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Economy

Economy: Report and Indices

Report and Indices:

Released by

Important Points

Report titled “Shared Responsibility, Global Solidarity: Responding to socio-economic impacts of Covid-19”.

United Nations Secretary General

  • International Labour Organization (ILO): five to 25 million jobs eradication, loss of $860 billion to $3.4 trillion in labour income.
  • UNCTAD: 30 to 40 % reduction in global FDI flows.
  • World Tourism Organization (UNWTO): 20–30 % decline in international tourism.
  • UNESCO: 1.5 billion students out of school due to CoViD impact.

ILO Monitor: COVID-19 and the world of work. 

International Labour Organisation (ILO)

  • 81 % of employers and 66 % of workers are residing in countries with the lockdown.
  • Global working hours: declined by 4.5 %, means a loss of 130 million full-time jobs

Enterprises at risk:

  • Hotel, food services, manufacturing, wholesale and retail trade, and real estate and business activities.
  • They contribute 30 % of national GDP.
  • 436 million enterprises worldwide.

Informal economy:

  • 2 billion people worldwide work, 1.6 bn affected.
  • Women (42%) are overrepresented in high-risk sectors.
  • The income of informal workers will decline by 60 % globally

TRADE AND DEVELOPMENT

REPORT: Great Lockdown to the Great Meltdown

UNCTAD

  • High and rising indebtedness of countries will lead to sovereign defaults.
  • Public external debt: $3.4 trillion by 2021
  • Total debt in 2018: 190 % of their combined GDP of developing countries, highest ever.
  • Private debt: 130% of GDP.
  • Servicing public debt: Cost 10% of revenue to countries

Global efforts to relieve developing countries’ debt burdens:

  • IMF: Cancellation of debt repayments (around $215 million) for 25 poorest developing economies for 6 months
  • G20: Debt Service Suspension Initiative for Poorest Countries for $20 billion
  • IMF & the World Bank: enhanced lending facilities for developing country

“Global Energy Review 2020: The impacts of the Covid-19 crisis on global energy demand and CO2 emissions.”

International Energy Agency (IEA)

  • 54% of the global population, representing almost 60% of global GDP, were subject to complete or partial lockdowns.
  • Tells about energy demand and energy-related emissions for 2020 and impact across all major fuels.
  • Global energy decline in demand: Global- 4 % and India-30%.
  • CO2 emissions reduction: Largest ever, six time more than a reduction in 2009 after the global financial crisis 2008.
  • Oil price: fell sharply, West Texas Intermediate hitting negative prices for the first time in history as excess storage became scarce.
  • Electricity: global demand: decline by 5% in 2020, largest ever after great depression 1930s.

Women, Business & The Law Report 2020 

World Bank

  • Women, Business and the Law is a World Bank Group project collecting unique data on the laws and regulations that restrict women’s economic opportunities.
  • It measures global progress toward gender equality on access to economic opportunities between men and women in 190 economies across 8 parameters:
    • Workplace
    • Pay
    • Mobility
    • Marriage
    • Parenthood
    • Pensions
    • Assets
    • Entrepreneurship
  • Only eight economies scored a perfect 100 —Belgium, Canada, Denmark, France, Iceland, Latvia, Luxembourg, and Sweden. These countries have ensured equal legal standing to men and women on all the eight indicators of the index.
  • No economy in ‘East Asia and the Pacific’, ‘Europe and Central Asia’, or ‘Latin America and the Caribbean’ were among top reformers.
  • No country can achieve its full potential without the equal participation of women and men.
  • No country can achieve its full potential without the equal participation of women and men.
  • Top:  Belgium, Denmark, France
  • BRICS: South Africa tops, India second from bottom.
  • India: 117th /190
  • India gained 4 per cent year-on-year with a score of 74.4 out of 100.
  • Maharashtra’s reform to eliminate restrictions on women’s ability to work in jobs deemed dangerouswas appreciated by the report.
  • No country can achieve its full potential without the equal participation of women and men.

World Economic Situation and Prospects Report

 

United Nations Department of Economic and Social Affairs (UN/DESA), United Nations Conference on Trade and Development (UNCTAD)

  • The World Economic Situation and Prospects is an annual UN flagship publication on the state of the world economy, viewed through the lens of the 2030 Agenda for Sustainable Development.
  • Global growth slowed to a 10-year low of 2.3% in 2019 and projected to grow at 2.7% in 2021.
  • Deepening political polarization and increasing scepticism about the benefits of multilateralism make economic risks strong and aggravated.

