The Aakhya Weekly #20 | India's aspirational districts greet envoys
The Aakhya Weekly #20 | India's aspirational districts greet envoys
It’s been twenty weeks already! Putting this together has been a labour of love. Thank you for sticking by. We’re taking a week off for Diwali, but will be back the week after that, with a new edition on November 3.
In Focus: Indian Ambassadors visit Indian aspirational districts for global connectivity
On the 18th of October, Indian envoys from around the world visited several Indian states in an attempt to foster direct engagement with state governments, to ensure global connectivity of states across sectors and industries. Over a hundred Indian envoys in various groupings visited 23 states and had discussions with state government officials on a plethora of topics, including the Amrit Sarovar initiative and the One District One Product (ODOP) approach.
One of the largest delegation of envoys visited Uttar Pradesh and met with Chief Minister Yogi Adityanath. The delegation surveyed each of the eight aspirational districts of Uttar Pradesh and appreciated the CM for his investment-friendly policies that have led to positive development outlook for these far-flung districts. This visit was also fruitful for the Uttar Pradesh government from a global investment perspective. The CM invited the visiting delegation to the UP Global Investor Summit, scheduled to take place in February 2023, and also reached out to the visitors for investment opportunities for several projects that are currently underway in the State of Uttar Pradesh.
Given that the ODOP approach was one of the highlights of these visits, in each state the envoys observed different cultural artefacts that were locally produced and also catered to the state’s cultural heritage and identity. For example, in Odisha, Indian Ambassadors to Spain and Guatemala visited handloom clusters at Birabarapur, Abhimanpur, and Manibandha in Cuttack’s Badamba block. In Sikkim, the Indian Ambassador to Hungary suggested how local products could be showcased in embassies abroad and how the right partnerships will help these products reach international markets.
Beyond interacting with the local population in India’s aspirational districts, the envoys also held meetings with Governors and Chief Ministers. The aim of these meetings was to provide suggestions to the state government for improving economic outcomes of the state, and at the same time, for the overall benefit of the local population. For instance, in Nagaland, the visiting envoys suggested ways to create a Special Economic Zone for production of Sekmai, a locally produced liquor, with initiatives directed at better brand building and packaging. They also discussed avenues to promote Manipur’s cultural heritage across Europe, Africa and other global destinations, with CM Biren Singh.
These visits by envoys have aimed to impact a state’s growth through suggestions, based on their international experience. One may hope that these visits will also be instrumental in providing local artisans and workers an access to international markets for their products to get global exposure.
Top Stories of the Week
Global currencies plummet as US dollar surges
Economies worldwide are feeling the pain of skyrocketing prices for essential everyday goods and services, as a surging US dollar weakens currencies and raises concerns over an impending global recession in 2023.
The ICS U.S. Dollar Index, which measures the dollar against a basket of key currencies, indicates an 18% rise in the dollar in 2022. The currency hit a 20-year high in September, as the US Federal Reserve hiked short-term interest rates for the fifth time, while also indicating the possibility of future hikes. In India, the rupee has (as of today) hit a new record low at Rs. 83.08 against the US dollar - a near 10% fall. The Egyptian Pound has dropped by 20%, the Turkish lira 28%, and the Kenyan shilling 6%. Even developed economies are faring badly, with the Euro’s value falling below $1 for the first time in 20 years, and the British pound dropping by a whopping 18% from last year.
Experts say that the dollar’s appreciation will, in part, lead to global recession in the coming year, as import costs rise and central banks are forced to hike interest rates to safeguard their respective currencies.
Delhi braces for fight against air pollution
Air quality in the national capital is expected to plummet severely in the next few weeks, turning “very poor” (AQI 301-400) from Saturday onwards. This has kicked into effect Stage II of the Graded Response Action Plan (GRAP) developed by the Commission for Air Quality Management (CAQM).
This stage includes measures such as regular mechanical/vacuum sweeping of roads and sprinkling of water on roads to arrest road dust, and even goes as far as to ban coal or firewood based tandoors in restaurants. CAQM, an overarching government body to carry out air quality management in Delhi NCR, has been given sweeping powers in order to achieve its mandate. Rulings by CAQM will override anything contained in any other law.
