Recent Government Initiatives for Economic Progress

• A programme to transform India into digital

empowered society and knowledge economy

The focus is on making technology central to enabling

change

It is an Umbrella Programme – covering many

departments

Digital India

Vision of Digital India

• Infrastructure as Utility to Every Citizen

• Governance and Services on Demand

• Digital Empowerment of Citizens

• High speed internet as a core utility

• Cradle to grave digital identity -unique, lifelong, online,

authenticable

• Mobile phone & Bank account enabling participation in

digital & financial space

• Easy access to a Common Service Centre

• Shareable private space on a public cloud

• Safe and secure Cyber-space

Vision Area 1: Infrastructure as a Utility to Every Citizen

• Seamlessly integrated across departments or jurisdictions

• Services available in real time from online &mobile platform

• All citizen entitlements to be available on the cloud

• Services digitally transformed for improving Ease of Doing

Business

• Making financial transactions electronic & cashless

• Leveraging GIS for decision support systems & development

Vision Area 2: Governance & Services On Demand

• Universal Digital Literacy

• Universally accessible digital resources

• All documents/ certificates to be available on cloud

• Availability of digital resources / services in Indian languages

• Collaborative digital platforms for participative governance

• Portability of all entitlements through cloud

Vision Area 3: Digital Empowerment of Citizens

• Broadband Highways

• Universal Access to Mobile Connectivity

• Public Internet Access Programme

• e-Governance: Reforming Government through Technology

• e-Kranti - Electronic Delivery of Services

• Information for All

• Electronics Manufacturing

• IT for Jobs

• Early Harvest Programmes

Aims of Digital India 9 PILLARS

www.mygov.in

• The citizen-centric platform empowers people to connect with the Government & contribute towards good governance

www.digitallocker.gov.in

Dedicated personal storage space, linked to each resident’s Aadhaar number

Digital India Services By GOI

• Students can come to the portal to

download a prescribed eBasta or

explore eBastas and e-Contents

available on the portal and download

those that they need

www.ebasta.in • Jeevan Pramaan is a biometric

enabled digital service for pensioners. Pensioners of Central Government, State Government or any other Government organization can take benefit of this facility.

www.jeevanpramaan.gov.in

Digital India Services By GOI

• National Scholarships Portal is one-stop

solution through which various services

starting from student application,

application receipt, processing, sanction

and disbursal of various scholarships to

Students are enabled.

http://www.scholarships.gov.in • The E-Greetings portal aims to promote a

contemporary and eco-friendly method

of sharing greetings by Government

officials and agencies as well as citizens

to colleagues and friends for National

Holidays and other national occasions

www.egreetings.india.gov.in

Digital India Services By GOI

• Documents mostly prevalent in

physical form, leading to huge

administrative overhead

• Challenge to residents in

submitting multiple physical

copies of the documents

DIGITAL LOCKER

• ORS is a framework to link various

hospitals across the country for

Aadhaar based online registration and

appointment system. Portal facilitates

online appointments with various

departments of different Hospitals.

http://orf.gov.in

Digital India Services By GOI

Overall Costs of Digital India

• Rs 100,000 Cr in ongoing schemes

• Rs 13,000 Cr for new schemes & activities

Estimated Costs Of Digital India Project

• Broadband in 2.5 lakh villages, universal

phone connectivity

• Net Zero Imports by 2020

• 400,000 Public Internet Access Points

• Wi-fi in 2.5 lakh schools, all universities;

Public wi-fi hotspots for citizens

• Digital Inclusion: 1.7 Cr trained for IT,

Telecom and Electronics Jobs

Impacts of Digital India

• Job creation: Direct 1.7 Cr. and Indirect

at least 8.5 Cr.

• e-Governance & eServices: Across

government

• India to be leader in IT use in services

– health, education, banking

• Digitally empowered citizens – public

cloud, internet access

Continue…

Program on this scale never conceived

Each Pillar/program has own challenges

Human Resource Issues

Ministries – Need a Chief Information Officer / Chief

Technology Officer (CIO/CTO)

Challenges & Changes Needed

Financial Resource Issues Mostly structured around ongoing programs :

Better focus, need some restructuring

A few new programs may be needed:

In Electronics manufacturing and Skill Development

Coordination Issues Program covers many other departments

Need commitment and effort

Leadership and support critical for success

PRADHANMANTRI JAN DHAN YOJANA

INTRODUCTION• On 15th August 2014, India’s prime minister announced the financial inclusion

mission titled “Pradhanmantri Jan-Dhan Yojana”.• Jan-Dhan Yojana roughly translates into English as “People’s Wealth

Scheme”.• Announced the launch of this scheme at the Red Fort on the occasion of

India’s Independence Day.• Launched on 28 August in 77000 of arias.