India:

  • In India, more than 40 per cent of youth are not in education, employment or training.
  • Report has pegged the India GDP growth estimate at 6.6 %.
  • The report also indicated that India may be among the few countries where the per capita GDP growth rate could exceed 4 % in 2020.
  • India’s macroeconomic fundamentals are strong as ever and recovery in growth is expected in the next fiscal.
  • World’s fastest-growing region: East Asia remains the largest contributor to global growth.
  • Brazil, India, Mexico, Russia and Turkey are expected to gain economic momentum in 2020.

Shift in Global economic decision power: There is the possible shift in global economic decision-making power from the EU, the US and other developed countries towards China, India and other emerging countries.

India Skills Report 2020 

Wheebox and CII in collaboration with UNDP, AICTE and Wheebox

 

It aims to provide an overview of the supply of talent and the demand from industry.

There is an improvement in the availability of employable talent at around 47 per cent in 2019up from 33.9 per cent in 2014.

Employability of youth: Stagnant for the past three years, only 46.21 % youth employable in 2019

Female employability: @47%,  better than male Gig workers: Rising role of gigs in the economy at. 13% share in the overall hiring.

Top 5 skills: Domain knowledge, adaptability to the environment, learning agility and positive attitude and interpersonal skills.

Most employable course: MBA

Performance of states:

Top states in terms of employability: Maharashtra > Tamil Nadu > Uttar Pradesh.

Top employable cities: Mumbai >Hyderabad

Human Development Report 2019

United Nations Development Programme (UNDP) 

  • The HDI ranks countries on the basis of three-parameter:
  1. Life expectancy
  2. Education
  3. Per capita income
  • Top: Norway > Switzerland > Ireland
  • India: ranks 129 out of 189 countries in 2019, ranked 130- in 2018
  • India’s neighbour: Ahead:  Sri Lanka (71) and China (85), while others were behind India in ranking.
  • Improvement in India, between 1990 and 2018:

Parameters

Increased

Per capita incomes

by over 250 %

Life expectancy at birth

by 11.6 years

Mean years of schooling

by 3.5 years

Expected years of schooling

by 4.7 years

  • Despite lifting 271 million people out of poverty between 2005-15, India still remains home to 28 per cent of the world's poor. South Asia constitutes 41% of the world’s poor.
  • Gender Income Inequality: Women earn about a fifth of the income earned by men in India, a ratio which is near to 0.5 for the world.
  • South Asia was the fastest-growing region in human development progress at 46% followed by East Asia and the Pacific at 43%.
  • The focus of the 2019 Report is on ‘Inequality in Human Development’.
  • Gender Development Index: India is only marginally better than the South Asian average on the GDI (0.829 vs 0.828)
  • Gender Inequality Index: India ranks at a low 122 (of 162) countries on the 2018 GII.

World Energy Outlook 2019

International Energy Agency (IEA)

  • The World Energy Outlook series is a leading source of strategic insight on the future of energy and energy-related emissions, providing detailed scenarios that map out the consequences of different energy policy and investment choices.
  • There are “profound shifts” already underway in the global energy system, yet the world’s CO2 emissions are set to continue rising for decades.
  • The share of renewable generation could nearly double, from 26 per cent today to 44 per cent to 2040, surpassing coal-based generation in 2026.
  • Energy demand in the world is growing at a rate of 2% per year.
  • Three alternatives “futures”: by WEO
    • Stated Policies Scenario (STEPS): A direction in which today’s policy ambitions would take the energy sector.
    • Sustainable Development Scenario (SDS): A path fully aligned with the Paris Agreement by holding the rise in global temperatures to “well below 2°C and pursuing efforts to limit to 1.5°C”,  
    • Current Policies Scenario: A baseline picture of how global energy markets would evolve if no changes to existing policies and measures.

Ease of Doing Business Report, 2020

World Bank

  • It provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level.
  • It analyses regulation that encourages efficiency and supports freedom to do business.
  • EODB report measures the performance of countries across 10 different parameters namely.
  1. Starting a Business,
  2. Dealing with Construction permits,
  3. Electricity availability,
  4. Property registration,
  5. Credit availability,
  6. Protecting minority Investors,
  7. Paying Taxes,
  8. Trading across borders,
  9. Contracts enforcement, and
  10. Resolving Insolvency.
  • Additional Parameters: This year two more parameters were added: employing workers and contracting with the government but these are not included in the score and rankings.
  • Top: New Zealand, Bottom: Somalia 
  • Top 10 improvers are Saudi Arabia, Jordan, Togo, Bahrain, Tajikistan, Pakistan, Kuwait, China, India, and Nigeria.
  • India has made a substantial leap upward, raising its ease of doing business ranking from 130 in 2016 to 63 in the 2020 survey.