Concurrently, stringent monitoring of paddy crop stubble burning in Punjab, Haryana, and Uttar Pradesh over the past month has yielded results. The current year has seen a reduction from 3431 to 1695 fire counts as compared to the corresponding period of last year.
In terms of policy making and implementation, there is undoubtable, visible progress. How much this translates to actually improving the air quality in Delhi will be apparent this winter.
Prime Minister Modi launches Mission LiFE
Accompanying António Guterres, Secretary-General of the United Nations, Prime Minister, Narendra Modi launched Mission LiFE (Lifestyle for the Environment) in Kevadia, Gujarat on 20th October, 2022.
Designed to be an India-led global mass movement, the mission aims to encourage individual and collective action to protect and preserve the environment through a three-pronged strategy:
(a) nudging individuals to practise simple yet effective environment-friendly actions in their daily lives; (b) enabling industries and markets to respond swiftly to the changing demand; and (c) influencing government and industrial policy to support both sustainable consumption and production.
The Ministry of Environment, Forests and Climate Change is inviting ideas for intervention initiatives in select few areas such as water, waste management, and transport among others till 31st December, 2022. This is open to the public and the ministry will be awarding authors of the top 5 ideas. Citing best practices across the globe, the government encourages a transition from throwaway culture to circular economy and leading people to be “pro-planet people”.
The mission has already garnered support from various world leaders including the French President, Emmanuel Macron, Maldives President Ibrahim Mohamed Solih, and UK Prime Minister Liz Truss. As the world faces the effects of the climate emergency, Mission LiFE arrives as a beacon of hope. However, its materialisation is yet to be seen.
This Week in Policy
Macroeconomics and Taxation
The Government is considering placing a tax on crude palm oil, which had been removed previously in order to stabilise rising prices.
Labour
India’s pension system improves marginally, improving its index value under the 2022 Mercer CFA Institute Global Pension Index survey to 44.4 from 43.3 in 2021. India was ranked 41st amongst the 44 systems studied.
The Delhi Government considers permitting warehouses to work around the clock, releasing a notification in this regard for public comments.
Agriculture and FMCG
Cabinet approves minimum support prices for all Rabi crops for marketing season 2023-24 with lentil (Masur) registering the highest absolute increase at Rs. 500 per quintal.
PM releases 12th instalment of PM Kisan Samman Nidhi under which Rs. 16,000 crore will be credited into bank accounts of over 8.5 crore farmers. Also inaugurates 600 Kisan Samridhi Kendras and the ‘One Nation One Fertiliser’ Scheme.
Healthcare
The Health Ministry has decided against procuring more COVID-19 vaccines, surrendering a sum of INR 4,237 crore, or 85% of its inoculation budget, to the Finance Ministry.
India is amidst 83 countries which have sought a global patent waiver for COVID-19 diagnostics and therapeutics, ahead of the December 17 deadline for the World Trade Organisation to decide on the matter.
Foreign affairs
The UN Secretary General, António Guterres is currently on a three day visit to India. He arrived at Mumbai and paid respect to the people who lost their lives in the Mumbai terror attack of 2008. He’s also scheduled to meet PM Narendra Modi and EAM Jaishankar on this visit.
The Indian Embassy in Kyiv issued an advisory on the 19th of October requesting Indians in Ukraine to leave Ukraine at the earliest, noting the deteriorating security situations and escalation of hostilities across the country.
Technology, Media and Telecommunications
The Department of Telecommunications (DoT) has extended the deadline for submission of comments on the draft Indian Telecommunications Bill, 2022 to 30 October 2022.
The Government of Maharashtra is set to release an “adequate, optimal policy” on data centre business in the State within a month.
International trade and commerce
“Intensive negotiations” are still on for a trade deal between India and the UK, according to a spokesperson for the British Government. However, the Diwali 2022 deadline for the deal, as proposed earlier, is no longer a possibility.
Banking, Finance and Insurance
75 Digital Banking Units (DBU) across 75 districts launched. Aimed to enable digital, paperless banking services to people without access to personal computers or smartphones.
RBI asks banks to stop building additional positions in non-deliverable forwards market, looking to preemptively stem the flow of international volatility into local markets.
