are exporting a wide range of defence products and equipment such as aircraft like Dornier-228, artillery guns, Brahmos missiles, PINAKA rockets and launchers, radars, simulators, and armoured vehicles.

To give a push to defence exports, the government has taken several policy initiatives over the past ten years.

Export procedures have been simplified and made industry-friendly, with end-to-end online export authorisation curtailing delays and facilitating ease of doing business, the latest Economic Survey said.

On smartphones, it said that India’s domestic production and exports of smartphones have been increasing steadily, with significant changes achieved, especially since the launch of the PLI scheme in 2020.

India also became the world’s sixth-largest smartphone exporter in 2022, from 23rd in 2014.

These exports rose by 42 per cent to USD 15.6 billion in 2023-24.