Indicator

India’s rank

Construction Permits

Rank-27

Trading across Borders

Rank-68

Resolving Insolvency

Rank-52

Starting a Business

Rank-136

Getting Credit

Rank 22

Getting Electricity

Rank-22

  • India, for the third year in a row, is among the 10 economies that improved the most on the ease of doing business.
  • The World Bank will now include Kolkata and Bengaluru, besides Delhi and Mumbai, for preparing ease of doing business report, in order to provide a holistic picture of the business environment of the country.
  • The country lags in key metrics such as “Starting a business (Rank-136)’, “Enforcing contracts (Rank- 163)” and “Registering property (Rank- 154)”.
  • It takes 58 days and costs on average 7.8% of a property’s value to register it, longer and at a greater cost than among OECD high-income economies.
  • It takes 1,445 days for a company to resolve a commercial dispute through a local first-instance court, almost three times the average time in OECD high-income economies.

20th Livestock Census 

Department of Animal Husbandry & Dairying

  • It has been conducted periodically since 1919-20. This census covers all domesticated animals and its headcounts.
  • The last livestock census was conducted in 2012.
  • The first-time initiative has been taken to digitise household-level data through online transmission from the field.
  • The total Livestock population is 535.78 million in the country showing an increase of 4.6% over Livestock Census-2012.
  • West Bengal observed the highest increase of 23%, followed by Telangana (22%).
  • The total number of cattle in the country has shown an increase of 0.8 %.
  • State-wise: Uttar Pradesh (UP) has recorded the highest livestock population in 2019
  • A decline of 6 % is observed in the total Indigenous/ Non-descript cattle population
  • Share in agricultural GDP: Livestock products comprised 32 per cent of the total value of agriculture and allied activities in 2006-07.
  • Livestock rearing at the household level is largely a women-led activity.
  • There is a sharp decline in the number of horses, mules, donkeys and camels which clearly shows their reducing importance in transportation in small towns for short distances.

World Economic Outlook, 2019 

IMF

  • IMF revised estimate for India’s growth this year to 6.1% from 7% projected.
  • Global growth is forecast at 3.0 per cent for 2019, its lowest level since 2008–09.
  • India retains its rank as the world’s fastest-growing major economy, tying with China.
  • China’s economic growth will slow down to 5.8 per cent next year.

Global Wealth Report 2019 

 

 

Credit Suisse Group

 

  • The 10th edition of the annual Global Wealth Report was released by the Credit Suisse Group, a Switzerland-based multinational investment bank.
  • It tracks both the growth and distribution of wealth:
  • In terms of the numbers of millionaires and billionaires and
  • The status of inequality around the world.
  • China has overtaken the United States to become the country with the largest number of people in the top 10% of the world's most wealthy people.
  • 0.9% of the world’s adult population –are accounting for almost 44% of the world’s total wealth.
  • The bottom half of wealth holders collectively accounted for less than 1% of total global wealth.
  • The richest 10% own 82% of global wealth and the top 1% alone own 45%.
  • India remains one of the fastest wealth creators in the world, with household wealth in dollar terms growing faster than any other region.
  • Wealth per Indian adult is at $14,569 ( ?10.31 lakh as on 21 October). However, the average number is skewed heavily by a few wealthy individuals.
  • India accounts for 2% of the world’s millionaires.

Trade and Development Report   

United Nations Conference on Trade and Development (UNCTAD)

  • The Report maps a global slowdown with the world growth rate dropping from 3 per cent in 2018 to a projected 2.3 for this year.
  • The report has recommended for the adoption of a unitary taxation system for Multinational Enterprises (MNEs)
  • This unitary taxation system would simplify the global taxation system and is expected to increase tax revenues for all countries.
  • India’s economy to be the world’s 2nd fastest growing at 6%.
  • The report says that we can meet the UN Sustainable Development Goals (SDGs) by 2030, but only if we find the political will to change the rules of the international economic game and adopt policies that scale up the resources needed for a big investment push led by the public sector and set the global economy on an expansionary course.
  • The global economy does not serve all people equally. Under the current configuration of policies, rules, market dynamics and corporate power, economic gaps are likely to increase and environmental degradation intensifies.
  • The report recasts the Depression era’s signature policy on a global scale – a Global Green New Deal – as the right policy framework.
  • Global Green New Deal was commissioned by UNEP in response to the multiple global crises of 2008 related to fuel, food and financial.