About PMJDY• The name “Jan Dhan” was chosen through an Online Competition on the

MyGov Platform, received more than 6000 suggestions from Indian citizens• 7 individuals was suggested “Jan Dhan”• Slogan – Mera Khata-Bhagya Vidhaatha• Primarily the PMJDY Scheme is meant for those who do not have a savings

bank account• Only 58% of Indian citizens are having a bank account

Aims of PMJDY

• To bring poor financially excluded people into banking system.

• It covers both urban & rural areas.

• Raise of Indian Economy.

• To decrees corruption in Govt subsidy schemes.

• Digital India

Benefits of Opening bank A/c Under PMJDY

• Account can opened with zero balance.

• Not required to maintain any minimum

balance.

• ATM card can be issued.

• Accident insurance up to 100,000.

• Medical insurance cover of 30,000.

• 5000 of overdraft available only after 6

months if your account is found.

Participants

• SBI• Bank of Baroda• Bank of India• Canara Bank• IDBI Bank• Indian Bank• PNB• Union Bank of India• Oriental Bank of commerce

• Axis Bank • Federal Bank• HDFC Bank• ICICI Bank• Indus Bank• ING Vysha Bank• Andhra Bank• YES Bank• Kotak Mahendra Bank• Karnataka Bank

Nationalized Banks Private –Sector Banks

Reaching of Target with in a Day

Banks• IDBI• Union Bank• Dena Bank• ICICI• Bank of Maharashtra• SBI

No. of Accounts• 3,62,000• 5,50,000• 3,00,000• 1,00,000• 2,90,000• 20,00,000(from Aug-16)

Mudra Bank Scheme

• The Micro Units Development and Refinance Agency bank or also known

as MUDRA Banks is one of the largest yojana launched by the PM of India

• Launched on 8th of April looking forward to the development of small

entrepreneurs

Objectives of Mudra Bank

• To build a suitable system to grow these businesses by providing finance

• To setup a good method of using the last-mile credit agent scheme system to

small and micro business.

• To make a good credit guarantee system

• To ensure businessman that the business won’t be a failure

• Registering all the Microfinance Institutions and agencies to evaluate the

performance rating

Schemes offered by mudra bank

• Currently the scheme will be offering three types of loan divided in three segments

known as the starters, the mid-stage finance and next level growth seekers.

• The 3 types of loans are :-

1.Shishu – it will be lending the amount of Rs.50,000 for start-ups

2.Kishor – for funding mid-level organisations in the range of Rs. 50,000 to Rs.

5,00,000.

3.Tarun – for the next level organization to help them grow. This will cover loan from

Rs. 5 lakh to 10 lakh

Benefits of Mudra bank in Indian Economy

• Development of SMEs

• Employment in Rural

• GDP

• Make in India

• Facilitates Infrastructure

• Increasing Standard of living and poverty level

Budget 2015

• There are 5.77 crores small business units.

• 62% are Scheduled Caste ,Scheduled Tribe or other backward classes

• Only 4% of such units get institutional finance

• Will have a corpus of Rs.20,000 crore and a credit guarantee corpus of Rs 3,000 crore

• Mudra will provide up to Rs. 10 lakh / unit at rate of 7%

• The current education system does not focus on

training young people in employable skills that

can provide them with employment

opportunities

• With the expected economic growth, this

challenge is going to only increase further, since

more than 75% of new job opportunities are

expected to be skill-based.

• The government, thus, is strongly emphasizing

on upgrading people’s skills by providing

vocational education and training to them.

Objectives of ‘Skill India’

• To create opportunities, space and scope for the development of the talents of

the Indian youth

• To develop more of those sectors which have already been put under skill

development for the last so many years

• To identify new sectors for skill development

• To provide training and skill development to 500 million youth of our country by

2020, covering each and every village

Various schemes are also proposed to achieve this objective.

Features of Skill India

• The emphasis is to skill the youths so that they get employment and also improve

entrepreneurship

• Provides training, support and guidance for all occupations like carpenters, cobblers,

welders, blacksmiths, masons, nurses, tailors, weavers etc.

• Emphasis on new areas like real estate, construction, transportation, textile, gem

industry, jewellery designing, banking, tourism and various other sectors, where skill

development is inadequate or nil

• The training programmes would be designed in such a way which will meet would

the domestic as well as the international demand

Features of Skill India

• Create a hallmark called ‘Rural India Skill’, so as to standardise and certify the

training process

• Tailor-made, need-based programmes would be initiated for specific age groups

like language and communication skills, life and positive thinking skills,

personality development skills, management skills, behavioural skills, including

job and employability skills

• The course methodology of ‘Skill India’ would be innovative, which would include

games, group discussions, brainstorming sessions, practical experiences, case

studies etc.

