As per the decision of Government of India, the syllabus and pattern of the Preliminary Examination from May 2011 is changing.
The Preliminary Examination shall now comprise of two compulsory Papers of 200 marks each and of two hours duration each. Detailed below is the new syllabus and pattern of the Preliminary Examination, which will be applicable from the Civil Services Examination (CSE) in 2011 onwards:
Paper I - (200 marks) Duration: Two hours
• Current events of national and international importance
• History of India and Indian National Movement
• Indian and World Geography - Physical, Social, Economic geography of India and the World.
• Indian Polity and Governance – Constitution, Political System, Panchayati Raj, Public Policy, Rights Issues, etc.
• Economic and Social Development – Sustainable Development, Poverty, Inclusion, Demographics, Social Sector Initiatives, etc.
• General issues on Environmental ecology, Bio-diversity and ClimateChange - that do not require subject specialization
• General Science.
Paper II- (200 marks) Duration: Two hours
• Comprehension
• Interpersonal skills including communication skills;
• Logical reasoning and analytical ability
• Decision making and problem solving
• General mental ability
• Basic numeracy (numbers and their relations, orders of magnitude etc.) (Class X level), Data interpretation (charts, graphs, tables, data sufficiency etc. -Class X level)
• English Language Comprehension skills (Class X level).
• Questions relating to English Language Comprehension skills of Class X level (last item in the Syllabus of Paper-II) will be tested through passages from English language only without providing Hindi translation thereof in the question paper.
The questions will be of multiple choice, objective type.
A set of sample questions for both Papers would be put on the UPSC website http://www.upsc.gov.in in due course for reference of the prospective candidates.
There is no change in the Civil Services (Main) Examination and Personality Test in the scheme of Civil Services Examination (CSE).
Tips for Presiding Officers & Polling Officers.
India is the largest Democracy in the world. The Government of India is chosen by the people of India through election.
The Election Commission of India takes the whole responsibility of conducting Election in a fair and peaceful manner. The Elections are of different types such as Parlimentary Election, Assembly Election, Panchayat Election, Municipal Election etc.
The Election Commission appoints Returning Officer who plays a vital role in conducting free and fair election. The Returning Officer appoints the Presiding and Polling Officers who are the incharge of Polling Station.
In each Polling Station there will be a Presiding Officer, First Polling Officer, Second Polling Officer, Third Polling Officer and sometime fourth Polling Officer.
The first Polling Officer will take over the charge of Identification & marking the ' Marked Copy of Electoral Roll' as soon as the voter is identified and found true he puts an indelible mark in the forefinger of the voter then he permits the voter to move to the Second Polling Officer. The Second Polling Officer is the incharge of Ballot Papers. He will issue the Ballot Paper to the voter after obtaining signature in the counterfoil. The Third Polling Officer will help the voter in folding the Ballot Paper. In the last row there will be Fourth Polling Officer who will holding the charge of keeping the voting seal and the stamp pad.
The presiding Officer is the incharge of the Polling Station . All Polling Officers are under the control of Presiding Officer. The Presiding Officer has the right to change the sequence of the Polling Officers as he feels better for the smooth conduct of election.
The Presiding Officer has lot of work to be done in the previous and on the polling day. He is continuously under constant pressure till the submission of election material alongwith Ballot Boxes or EVM whatever it may be.
It is observed that in each election the Presiding Officers generally confused with lot of formalities to be done during, before and after the closing of Election. The Presiding Officer should ensure all the formalities
are done in a perfect manner. A little lack in any election precedure may lead to lot of problems. Now I want to laid some tips for the Presiding & Polling Officers which will help them in completing all formalities without any discrepency.
The work pertaining to election can be divided into three parts
1. Formalities to be completed in the previous day of Election.
2. Formalities to be Completed during the Election Day.
3. Formalities to be Completed after closing of Election
FORMALITIES TO BE COMPLETED IN THE PREVIOUS DAY OF ELECTION
Checking of Materials
As you are aware of the fact that you will be issued all the Election Materials on the previous Day. As soon as the materials are received
it should be thoroughly checked before proceeding to the Election Booth. Each and every item in the lot is most essential.
You will be appointed in such a remote place where you cannot even get a pin. So, you should be very cautious.
1. Indelible ink must be thorougly checked whether it is dried or not.
2. All the Ballot Papers should be checked with the serial numbers printed on the Ballot Paper as well as in the counterfoil are to be tallied.
3. If any shortages or surplus of Ballot Papers found immediately it should be brought into the notice of Returning Officer for further
necessary action.
4.There will be seven Statutory Covers with necessary printed forms.
5. There will be seven Non- Statutory Covers with necessary printed forms.
6. All other allied materials will be tallied with the list given alongwith the materials.
Setting Up of Polling Station
As soon as reaching the Polling Station.
1. Open all the materials carefully.
2. Make proper Seating Arrangement for the Presiding Officer, Polling Officers and the Polling Agents.
3. The Seating Arrangement for the Polling Agents should be near the Entrance so that they can see the voter for proper identification.
4. The Seating Arrangement of the Presiding Officer should be in such a way that he can easily watch the Polling Officers, Polling Agents,
the voters and the Ballot Boxes so that he can watch all the activities which are going inside as well as outside of the polling station.
5. Voting compartment should be made by using the card board given for that particular use.
6. Make ensure that there is no photograph of any political leaders except 'Father of Our Nation'.
7. Make ensure that the bulbs and fans are in working condition.
8. There should be two separate way for Enter and Exit. If there is a common entrance than the same entrance can be divided into
two way using a thread or with any stick.
9. Paste a Slip bearing your polling station number and name in such a way that the voter can easily recognise your Polling Station.
10. Paste a Slip of Contesting Candidates which will be supplied alongwith the Polling Materials.
11. Place the Ballot Box closer to the Presiding Officer so that he can have an eye over dropping of votes.
Now your Polling Station is ready for next day voting.
Making the Materials Readily Available.
All the necessary Polling Materials should be arranged in such a way that there is no need of searching any materials.
1. Keep the Electoral Roll of Marked Copy, Ruler , Indelible Ink in the desk of First Polling Officer.
2. Keep the Ballot Papers and a metal stick for detaching the Ballot Papers in the desk of Second Polling Officer.
3. Keep all the materials for sealing such as match box, sealing waxes, Candle,metal seal etc in a safe corner of the Polling Station.
4. Separate all the Statutory Covers and Non Statutory Covers. The necessary printed forms can be put inside for readily available.
5. Affixing signature and distinguising mark in the reverse of the Ballot Papers. The distinguishing mark should be put backside of the
right top corner (that is behind the name of the candidate). The signature of the Presiding Officer should be in the Ballot Paper only but
the distinguishing mark should be put on both the counterfoil and the Ballot Paper.
6. Keep the Declaration of Start and Close of the poll to be pronounced by the Presiding Officer in a readily available place.
7. Keep the Appointment of Polling Agents readily available.
8. Keep ready of paper seal
9. Keep a duly filled Addressed Tag for using in the Ballot Boxes.
with this you have completed all the formalities to be done before the poll.
FORMALITIES TO BE COMPLETED DURING THE ELECTION
1.In the morning of the Election Day: All the Polling & Presiding Officer should be present atleast 2 hours prior to the commencement of the poll.
2 .Appointment of Polling Agents: Your work start with appintment of polling agents. For this purpose you have printed forms for the
appointment of Polling Agents.