Travel and Tourism Competitive Report

World Economic Forum

  • World Economic Forum (WEF) released the Travel and Tourism Competitive Report, subtitled Travel and Tourism at a tipping point.
  • It takes into account of four indicators:
    • Enabling environment
    • Travel and tourism policy
    • Infrastructure
    • Natural and cultural rankings
  • India has moved up six places to rank 34th, up six places from 2017. India was ranked 40th in 2017.
  • India’s highest improvement was in enabling environment, by 10 places to 98.
  • Spain, France, Germany, Japan and the United States are the world’s most travel-ready nations.
  • Japan remains Asia's most competitive travel and tourism economy, ranking 4th globally.
  • As per the report, China, Mexico, Malaysia, Thailand, Brazil and India -- which are not high-income economies but rank in the top 35 in the overall list -- stand out in the Cultural Resources and Business Travel Pillar through their combination of the rich natural and cultural resources and strong price competitiveness.
  • India, which accounts for the majority of South Asia's T&T (travel and tourism) GDP, remains the sub-region's most competitive T&T economy.

Jalan Committee Report 

 

  • The Reserve Bank of India (RBI) decided to transfer a surplus of Rs 1.76 lakh crore to the Government of India exchequer.
  • Reserve Bank of India (RBI) had constituted an “Expert Committee to Review the Extant Economic Capital Framework of the RBI” under the Chairmanship of Dr. Bimal Jalan.
  • Economic capital framework refers to the risk capital required by the central bank while taking into account different risks.
  • The panel recommended a clear distinction between the two components of the economic capital of RBI i.e. Realized equity and Revaluation balances.
    • Revaluation reserves comprise of periodic marked-to-market unrealized/notional gains/losses in values of foreign currencies and gold, foreign securities and rupee securities, and a contingency fund.
    • Realized equity, which is a form of a contingency fund for meeting all risks/losses primarily built up from retained earnings. It is also called the Contingent Risk Buffer (CBR).
  • As per the committee, the surplus distribution policy targets having the capital reserves buffer in the range of 5.5-6.5% of the entire balance sheet.
  • RBI has decided to set the realized equity level at 5.5% of the balance sheet while transferring the remaining excess reserves worth Rs  52,637 crores to the government. 

Impact of energy efficiency measures for the year 2018-19

Ministry of Power and New & Renewable Energy and Bureau of Energy Efficiency

  • Objective:  To evaluate the performance and impact of all the key energy efficiency programmes in India, in terms of total energy saved and the related reduction in CO2 emissions.
  • Assessment: The resultant impact of current schemes at national and state level for the FY 2018-19 and compares the result with a situation where the same schemes were not implemented.
  • Electricity Saving: Implementation of various energy efficiency schemes have led to total electricity saving of 9.39% of the net electricity consumption.
  • Energy Saving: Reduced energy intensity by 20% compared to 2005 levels. Total energy savings achieved in the energy-consuming sectors is 2.84% of the net total energy consumption.
  • Emission Reduction: These efforts have also contributed in reducing 151.74 Million Tonnes of CO2 emissions, whereas last year this number was 108 Million Tonnes of CO2.
  • Saving of money: Overall energy efficiency measures have translated into savings worth INR 89,000 crores.

 

Report on National Infrastructure Pipeline

Atanu Chakraborty committee

The task force under economic affairs secretary Atanu Chakraborty submitted its final report on the “national infrastructure pipeline” (NIP) to finance minister.

Important recommendations and observations:

  • The report is projecting total infrastructure investment of Rs 111 lakh crore during the period FY 2020-25.
  • Infrastructure trends: The report identifies and highlights recent infrastructure trends in India as well as global in all sectors of infrastructure.
  • Reforms: It also identifies and highlights a set of reforms to scale up and propel infrastructure investments in various sectors throughout the country. 
  • Ways and means of financing: The report also has suggested ways and means of financing the NIP through deepening Corporate Bond markets, including those of Municipal Bonds, setting up Development Financial Institutions for the infrastructure sector, accelerating Monetisation of Infrastructure Assets, Land monetisation, etc.
  • Funding Pattern: The Centre (39%) and States (40%) are expected to have almost equal share in implementing the NIP in India, followed by the private sector (21%).
  • Projects: Out of the total expected capital expenditure of Rs. 111 lakh crore, projects worth Rs 44 lakh crore (40% of NIP) are under implementation, projects worth Rs 33 lakh crore (30%) are at conceptual stage and projects worth Rs 22 lakh crore (20%) are under development.
  • Energy, roads, railways and urban projects are estimated to account for the bulk of projects (around 70%).

