India fastest
growing economy
1) Indian
economy is set to grow 7.4 per cent and cross the
$2.1-trillion mark this year against 6.9 per cent in 2013-14.
2) India grew
7.5 per cent in the October-December quarter overtaking China’s 7.3 per cent growth
in the same quarter, to become the fastest growing major economy in the world.
3) The smart
economic pick-up is largely on the back of robust manufacturing sector
performance and a surge in public expenditure.
4) Capital
formation, an indicator for the investment growth in the economy, dropped to
29.8 per cent during April-December 2014 from 30.7 per cent in April-December
2013.
5) The
projection is based on new way of calculating gross domestic product (GDP). The
methodology is consistent with global norms. The government can immediately use
these numbers for policy-making.
New methodology for
calculation of GDP
1)
The new formula takes into account
market prices paid by consumers. So far, the domestic GDP was calculated at
basic cost which took into account prices of products received by producers.
2) The
latest formula is in line with international practice -- calculated by adding
GDP at basic cost and indirect taxes (minus subsidies). The formula changed the
way it measures GDP from factor cost to gross value added
3) Data
for the new GDP series will now be collected from 5 lakh companies against 2,500
companies earlier.
4) Under-represented
and informal sectors, items such as smartphones and LED television sets will
now be taken into account to calculate GDP.
5) It
has also included sectors such as transport, communication, banking and insurance
along with performance of the corporate sector while estimating manufacturing
growth.
6) The
revision does not alter the size of India's economy i.e. USD 1.8 trillion nor will
it alter key ratios such as fiscal deficit, CAD etc.
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Fast-tracking disputes resolution
1) Law Commission
of India (LCI) in its recent 253rd Report has recommended reforms that can
support economic growth from a legal perspective.
2) These
recommendations are aimed to ensure disposal of cases expeditiously, fairly,
and at reasonable cost.
3) The LCI has
recommended the establishment of a commercial division
in the High Courts to ensure speedy disposal of high-value commercial
suits.
4) It has
proposed a bill, titled The Commercial Division and
Commercial Appellate Division of High Courts and Commercial Courts Bill, 2015.
5) The report
has also proposed substantive procedural changes
in the form of amendments to the Civil Procedure Code, 1908.
6) The bill
will define ‘commercial disputes’ so as to include ordinary transactions of
merchants, bankers, financiers, joint ventures, partnerships, insurance
companies and so on.
7) Commercial courts
will have jurisdiction to hear only those disputes valued at Rs.1 crore or more.
8) A commercial appellate division will hear appeals on the
orders and decrees of the commercial courts.
9) The Chief
Justice will nominate judges with expertise and experience in commercial
matters to the commercial and appellate courts.
10) All pending
commercial disputes beyond the specified value will be transferred to the
commercial division.
11) This benefits not only the litigant but other potential litigants
[especially those engaged in trade and commerce] are also advantaged by the
reduction in backlog caused by the quick resolution of commercial disputes. In
turn, this will further economic growth and increase foreign investment.
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E-tailing to grow manifold in next five years
1) A report
‘Think India. Think Retail’ by Knight Frank, a global property consultancy, and
Retailers Association of India (RAI) expects the e-tailing sector to jump by more
than five times across major cities (seven cities include New Delhi NCR,
Mumbai, Kolkata, Pune, Hyderabad, Chennai and Bengaluru) in the next five years.
2) Total
retail spending in the top seven cities is projected to more than double to
Rs.7.65 lakh crore ($127.5 billion) in 2019 from Rs.3.59 lakh crore ($59.8
billion) in 2014, the share of e-tail is expected to grow to 11 per cent in 2019 from 2 per cent in 2014.
3) The sector
will see a staggering compound annual growth rate (CAGR)
of 64 per cent.
4) The growth
of e-tail will correspond with a decline in the share of brick and mortar modern
retail as well as non-modern retail.
5) Brick and
mortar modern retail’s share is expected to decline to 13 per cent in 2019 from
17 per cent in 2014, while non-modern retail will decline from 81 per cent to
76 per cent over the same period.
6) The
requirement for brick and mortar modern retail in India is expected to increase
to 92.1 million sq. ft in 2019 from 70.3 million sq. ft. in 2014.
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