3. .Ballot Box Preparation: You can start your Ballot Box preparation 20 Minutes prior to the commencement of poll. These can be Categorised as:
a) Show the empty Ballot Box to the Polling Agents for ensuring the box is empty.
b) Get your paper seal signed by the Polling Agents and yourself (Presiding Officer)
c) Put the Address Tag duly filled inside the box for identification at the counting centre.
d) Fix the paper seal cautiously so that it should not be damaged at any cost.
e) Strengthen the paper seal with cardboard provided for the purpose.
f) Put Sealing wax in such a way that the paper seal should not move in any direction.
g) Put the distinguishing mark over the visible area of the paper seal from outside.
h) Close the slit.
i) The box is ready for polling.
4. Declaration: The declaration statement to be loudly read by the Presiding Officer that the Polling Starts.
5. It is the whole responsibility of the Presiding Officer that the polling should be conducted in a peaceful manner. The particular Polling Booth is totally under his control.
6. The police personal should not enter the station until and unless a call from the Presiding Officer.
7. During the Polling, the Presiding Officer has to complete the Presiding Officer's Diary.
8. He should have a scoresheet for obtaining the percentage of Polling in each interval of an hour.
9. If there is anymore voter standing in the queue even after the closing time specified for the poll, than the Presiding Officer
should issue a slip bearing numbers from the last voter standing on the queue starting from serial number 1. No voter should be allowed to join the queue just after the issue of slips.
10. When the last voter polled his vote than the Presiding Officer can read out the Declaration for the Closing of Poll.
11.Just after reading the Closing Declaration, The Presiding Officer can close the slit of the Ballot Box.
FORMALITIES TO BE COMPLETED AFTER CLOSING OF POLL
1. After the Closing of the Slit of the Ballot Box, the same can be packed with with cloth provided with the polling materials.
2. Obtain the signature of the Polling Agents if any present on that time.
3. Complete your Ballot Paper Account carefully. No of Ballot Papers inside the box should tally with the no you shown in your Ballot Paper Account.
4. Complete the paper seal Account.
5. Ballot Paper Account, Paper Seal Account, Presiding Officers Diary and the Declaration should not be sealed and pasted because these are to be checked physically by the Returning Officer at the Collection Centre.
6. All seven Statutory covers should be sealed carefully.
7. All the seven Non-Statutory covers should be pasted carefully.
8. All the un-used centre materials should be packed in the third cover.
9. Now you can move towards the collection centre by availing the bus engaged for the election duty. You will be accompanied by the Laison Officer who will be the incharge of transporting the materials from the Collection Centre to Polling Station and vice versa.
By going through this article, I hope the Presiding Officers and the Polling Officers definitely feel better in accomplishing their task in a complete manner. All the Best. Go Ahead.
(Courtesy: http://www.indiastudychannel.com/)
The Election Commission of India takes the whole responsibility of conducting Election in a fair and peaceful manner. The Elections are of different types such as Parlimentary Election, Assembly Election, Panchayat Election, Municipal Election etc.
The Election Commission appoints Returning Officer who plays a vital role in conducting free and fair election. The Returning Officer appoints the Presiding and Polling Officers who are the incharge of Polling Station.
In each Polling Station there will be a Presiding Officer, First Polling Officer, Second Polling Officer, Third Polling Officer and sometime fourth Polling Officer.
The first Polling Officer will take over the charge of Identification & marking the ' Marked Copy of Electoral Roll' as soon as the voter is identified and found true he puts an indelible mark in the forefinger of the voter then he permits the voter to move to the Second Polling Officer. The Second Polling Officer is the incharge of Ballot Papers. He will issue the Ballot Paper to the voter after obtaining signature in the counterfoil. The Third Polling Officer will help the voter in folding the Ballot Paper. In the last row there will be Fourth Polling Officer who will holding the charge of keeping the voting seal and the stamp pad.
The presiding Officer is the incharge of the Polling Station . All Polling Officers are under the control of Presiding Officer. The Presiding Officer has the right to change the sequence of the Polling Officers as he feels better for the smooth conduct of election.
The Presiding Officer has lot of work to be done in the previous and on the polling day. He is continuously under constant pressure till the submission of election material alongwith Ballot Boxes or EVM whatever it may be.
It is observed that in each election the Presiding Officers generally confused with lot of formalities to be done during, before and after the closing of Election. The Presiding Officer should ensure all the formalities
are done in a perfect manner. A little lack in any election precedure may lead to lot of problems. Now I want to laid some tips for the Presiding & Polling Officers which will help them in completing all formalities without any discrepency.
The work pertaining to election can be divided into three parts
1. Formalities to be completed in the previous day of Election.
2. Formalities to be Completed during the Election Day.
3. Formalities to be Completed after closing of Election
FORMALITIES TO BE COMPLETED IN THE PREVIOUS DAY OF ELECTION
Checking of Materials
As you are aware of the fact that you will be issued all the Election Materials on the previous Day. As soon as the materials are received
it should be thoroughly checked before proceeding to the Election Booth. Each and every item in the lot is most essential.
You will be appointed in such a remote place where you cannot even get a pin. So, you should be very cautious.
1. Indelible ink must be thorougly checked whether it is dried or not.
2. All the Ballot Papers should be checked with the serial numbers printed on the Ballot Paper as well as in the counterfoil are to be tallied.
3. If any shortages or surplus of Ballot Papers found immediately it should be brought into the notice of Returning Officer for further
necessary action.
4.There will be seven Statutory Covers with necessary printed forms.
5. There will be seven Non- Statutory Covers with necessary printed forms.
6. All other allied materials will be tallied with the list given alongwith the materials.
Setting Up of Polling Station
As soon as reaching the Polling Station.
1. Open all the materials carefully.
2. Make proper Seating Arrangement for the Presiding Officer, Polling Officers and the Polling Agents.
4. The Seating Arrangement of the Presiding Officer should be in such a way that he can easily watch the Polling Officers, Polling Agents,
the voters and the Ballot Boxes so that he can watch all the activities which are going inside as well as outside of the polling station.
5. Voting compartment should be made by using the card board given for that particular use.
6. Make ensure that there is no photograph of any political leaders except 'Father of Our Nation'.
7. Make ensure that the bulbs and fans are in working condition.
8. There should be two separate way for Enter and Exit. If there is a common entrance than the same entrance can be divided into
two way using a thread or with any stick.
9. Paste a Slip bearing your polling station number and name in such a way that the voter can easily recognise your Polling Station.
10. Paste a Slip of Contesting Candidates which will be supplied alongwith the Polling Materials.
11. Place the Ballot Box closer to the Presiding Officer so that he can have an eye over dropping of votes.
Now your Polling Station is ready for next day voting.
Making the Materials Readily Available.
All the necessary Polling Materials should be arranged in such a way that there is no need of searching any materials.
1. Keep the Electoral Roll of Marked Copy, Ruler , Indelible Ink in the desk of First Polling Officer.
2. Keep the Ballot Papers and a metal stick for detaching the Ballot Papers in the desk of Second Polling Officer.
3. Keep all the materials for sealing such as match box, sealing waxes, Candle,metal seal etc in a safe corner of the Polling Station.
4. Separate all the Statutory Covers and Non Statutory Covers. The necessary printed forms can be put inside for readily available.
5. Affixing signature and distinguising mark in the reverse of the Ballot Papers. The distinguishing mark should be put backside of the
right top corner (that is behind the name of the candidate). The signature of the Presiding Officer should be in the Ballot Paper only but
the distinguishing mark should be put on both the counterfoil and the Ballot Paper.
6. Keep the Declaration of Start and Close of the poll to be pronounced by the Presiding Officer in a readily available place.
7. Keep the Appointment of Polling Agents readily available.
8. Keep ready of paper seal
9. Keep a duly filled Addressed Tag for using in the Ballot Boxes.
with this you have completed all the formalities to be done before the poll.