The Task Force has recommended that three Committees be setup:

  • A Committee to monitor NIP progress and eliminate delays;
  • A Steering Committee in each Infrastructure ministry level for following up implementation; and
  • A Steering Committee in DEA for raising financial resources for the NIP.

Global Energy Review 2020 

Int.Energy Agency

  • International Energy Agency released Global Energy Review 2020 which includes impacts of the Covid-19 crisis on global energy demand and CO2 emissions.
  • The global energy demand is projected to fall 6% in 2020, the steepest decline in percentage terms in 70 years and the largest ever in absolute terms, International Energy Agency (IEA) said.
  • All fuels except renewables are set to experience their greatest contractions in demand for decades.
  • This global decline of 6 % will be equivalent to the combined energy demand of France, Germany, Italy and the United Kingdom in 2019. 
  • The projected 6% decline would be more than seven times the impact of the 2008 financial crisis on global energy demand.
  • Global coal demand: was hit the hardest, falling by almost 8% compared with the first quarter of 2019. Three reasons converged to explain this drop.
    1. China – a coal-based economy – was the country the hardest hit by covid-19 in the first quarter
    2. Cheap gas and continued growth in renewables   
    3. Mild weather also capped coal use.
  • Oil demand: It was down nearly 5% in the first quarter. Global road transport activity was almost 50% below the 2019 average and aviation 60% below.
  • Gas demand: It has been reduced by around 2%. Gas-based economies were not strongly affected in the first quarter of 2020.
  • Renewables were the only source that posted a growth in demand, driven by larger installed capacity and priority dispatch.
  • Electricity demand has been significantly reduced as a result of lockdown measures. It has been depressed by 20% or more.
  • Impact of Covid-19 on energy demand: The impact of Covid-19 on energy demand in 2020 would be more than seven times larger than the impact of the 2008 financial crisis on global energy demand.
  • Covid-19 and CO2 Emissions: Global CO2 emissions are expected to decline by 8% would be the largest ever, six times larger than the previous record reduction of caused by the global financial crisis and twice as large as the combined total of all previous reductions since the end of World War II.

Global Economic Prospects (GEP) report

World Bank 

  • The World Bank released part of its Global Economic Prospects (GEP) June 2020 report. 
  • As per the report, Emerging Market and Developing Economies (EMDEs) are especially vulnerable due to the Covid-19 pandemic.
  • Emerging Market and Developing Economies (EMDEs): These countries are expected to have a 3-8% output loss in the short term. But in the long term, these countries will experience a drop in the level of output with a lowering of potential output growth.
  • Spillover Effect over EMDEs: EMDEs are also expected to witness the spillover effects of the U.S., the Euro Area, and China, which represent almost half of global output. As these countries are unlikely to return to pre-pandemic levels of output before the end of 2021.
  • Impact on Global Poverty: Around 60 million people could be pushed into extreme poverty in 2020 due to CoVID-19.
  • Issue of Loan Repayments:
    • G20 countries and commercial creditors had agreed to freeze loan repayments for low-income countries (starting 1st May 2020) till year-end. But it has not been implemented yet.
    • The delay by commercial creditors to freeze loan repayment is deepening poverty in the debtor country.
    • Most creditors are in advanced economies like the U.S., Europe, Japan, China, and the Gulf.
  • Energy-Exporting Emerging Market and Developing Economies: Theses economies are facing a dual problem of the public health crisis with strained fiscal positions due to the recent collapse in oil revenues.

Periodic Labour Force Survey report

Ministry of Statistics and Program Implementation

  • From 2017 onwards, the Periodic Labour Force Survey (PLFS) was launched by the NSSO. It aimed to provide quarterly employment and unemployment data.
  • Labour Force Participation Rate (LFPR): LFPR is defined as the percentage of persons in the labour force (i.e. working or seeking or available for work) in the population.
  • Worker Population Ratio (WPR): WPR is defined as the percentage of employed persons in the population.
  • Unemployment Rate (UR): The unemployment rate is the percentage of people without work within the labour force.

