Production Linked Incentive schemes (PLI)

Why in News

On 7th April 2021 the Union Cabinet approved two Production Linked Incentive schemes (PLI) for white goods and high-efficiency solar photovoltaic modules.

Key Points

  • This scheme would extend an incentive of 4-6% on incremental sales of goods made in India for five years.
  • The scheme was estimated to lead to incremental investment of Rs 7,920 crore over five years and lead to production worth Rs 1.68 lakh crore.
  • The Union Government also approved a proposal of high efficiency solar PV modules.
  • The National Programe on High-efficiency Solar PV Modules will reduce import dependence in a strategic sector.
  • This scheme is expected to lead to 10,000MW of additional capacity of solar PV plants.

Production Linked Incentive schemes (PLI)

  • In March 2020 the Union Government introduced Production Linked Incentive schemes (PLI).
  • Its aims to give companies incentives on incremental sales from products manufactured in domestic units.
  • The main reason behind this scheme is to boost domestic manufacturing and cut down on import bills.
  • It also aims to encourage local companies to set up or expand existing manufacturing units.
  • The scheme has been rolled out for mobile and allied equipment as well as pharmaceutical ingredients and medical devices manufacturing. These sectors are labor intensive and are likely, and the hope is that they would create new jobs for the ballooning employable workforce of India.
  • It is one more step towards ‘Aatmanirbhar Bharat’.

White Goods

  • It is the large electrical goods used domestically such as refrigerators and washing machines, typically white in color.

Photovoltaic cells 

  • Photovoltaic cellsare connected electrically in series and/or parallel circuits to produce higher voltages, currents and power levels.
  • Photovoltaic modulesconsist of PV cell circuits sealed in an environmentally protective laminate, and are the fundamental building blocks of PV

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Economic Weaker Section (EWS)

Why in News

On 7th April 2021 the Rajasthan government has approved the proposal of age relaxation to the Economic Weaker Section (EWS).

Key Points

  • The age relaxation to the EWS is similar to other reserved classes for appointment to State services.
  • Candidates in this category, who have crossed their maximum age limit prescribed for appointment in the State services, will get benefit of age relaxation like other reserved category.
  • The changes in age relaxation of EWS includes:
  • The male candidates of EWS category will benefit by 5-years age relaxation in the maximum age limit.
  • The female candidates of EWS category will benefit by 10-years age relation in the maximum age limit.

Economic Weaker Section (EWS)

  • Under 103rd (One Hundred and Third Amendment) Act, 2019 Economic Weaker Section (EWS) was introduced.
  • This act amended Articles 15(6) and 16(6) of the Indian Constitution.
  • It introduces 10% reservation for Economically Weaker Sections (EWS) of society for admission to Central Government-run educational institutions and private educational institutions (except for minority educational institutions), and for employment in Central Government jobs.
  • Candidate who are unable for this category is:
  • Person whose annual gross household income of up to 8 lakh($11,000).
  • Families that own over 5 acres of agricultural land.
  • A house over 1,000 square feet.
  • A plot of over 100-yards in a notified municipal area or over a 200-yards plot in a non-notified municipal area cannot avail the reservation.
  • Persons belonging to communities that already have reservations such as Scheduled Castes, Scheduled Tribesand the “creamy layer” of Other Backward Classes are also not eligible for reservation under this quota.

Difference between EWS and OBC reservations

  • The OBC reservations are for the non-creamy layer section of the Other Backward Classes section whereas EWS is for that section of the ‘General’ classes (not covered under OBC, SC or ST) whose family income is below Rs. 8 lakhs.
  • For OBC, a 27% reservation is given whereas for EWS a 10% reservation in seats is provided.
  • Another difference between EWS and OBC reservations is that in determining the family income for reservations, in the case of OBC candidates, the income of the spouse is not included. In contrast, it is included in the case of EWS reservation.

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Van-Dhan Vikas Yojana

Why in News

Recently, the ‘Mechanism for Marketing of Minor Forest Produce (MFP) through Minimum Support Price (MSP) & Development of Value Chain for MFP’ Scheme has emerged as a major source of employment for local tribal is the success of VDVK Adivasi Eakatmik Samajik Sanstha, Shahapur.

VDVK Adivasi Eakatmik Samajik Sanstha

  • It is located at Shahpur, at the mountain ranges of the Western Ghats.
  • It is a perfect example of tribal entrepreneurship.
  • It demonstrates how cluster development and value addition can help the tribal members earn significantly higher income.

Van-Dhan Vikas Yojana

  • It was launched on 14th April, 2018 is an initiative under the Ministry of Tribal Affairs and TRIFED.
  • It seeks to improve tribal incomes through value addition of tribal products.
  • At the Central Level, Ministry of Tribal Affairs act as a nodal agency, TRIFED as Nodal Agency at the National Level and at State level, the State Nodal Agency for MFPs and the District collectors are envisaged to play a pivot role in scheme implementation at grass-root level.
  • The establishment of “Van Dhan Vikas Kendra” is for providing skill upgradation and capacity building training and setting up of primary processing and value addition facility.