FORMALITIES TO BE COMPLETED DURING THE ELECTION
1.In the morning of the Election Day: All the Polling & Presiding Officer should be present atleast 2 hours prior to the commencement of the poll.
2 .Appointment of Polling Agents: Your work start with appintment of polling agents. For this purpose you have printed forms for the
appointment of Polling Agents.
3. .Ballot Box Preparation: You can start your Ballot Box preparation 20 Minutes prior to the commencement of poll. These can be Categorised as:
a) Show the empty Ballot Box to the Polling Agents for ensuring the box is empty.
b) Get your paper seal signed by the Polling Agents and yourself (Presiding Officer)
c) Put the Address Tag duly filled inside the box for identification at the counting centre.
d) Fix the paper seal cautiously so that it should not be damaged at any cost.
e) Strengthen the paper seal with cardboard provided for the purpose.
f) Put Sealing wax in such a way that the paper seal should not move in any direction.
g) Put the distinguishing mark over the visible area of the paper seal from outside.
h) Close the slit.
i) The box is ready for polling.
4. Declaration: The declaration statement to be loudly read by the Presiding Officer that the Polling Starts.
5. It is the whole responsibility of the Presiding Officer that the polling should be conducted in a peaceful manner. The particular Polling Booth is totally under his control.
6. The police personal should not enter the station until and unless a call from the Presiding Officer.
7. During the Polling, the Presiding Officer has to complete the Presiding Officer's Diary.
8. He should have a scoresheet for obtaining the percentage of Polling in each interval of an hour.
9. If there is anymore voter standing in the queue even after the closing time specified for the poll, than the Presiding Officer
should issue a slip bearing numbers from the last voter standing on the queue starting from serial number 1. No voter should be allowed to join the queue just after the issue of slips.
10. When the last voter polled his vote than the Presiding Officer can read out the Declaration for the Closing of Poll.
11.Just after reading the Closing Declaration, The Presiding Officer can close the slit of the Ballot Box.
FORMALITIES TO BE COMPLETED AFTER CLOSING OF POLL
1. After the Closing of the Slit of the Ballot Box, the same can be packed with with cloth provided with the polling materials.
2. Obtain the signature of the Polling Agents if any present on that time.
3. Complete your Ballot Paper Account carefully. No of Ballot Papers inside the box should tally with the no you shown in your Ballot Paper Account.
4. Complete the paper seal Account.
5. Ballot Paper Account, Paper Seal Account, Presiding Officers Diary and the Declaration should not be sealed and pasted because these are to be checked physically by the Returning Officer at the Collection Centre.
6. All seven Statutory covers should be sealed carefully.
7. All the seven Non-Statutory covers should be pasted carefully.
8. All the un-used centre materials should be packed in the third cover.
9. Now you can move towards the collection centre by availing the bus engaged for the election duty. You will be accompanied by the Laison Officer who will be the incharge of transporting the materials from the Collection Centre to Polling Station and vice versa.
By going through this article, I hope the Presiding Officers and the Polling Officers definitely feel better in accomplishing their task in a complete manner. All the Best. Go Ahead.
(Courtesy: http://www.indiastudychannel.com/)
UGC-JRF/NET Examination on Dec 26, 2010: Apply online before Oct 25,2010
The University Grants Commission announces holding of the National Eligibility Test (NET) on 26th December, 2010 (Sunday) for determining the eligibility of Indian nationals for the Award of Junior Research Fellowship (JRF) and Eligibility for Lectureship in Indian universities and colleges. UGC will conduct NET in 77 (seventy seven) subjects t 70 (Seventy, including four new centres) selected University Centres pread across the country.
Candidates who have secured at least 55% marks (without rounding off) in Master’s Degree OR equivalent examination from universities/institutions recognised by UGC in Humanities (including languages) and Social Sciences, Computer Science & Applications, Electronic Science etc. are eligible for this Test. The Scheduled Caste (SC)/Scheduled Tribe (ST)/Physically Handicapped (PH)/Visually Handicapped (VH) category candidates who have secured at least 50% marks (without rounding off) in Master’s degree or equivalent examination are eligible for this Test.
Important Dates
Application Submission Start Date : 29-9-2010
Application Submission End Date : 25-10-2010
Last date for receiving the documents* at the test center: 1-11-2010
Examination Date : 26-12-2010
SCHEME AND DATE OF TEST :
The Test will consist of three papers. All the three papers will be held on 26th December, 2010 in two separate sessions.
Paper-I shall be of general nature, intended to assess the teaching/research aptitude of the candidate. It will primarily be designed to test reasoning ability, comprehension, divergent thinking and general awareness of the candidate. UGC has decided to provide choice to the candidates from the December 2009 UGC-NET onwards. Sixty (60) multiple choice questions of two marks each will be given, out of which the candidate would be required to answer any fifty (50). In the event of the candidate attempting more than fifty questions, the first fifty questions attempted by the candidate would be evaluated.
Paper-II shall consist of questions based on the subject selected by the candidate. Each of these papers will consist of a Test Booklet containing 50 compulsory objective type questions of two marks each.
Paper-III will consist of only descriptive questions from the subject selected by the candidate. The candidate will be required to attempt questions in the space provided in the Test Booklet. The structure of Paper-III has been revised from June, 2010 UGC-NET and is available on the UGC website www.ugc.ac.in.
Paper-III will be evaluated only for those candidates who are able to secure the minimum qualifying marks in Paper-I and Paper-II.
For more details log on to http://www.ugc.ac.in/ or http://www.ugcnetonline.in/
Candidates who have secured at least 55% marks (without rounding off) in Master’s Degree OR equivalent examination from universities/institutions recognised by UGC in Humanities (including languages) and Social Sciences, Computer Science & Applications, Electronic Science etc. are eligible for this Test. The Scheduled Caste (SC)/Scheduled Tribe (ST)/Physically Handicapped (PH)/Visually Handicapped (VH) category candidates who have secured at least 50% marks (without rounding off) in Master’s degree or equivalent examination are eligible for this Test.
Important Dates
Application Submission Start Date : 29-9-2010
Application Submission End Date : 25-10-2010
Last date for receiving the documents* at the test center: 1-11-2010
Examination Date : 26-12-2010
SCHEME AND DATE OF TEST :
The Test will consist of three papers. All the three papers will be held on 26th December, 2010 in two separate sessions.
Paper-I shall be of general nature, intended to assess the teaching/research aptitude of the candidate. It will primarily be designed to test reasoning ability, comprehension, divergent thinking and general awareness of the candidate. UGC has decided to provide choice to the candidates from the December 2009 UGC-NET onwards. Sixty (60) multiple choice questions of two marks each will be given, out of which the candidate would be required to answer any fifty (50). In the event of the candidate attempting more than fifty questions, the first fifty questions attempted by the candidate would be evaluated.
Paper-II shall consist of questions based on the subject selected by the candidate. Each of these papers will consist of a Test Booklet containing 50 compulsory objective type questions of two marks each.
Paper-III will consist of only descriptive questions from the subject selected by the candidate. The candidate will be required to attempt questions in the space provided in the Test Booklet. The structure of Paper-III has been revised from June, 2010 UGC-NET and is available on the UGC website www.ugc.ac.in.
Paper-III will be evaluated only for those candidates who are able to secure the minimum qualifying marks in Paper-I and Paper-II.