The objective of PLFS:

  • To estimate the key employment and unemployment indicators (viz. Worker Population Ratio, Labour Force Participation Rate, Unemployment Rate) 
  • Unemployment rate: According to the latest Periodic Labour Force Survey (PLFS), in India’s unemployment rate has been improved from the 45-year high of 6.1% in 2017-18 to 5.8% in 2018-19.
  • Labour force participation: Labour force participation rate has improved slightly, from 36.9% in 2017-18 to 37.5% in 2018-19.
  • The labour force is defined as people who are working or seeking work or available for work. Its participation rate is the percentage of the labour force in the population.
  • There is a dip across all categories according to the report, though women and rural workers showed the most improvement.
  • Women’s unemployment: It fell from 5.7% to 5.2%, while male unemployment fell from 6.2% to 6%.
  • In 2018-19, urban unemployment was 7.7% a marginal drop from 7.8% in 2017-18, while rural unemployment fell from 5.3% to 5%.

Asian Development Outlook

Asian Development Bank

  • Asian Development Bank (ADB) has released the Asian Development Outlook (ADO).
  • As per the report, the Indian economy is expected to contract by 4% during the current financial year (2020-21).

Reasons for the contraction of the Indian economy:

  • Poor economic activity:  After the introduction of lockdowns in late March 2020, economic activity in South Asia came to standstill. The lockdown also disrupted the supply chain.
  • The Gross Domestic Product (GDP): GDP slowed to 3.1% in the last quarter (Jan-March) of the financial year 2019-20. It is the slowest since early 2003.
  • The overall economic growth slowed to 4.2% in 2019-20 as both exports and investment started to contract.
  • The Purchasing Managers’ Index (PMI) fell to all-time lows in April 2020. PMI is an indicator of business activity in the manufacturing and services sectors.
  • Migration of workers: Migrant workers have gone home to their villages after losing their jobs in the cities and will be slow to return to cities to work again.

Growth Projections for Developing Asia:

  • Developing Asia refers to a group of over 40 countries, including India, that are members of the ADB. A growth of 0.1% is expected.
  • This is down from the 2.2% forecast in April 2020 and would be the slowest growth for the region since 1961.
  • However, China is expected to record positive growth of 1.8% in 2020-21.

No V-shaped Recovery:

  • Even as lockdowns are slowly eased and select economic activities restart, economies in Asia and the Pacific will continue to feel the blow of the Covid-19 pandemic this year.
  • Despite a higher growth outlook for the region in 2020-21, there will not be a V-shaped recovery.

The World Investment Report 2020

 

United Nations Conference on Trade and Development (UNCTAD).

 

The Report focuses on trends in Foreign Direct Investment (FDI) worldwide, at the regional and country levels, and emerging measures to improve its contribution to development.

Global Scenario:

  • Global FDI flows are forecast to decrease by up to 40% in 2020, from their 2019 value of $1.54 trillion. This would bring global FDI below $1 trillion for the first time since 2005. The FDI is projected to decrease by a further 5% to 10% in 2021.
  • Developing economies are expected to see the biggest fall in FDI because they rely more on investment in Global Value Chain based industries, which have been severely hit due to the Covid-19 pandemic.

India Specific:

  • Largest FDI recipients: India jumped from 12th position in 2018 to 9th position in 2019 among the world’s largest FDI recipients. In 2019, the FDI inflows into India jumped over 20% to $51 billion.
  • According to the report, FDI into India may decline sharply in 2020 because of the impact of the Covid-19 pandemic and the consequent lockdown measures, supply chain disruptions, and economic slowdown.
  • Market investments: The report mentioned that India’s large market will continue to attract market-seeking investments to the country.
  • Digital economy: India’s professional services and the digital economy could see a faster rebound as global venture capital firms and technology companies continue to show interest in India’s market through acquisitions.

INDEX

Financial Secrecy Index

Tax Justice Network (TJN)

  • It ranks countries according to their secrecy and scale of their offshore financial act.
  • A tool for understanding global financial secrecy, tax havens or secrecy jurisdictions.
  • To check how much a country’s legal and financial system allows wealthy individuals and criminals to hide and launder money.
  • Cayman Island ranked first.
  • India: ranked 47/ 133 in 2019, ranked 32 in 2018
  • An estimated $21 to 32 trillion of private financial wealth is located in secrecy jurisdictions (tax havens) around the world.

