Rural Infrastructure - Kurukshetra October 2018 (Part - 1) (Download PDF)

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Key Topics included in this Article: The implementation of GST Bill in 2017 is a landmark step towards eradicating indirect taxes, creating more transparency in tax process & also in contributing to business growth in unconventional sectors as well.

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Rural Infrastructure - Kurukshetra October 2018 (In English)

Kurukshetra October 2018: Rural Infrastructure

  • The National Manufacturing Competitiveness Programme is a flagship programme of the Ministry of MSME which endeavors to equip these enterprises w/technology-based tools in areas of quality upgradation, productivity, design development, energy efficiency & marketing.

KVIC: STRENGTHENING RURAL ECONOMY

  • After independence, Khadi was reduced to a formal uniform of the political class, & along w/its wearers, Khadi too lost its symbolic force.

  • Gandhiji promoted Khadi because the hand-spun cloth was at the center of his vision for India’s self-reliant economy.

  • Gandhiji appealed masses to adopt Khadi w/ ‘Khadi for Fashion’ & ‘Khadi for Economic Transformation’.

  • In the Fiscal 2017 - 18, the sale of khadi has grown to Rs. 2509 crore, i. e. 25 % up w/respect to Rs. 2007 crore in 2016 - 17.

  • The total average Khadi sale, which was Rs. 914.07 crore during the year 2004 to 2014, jumped to Rs. 1828.30 crore in three years after that, i. e. b/w 2015 to 2018, w/over 100 % increase.

  • 391 new Khadi institutions were established after 2015 in some three-odd years,

  • It was the fusion of Khadi’s USP w/Yoga that so far ‘Khadi Yoga Kits’ worth Rs. 3.41 crore had been sold out in the post-2015 period which was zero before it.

  • KVIC invited many Textile Majors like Raymond’s, Aditya Birla Fashion Retail, & Arvind Mills etc. to join hands w/KVIC, to market the signature fabric of India.

  • KVIC derived a new concept of ‘Khadi Kroners”, where space from large retail houses was taken on shop-and-shop basis in the mega-malls & other such up –markets.

  • Interestingly, in the history of Khadi, increment of wages had never been more than Re 1 per hank before 2014. But, under the present regime of this govt. , it has been increased twice – each time w/more than Rs. 1.50 per hank, i. e. from Rs. 4 per hank to Rs. 5.50 per hank in July 2016 (i. e. 37.5%) & from Rs. 5.50 per hank to Rs. 7.50 per hank from 15th August 2018 (i. e. 36.36%). Hence, on an average, an artisan spinning minimum 20 hanks in a day will now start earning Rs. 202 per day.

  • Sewapuri:

    • Gandhiji stayed here when 600 people used to work in this center those days.

    • Centre was closed in 1990

    • The KVIC, on September 17 last year on Sewa Diwas, reopened it.

    • Direct employment to more than 800 people

    • KVIC discovered that nearly 11.60 lakh artisans were getting subsidy

    • As many as seven lakh were fake or ‘ghost beneficiaries’. After the implementation of Aadhar-seeded payment of subsidy directly to the bank accounts of genuine khadi artisans in 2016.

  • The KVIC, for the first time, roped in REC (Rural Electrification Corporation) to revive the legacy of the Sewapuri Ashram & got Rs. 5.5 crores for it.

  • For the very first time, Khadi became the theme-line of the national day celebration of any foreign country. It was the theme-line of Montenegro’s National Day on 13th July this year – which was witnessed by more than 50 diplomats.

  • It was this signature fabric of India that draped the train at St Pietermaritzburg on 7th June 2018-commemorating Mahatma Gandhi’s 125 years of throwing out from the train there in South Africa.

  • KVIC drafted a programme named mini ‘Honey Mission’ & launched it in July 2017 w/a small budgetary arrangement of RS 6 crore. The KVIC has distributed approximately 29,000 bee-boxes across the nation among the farmers.

  • In the tiger-prone zone of Bali island in Sunder ban in in West Bengal, the KVIC decided to give 75 Charkhas to tiger- victim women (bagh-bidhoba) to 50 such local families.

  • The bee-keeping movement is expected to generate additional incomes of up to Rs. 50,000 per annum per person to the rural & tribal families.

KHADI & RURAL RECONSTRUCTION: A GANDHIAN VIEW

  • “Khadi to me is the symbol of unity of Indian humanity, of its economic freedom & equality & therefore, ultimately… (it is) the livery of India’s freedom (in which) decentralization of the production & distribution of necessaries of life (remain just & fair) “

  • Unveils Gandhiji’s unique idea of achieving Swarajya thru constructive works paving the way to Sarvodaya, which is finally dedicated to humanism.

  • He called on the compatriots at the launch of the Non-Cooperation & Swadeshi Movement in1920 to boycott all foreign manufactured or labelled goods, more especially clothes manufactured in mills under mill-owners’ monopoly.

  • The real strength of the nation thru its self-sufficiency to play vital role in the economy to contribute towards Sarvodaya leading to Swarajya.

  • KVIC was formed by the GoI in the year 1956 as a statutory body w/the purpose of promotion of Khadi & village-cottage industries all along the Gandhian lines.

  • Further, approximately fifty lakh people are employed in industries making Khadi products & more than this number are benefitted indirectly-earning thru various programmes.

  • Total 391344 Village Industries are functioning under the Khadi & Village Industries Commission (the KVIC) as per the available official annual report of the year 2016.

KHADI: A TOOL FOR EMPLOYMENT

  • Mass production for higher profit was the sole motive behind industrialization whereas for Gandhiji production by the masses was the prime concern.