For more details log on to http://www.ugc.ac.in/ or http://www.ugcnetonline.in/
THE ASEAN-INDIA FREE TRADE AGREEMENT: IMPACT ON THE KERALA ECONOMY
Abstract
India has several compulsions under its ‘Look East’ policy to be in good terms with its south eastern neighbours which are close to China. As part of the policy, India has been pursuing closer economic and strategic ties with the countries of south East Asia. In August 2009, India has signed a free trade agreement (FTA) for goods with the ten-member Association of South-East Asian Nations (ASEAN). This agreement which came into force on 1 January 2010 targeted to eliminate tariffs on 80% of the tariff lines accounting for 75% of the trade in a gradual manner. However, signing of free trade agreement for goods has evoked mixed reactions in India. While it has been hailed as the beginning of the end of India’s isolation from major trading blocs and a firm step towards Pan Asian economic integration, the Agreement has been opposed in some regions and by a few sectoral interests in India which feel threatened because imports from the ASEAN would be promoted.
The agricultural sector in India, particularly plantation sector like tea, spices, coffee and rubber will be negatively affected. Marine products, textiles and garments, and the auto components industry are also likely to face increased competition due to AIFTA. This is not completely unexpected as some of the south-east Asian countries have a much higher level of efficiency in these sectors as compared to India. Responses from different sectors indicate that farmers in the southern Indian states especially Kerala are feeling particularly threatened by this deal. This paper studies the problems faced by the farmers of Kerala with its impact on the economy of Kerala.
Keywords: Free Trade Agreement, Sensitive Track, Negative List, Productivity
ASEAN-India Free Trade Agreement (AIFTA) – An Introduction
India and the Association of South East Asian Nations (ASEAN) on August 13, 2009 signed a Free Trade Agreement (FTA). ASEAN, established on 8th August 1967, comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. The agreement, which relates only to goods, took nearly six years to negotiate. The accord, India’s first with a trade bloc, will cover 11 countries with a combined Gross Domestic Product (GDP) of over $2 trillion. The combined population of the region is of the order of 1.6 billion.
Nine members of the 10 nation regional trade bloc signed the pact. Vietnam, the 10th member nation, would do so after its formal recognition by India as a “market economy”. According to an official report, India and Vietnam has already agreed to sign a memorandum of understanding on this issue. The FTA came into being from January 1, 2010.
The press statement released after the finalization of the deal said that the mutually agreed tariff liberalization would gradually cover 75 percent of the two-way trade, beginning from January 2010. Indian –ASEAN trade was of the order of $40 billion in the 2007-08 accounting year. As of now, the regional bloc is India’s fourth largest trading partner and it currently accounts for about 10 percent of its global trade. The two sides have set an ambitious target of achieving an increase of $10 billion worth of trade in the first year after the agreement comes into force from January 2010.
Under the ASEAN-India FTA (AIFTA), the ASEAN member countries and India will lift import tariffs on more than 80 percent of traded products between 2013 and 2016. The agreement has provided flexibilities to India and the ASEAN countries to exclude some of the products from tariff concessions or eliminations to address their respective domestic sensitivity. India, on its part, has excluded 489 items from the list of tariff concessions and 590 items from the list of tariff elimination to address sensitivities in agriculture, textiles, auto, chemicals, crude and refined palm oil, coffee, tea, pepper, etc. The ASEAN member countries have also maintained similar exclusion lists from the proposed tariff concessions or eliminations.
According to the agreement, the involved countries will not institute or maintain any non-tariff measure on the importation of goods from other members of the FTA. They have also pledged to reduce tariff rates on a large number of tariff lines.
The ASEAN-India FTA classifies the tariff lines into four broad heads. These are:
o Normal Track: The applied most favoured nation (MFN) rates will be reduced and subsequently eliminated. This is divided into 2 sub-categories called Normal track 1 and Normal Track 2. The difference between the two is that NT-2 has a longer implementation period (till 2019) than NT-1 (till 2013).
o Sensitive Track: For the first stage of implementation, applied MFN rates that are above 5% will be reduced to 5% in accordance with the country-specific reduction schedules. It is possible to maintain the same 5% tariff rate in respect of 50 items under this group. The tariff rate of items under this group must be reduced to 4% by the year 2016 and it will become zero percent by the year 2019.
o Special products: These refers to some select products for which India has decided to reduce tariff rates at a much more gradual pace than either the normal track or sensitive track.
o Exclusion List/ Negative List: For these products no reduction commitments have been made. 489 items are included under this list. India has 489 tariff lines under the negative list which includes 302 agricultural items, 81 items from textiles and clothing, 52 items from machinery and auto, and 32 items from chemicals and plastics. In addition, there are 22 other items from various other sectors. For products that are not on the negative list, duties will be reduced in a phased manner and the duty will be brought down to zero by 2019.
The exchange of tariff concessions between India and the ASEAN member countries would lead to growth in bilateral trade investments resulting in economic benefits to both the sides. Indian exporters of machinery and machine parts, steel and steel products, agriculture products such as oilcake, wheat and buffalo meat, auto components, chemicals, and synthetic textiles would gain additional market access as a result of tariff liberalization by ASEAN. Indian manufacturers would also be able to source products at competitive prices from the ASEAN countries. The agreement also provides for bilateral safeguard mechanisms to address sudden surge in imports after the agreement comes into effect. In such an eventuality if it hurts domestic industry, safeguard measures like the imposition of safeguard duties may be put in place for a period of up to four years. The flexibility to invoke safeguard measures will remain available for both the sides for a period of seven years to 15 years from the date the agreement comes into force.
AIFTA – Importance
ASEAN is India's fourth-largest trading partner after the European Union, the United States and China. Trade between ASEAN and India has risen by more than 27% annually since 2000. The agreement is key to creating an open market across the region. India is looking to boost its export sector, which accounts for only 26% of its economy, said Union Commerce Minister Anand Sharma. ASEAN with 600 million people - against India's billion plus - presents a substantial opportunity for Indian exporters and businessmen. India would - through the FTA - gain access to machinery, steel products, chemicals and synthetic textiles and also allow Indian business opportunities in ASEAN countries and open up the bloc's services sector. Further more, Australia, China, Japan, New Zealand and South Korea have already signed FTAs with ASEAN and India cannot stay away.
AIFTA: Impact on Kerala Economy
Kerala state is known for the lush expanses of cardamom, pepper, tea and rubber that grow on its misty hills, and the bountiful catches of fish on a coastline punctuated by lagoons and backwaters. Kerala accounts for 91% of India’s rubber, 70% of coconut, 60% of tapioca and almost 100% of lemon grass oil. Kerala is the single largest producer of a number of other crops like banana and ginger, besides tea and coffee in abundance. 50% of people engaged in agriculture. Kerala accounts for about 1/3 of India’s marine exports.
Kerala remains a primarily agrarian State, despite the considerable share of foreign remittances in the State GDP. Commercial crops account for over 84 per cent of Kerala’s net sown area and provide livelihood to nearly half of the State’s population; agricultural income (growing at 3.73 per cent) accounts for over 21 per cent to the total income of the State (2000-01 census data).
AIFTA: Kerala’s Perspective
The AIFTA will have a far reaching impact on in Indian Economy and Agriculture especially for Kerala. The major threat is for crops from Kerala, like rubber, palm oil, black pepper, cashew nut, green coffee, mace, nutmeg, cardamom, pineapple, vanilla, arecanut and tea. According to the present pattern of exports, ASEAN accounts for 31.56% of copra, 82.41% of coconut oil, 64% of desiccated coconut and 92% of natural rubber. Vietnam alone accounts for 45% of the world pepper exports.
The Kerala Government fears that sectors such as plantations, fisheries, textiles and light manufacturing goods will be seriously affected by the FTA. The major farm exports deemed to be under threat are tea, coffee, cashew, coconut, oil palm, rubber, spices (especially pepper) and other plantation items. Kerala Government had asked the Centre to put 1400 items under the Negative List. Only 489 items have been now included in the Negative List.