International Intellectual Property Index 2020

US Chamber of Commerce’s Global Innovation Policy Centre

  • India slipped in ranking but its score increased from 36.04 per cent in 2019 to 38% in 2020.
  • The US, the UK, Sweden- top 3 economies in Intellectual Property Index.
  • India:
    • Rank: 40th /53 in 2020
    • 36th /50 in 2019
  • The index evaluates the IP infrastructure in each economy based on 45 unique indicators.
  • 8 categories of IP protection: patents, copyrights, trademarks, trade secrets, commercialization of IP assets, enforcement, systemic efficiency, and membership and ratification of international treaties.
  • Since the National IPR Policy 2016, India has improved in innovation and increasingly robust IP protection and enforcement.
  • India also continues to score well in the Systemic Efficiency indicator.

State Energy Efficiency Preparedness Index 2019   

Bureau of Energy Efficiency and  Alliance for an Energy-Efficient Economy (AEEE)

  • The index tracks the progress of Energy Efficiency (EE) initiatives in 36 states and union territories based on 97 significant indicators.
  • New indicators: Energy Conservation Building Code (ECBC) 2017, energy efficiency in MSME clusters.
  • This index incorporates qualitative, quantitative and outcome-based indicators to assess energy efficiency initiatives, programs and outcomes in five distinct sectors – buildings, industry, municipalities, transport, agriculture, and DISCOMs.
  • Based on the efforts and achievements of states, it categorises states as
    • ‘Front Runner’,
    • ‘Achiever’,
    • ‘Contender’ and
    • ‘Aspirant’.
  • There isn’t any ‘front runner’ state this year.
  • Top:Haryana, Karnataka and Kerala are in the ‘Achiever’ category. 
  • Bottom: Manipur, Jharkhand, Rajasthan and Jammu and Kashmir.
  • States/UTs are grouped into four groups based on aggregated Total Primary Energy Supply (TPES).

Global Talent Competitiveness Index 

INSEAD in collaboration with Addeco and Google

  • It Measures levels of Global Talent Competitiveness by looking at 70 variables such as ease of hiring, gender earnings gap, and prevalence of training in firms.
  • Compete for talent, their ability to grow, attract and retain talent are the benchmark to judge the performance of countries.
  • Theme 2020: “Global Talent in the Age of Artificial Intelligence”.
  • Top: Switzerland> USA > Singapore
  • BRICS: China (42nd)> Russia> South Africa > India (72nd) > Brazil
  • India: 72nd rank: 2020, 80th in 2019
  • India's GTCI score and GDP per capita are both lower than other BRICS countries Brazil, Russia, China, and South Africa.
  • India’s highest-ranked sub-pillar is employability.

E-Commerce Index 

United Nations Conference on Trade and Development (UNCTAD)

  • India has ranked 73rd out of 152 countries in a Business-to-Consumer (B2C) E-commerce Index 2019, improving its position from 80 in 2018 and 83 in 2017.
  • Eight out of the top 10 spots are held by EU countries. Singapore (3) and Australia (10) are only non-European countries on the top 10 list.
  • Netherlands has topped the index.
  • The Index measures an economy's preparedness to support online shopping (e-commerce).
  • As per the estimate, the Indian e-commerce market is expected to grow to US$ 200 billion by 2026 from US$ 38.5 billion as of now.
  • Much growth of the industry has been triggered by increasing internet and smartphone penetration.
  • E-commerce allows consumers to benefit from greater choices and lower prices,”

LEADS Index   

 

 

Commerce and Industry Ministry along with Deloitte.

 

  • It is a composite indicator to establish the baseline of performance in the logistics sector based on the perception of users and stakeholders at the State level.
  • Top States: Gujarat  > Punjab > Andhra Pradesh
  • Top UTs: Chandigarh > Delhi > Puducherry.
  • Among the hilly Eastern States, Tripura is the top performer.
  • The 2019 edition has expanded its focus to look at both domestic and international trade.
  • Indicators covered in the index are:
    • Quality of Transport & Logistics Infrastructure
    • Quality of services offered by Logistics Service Providers
    • The efficiency of regulatory processes
    • Favourability of the operating environment
    • Ease of arranging logistics at competitive rates
    • Timeliness of cargo delivery
    • Safety/Security of cargo movement
    • Ease of Track & Trace

