Economy and Banking Current Affairs
Union Cabinet Approved National Capital Goods Policy 2016
- The government on May 25, 2016 approved India’s first-ever national capital goods policy which intends to make the country a world-class hub and looks to create over 21 million additional jobs by 2025.
- The policy aims to encourage exports of capital goods and promote manufacturing activity in the Indian economy, while strengthening government’s Make in India initiative.
- The policy envisages increasing exports from the current 27% to 40% of production. It will increase the share of domestic production in India’s demand from 60% to 80% thus making India a net exporter of capital goods.
- The policy also aims to facilitate improvement in technology depth across sub-sectors, increase skill availability, ensure mandatory standards and promote growth and capacity building of Micro, Small and Medium Enterprises (MSMEs).
Government Formed 5-Member Panel to Review its Fiscal Targets
- A new committee, formed by Union government on May 17, 2016 led by former Member of Parliament and revenue and expenditure secretary NK Singh, will now review the Fiscal Responsibility and Budget Management (FRBM) Act, and suggest a future roadmap.
- The committee will have Chief Economic Advisor Arvind Subramanian, former Finance Secretary Sumit Bose, RBI Deputy Governor Uijit Patel and Director of National Institute of Public Finance and Policy, Rathin ftoy as members.
- The panel will cover a wide spectrum of issues, ranging from indicators and government’s debt position, the Indian Debt Market, household consumption and savings, lending of banks, Centre-state spending, prevailing trends, global economic, tax projections and macroeconomic situation and global growth forecasts.