The Indo-ASEAN free trade agreement seeks to remove or reduce the tariff on trade-in-goods including sensitive products such as coffee, tea, palm oil and pepper in a phased manner. The import tax on Kerala’s products like coffee, tea, rubber, copra, coconut, coir, cashew, pepper, cardamom, coconut oil etc will have to be brought down to 50% or less by 2019. Import tax for Palm Oil has to be brought down to 40%. At present the import tax is cent percent for tea and coffee. It is 70% for pepper and 90% for Palm Oil. The liberalisation in trading of cash crops will expose Kerala’s small and marginal farmers in the plantation sector to the competition and this, some argue, may lead to over one million job losses. The partial duty cuts in 2019 will mean that the import prices will become cheaper than the local produce which will eventually jeopardise the interests of millions of cash crop farmers. Tariff reduction is only a beginning of the move towards a free trade regime or to say it differently, the ultimate objective would be to eliminate tariff for these commodities. The backbone of Kerala economy will be threatened.
Kerala's farmers already have the bitter experience of past free trade agreements, such as the South Asia Free Trade Agreement (SAFTA) signed in 2006, which saw the state flooded with cheap Sri Lankan coconuts. Also the import of cheap palm oil from Malaysia and Indonesia has seriously affected coconut cultivation. Back in 2005, Sri Lankan pepper flooded North Indian markets and depressed domestic prices forcing the govt. to enforce a quota regime.
Kerala's four million coconut farmers stand to be truly ruined by the Indo-ASEAN FTA because it will allow the import of coconut oil from the Philippines - a major producer which enjoys significantly lower costs of production. The Central government’s argument that coconut is in the negative list and the coconut farmers are thus protected does not hold ground in reality. Reduction in palm oil tariff will have severe implications on the coconut farmers as Palm oil is a substitute of coconut oil and the deal will enable palm oil to take over the market. The import of palm oil has already caused huge economic distress among the groundnut farmers, leading to suicides in regions such as Ananthapur in Andhra Pradesh. There are 3.6 lakh workers working in the coir sector and 2.5 lakh in the cashew sector. This year’s cashew exports are 1500crores. All these will be affected as a result of the FTA.
The sector that is going to be hit worst is fisheries - particularly artisanal fishing which will be unable to compete with the factory fishing carried out by such countries as Thailand. The FTAs direct impact would hit Kerala severely given the huge numbers of people involved in fishing, fish vending and processing. Some two million fishermen and their families are at risk in Kerala alone. Recent years have seen fish stocks depleted due to over fishing by trawlers and foreign vessels, and falling prices forcing many fishermen in Kerala to find other means of livelihood. Further liberalisation of fisheries in the name of increasing trade will only deepen the problems of the fishing community. The biggest threats come from Thailand, the world's largest exporter of farmed shrimp, and Vietnam, the world's eighth largest seafood exporter. The trade in goods agreement will enable the dumping of up to 177 species of fish in the Indian market.
The FTA is likely to permit zero tariff imports of sardines, mackerels, anchovies and crabs. Cheaper imports of local popular varieties such as cuttlefish, squid, shrimp, sole and pomfret will spell doom for fishing communities.
The productivity levels of Kerala’s farmers are far lower than their counterparts in the ASEAN region who enjoy the benefits of economies of scale. The difference in productivity levels between Indian farmers and ASEAN farmers is so vast that any reduction in the existing tariff rates will “sound the death knell” for over one million farmers and labourers engaged in the plantation and maritime sectors. Productivity of all plantation crops except rubber are much higher in ASEAN countries than India. Pepper productivity in Kerala is around 320 kg/ha, while Vietnam produces 1.2 tonnes and Indonesia 2.3 tonnes from the same area. As a result of FTA pepper may cease to be produced in Kerala, the land where it originated. Productivity of coffee in India stands at 765 kg/ha while Vietnam produces 1.7 tonnes/ ha.
Production and productivity at the farm level are the most vital component of plantation industry. When the costs are sky rocketing beyond the control of the producers, the only alternative is to increase land productivity to reduce the cost of production. Kerala’s plantation sector is affected by declining productivity while the nearby competing states are making huge gains. For instance, in tea, the base output is around 17-35 kgs per person in Tamil Nadu, while the same is around 16-21 kgs in Kerala. In the case of Robusta coffee, the base output per day in Karnataka is 75 kgs, while in Kerala it is 50 kgs. Finally, the unit high costs of production and adverse climatic conditions, both having implications for productivity and competitiveness, are the other limiting factors. Productivity is a function of cost and quality of inputs administered, which is in turn a function of resources available to the farmer. However, farm sizes of 5 hectares and above (owners with better access to farm and non-farm income) comprise less than 0.23 per cent of all holdings in Kerala.
While in both India and ASEAN, agriculture accounts for about a fifth of GDP, India’s farm sector employs about 60 per cent of its total workforce compared with ASEAN 46.5 per cent.
Less productive plantations and relatively higher labour cost are making Kerala plantations more vulnerable under the Indo- ASEAN free trade agreement, officials of the Association of Planters of Kerala (APK) said.
Under the trade pact, India has included 489 items from agriculture, textiles and chemicals in the negative list, meaning these products will be kept out of the duty reduction. Addressing concerns of domestic planters, black tea, coffee, pepper etc have been included in the sensitive list, which could mean duties will be cut by 2019 only. However, duty on these items at no time will be eliminated. Farmers in South India, especially Kerala, fear lower duty on plantation crops like coffee and pepper would lead to a deluge of imports from ASEAN members like Indonesia, Malaysia, which could leave domestic farmers vulnerable to competition.
While natural rubber, cardamom and a few tariff lines in coffee are under an exclusion list at present, there is no guarantee that they will remain in this category forever.
AIFTA: Options for Kerala
The competitiveness of Kerala farm products is low. Hence, rather than expending energy lobbying for the protection of domestic markets, stakeholders need to address without further ado the nature and sequencing of domestic reforms necessary to reverse this trend, and for them to be implemented within the next 5-7 years. The different structural adversities should be corrected by this time.
US experience teaches an important lesson. The efforts of the Detroit automakers to win protection from Japanese competition in the 1980s did give temporary respite to the US auto industry, and helped sustain the American dream for autoworkers. But after 25 years and having experienced several recessions, the US auto industry lies in shambles; they now realise that unless operations are changed drastically, matters will turn even worse.
The India-ASEAN FTA can be interpreted as a unilateral initiative that sets a firm timeframe for much needed agriculture reforms in India. One also needs to acknowledge that competitiveness is dynamic. Furthermore, the composition of the trade basket changes significantly over time. The lesson from the recent Asian manufacturing success is as follows: adherence to fundamentals of commerce — give what the consumer wants, control costs and deliver value for money. Kerala’s agrarian communities need to address market demand and international competitiveness issues to remain viable.
Kerala, therefore, needs to adopt the recommendations of the M. S. Swaminathan Committee of seeking limited protection and additional investment support, and redress the structural issues on a priority basis.
The viability of farming in the State can be enhanced by diversification into crops meeting the changing domestic dietary pattern and export demand; strengthening linkages between agricultural training and extension; balanced soil and plant nutrition and pest management techniques; and increasing small farmers’ access to advanced technology, quality inputs, harvesting and post-harvest handling, bank credit, processing, marketing and crop insurance. Blocking competition can only buy time, not enhance efficiency.
In addition, Government should protect the interest of agricultural sector by envisaging schemes for increasing the productivity and ensuring reasonable prices to agricultural produces. Financial and Technical support can be given for adopting innovative methods of production.