Schemes Under Skill India

Pradhan Mantri Kaushal Vikas Yojana (PMKVY)

Skill Loan scheme

National Policy for Skill Development and Entrepreneurship 2015

Recognition of Prior Learning (RPL)

Schemes Under Skill India

National Policy for Skill Development and Entrepreneurship 2015: This will offer policy

direction to all stakeholders for skill development and growth of entrepreneurship ecosystem

Pradhan Mantri Kaushal Vikas Yojana (PMKVY): The objective of this scheme is to provide reward-based skill training. Financial incentives will be offered to those who complete the approved skill training programmes successfully. In the first phase PMKVY is planning to provide skill training to 24 lakh youth all over India.

Schemes Under Skill India

Recognition of Prior Learning (RPL):

The skills of the youth who lack formal certification as well as education will be recognised. This will cover young workers in the country’s large unorganised sector. Over the next one year, the government aims at certifying 10 lakh youth under the RPL category of PMKVY.

Skill loan: A skill loan initiative will also be started where more than 34 lakh youth, who want to attend skill development programmes, will be given Rs 5000 to Rs 1.5-lakh loan

Advantages of Skill India

• Raising confidence, improving productivity and direction to the youth

• Enable the youth to get blue-collar jobs

• Skill development at school level to channelize them for proper job opportunities

• Balanced growth in all the sectors and all jobs be given equal importance

• Every job aspirant be given training in soft skills to lead a proper and decent life

• Reaching the rural and remote areas as well

• Combined effort of all to develop skills of the youth so that better results are

achieved in the shortest time possible.

Vision-Mission

• Youth who are jobless, college and school dropouts, along with the educated ones,

from rural and urban areas, all will be given value addition

• New ministry will be the certifying agency

• Certificates will be issued to those who complete a particular skill or programme

• Certificate has to be recognized by all public and private agencies and entities,

including overseas organisations

• A programme for the entire nation

Start up India

Introduction

• Startup India is a campaign started by our P.M Mr. Narendra Modi along with the

finance minister Mr. Arun Jaitley.

• It is an action plan aimed at promoting bank financing for start-up ventures to

boost entrepreneurship and encourage start ups with jobs creation.

• The Standup India initiative is also aimed at promoting entrepreneurship among

SCs/STs, women communities.

KEY POINTS

• The government programme aims to fill gaps in the economy for the growth

and development of startups and will aim to boost digital entrepreneurship at

the grassroots

• The government is expected to earmark around Rs 2,000 crore for the initiative.

• With the Government’s support, a startup can be built in a day which will

definitely motivate many young entrepreneurs to turn ideas into action thereby

increasing the jobs in India as well,”says M N Vidyashankar, President, IESA.

KEY POINTS

• It is focused on to restrict role of States in policy domain and to get rid of

"license raj" and hindrances like in land permissions, foreign investment

proposal, environmental clearances

• Single Window Clearance even with the help of a mobile application

• 10,000 crore funds of fund

• 80% reduction in patent registration fee

KEY POINTS

• Freedom from Capital Gain Tax for 3 years

• Freedom from tax in profits for 3 years

• Eliminating red tape

• Self-certification compliance

• Innovation hub under Atal Innovation Mission

• Starting with 5 lakh schools to target 10 lakh children for innovation programme

Modified and more friendly Bankruptcy Code to ensure 90-day exit window

• Freedom from mystifying inspections for 3 years

Government Initiatives

• The Ministry of Human Resource Development and the Department of

Science and Technology have agreed to partner in an initiative to set up

over 75 such startup support hubs in the National Institutes of

Technology (NITs), the Indian Institutes of Information

Technology (IIITs), the Indian Institutes of Science Education and

Research (IISERs) and National Institutes of Pharmaceutical Education

and Research (NIPERs)

Prime Minister Narendra Modi with Finance Minister Arun Jaitley during the

launch of “Startup India” action plan at Vigyan Bhawan in New Delhi on

Saturday.

Investments

• Softbank, which is headquartered in Japan, has invested $2 billion into Indian

startups

• The Japanese firm had pledged the total investments at $10 billion

• Google declared to launch a startup, based on the highest votes in which the

top three startups will be allowed to join the next Google Launch pad Week,

and the final winner could win an amount of $100,000 in Google cloud credits

• PMMY (Pradhan Mantri Mudra Yojana) is also one of the similar initiatives to

refinance the micro units

19 ACTION PLANS FOR STARTUPS

• Self Certification: The start-ups will adopt self-certification to reduce the regulatory liabilities.

• Start-up India hub: An all-India hub will be created as a single contact point for start-up foundations in India

• Register through app: An online portal, in the shape of a mobile application, will be launched to help start-up founders to easily register.

