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Industries of India

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Important industries of India
Important industries of India

Iron and steel industry

  • First steel industry at Kulti, Near Jharia, West Bengal – Bengal iron works company in 1870
  • First, large-scale steel plant TISCO at Jamshedpur in 1907 followed by IISCO at Burnpur in 1919. Both belonged to private sector
  • The first public sector unit was “Vishveshvaraya Iron and Stell works” at Bhadrawat

Public sector steel plants

  • Russian government –
Location Assistance
Rourkela(Orrisa) Germany
Bhilai(MP) Russian government
Durga[ir(WB) British government
Bokaro(Jharkhand)
Burnpur(WB) Acquired from private sector in 1976
Vishakhapattnam(AP) Russian government
Salem(Tamil Nadu)
Vijai Nagar(Karnataka)
Bhadrawati(Karnataka) nationalisation of Vishveshvarayya Iron and Steel Ltd(owned by Central and State government)
  • all these are managed by SAIL(at present all important steel plants except TISCO, are under public sector)
  • Steel Authority of India Ltd(SAIL) was established in 1974 and was made responsible for the development of the steel industry
  • Presently India is the eighth largest steel producing country in the world.

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Jute industry

  • Jute industry is an important industry for a country like India because not only it earns foreign exchange but also provides substantial employment opportunities in agriculture and industrial sectors
  • Its first modernized industrial unit was established at Reshra in West Bengal in 1855
  • The jute industry in the country is traditionally export-oriented. India ranks number one in the raw jute and jute goods production and number two in the export of jute goods in the world.

Cotton and textile industry

  • Oldest industry of India and employees largest number of workers
  • It is the largest organized and broad-based industry which accounts for 4% of GDP, 20% of manufacturing value-added and one-third of total export earnings.
  • The first Indian modernized cotton cloth mill was established in 1818 at Fort Gloster near Calcutta but this mill was not successful. The second mill named “Mumbai’s spinning and weaving Co.” Was established in 1854 at Bombay by KGN Daber.

Must Read: Indian Industry: Rules, Policies, and Types

Sugar industry

  • The Sugar industry is the second largest industry after cotton textile industry among agriculture-based industries in India.
  • India is now the largest producer and consumer of sugar in the world. Maharashtra contributes over one-third of the total sugar output, followed closely by Uttar Pradesh.

Fertiliser industry

  • India is the third largest producer of nitrogenous fertilizers in the world

Paper industry

  • The first mechanized paper mill was set up in 1812 at Serampur in West Bengal.
  • The paper industry in India is ranked among the 15 top global paper industries.

Silk industry

  • India is the second-largest(first being China) country in the world in producing natural silk. At present, India produces about 16% silk of the world.
  • India and joys that distinction of being the only country producing all the five known commercial varieties of silk viz Mulberry, Tropical Tussar, Oak Tussar, Eri, and Muga.

Petroleum and natural gas

  • First successful Oilwell was dug in India in 1889 at Digboi, Assam.
  • At present, a number of regions having oil reserves have been identified and oil is being extracted in these regions
  • For exploration purpose , Oil and Natural Gas Commission (ONGC) was established in 1956 at Dehradun, Uttarakhand

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Indian Textile Industry – Nineteenth Century

Demonetisation – The Currency Purge

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demonetisation

The nation’s future and hope depends upon the government in power and the people and not the nation itself for a hope of better tomorrow and propelled future of the nation. And that costs a price, huge for all. Government of India on 8th of November, 2016 announced 500 rupees and 1000 rupees notes illegal from that day onwards and the notes could be exchanged only by banks and post-offices till 31st of December, 2016.

Withdrawal of a particular kind of currency from circulation is termed demonetisation. And through this process, either new currency replaces the old currency or a circulation of currency is blocked. The various reasons for doing so may include promoting cashless transactions, curbing growing corruption or checking the inflation; hence bringing transparency in all present legal transaction modes of the country providing a boost to the  economic development of the country.