Better farm practices have to be adopted in a competitive global market environment. With the Doha Round of the WTO negotiations nearing completion, and the world markets getting integrated, India as an emerging economic superpower would not be able to remain isolated for parochial interests.
Challenges can be converted into opportunity by increasing productivity and adopting innovative techniques. By increasing productivity of pepper kerala can attain top most position in international market. By forming cartels with different ASEAN nations India/Kerala can become monopoly in the production of spices, rubber, marine products etc. Like OPEC nations India and ASEAN nations, the eleven member countries can control the international market of the products in which they have competitive advantage.
Concluding Observations
The main objective of the FTA is to "gain markets for newer products instead of the lost traditional markets". Regarding traditional markets, India has been out-competed on spices and beverages (tea, coffee) by Vietnam and Indonesia. On gains, India has a negligible stake of 1 percent in ASEAN trade, and ASEAN countries already have very low import tariffs. Therefore India does not gain much from further tariff reductions by ASEAN members. The gains from trade creation are therefore limited while losses due to huge tariff cuts by India will outweigh these limited gains.
The present agreement on goods (including agricultural goods) is a red herring. The real gains that India will make will be from the upcoming agreement on services and investments. In order to get a favourable deal on this front, concessions are being made on goods. India, which has a large domestic market, would be a happy hunting ground for the low-cost ASEAN countries to flood their cheap and inferior products.
The degree of trade development and trade orientation in ASEAN is better than that of India. Most of the countries have their inherent strength in few products. Vietnam has good production base in all major plantation crops, nuts and spices which are produced by Kerala. Hence, it is necessary to develop effective safeguard measures to prevent excessive imports of these products into India under the FTA agreement.
Since Kerala exports 80 per cent of its farm produce, its concerns over the FTA are genuine, but resorting to protectionism may not be the ideal solution.
Even if a negative list provides protection to major cash crops, there is no guarantee that crops like rubber, tea, pepper and coffee will gain in productivity and competitiveness in that time. So if a cautious move to safeguard the interest of Kerala’s farmers is not taken, it may lead to further distress and agony. Equal efforts should come from the part of farmers and Government to attain international standards of productivity and price competitiveness.
REFERENCES:
1. ASEAN – India Trade in Goods Agreement (2009): “Agreement on Trade in Goods under the Framework agreement on Comprehensive Economic Cooperation between the Republic of India and the Association of South East Asian Nations”.
2. Vackayil, Joseph, “Why Kerala opposes ASEAN FTA?”, The Financial Express, 31 July 2009.
3. Swaminathan, M.S., Report of the Commission on WTO concerns in Agriculture, submitted to the Govt. of Kerala (2003). available at http://www.kerala.gov.in/agri2/dept_central_schemes.htm
4. Ministry of Commerce, Government of India: “Trade Statistics”, available at http://commerce.nic.in/tradestats/indiatrade.asp?id=1
5. Pal, Parthapratim and Dasgupta Mitali (2009): “The ASEAN-India Free Trade Agreement: An Assessment”, Economic and Political Weekly, Volume XLIV No.38, September 19, 2009.
6. Pradnya ,Parashar, “India-ASEAN Economic Relations”, IIMA Working Papers, No.35, 2009.
7. Sundararaman ,Shankari, “India-ASEAN FTA: To be or not to be”, Asian Age, 14 April 2009.
8. Karmakar ,Suparna, “Kerala fears over the Indo-ASEAN FTA”, Business Line, 09 October 2009.
9. Karmakar, Suparna, “Indo-ASEAN FTA – A realistic Assessment”, Business Line, 11 September 2009.
India has several compulsions under its ‘Look East’ policy to be in good terms with its south eastern neighbours which are close to China. As part of the policy, India has been pursuing closer economic and strategic ties with the countries of south East Asia. In August 2009, India has signed a free trade agreement (FTA) for goods with the ten-member Association of South-East Asian Nations (ASEAN). This agreement which came into force on 1 January 2010 targeted to eliminate tariffs on 80% of the tariff lines accounting for 75% of the trade in a gradual manner. However, signing of free trade agreement for goods has evoked mixed reactions in India. While it has been hailed as the beginning of the end of India’s isolation from major trading blocs and a firm step towards Pan Asian economic integration, the Agreement has been opposed in some regions and by a few sectoral interests in India which feel threatened because imports from the ASEAN would be promoted.
The agricultural sector in India, particularly plantation sector like tea, spices, coffee and rubber will be negatively affected. Marine products, textiles and garments, and the auto components industry are also likely to face increased competition due to AIFTA. This is not completely unexpected as some of the south-east Asian countries have a much higher level of efficiency in these sectors as compared to India. Responses from different sectors indicate that farmers in the southern Indian states especially Kerala are feeling particularly threatened by this deal. This paper studies the problems faced by the farmers of Kerala with its impact on the economy of Kerala.
Keywords: Free Trade Agreement, Sensitive Track, Negative List, Productivity
ASEAN-India Free Trade Agreement (AIFTA) – An Introduction
India and the Association of South East Asian Nations (ASEAN) on August 13, 2009 signed a Free Trade Agreement (FTA). ASEAN, established on 8th August 1967, comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. The agreement, which relates only to goods, took nearly six years to negotiate. The accord, India’s first with a trade bloc, will cover 11 countries with a combined Gross Domestic Product (GDP) of over $2 trillion. The combined population of the region is of the order of 1.6 billion.
Nine members of the 10 nation regional trade bloc signed the pact. Vietnam, the 10th member nation, would do so after its formal recognition by India as a “market economy”. According to an official report, India and Vietnam has already agreed to sign a memorandum of understanding on this issue. The FTA came into being from January 1, 2010.
The press statement released after the finalization of the deal said that the mutually agreed tariff liberalization would gradually cover 75 percent of the two-way trade, beginning from January 2010. Indian –ASEAN trade was of the order of $40 billion in the 2007-08 accounting year. As of now, the regional bloc is India’s fourth largest trading partner and it currently accounts for about 10 percent of its global trade. The two sides have set an ambitious target of achieving an increase of $10 billion worth of trade in the first year after the agreement comes into force from January 2010.
Under the ASEAN-India FTA (AIFTA), the ASEAN member countries and India will lift import tariffs on more than 80 percent of traded products between 2013 and 2016. The agreement has provided flexibilities to India and the ASEAN countries to exclude some of the products from tariff concessions or eliminations to address their respective domestic sensitivity. India, on its part, has excluded 489 items from the list of tariff concessions and 590 items from the list of tariff elimination to address sensitivities in agriculture, textiles, auto, chemicals, crude and refined palm oil, coffee, tea, pepper, etc. The ASEAN member countries have also maintained similar exclusion lists from the proposed tariff concessions or eliminations.
According to the agreement, the involved countries will not institute or maintain any non-tariff measure on the importation of goods from other members of the FTA. They have also pledged to reduce tariff rates on a large number of tariff lines.
The ASEAN-India FTA classifies the tariff lines into four broad heads. These are:
o Normal Track: The applied most favoured nation (MFN) rates will be reduced and subsequently eliminated. This is divided into 2 sub-categories called Normal track 1 and Normal Track 2. The difference between the two is that NT-2 has a longer implementation period (till 2019) than NT-1 (till 2013).
o Sensitive Track: For the first stage of implementation, applied MFN rates that are above 5% will be reduced to 5% in accordance with the country-specific reduction schedules. It is possible to maintain the same 5% tariff rate in respect of 50 items under this group. The tariff rate of items under this group must be reduced to 4% by the year 2016 and it will become zero percent by the year 2019.
o Special products: These refers to some select products for which India has decided to reduce tariff rates at a much more gradual pace than either the normal track or sensitive track.
o Exclusion List/ Negative List: For these products no reduction commitments have been made. 489 items are included under this list. India has 489 tariff lines under the negative list which includes 302 agricultural items, 81 items from textiles and clothing, 52 items from machinery and auto, and 32 items from chemicals and plastics. In addition, there are 22 other items from various other sectors. For products that are not on the negative list, duties will be reduced in a phased manner and the duty will be brought down to zero by 2019.
