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Yojana 2

What is the policy regulating Special Economic Zones?
India was one of the first in Asia to recognize the effectiveness of the Export Processing Zone (EPZ) model in promoting exports, with Asia's first EPZ set up in Kandla in 1965. With a view to overcome the shortcomings experienced on account of the multiplicity of controls and clearances; absence of world-class infrastructure, and an unstable fiscal regime and with a view to attract larger foreign investments in India, the Special Economic Zones (SEZs) Policy was announced in April 2000

J&K Window : Boost to Tourism in the Valley
The year 2011 gave Jammu and Kashmir more than a million reasons to reclaim pride of place on India's tourism map. The number of sightseers to the once trouble-torn state crossed a record 10 lakh and the upswing is because of a massive 60 per cent annual dip in violence in the state. Militancy-related incidents are now at their lowest in 22 years. Around 4.46 lakh travellers flocked to Jammu and Kashmir in 2008 and the corresponding figure for 2009 was 4.75 lakh. In 2010, the state pulled off a late revival with 5.75 lakh tourists despite the ugly violence triggered by stone-pelting protests during the summer.

  India’s Export Performance and Prospects
As an emerging economy of the world, India still has a lower percentage contribution in world trade. India ranks 20th in merchandise export and 13th in merchandise import while it stands at seventh rank as far as commercial service export is concerned (WTO statistics, Oct.2011).The annual percentage change in the merchandise export (f.o.b.) and merchandise import (c.i.s) basis is 17 and 18 respectively and surprisingly till date (2010) India’s share of world total export is only 1.44 percent while in import it is merely 2.12 percent. The Draft Twelfth Five Year Plan Document also points out this concern of export-import gap of India’ foreign trade in these words “India’s balance of trade must be managed too. The growth of the Indian economy is sucking in imports – of energy, as well as a whole range of manufactured goods MSMEs(capital goods and manufactured intermediates/components). To balance trade, the country’s export basket must include a much larger volume of manufactured goods. The country cannot just increase raw material exports and import finished goods.
Foreign Trade Policy
Foreign Trade plays an important role in the economy of the country and creates approximately 14 million jobs directly or indirectly. The short term objective of the policy is to arrest and reverse the declining trend of exports and to provide additional support especially to those sectors which have been hit badly by recession in the developed world. Other policy measures include fiscal incentives, institutional changes, Procedural rationalization, and enhanced market access across the world and diversification of export markets. The present foreign trade policy is for the period of five years i.e from 2009 to 2014. Objectives of The Policy
  • To achieve an annual growth of 15% for the first 2 years till March 2011 with an annual export target of Us$ 200 billion.
  • To achieve an annual growth of 25% during the remaining period of the policy 3 Years.
  • By 2014 to double India’s export of goods and services
from the present level of 1.64% Importer-Exporter Code Number To carry out export and import business the person should have an IEC Number for which he has to apply to the Regional authorities of DGFT.
Challenges in India's Foreign Trade
International trade as an engine of economic growth has gained increasing significance particularly during the last few years. This has been most so in the case of developing countries that have now become more integrated into the world economy and emerged as important drivers of growth. The growing importance of the developing countries in global trade can be gauged from the fact that the share of south in global merchandise exports has increased from 20 percent during mid-1980s to 45 percent in 2007, an all time record level. Robust growth from developing countries which increased at an impressive annual average of around 19 percent as compared to 11.7 percent for industrial countries during the period 2001-2007, has underlined this trend. Developing countries in fact accounted for 52 percent of the rise in global merchandise. At the same time, the increasing share economyof the south in global GDP, which has increased from 21 percent in 2001 to 28 percent in 2007, is also testimony to the emergence of the developing south in the global arena.

Balance of Payments in India
Balance of payments (BoP) accounts are the accounting record of all monetary transactions between a country and the rest of the world. In other words, it is a record of all transactions made between one particular country and all other countries during a specified period of time. If a country has received money, this is known as a credit. Similarly, if a country has paid or given money, the transaction is counted as a debit. Theoretically saying the BoP should always be zero, meaning that assets or credits and liabilities or debits should balance. But in practice this is rarely the case and, therefore, the BoP of a country usually has a deficit or a surplus. A negative balance of payments means that more money is flowing out of the country than coming in, and vice versa. Indian economy which is the ninth largest in the world in terms of scenarionominal GDP and the fourth largest in terms of purchasing power parity was having very strong balance of payment figures during the early 2000s and the global financial crisis adversely affected the smooth growing of the overall BoP balance. The international BoP of a country reflects its economic strengths and weaknesses.
Solar laminator
Mandeep (21), now a student in first year of graduation, made a laminating machine run on solar energy when he was in 12th standard. This machine gives almost the same output as that of an electricity-operated laminator when the sun is hot. Now there is no need to worry about the frequent power losses. He was born in Ganeshgarh village, Ganganagar district of Rajasthan, at his maternal grandparent’s house. After a year, he along with family moved to Maloth in Punjab and stayed with his paternal grandparents. He studied till class three there and then came to Sangaria along with his parents. He was interested in studies till class six but thereafter joined Bharat Scouts and Guides and started losing interest in studies. He concentrated more on the scout course then and won a Presidential outstanding scout award in the year 2000. His father is a Registered Medical Practitioner and a Life Insurance Corporation agent. His insidemother is a homemaker and his younger brother is doing graduation in pharmacy. Genesis In 2000, when he was in class 10th he copied a preexisting project and submitted it during a science fair in school.
Towards Social Justice
Social justice is essentially concomitant with sustainable development. The World Commission on Environment and Development outlined in ‘Our Common Future’ (1987) that social justice constitutes an inherent part of the concept of sustainable development. The aim of the Commission was to resolve physical sustainability, need satisfaction and equal opportunities, within and between generations. Thus realization of sustainable development is manifest on local and global scales, when all people are assured a minimal quality of life through the meeting of their basic needs, increased exposure to their mere ecology and access to economic opportunity. In probing the idea of social justice, Amartya Sen argues it is important to distinguish between an arrangement-focused view of justice and a realisation-focused understanding of justice. Sometimes justice is conceptualised in terms of certain organisational arrangements: some institutions, some regulations, some behavioural rules-the active presence of which indicates that justice is being done.” Further he says in contrast “a realization-focused understanding of justice broadens the evaluation of justice to the assessment of the actual world that emerges, which includes-most importantly, the lives that the people involved are able to lead.(Amartya Sen speaks on social justice’, 2011).