There are several countries in the world that implemented demonetisation to target and strengthen the failing economy of the country. Some of the countries that underwent demonetisation are briefly explained below:

  1. In the year 1971, the government of Britain introduced 5 pounds and 10 pounds’ coins thus ceasing the circulation of pounds and pennies that prior existed. The government of Britain had prepared itself and its citizens for this change 2 years prior thus putting little impact on the economy and people by providing sufficient time to exchange and its availability in all banks ensuring smooth functioning of the economy of the country.
  2. The dictator of Congo Mobutu Sese brought modifications in the currency in 1990s so as to improvise the economic conditions. Since the economy of Congo then was strife with ethnic war and corruption, it resulted in exorbitant rise in the price of essential goods and heavy downfall in the share market. The downfall of demonetisation led to the fall of the dictator thus an end to his demonetisation.
  3. Ghana in 1980 demonetised their 50 Cedi’s notes to empty excess of liquid funds and to tackle evasion of tax. Despite the efforts, the people rather invested in physical assets and supported the black market hence making the economy weaker.
  4. In 1984 under the government of Muhammadu Buhari, Nigeria brought out new currency by banning the old ones but the inflation hit and debt-ridden country could not take the change thus collapsing the economy.
  5. Russia (formerly U.S.S.R), under Mikhail Gorbachev withdrew the large ruble bills in circulation to curb the black market but the attempt failed resulting in bringing down his authority and the breakup of soviet union.

The impact of demonetisation in various countries across the globe differs since some countries were prepared for the change but some incorporated it without any safety checks thus worsening the economy. Global economists criticise the move of demonetisation since its implementation can be potentially lethal to the economy and growth of a country but it can be prevented by rechecking and plugging the existing faults in the system to curb malpractice and bring transparency.

India being considered a developing nation and growing economically has undergone the purge of demonetisation not once but thrice. On 12th January of 1946, India was hit by the first wave of demonetisation when the government demonetised the 1000 rupees and 10000 rupees notes to cease unaccounted money. Out of 143 crore rupees in the market, the government collected only 134 crore rupees thus only 9 crore rupees being demonetised.

Under Moraji Desai’s reign in 1978, the next wave of demonetisation hit when 1000 rupees, 5000 rupees and 10000 rupees notes were recalled from circulation by the Wanchoo Committee of the government to reduce inflation. Modi-led government on the evening of 8th of November, 2016 announced the third wave of demonetisation to curb the black money in the economy handled by few major businessmen and politicians.

The 1946 and 1978 demonetisation had significant impact for a few years on the country’s economy but the present government had adequately prepared for the impending change by minting new notes and coins for smooth cash transactions to put mere impact on small businesses and the common people. Despite all the efforts, the demonetisation of 2016 had adverse impact on the whole of India since all changed spontaneously overnight bringing foreign exchange and business trade to a pause.

Out of all this, the business sector was tremendously affected by the demonetisation of 2016. The demonetisation of 2016 hit during the festive season of Diwali, Christmas and New Year for which the business sectorsaspire of making profit from. The most affected were the ones with small trades and those of daily basis traders. 2000 rupees notes were introduced to provide relief to the masses but inadequate change made all fume with rage. And the promotion of cashless or digital transactions meanwhile was to implement transparency in the economy but the traders refused to do so since they would not be able to earn profit from it and many hesitated regarding the risks of online transactions. Public sector units like post offices, banks, stock exchange and cash trading institutions underwent the purge of demonetisation since they weren’t prepared for people pouring in to demonetize their cash.

The industrial sector was also influenced by the wave of demonetisation of 2016. Industries with migrant labours and workers from West Bengal, Odisha, Jharkhand and Bihar were particularly influenced since they lacked identity proofs to open bank accounts and hence had to be paid in cash which made the entrepreneurs apprehensive during the usual disbursal period. The demonetisation of 2016 also disrupted the agricultural supply chain since the cash-crunch in the market forced the farmers to sell their crops and perishable commodities in the harvest season lower than the market price.

The worst affected by the wave of demonetisation of 2016 were the poor, Dalits and tribals since they mostly worked as labours and daily wage workers. With no or mere access to government facilities, their hard-earned money could not be demonetised since they could not make use of bank accounts.

BSBDA-Basic Savings Bank Deposit Account – Important Points

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Basic Savings Bank Deposit Account
The Basic Savings Bank Deposit Account allows you to bank with a zero minimum balance requirement. All the existing ‘No-frills’ accounts opened by the banks are now converted into BSBDA in compliance with the guidelines issued on August 22, 2012 by the Reserve Bank of India (RBI).

