Context: The unincorporated manufacturing sector in India has not been able to recover employment levels to pre 2020-11 levels according to the latest data from the Annual Survey of Unincorporated Sector Enterprises and the 67th National Sample Survey Experts believe that a combination of policy shocks has impeded growth and employment in this sector. Key Highlights: Employment Trends Growth in Establishments Own Account Enterprises OAEs Emergence Policy Impact How Do MSMEs Contribute to Employment? “Own Account Enterprise” (OAE) An “Own Account Enterprise” (OAE) refers to a business that is entirely run by its owner(s) without employing any hired workers on a regular basis; essentially, a self-operated enterprise with no paid employees, making it a key component of the informal sector in many economies. Key points about OAEs: Example scenarios of OAEs:
India’s 2025 Economic Growth: Moody’s
Context: Moody’s Analytics has outlined the challenges and expectations for India’s economy in 2025 forecasting a 64 GDP growth despite a weak rupee declining foreign investment and volatile inflation. Key Highlights: Policy Response
National Critical Mineral Mission
Context: The Indian Cabinet has cleared the National Critical Mineral Mission, with an outlay of Rs.34,300 crore, focusing on attaining self reliance in critical minerals. The ministry will implement this mission over the next seven years i.e. from 2024 to 2031 concentrating on the full value chain from exploration to recovery of critical minerals. Key Highlight: Focus on Foreign Resources Supporting Infrastructure and Innovation Source: The Hindu
India’s Economic Slowdown
Context: Recent GDP estimates reveal that India’s economic growth is weaker than projected. Capital expenditure continues to increase but private consumption and investment remain sluggish. We look at economic trends since 1991 and compare them with the high growth period of 2004-2011 to understand this slowdown. What is Economic Slowdown? An “economic slowdown” is described as a period where the rate of economic growth drops dramatically; such a period has been generally marked by growth in GDP at a country, largely associated with declining consumer spending, lower business investments, and increasing unemployment though without the full ferocity of a recession; it describes a halt in economic activity compared to previous periods. Key Observations on Growth Trends What Drives Growth during 2004-2011? Current Economic Challenges What Needs to Be Done?
Policy Considerations for Cooperative Banks
Context: The banking sector unions, under the aegis of the All India Bank Employees’ Association (AIBEA), have sought exemption from income tax on profits of cooperative banks in the upcoming Union Budget. What are Cooperative Banks? Key Demands: Recapitalization of Cooperative Banks Revocation of the 2020 Banking Regulation Amendment (AIBEAs) Objection Source: Business Standard
Privatization of Smaller Fertilizer Companies
Context: The central government plans to privatize smaller state-owned fertilizer companies in FY26. This follows previous attempts to privatize larger agrochemical firms, which faced resistance. The decision will depend on market conditions and consensus among stakeholders. Background of Previous Divestment Plans Earlier Divestment Attempts: Fertilizer Companies to be Privatized Privatization Reasons and Concerns Prospects of Privatization Concerns of Privatization Government’s Role in Subsidy Fertilizer Industry Impact and Import Bill Reduction Source: Mint
Ethanol Price Hike
Context: The Cabinet Committee on Economic Affairs (CCEA) has revised the ethanol procurement price for public sector oil marketing companies (OMCs) from ₹56.58 per litre to ₹57.97 per litre for the Ethanol Supply Year 2024-25 (November 1, 2024 – October 31, 2025). What is Ehtanol? It is obtained by feeding various raw materials or agricultural products through fermentation, and ethanol is used as a fuel. Ethanol is renewable fuel as it can be used in the pepping of gasoline, or it can work as an octane enhancer. This is also called grain alcohol, ethyl alcohol, or simply EtOH. These are some applications of ethanol in agriculture:
Pinaka Multi-Barrel Rocket Launcher
Context: In a major boost for the indigenous Pinaka multi-launch artillery rocket systems, the PM Narendra Modi-led cabinet committee on security cleared two major deals worth around Rs 10,200 crore for its lethal ammunition. Pinaka Multi-Barrel Rocket Launcher Pinaka is a multi-barrelled rocket launcher designed and developed by the Defence Research and Development Organisation (DRDO) for the Indian Army. The rocket has a maximum range of 45 km, and one launcher can fire 12 HE rockets in 44 seconds. Pinaka is mounted on a Tatra truck and was quite effective during the Kargil War in neutralizing Pakistani positions. It has been inducted in large numbers in the Indian Army since then.
Labour Code Implementation and Reforms
Context: Setting the stage for the possible implementation of the four Labour Codes from April 1, a meeting of the officials and Ministers of the Union Labour Ministry and State Labour Ministries has reviewed the progress in drafting of rules under the Codes by the States. Key Highlights: Objective of the Labour Code Reforms Launch of Occupational Shortage Index (OSI) E-Shram Microsite for Unorganised Workers Key Benefits of Labour Code Reforms Labour Code Reforms Impact on Businesses and Workers Business Impact Encouragement of Investment and Growth Effects on the Workers
Waqf Amendment Bill, 2024
Why in News? The Indian Parliament has proposed the Waqf Amendment Bill 2024 with the objective of amending the Waqf Act 1995 to introduce better accountability and transparency into the functioning of Waqf boards. The main thrust of the bill is to eliminate unchecked powers enjoyed by Waqf Boards under the present regime which gives them the freedom to declare any property as Waqf without due checks. Major Changes in the Waqf Act Amendment Bill 2024 Criticisms of the Waqf Act Amendment Bill, 2024 What is the Waqf Act 1995? A Waqf is the irrevocable donation of moveable or immovable property for religious pious or charitable purposes as recognized under Muslim law.Earnings of Waqf properties are used for educational institutions, mosques graveyards and shelter homes. History Waqf Act was enacted in 1954 and were repealed in 1995 which subsequently augmented more powers to the Waqf Boards. Again an amendment introduced in the year 2013 empowered the Waqf Boards to pronounce with great authority the properties to be treated as Waqf Property. The Central Waqf Council CWC was established in 1964 as a supervisory body for Waqf Boards at the State level Waqf Properties in India