  • In January 1978, lvan Illich, author of the concept ‘Deschooling Society’ came to Sevagram to inaugurate a conference.

  • ‘Bapu Kuti’ in Sevagram represents the dignity of the people.

  • Economic activity thru spinning & weaving gave them a confidence. The slave mentality of the masses started vanishing.

  • Khadi is the Sun of the village solar system. The planets are the various industries which can support khadi in return for the heat & the sustenance they derive from it.

  • Choice is ours, whether we are going for a capital intensive technology or labour intensive technology.

  • “Mechanization is good when the hand are too few for the work intended to be accomplished. It is an evil when there are more hands than required for the work, as is the case in India. “

  • The percolation theory of the modern economic model has failed to distribute the benefit of development to all especially to the lower starts of the society.

  • Khadi can co-exist with Textile Mills:

    • They can standardize their prices

    • They can refrain from manufacturing those varieties that can be easily & immediately produced by Khadi organizations.

    • They can limit their profit to a minimum & let the surplus, any be devoted to the improvement of the condition of the labourers.

  • The ‘khadi spritmeans fellow-feeling w/every human being on earth.

BOOSTING ECONOMY THROUGH MSMEs

  • MSMEs a/c for more than 80 % of the total industrial enterprises in India creating more than 8000 value added products.

Contribution of MSMEs in Indian Economy:

  • The MSMEs occupy a strategic importance in terms of output, exports & employment created in Indian economy. It produces about 45 % of manufacturing output & 40 % of the total exports. Furthermore, about 80 million persons are engaged in over 29 million units throughout the country.

  • Urban area w/around 8 lakhs 57,000 enterprises accounted for 54.77 % of the total working enterprises in registered MSME sector whereas around 7 lakhs & 7000 enterprises means 45. % of the working enterprises are located in rural India.

  • The contribution of manufacturing MSMEs in the country’s total manufacturing gross value of output has also remained at about 33 % during last five years.

  • As per NSS 73rd Round (2015 - 16), the sector comprises of 63.88 lakh 88000 units & it has created 11crore 10 lakhs jobs in the economy.

  • Scheme of Fund for Up-gradation & Regeneration of Traditional Industries (SFURTI) is a cluster development scheme implemented by the govt. which aims at organization of traditional industries & artisans into clusters in order to make them competitive & sustainable in the long term.

  • The MSME sector in India has grown significantly since 1960 w/an average annual growth rate of 4.4 % in the number of units & 4.62 % in employment.

  • About 50 % of wealth in India is owned by just 100 people who are due to unequal distribution of wealth.

  • Udyog Aadhaar memorandum is one of the best schemes of MSME development launched by GoI in this, the Aadhaar card is a mandatory requirement.

  • ‘Zero Defect Zero Effect’ is another model that is prepared for development of this sector. In this model, goods that are manufactured for export have to adhere to a certain standard sq that they are not rejected or sent back to India.

New Initiatives by Gol:

  • Prime Minister’s Employment Generation Programme (PMEGP), which has been made on-line from 1st July 2016, has resulted into direct transfer of subsidy into the bank account of the beneficiaries. It also resulted into record utilization of margin money of Rs. 1312.40 crore during the year 2017 - 18.

MSME FOR INCLUSIVE DEVELOPMENT

  • Contribution of MSME is 8 % of GDP, 45 % of manufacturing output & 40 % of manufacturing output & 40 % of exports of the country & uniquely they are least investment driven w/high returns.

Micro, Small & Medium Enterprises:

  • The Govt. of India has enacted the Micro, Small & Medium Enterprises Developed (MSMED) Act, 2006 in terms of which the definition of enterprise, micro, Small & medium enterprises, is as under (Ministry of Law & Justice, 2006):

  • Enterprise means an industrial undertaking or a business concern or any other establishment, by whatever name called, engaged in the manufacture or production of goods, in any manner, pertaining to any industry specified in the First Schedule to the Industries (Development & Regulation) Act, 1951 or engaged in providing or rendering of any service or services.

Manufacturing Sector:

  • A micro enterprise is an enterprise where investment in plant & machinery does not exceed Rs. 25 lakh;

  • A small enterprise is an enterprise where the investment in plant & machinery is more than Rs. 25 lakh but does not exceed Rs. 5 crore.

  • A medium enterprise is an enterprise where the investment in plant & machinery is more than Rs. 5 crore but does not exceed Rs. 10 crore.

Service Sector

  • A micro enterprise is an enterprise where the investment in equipment does not exceed Rs. 10 lakh;

  • A small enterprise is an enterprise where the investment in equipment is more than Rs. 10 lakh but does not exceed Rs. 2 crore;

  • A medium enterprise is an enterprise where the investment in equipment is more than Rs. 2 crore but does not exceed Rs. 5 crore.

  • Section7 of the Micro, Small & Medium Enterprise Development (MSMED) Act, 2006 will accordingly be amended to define unite producing goods & rendering services in terms of annual turnover as follows:

    • Micro enterprise will be defined as a unit where the annual turnover does not exceed five crore rupees;

    • A small enterprise will be defined as a unit where the annual turnover is more than 5 cr. rupees but does not exceed Rs. 75 cr. ;

    • Medium enterprise will be defined as a unit where the annual turnover is more than seventy five crore rupees but does not exceed Rs. 250 cr.

    • Additionally, the Central Govt. may, by notification, vary turnover limits, which shall not exceed thrice the limits, which shall not exceed thrice the limits specified in Section 7 of the MSMED Act.

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Rural Infrastructure - Kurukshetra October 2018 (In Hindi)

Kurukshetra October 2018: Rural Infrastructure

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- Published/Last Modified on: October 24, 2018

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