Under the Basic Savings Bank Deposit Account (BSBDA) scheme of Reserve Bank of India:

  1. The Basic Savings Bank Deposit Account should be considered as a normal banking service available to all customers (Any individual, including poor or those from weaker section of the society), through branches.
  2. BSBDA guidelines are applicable to “all scheduled commercial banks in India, including foreign banks having branches in India”.
  3. The services available in the account will include deposit and withdrawal of cash at bank branch as well as Free ATMs-cum-Debit Card; receipt/credit of money through electronic payment channels or by means of deposit/collection of cheques drawn by Central/State Government agencies and departments.
  4. There will be no limit on the number of deposits that can be made in a month, account holders will be allowed a maximum of four withdrawals in a month, including ATM withdrawals.
  5. No charge will be levied for non-operation/activation of in-operative ‘Basic Savings Bank Deposit Account’.
  6. Holders of ‘Basic Savings Bank Deposit Account’ will not be eligible for opening any other savings bank deposit account in that bank. If a customer has any other existing savings bank deposit account in that bank, he/she will be required to close it within 30 days from the date of opening a ‘Basic Savings Bank Deposit Account’.
  7. One can have Term/Fixed Deposit, Recurring Deposit etc., accounts in the bank where one holds ‘Basic Savings Bank Deposit Account’.
  8. The ‘Basic Savings Bank Deposit Account’ would be subject to RBI instructions on Know Your Customer (KYC) / Anti-Money Laundering (AML) for opening of bank accounts issued from time to time. If such account is opened on the basis of simplified KYC norms, the account would additionally be treated as a ‘Small Account’.
  9. Limits in BSBDA (Accounts with introduction/ Small Accounts):

(a) Aggregate of all credits in a financial year does not exceed Rs.1.00 lac

(b)The aggregate of all withdrawals and transfers in a month does not exceed Rs.10,000/-

(c)Balance at any point of time does not exceed Rs.50,000/-.

(d)The aim of introducing Basic Savings Bank Deposit Account is part of the efforts of RBI for furthering financial inclusion objectives.

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Pradhan Mantri Jan Dhan Yojna

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Pradhan Mantri Jan Dhan Yojana
Pradhan Mantri Jan Dhan Yojana is an ambitious scheme for comprehensive financial inclusion launched by the Prime Minister of India, Narendra Modi on 28 August 2014.He had announced this scheme on his first Independence Day speech on 15 August 2014.
On the inauguration day, 1.5 Crore (15 million) bank accounts were opened under Pradhan Mantri Jan Dhan Yojana  scheme. SBI had opened 11,300 camps for Pradhan Mantri Jan Dhan Yojana over 30 lakhs accounts were opened so far, which include 21.16 lakh accounts in rural areas and 8.8 lakh accounts in urban areas. On the contrast, even taking together all the major private sector banks, have opened just 5.8 lakh accounts.

Five Important Features of Pradhan Mantri Jan Dhan Yojana:

1. Under the scheme, account holders will be provided zero-balance bank account with RuPay debit card, in addition to accidental insurance cover of Rs. 1 lakh.
2. Those who open accounts by January 26, 2015, over and above the Rs1 lakh accident, they will be given life insurance cover
of Rs 30,000.
3. Six months of the opening of the bank account, holders can avail Rs 5,000 loan from the bank.
4. With the introduction of new technology introduced by National Payments Corporation of India (NPCI), a person can transfer
funds, check balance through a normal phone which was earlier limited only to smartphones so far.
5. Mobile banking for the poor would be available through National Unified USSD Platform (NUUP) for which all banks and
mobile companies have come together.
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Aam Aadmi Bima Yojna – Important Points

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Aam Admi Bima Yojana
Ministry of Finance, Government of India has approved the merger of Social Security Schemes viz., Aam Aadmi Bima Yojna (AABY) and Janashree Bima Yojana (JBY). The merged scheme is renamed “Aam Aadmi Bima Yojna” and has come into effect from 01.01.2013.

Details of the Aam Aadmi Bima Yojna Scheme:

Eligibility criteria :
  • The members should be aged between 18 years completed and 59 years nearer birthday.
  • The member should normally be the head of the family or one earning member of the below poverty line family (BPL) or marginally above the poverty line under identified vocational group/rural landless household.
Nodal Agency:
“Nodal Agency” shall mean the Central Ministerial Department/State Government / Union Territory of India/any other institutionalized arrangement/any registered NGO appointed to administer the Scheme as per the rules. In the case of “Rural Landless Households”, the nodal agency will mean the State Government/Union Territory appointed to administer the Scheme.
Age Proof:
  • Ration Card
  • Extract from Birth Register
  • Extract from School Certificate
  • Voter’s List
  • Identity card issued by reputed employer/Government Department.
  • Unique Identification Card (Aadhar Card)
Premium:
The premium to be charged initially under the scheme will be Rs.200/- per annum per member for a cover of Rs.30,000/-, out of which 50% will be subsidized from the Social Security Fund . In case of Rural Landless Household (RLH) remaining 50% premium shall be borne by the State Government/ Union Territory and in case of other occupational group the remaining 50% premium shall be borne by the Nodal Agency and/or Member and/or State Government/ Union Territory.
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