• Patent protection: A fast-track system for patent examination at lower costs is being conceptualized by the central government

Continue…

• Rs 10,000 crore fund :The government will develop a fund with an initial corpus of

Rs 2,500 crore and a total corpus of Rs 10,000 crore over four years, to support

upcoming start-up enterprises.

• National Credit Guarantee Trust Company : It is being conceptualized with a budget

of Rs 500 crore per year for the next four years to support the flow of funds to start-

ups.

• No Capital Gains Tax : At present, investments by venture capital funds are exempt

from the Capital Gains Tax.

• No Income Tax for three years : Start-ups would not pay Income Tax for three years.

Continue…

• Tax exemption for investments of higher value : In case of an investment of

higher value than the market price, it will be exempt from paying tax

• Building entrepreneurs : Innovation-related study plans for students in over 5

lakh schools.

• Atal Innovation Mission : The Atal Innovation Mission will be launched to

boost innovation and encourage talented youths.

• Setting up incubators: A private-public partnership model is being considered

for 35 new incubators and 31 innovation centres

• Research parks : The government plans to set up seven new research parks

Continue…• Entrepreneurship in biotechnology : Establish five new biotech clusters, 50 new bio

incubators, 150 technology transfer offices and 20 bio-connect offices

• Dedicated programmes in schools : The government will introduce innovation-

related programs for students in over 5 lakh schools.

• Legal support : A panel of facilitators will provide legal support and assistance in

submitting patent applications and other official documents.

• Rebate : A rebate amount of 80 percent of the total value will be provided to the

entrepreneurs on filing patent applications.

• Easy rules : Norms of public procurement and rules of trading have been simplified

for the start-ups.

• Faster exit : If a start-up fails, they can exit by making provisions of bankruptcy or

insolvency

INDIAN ECONOMY

10th largest GDP

8.9% growth rate

Services are main source of economic

growth

Pioneer in information technology

Export services

and merchandiz

e

Intellectual Property Rights

creation a conducive environment for the protection of intellectual property rights

Upgrading infrastructure, building capacity and using state-of-the-art technology in the functioning

of intellectual property offices in the country.

Foreign Direct Investment

India has already marked its presence as one of the fastest

growing economies of the world.

It has been ranked among the top 3 attractive destinations for

inbound investments.

Since 1991, the regulatory environment in terms of

foreign investment has been consistently eased to make it

investor-friendly.

Hurdles To Our Economic Growth

Poor education

Slow growth rate

Strict government

policesHigh land

cost

Critics Reviews on Modi’s Initiatives

Make in India Campaign

• Reserve Bank of India (RBI) governor Raghuram Rajan

said “India rather needs to make for India instead of

make in India”.

• He further said “Other emerging markets certainly

could absorb more, and a regional focus for exports

will pay off. But the world as a whole is unlikely to be

able to accommodate another export-led China”.

Continue…

Digital India initiative

• Facebook CEO Mark Zuckerberg wrote on his

Facebook Page "I changed my profile picture to

support 'Digital India', the Indian government's

effort to connect rural communities to the internet

and give people access to more services online," he

wrote on his Facebook page.

• Zuckerberg asked his followers to show their

support for 'Digital India' initiative.

Continue

Clean India Campaign

• Delhi Chief Minister Arvind Kejriwal said "Not a single lane in this country has felt the impact of

this (Swatch Bharat Mission). There should be less talk and more work," Kejriwal said. "Some

people sing songs of Swatch Bharat. Singing songs doesn't help, nor does a photo-op of you

cleaning a street, once a year.“

Startup India Initiative

• Appreciating PM Narendra Modi's Startup India programme, Infosys co-founder Narayana

Murthy said it will encourage entrepreneurship and generate jobs.

• "At the end of the day... it is about the power of entrepreneurship, how it can create lots of jobs

and how there is a need to encourage our youngsters to create even more jobs," he said while

commenting on the Start Up India initiative.

Critique

• Narendra Modi has taken plenty of initiatives to boost India's

Economic Growth

• Trying to build Smart Cities

• To reduce travel time between cities by proposing Bullet Trains

• Initiating moves to turn India's Infrastructure into a World-Class level

• Subsequently transforming India into the World's Manufacturing Hub

• Empowering our Defense Sector by allowing 100% FDI

• Making Defense-Ties with most of the World's Powerful Nations

• https://en.wikipedia.org/wiki/Digital_India

• http://www.digitalindia.gov.in

• http://mudrabank.com

• http://indianexpress.com/article/india

• http://articles.economictimes.indiatimes.com

• https://en.wikipedia.org/wiki/Pradhan_Mantri_Mudra_Yojana

• http://www.skillindia.in

• http://www.makeinindia.com/sectors

Bibliography