Towards Rapid, Inclusive and sustainable growth
The Approach Paper outlines the challenges we face in achieving our goal of rapid, inclusive and sustainable growth over the next five years. As we chart our course for the 12th Plan, we must take note of what is happening in the world economy, and in our neighbourhood and shape our policies accordingly. The world is going through a major realignment of economic power. Industrialised countries are slowing down, emerging market economies are gaining weight and regionally, Asia is gaining weight. As an emerging market economy in Asia, we stand to gain on both counts. Our policies in the 12th five year Plan must therefore be shaped to take full advantage of these emerging possibilities. As planners, we need to ask what government should do to achieve our social and economic objectives? Much of the growth process is now driven by actors outside the direct control of government. This includes small and big farmers, small and medium entrepreneurs and of course the private corporate sector, all of whom respond to market forces. This, however, does not mean that government has no role to play in the development process. It has a very large role and I would distinguish four areas in this context.

Prospects and Policy Challenges in the Twelfth Plan
The Indian economy will enter the Twelfth Plan period in an environment of great promise, but the next five years will also be a period of major challenges. The economy has done well on the growth front during the Eleventh Plan, but, going by the information that is at least currently available, not so well on inclusion. Much of what needs to be done to accelerate GDP growth during the Twelfth Plan will be done by the private sector, but the central and state governments have a crucial role to play in providing a policy environment that is seen as investor-friendly and is supportive of inclusive growth. Four critical challenges facing the economy in the Twelfth Plan, which are perhaps more serious than they were at the start of the Eleventh Plan, are those of (a) managing the energy situation, (b) managing the water economy, (c) addressing the problems posed by the urban transformation that is likely to occur, and (d) ensuring protection of the environment in a manner that can facilitate rapid growth. In addition, the efficiency in implementation of projects on the ground needs to be greatly improved.
Rural Transformation and Sustained Growth of Agriculture
Mahatma Gandhi frequently pointed out, “Gram Swaraj is the pathway to Purna Swaraj”. Also while addressing some young students who wanted to serve rural India, he made the following observations about eighty years ago: “The fact is the villagers have lost all hope. They suspect that every stranger’s hand is at their throats and that he goes to them only to exploit them. The divorce between intellect and labour has paralysed our agriculture. The worker should enter villages full of love and hope, feeling sure that where men and women labour unintelligently and remain unemployed half the year round, he working all the year round and combining labour with intelligence cannot fail to win the confidence of the villagers.” Gandhiji’s emphasis on marrying brain and brawn in order to achieve rural regeneration is a very important one. For example, we can restructure the Mahatma policies Gandhi National Rural Employment Guarantee Act (MGNREGA) on the following lines to get optimum benefit from this largest social support programme in the worl          
India and World Trade organization

The World Trade Organisation(WTO) signifies the reality of the globalization of the economy. In an inter-play of trade and commerce in a global village WTO may be said to be the referee. Economies, small, medium and big, all have a role to play, each important in its own way, in shaping the global economy for the prosperity of all nations. It was created for the liberalization of international trade. It came into existence on January 1, 1995 as the successor to General Agreement on Trade and Tariffs (GATT). WTO deals with the rules of trade between nations at a global level. It is responsible for implementing new trade agreements. All the member countries have to follow the trade agreement as decided by the WTO. Benefits Of WTO

  • It helps promote peace and prosperity across the globe.
  • Disputes are settled amicably.
  • Rules bring about greater discipline in trade negotiations, thereby reducing inequalities to a large extent.
  • Free trade reduces the cost of living and increases household income.
  • Companies have greater access to markets and consumers have wider range of products to choose from.
  • Good governance accelerates economic growth
    • India is one of the founding members of WTO along with more than 130 other countries. Economists believe that India's participation in an increasingly rule based system in governance of International trade would eventually lead to better prosperity for the nation


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