In Today’s News:
- Tax Inspectors Without Borders
- India’s FDI statistics.
- G20 Labour and Employment minsiters’ meeting.
1. Tax Inspectors Without Borders
Bhutan’s Tax Inspectors Without Borders (TIWB) program has been launched in Bhutan in partnership with India.
Prelims GS – Governance
- Tax Inspectors Without Borders (TIWB), a joint initiative of the United Nations Development Programme (UNDP) and the Organisation for Economic Cooperation and Development (OECD).
- India was chosen as the Partner Jurisdiction and has provided the Tax Expert for this program.
- This program is expected to be of about 24 months’ duration through which India in collaboration with the UNDP and the TIWB Secretariat aims to aid Bhutan in strengthening its tax administration by transferring technical know-how and skills to its tax auditors and through sharing of best audit practices.
- The focus of the program will be in the area of International Taxation and Transfer Pricing.
- This program is another milestone in the continued cooperation between India and Bhutan and India’s continued and active support for South-South cooperation.
Click here to view the official PIB release.
2. India’s FDI statistics
Trends in India’s Foreign Direct Investment are an endorsement of its status as a preferred investment destination amongst global investors
Prelims GS – Economic Development
- Foreign Direct Investment takes place when an investor establishes foreign business operations or acquires foreign business assets, and establishes ownership or controls interest in a foreign company.
- FDI brings in long-term capital for the economy.
- FDI is not only bringing money but also knowledge, skills, and technology.
Routes of FDI:
- Automatic Route: Under the Automatic Route, the non-resident investor or the Indian company does not require any approval from the Government of India for the investment.
- Government Route: Under the Government Route, prior to investment, approval from the Government of India is required. Proposals for foreign direct investment under the Government route, are considered by respective Administrative Ministries/Departments.
Click here to know more about FDI.
- India has attracted a total FDI inflow of US$ 6.24 billion during April, 2021and it is 38% higher as compared to April 2020 (US$4.53 billion).
- During April, 2021FDI Equity inflows amounting to US$ 4.44 billion were reported in the country which is an increase of 60% over the FDI Equity inflow of April 2020 (US$ 2.77 billion).
- In April 2021, Mauritius is the top investing country with 24% of the FDI Equity inflows, followed by Singapore (21%) and Japan (11%).
- ‘Computer Software & Hardware’ has emerged as the top sector during April 2021 with around 24%share of the total FDI Equity inflow followed by Services Sector (23%) and Education Sector (8%) respectively.
- Karnataka is the top recipient state during April 2021 with a 31% share of the total FDI equity inflows, followed by Maharashtra (19%) and Delhi (15%).
Click here to view the official PIB release.
Mains GS3 – Economic Development
Benefits of FDI:
- Increased Employment and Economic Growth
- Human Resource Development
- Exchange Rate Stability
- Development of Backward Areas
- Increase in Exports
- Improved Capital Flow
- Creation of a Competitive Market
- Provision of Finance and Technology
- Stimulation of Economic Development
3. G20 labor and employment minister’s meeting
Delivering Ministerial Address on Declaration and Employment Working Group Priorities at G20 Labour and Employment Ministers’ Meeting on 23.6.2021, Union Minister for Labour and Employment Shri Santosh Gangwar has said that India is making collective efforts to reduce gender gaps in labor force participation.
Mains GS2 – Governance
Some of the Efforts taken by India to reduce the Gender Gap in Labour Force Participation:
- The new Code on Wages, 2019 shall reduce gender-based discrimination in wages, recruitment, and conditions of employment.
- Women are entitled to all types of work in all establishments. Employers have to ensure their safety and provisions for working hours. Women can now work even during night hours.
- The duration of paid maternity leave has been increased from 12 weeks to 26 weeks.
- Pradhan Mantri Mudra Yojana provides financial support to women entrepreneurs to start small enterprises. Collateral free loans worth Rupees 9 thousand billion have been disbursed under this scheme. There have been around 70% accounts of women in this Scheme.
- The Minister added that the new Code on Social Security may now include even self-employed and all other classes of the workforce into the folds of social security coverage.
- A voluntary and contributory pension scheme introduced in 2019 for the unorganized sector workers provides for minimum assured pension after the age of 60 years.
- The country is ensuring education, training, skilling, entrepreneurship development, and equal pay for equal work.
Click here to view the Courtesy: PIB release.
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