SARAL Index   

Ministry of New and Renewable Energy

  • MNRE has launched the State Rooftop Solar Attractiveness Index–SARAL.
  • SARAL is the first of its kind index to provide a comprehensive overview of state-level measures adopted to facilitate rooftop solar deployment.
  • It evaluates Indian states based on their attractiveness for rooftop development.
  • SARAL has been designed collaboratively by
    • The Ministry of New and Renewable Energy (MNRE)
    • Shakti Sustainable Energy Foundation (SSEF)
    • Associated Chambers of Commerce and Industry of India (ASSOCHAM) and
    • Ernst & Young (EY).
  • The index aims to objectively assess states based on several parameters critical for establishing strong solar rooftop markets.
  • These parameters belong to five broad categories:
    • Robustness of policy framework
    • Effectiveness of policy support/implementation environment
    • Consumer experience
    • The investment climate for the rooftop solar sector
    • Business ecosystem
  • Karnataka has topped in the SARAL Index. Telangana, Gujarat and Andhra Pradesh have got 2nd, 3rd and 4th rank respectively.
  • Cumulative rooftop solar installation as of March 2019 is 4.37 GW. This has to grow ten-fold so as to achieve the target of 40 GW by 2022.
  • The Ministry of New and Renewable Energy (MNRE) has set a target of 175 GW of renewable energy capacity by 2022, of which 100 GW solar power is to be operational by March 2022, of which 40 GW is expected to come from grid-connected solar rooftops.

Digital Competitive Index 

 

IMD World Competitiveness Center

  • IMD World Digital Competitiveness Ranking measures the capacity and readiness of 63 economies to adopt and explore digital technologies as a key driver for economic transformation in business, government and wider society.
  • To evaluate an economy on Digital Competitiveness, WDCR examines three factors:
  1. Knowledge: the capacity to understand and learn the new technologies;
  2. Technology: the competence to develop new digital innovations;
  3. Future readiness: the preparedness for the coming developments.
  • India rose from 48th place in 2018 to 44th rank this year as the country has improved overall in all factors -- knowledge, technology and future-readiness -- as compared to the previous year's ranking.
  • Top Countries: USA > Singapore > Sweden
  • Largest Jump: China, moving from 30th to 22nd, and Indonesia, from 62nd to 56th.
  • Several Asian economies advanced significantly in the ranking compared to last year. Hong Kong SAR (8th) and the Republic of Korea (10th) entered the top-10 for the first time, while Taiwan and China moved up to 13th and 22nd place.

Energy Transition Index Report 

World Economic Forum

  • Energy transition refers to the global energy sector’s shift from fossil-based systems of energy production and consumption — including oil, natural gas and coal — to renewable energy sources like wind and solar, as well as lithium-ion batteries.
  • Energy Transition Index is a fact-based ranking intended to enable policy-makers and businesses to plot the course for a successful energy transition.
  • The ETI framework consists of two parts i.e. 
    • The current energy system performance and
    • The enabling environment for the energy transition.
  • It is a composite score of 40 indicators which benchmarks 115 countries on the speed and direction of their energy transition and identifying opportunities for improvement.
  • ETI is a part of the World Economic Forum’s Fostering Effective Energy Transition Initiative.
  • Energy Transition Index (ETI) 2020 benchmarks 115 economies on the current performance of their energy systems – across economic development and growth, environmental sustainability, and energy security and access indicators - and their readiness for transition to secure, sustainable, affordable, and inclusive energy systems.

Global Trend:

  • 94 out of 115 economies have made progress since 2015, but environmental sustainability continues to lag.
  • Top: Sweden > Switzerland > Finland
  • G-20: France (8th), UK (7th) are only G20 countries in top 10.
  • WEF said the "emerging centres of demand" such as India (74th) and China (78th) have made consistent efforts to improve the enabling environment, which refers to political commitments, consumer engagement and investment, innovation and infrastructure.
  • The results for 2020 show that 75 per cent of countries have improved their environmental sustainability.
  • US (32th), Canada (28th), Brazil (47th) and Australia (36th) were either stagnant or declining.
  • The fact that only 11 out of 115 countries have made steady improvements in ETI scores since 2015 shows the complexity of energy transition. Argentina, China, India and Italy are among the major countries with consistent annual improvements.

Covid-19 and Energy Transition:

Covid-19 risks cancelling out recent progress in transitioning to clean energy, with unprecedented falls in demand, price volatility and pressure to quickly mitigate socioeconomic costs placing the near-term trajectory of the transition in doubt.

India Specific:

  • India has moved up two positions to rank 74th on a global 'Energy Transition Index' with improvements on all key parameters of economic growth, energy security and environmental sustainability.
  • India is one of the few countries in the world to have made consistent year-on-year progress since 2015.
  • For India, gains have come from a government-mandated renewable energy expansion programme, now extended to 275 GW by 2027.