Manufacturing
With an aim to boost domestic manufacturing and employment, the government is considering proposals to extend Rs 35,000 crore PLI scheme to sectors such as leather, telecom, and healthcare among others.
As a step toward atmanirbhar bharat, Defence Minister, Shri Rajnath Singh invites US companies to set up defence equipment manufacturing units in India for the domestic market as well as export to other countries.
Retail and e-commerce
The National Highways Infra Trust (NHIT) proposes to rope in retail investors as partners in road sector projects by offering them equity in completed projects.
Ministry of Commerce and Industry is working on the second phase of the single window system for giving all approvals to existing businesses.
Logistics
To strengthen the logistics capabilities in high-altitude areas, the Indian Army has floated a Request For Proposal (RFP) to procure drones through the emergency procurement route.
Indian Railways plans to add 90,000 wagons to its dedicated freight corridors by 2025, a move aiming to boost the domestic industry.
Sustainability
State owned SJVN and Assam’s power distribution company APDCL form JV to set up 1,000 MW floating solar projects worth Rs. 6,000 crore in Assam.
US Development Finance Corporation to further support financial inclusion and clean energy projects in India - announces seven-year, $35-million loan for Creditaccess Grameen.
Upcoming Events
ICRIER International G20 Conference
November 1 | India Habitat Center, New Delhi
ICRIER is organising its 14th annual international G20 Conference on the theme of ‘India’s G20 Presidency: Crafting an Indian Narrative on Resilient, Inclusive and Sustainable Economy (RISE)’ on November 1st at India Habitat Center, New Delhi. Sessions will focus on restoring global macro stability, improving financial inclusion and reforming multilaterals, as well as possible priorities and outcomes in the finance track and development and climate sustainability working groups. Ms. Nirmala Sitharaman, Minister of Finance and Corporate Affairs of India, GoI will deliver the keynote address among various other dignitaries. More Information | Registration Link
CyFy 2022 Conference
October 26-28 | New Delhi
ORF is organising CyFy 2022 ‘Conform or #Cancel:The Stark Binary of Our Digital Future’ from October 26-28 in New Delhi (exact venue to be announced). The seventh iteration of CyFY will gather thought leaders, policymakers, technologists, and civil society to examine the narratives and currents marking our relationship as individuals, communities, states, and enterprise with new and emerging technologies. The aim through the range of formats at the conference is to engage in critical foresight to shape policy, normative, and systemic responses to both established trends and signals of change. More Information.
FIBAC 2022
November 2-3 | Hotel Trident, Nariman Point, Mumbai
FICCI and Indian Banks’ Association (IBA) are jointly organising FIBAC - their annual banking conference on the theme of ‘Helping India step change its growth: How tech enabled banking can contribute to realization of $5tn economy goal’ on 2nd & 3rd November at Hotel Trident, Nariman Point, Mumbai. Sessions will cover topics such as role of banks in financing transition of Indian industry and meeting India's national commitments and what to expect in a post UPI Indian payments market. Mr. Shaktikanta Das, Governor, RBI, will deliver the inaugural address at the conference. More Information | Registration Link
A Few Good Reads
Bibek Debroy and Aditya Sinha examine India’s dismal showing in the Global Hunger Index, highlighting how the search for sensationalism can come at the cost of robust data collection.
Tyler Cowen provides an excellent and nuanced analysis of the American ‘New Right’.
Nick Aspinwall explains why forcing Pakistan to make debt payments is a moral atrocity.
Srijan Shukla traces the history of India’s obsession with the value of the Rupee.
Rohan Venkat discusses whether declarations of India being a bright spot in the global economy are justified.
Tweets of the Week
Dr. S. Jaishankar states his position on India-China relations:
Samarth Bansal recaps the unfortunate Wire-Meta saga:
Happy Diwali, everyone!:
Key Notifications
MNRE seeks stakeholder comments on national policy for repowering wind power projects below 2 MW capacity by 1st November, 2022. Comments can be mailed to rishikesh[dot]mnre[at]gov[dot]in.
DoT extends deadline to file comments on Draft Telecom Bill to 30th October, 2022.
DoPT notifies list of multiple secretary level transfers.