The exchange of tariff concessions between India and the ASEAN member countries would lead to growth in bilateral trade investments resulting in economic benefits to both the sides. Indian exporters of machinery and machine parts, steel and steel products, agriculture products such as oilcake, wheat and buffalo meat, auto components, chemicals, and synthetic textiles would gain additional market access as a result of tariff liberalization by ASEAN. Indian manufacturers would also be able to source products at competitive prices from the ASEAN countries. The agreement also provides for bilateral safeguard mechanisms to address sudden surge in imports after the agreement comes into effect. In such an eventuality if it hurts domestic industry, safeguard measures like the imposition of safeguard duties may be put in place for a period of up to four years. The flexibility to invoke safeguard measures will remain available for both the sides for a period of seven years to 15 years from the date the agreement comes into force.
AIFTA – Importance
ASEAN is India's fourth-largest trading partner after the European Union, the United States and China. Trade between ASEAN and India has risen by more than 27% annually since 2000. The agreement is key to creating an open market across the region. India is looking to boost its export sector, which accounts for only 26% of its economy, said Union Commerce Minister Anand Sharma. ASEAN with 600 million people - against India's billion plus - presents a substantial opportunity for Indian exporters and businessmen. India would - through the FTA - gain access to machinery, steel products, chemicals and synthetic textiles and also allow Indian business opportunities in ASEAN countries and open up the bloc's services sector. Further more, Australia, China, Japan, New Zealand and South Korea have already signed FTAs with ASEAN and India cannot stay away.
The signing of the agreement signals India India
AIFTA: Impact on Kerala Economy
Kerala state is known for the lush expanses of cardamom, pepper, tea and rubber that grow on its misty hills, and the bountiful catches of fish on a coastline punctuated by lagoons and backwaters. Kerala accounts for 91% of India’s rubber, 70% of coconut, 60% of tapioca and almost 100% of lemon grass oil. Kerala is the single largest producer of a number of other crops like banana and ginger, besides tea and coffee in abundance. 50% of people engaged in agriculture. Kerala accounts for about 1/3 of India’s marine exports.
Kerala remains a primarily agrarian State, despite the considerable share of foreign remittances in the State GDP. Commercial crops account for over 84 per cent of Kerala’s net sown area and provide livelihood to nearly half of the State’s population; agricultural income (growing at 3.73 per cent) accounts for over 21 per cent to the total income of the State (2000-01 census data).
AIFTA: Kerala’s Perspective
The AIFTA will have a far reaching impact on in Indian Economy and Agriculture especially for Kerala. The major threat is for crops from Kerala, like rubber, palm oil, black pepper, cashew nut, green coffee, mace, nutmeg, cardamom, pineapple, vanilla, arecanut and tea. According to the present pattern of exports, ASEAN accounts for 31.56% of copra, 82.41% of coconut oil, 64% of desiccated coconut and 92% of natural rubber. Vietnam alone accounts for 45% of the world pepper exports.
The Kerala Government fears that sectors such as plantations, fisheries, textiles and light manufacturing goods will be seriously affected by the FTA. The major farm exports deemed to be under threat are tea, coffee, cashew, coconut, oil palm, rubber, spices (especially pepper) and other plantation items. Kerala Government had asked the Centre to put 1400 items under the Negative List. Only 489 items have been now included in the Negative List.
The Indo-ASEAN free trade agreement seeks to remove or reduce the tariff on trade-in-goods including sensitive products such as coffee, tea, palm oil and pepper in a phased manner. The import tax on Kerala’s products like coffee, tea, rubber, copra, coconut, coir, cashew, pepper, cardamom, coconut oil etc will have to be brought down to 50% or less by 2019. Import tax for Palm Oil has to be brought down to 40%. At present the import tax is cent percent for tea and coffee. It is 70% for pepper and 90% for Palm Oil. The liberalisation in trading of cash crops will expose Kerala’s small and marginal farmers in the plantation sector to the competition and this, some argue, may lead to over one million job losses. The partial duty cuts in 2019 will mean that the import prices will become cheaper than the local produce which will eventually jeopardise the interests of millions of cash crop farmers. Tariff reduction is only a beginning of the move towards a free trade regime or to say it differently, the ultimate objective would be to eliminate tariff for these commodities. The backbone of Kerala economy will be threatened.
Kerala's farmers already have the bitter experience of past free trade agreements, such as the South Asia Free Trade Agreement (SAFTA) signed in 2006, which saw the state flooded with cheap Sri Lankan coconuts. Also the import of cheap palm oil from Malaysia and Indonesia has seriously affected coconut cultivation. Back in 2005, Sri Lankan pepper flooded North Indian markets and depressed domestic prices forcing the govt. to enforce a quota regime.
Kerala's four million coconut farmers stand to be truly ruined by the Indo-ASEAN FTA because it will allow the import of coconut oil from the Philippines - a major producer which enjoys significantly lower costs of production. The Central government’s argument that coconut is in the negative list and the coconut farmers are thus protected does not hold ground in reality. Reduction in palm oil tariff will have severe implications on the coconut farmers as Palm oil is a substitute of coconut oil and the deal will enable palm oil to take over the market. The import of palm oil has already caused huge economic distress among the groundnut farmers, leading to suicides in regions such as Ananthapur in Andhra Pradesh. There are 3.6 lakh workers working in the coir sector and 2.5 lakh in the cashew sector. This year’s cashew exports are 1500crores. All these will be affected as a result of the FTA.
The sector that is going to be hit worst is fisheries - particularly artisanal fishing which will be unable to compete with the factory fishing carried out by such countries as Thailand. The FTAs direct impact would hit Kerala severely given the huge numbers of people involved in fishing, fish vending and processing. Some two million fishermen and their families are at risk in Kerala alone. Recent years have seen fish stocks depleted due to over fishing by trawlers and foreign vessels, and falling prices forcing many fishermen in Kerala to find other means of livelihood. Further liberalisation of fisheries in the name of increasing trade will only deepen the problems of the fishing community. The biggest threats come from Thailand, the world's largest exporter of farmed shrimp, and Vietnam, the world's eighth largest seafood exporter. The trade in goods agreement will enable the dumping of up to 177 species of fish in the Indian market.
The FTA is likely to permit zero tariff imports of sardines, mackerels, anchovies and crabs. Cheaper imports of local popular varieties such as cuttlefish, squid, shrimp, sole and pomfret will spell doom for fishing communities.
The productivity levels of Kerala’s farmers are far lower than their counterparts in the ASEAN region who enjoy the benefits of economies of scale. The difference in productivity levels between Indian farmers and ASEAN farmers is so vast that any reduction in the existing tariff rates will “sound the death knell” for over one million farmers and labourers engaged in the plantation and maritime sectors. Productivity of all plantation crops except rubber are much higher in ASEAN countries than India. Pepper productivity in Kerala is around 320 kg/ha, while Vietnam produces 1.2 tonnes and Indonesia 2.3 tonnes from the same area. As a result of FTA pepper may cease to be produced in Kerala, the land where it originated. Productivity of coffee in India stands at 765 kg/ha while Vietnam produces 1.7 tonnes/ ha.