Significance of Van-Dhan Vikas Yojana

  • It will be important milestone in economic development of tribal.
  • Under this scheme, the tribal will be trained on sustainable harvesting, collection, primary processing, and value addition.
  • It help the tribal to utilize their natural resources in the best possible way providing them with a sustainable livelihood based on Minor Forest Produce from the MFP-rich areas.

MFP (Minor Forest Produce)

  • ‘Minor Forest Produce (MFP)‘ is the all non-timber forest produce of plant origin and will include bamboo, canes, fodder, leaves, gums, waxes, dyes, resins and many forms of food including nuts, wild fruits, Honey, Lac, Tusser etc.
  • It provides both subsistence and cash income for people who live in or near forests.
  • It  form a major portion of their food, fruits, medicines and other consumption items and also provide cash income through sale.
  • The Minor Forest Produce has significant economic and social value for the forest dwellers as an estimated 100 Million people derive their source of livelihood from the collection and marketing of Minor Forest Produce (Report of the National Committee on Forest Rights Act, 2011).

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Anamaya

Why in News

Recently, the Union Minister of Health and Family Welfare launched Anamaya, the Tribal Health Collaborative.

About Anamaya

·       The Anamaya is a multi-stakeholder initiative of Tribal Affairs Ministry supported by Piramal Foundation and Bill and Melinda Gates Foundation (BMGF).

·       It is an initiative of the Government agencies and organizations to enhance the health and nutrition status of the tribal communities of India.

·       It is a unique initiative bringing together governments, philanthropists, national and international foundations, NGOs to end all preventable deaths among the tribal communities of India.

·       It aims to build a sustainable, high-performing health eco-system to address the key health challenges faced by the tribal population of India.

Significance of Anamaya

·       It is launched to provide secondary and tertiary healthcare to the most marginalized people.

·       This collaboration between Government and Non-Government agencies will help to address health and nutrition challenges facing by the Tribal people.


GS PAPER III

Monetary Policy Committee (MPC)

Why in News

The Monetary Policy Committee (MPC) of RBI keeps the policy repo rate unchanged and decided to continue with the earlier rates.

Key Points

  • The Committee decided to continue with the accommodative stance as long as necessary to sustain growth on a durable basis.
  • The Committee also decided to continue to mitigate the impact of COVID-19 on the economy while ensuring the inflation remains within targets the going forward.
  • They observed the economic prospects for 2021-22 which had strengthened with the progress of vaccination.
  • The MPC of RBI decided to retain the accommodative policy stance till the prospects of sustained recovery were well secured.
  • Objective to remain policy repo rate unchanged is:
  • To strengthen the bedrock of macroeconomic stability that has anchored India’s revival from the pandemic.
  • It also helps stakeholders in taking efficient spending decisions over longer horizons and improving the investment climate.
  • RBI is optimistic about a pick-up in demand and expansion of business activity in 2021.
  • Rural Demand remains buoyant and record agricultural production in 2020-21 bodes well for its alliance
  • Urban demand has gained traction and should get a fillip with the ongoing vaccination drive.
  • The RBI decided to put a place secondary market G-Sec acquisition programme of G-SAP 1.0.
  • The central bank would commit upfront to a specific amount of Open Market purchases of Government securities with a view to enabling a stable and orderly evolution of the yield curve amid comfortable liquidity condition.

Monetary Policy Committee (MPC)

  • It is the committee constituted by the RBI under the Reserve Bank of India Act, 1934 on 27th June 2016  as an initiative to bring more transparency and accountability in fixing the Monetary Policy of India which led by the Governor of India.
  • Objective behind its formation was the mission of fixing the benchmark policy interest rate (repo rate) to restrain inflation within the particular target level. 
  • It is a six-member committee consisting: Governor as the Chairperson of committee, Deputy Governor of the Bank In-charge of MPC, Executive director of the Bank in charge of monetary policy, member of Prime Minister economic advisory council, senior advisor at the National Council for Applied Economic Research and finance and accounting professor.

Economic Terms

  • Bank Rate: It is also known as Discount rate which charges on the loans by the central banks and advances to the commercial banks. Bank Rate for 2021 is 4%.
  • Repo Rate: It is the rate at which Reserve Bank of India lends money to the commercial banks in India. Repo Rate for 2021 is 4%.
  • Reverse Repo Rate: It is the rate at which Reserve Bank of India borrows money from the commercial banks in the country. It remains unchanged i.e., 3.5%.

Reserve Bank of India

  • The Reserve Bank of India is India’s central bank and regulatory body under the jurisdiction of Ministry of Finance, Government of India.
  • The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934.
  • The Central Office of the Reserve Bank was initially established in Kolkata but was permanently moved to Mumbai in 1937.
  • Though originally privately owned, since nationalization in 1949, the Reserve Bank is fully owned by the Government of India.
  • It has 27 regional offices, most of them in state capitals and 04 Sub-offices.
  • Its fourzonal offices of RBI at Mumbai, Kolkata, Delhi and Chennai.