Production and productivity at the farm level are the most vital component of plantation industry. When the costs are sky rocketing beyond the control of the producers, the only alternative is to increase land productivity to reduce the cost of production. Kerala’s plantation sector is affected by declining productivity while the nearby competing states are making huge gains. For instance, in tea, the base output is around 17-35 kgs per person in Tamil Nadu, while the same is around 16-21 kgs in Kerala. In the case of Robusta coffee, the base output per day in Karnataka is 75 kgs, while in Kerala it is 50 kgs. Finally, the unit high costs of production and adverse climatic conditions, both having implications for productivity and competitiveness, are the other limiting factors. Productivity is a function of cost and quality of inputs administered, which is in turn a function of resources available to the farmer. However, farm sizes of 5 hectares and above (owners with better access to farm and non-farm income) comprise less than 0.23 per cent of all holdings in Kerala.
While in both India and ASEAN, agriculture accounts for about a fifth of GDP, India’s farm sector employs about 60 per cent of its total workforce compared with ASEAN 46.5 per cent.
Less productive plantations and relatively higher labour cost are making Kerala plantations more vulnerable under the Indo- ASEAN free trade agreement, officials of the Association of Planters of Kerala (APK) said.
Under the trade pact, India has included 489 items from agriculture, textiles and chemicals in the negative list, meaning these products will be kept out of the duty reduction. Addressing concerns of domestic planters, black tea, coffee, pepper etc have been included in the sensitive list, which could mean duties will be cut by 2019 only. However, duty on these items at no time will be eliminated. Farmers in South India, especially Kerala, fear lower duty on plantation crops like coffee and pepper would lead to a deluge of imports from ASEAN members like Indonesia, Malaysia, which could leave domestic farmers vulnerable to competition.
While natural rubber, cardamom and a few tariff lines in coffee are under an exclusion list at present, there is no guarantee that they will remain in this category forever.
AIFTA: Options for Kerala
The competitiveness of Kerala farm products is low. Hence, rather than expending energy lobbying for the protection of domestic markets, stakeholders need to address without further ado the nature and sequencing of domestic reforms necessary to reverse this trend, and for them to be implemented within the next 5-7 years. The different structural adversities should be corrected by this time.
US experience teaches an important lesson. The efforts of the Detroit automakers to win protection from Japanese competition in the 1980s did give temporary respite to the US auto industry, and helped sustain the American dream for autoworkers. But after 25 years and having experienced several recessions, the US auto industry lies in shambles; they now realise that unless operations are changed drastically, matters will turn even worse.
The India-ASEAN FTA can be interpreted as a unilateral initiative that sets a firm timeframe for much needed agriculture reforms in India. One also needs to acknowledge that competitiveness is dynamic. Furthermore, the composition of the trade basket changes significantly over time. The lesson from the recent Asian manufacturing success is as follows: adherence to fundamentals of commerce — give what the consumer wants, control costs and deliver value for money. Kerala’s agrarian communities need to address market demand and international competitiveness issues to remain viable.
Kerala, therefore, needs to adopt the recommendations of the M. S. Swaminathan Committee of seeking limited protection and additional investment support, and redress the structural issues on a priority basis.
The viability of farming in the State can be enhanced by diversification into crops meeting the changing domestic dietary pattern and export demand; strengthening linkages between agricultural training and extension; balanced soil and plant nutrition and pest management techniques; and increasing small farmers’ access to advanced technology, quality inputs, harvesting and post-harvest handling, bank credit, processing, marketing and crop insurance. Blocking competition can only buy time, not enhance efficiency.
In addition, Government should protect the interest of agricultural sector by envisaging schemes for increasing the productivity and ensuring reasonable prices to agricultural produces. Financial and Technical support can be given for adopting innovative methods of production.
Better farm practices have to be adopted in a competitive global market environment. With the Doha Round of the WTO negotiations nearing completion, and the world markets getting integrated, India as an emerging economic superpower would not be able to remain isolated for parochial interests.
Challenges can be converted into opportunity by increasing productivity and adopting innovative techniques. By increasing productivity of pepper kerala can attain top most position in international market. By forming cartels with different ASEAN nations India/Kerala can become monopoly in the production of spices, rubber, marine products etc. Like OPEC nations India and ASEAN nations, the eleven member countries can control the international market of the products in which they have competitive advantage.
Concluding Observations
The main objective of the FTA is to "gain markets for newer products instead of the lost traditional markets". Regarding traditional markets, India has been out-competed on spices and beverages (tea, coffee) by Vietnam and Indonesia. On gains, India has a negligible stake of 1 percent in ASEAN trade, and ASEAN countries already have very low import tariffs. Therefore India does not gain much from further tariff reductions by ASEAN members. The gains from trade creation are therefore limited while losses due to huge tariff cuts by India will outweigh these limited gains.
The present agreement on goods (including agricultural goods) is a red herring. The real gains that India will make will be from the upcoming agreement on services and investments. In order to get a favourable deal on this front, concessions are being made on goods. India, which has a large domestic market, would be a happy hunting ground for the low-cost ASEAN countries to flood their cheap and inferior products.
The degree of trade development and trade orientation in ASEAN is better than that of India. Most of the countries have their inherent strength in few products. Vietnam has good production base in all major plantation crops, nuts and spices which are produced by Kerala. Hence, it is necessary to develop effective safeguard measures to prevent excessive imports of these products into India under the FTA agreement.
Since Kerala exports 80 per cent of its farm produce, its concerns over the FTA are genuine, but resorting to protectionism may not be the ideal solution.
Even if a negative list provides protection to major cash crops, there is no guarantee that crops like rubber, tea, pepper and coffee will gain in productivity and competitiveness in that time. So if a cautious move to safeguard the interest of Kerala’s farmers is not taken, it may lead to further distress and agony. Equal efforts should come from the part of farmers and Government to attain international standards of productivity and price competitiveness.
REFERENCES:
1. ASEAN – India Trade in Goods Agreement (2009): “Agreement on Trade in Goods under the Framework agreement on Comprehensive Economic Cooperation between the Republic of India and the Association of South East Asian Nations”.
2. Vackayil, Joseph, “Why Kerala opposes ASEAN FTA?”, The Financial Express, 31 July 2009.
3. Swaminathan, M.S., Report of the Commission on WTO concerns in Agriculture, submitted to the Govt. of Kerala (2003). available at http://www.kerala.gov.in/agri2/dept_central_schemes.htm
4. Ministry of Commerce, Government of India: “Trade Statistics”, available at http://commerce.nic.in/tradestats/indiatrade.asp?id=1
5. Pal, Parthapratim and Dasgupta Mitali (2009): “The ASEAN-India Free Trade Agreement: An Assessment”, Economic and Political Weekly, Volume XLIV No.38, September 19, 2009.
6. Pradnya ,Parashar, “India-ASEAN Economic Relations”, IIMA Working Papers, No.35, 2009.
7. Sundararaman ,Shankari, “India-ASEAN FTA: To be or not to be”, Asian Age, 14 April 2009.
8. Karmakar ,Suparna, “Kerala fears over the Indo-ASEAN FTA”, Business Line, 09 October 2009.
9. Karmakar, Suparna, “Indo-ASEAN FTA – A realistic Assessment”, Business Line, 11 September 2009.
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Poornam Info Vision Recruiting Graduates and Post Graduates
Date: 7th may 2010 @ St.Theresa's College Ernakulam.
Send resume to CV@ipsr.org on or before May 5, 2010.
Salary details, job description, selection procedure etc are available in the following link.
http://www.ipsr.org/placements/poornam07.asp
First Source - Recruitment For Domestic and International Process
Date:08-05-2010 IPSR Offices - Kozhikode,Cochin, and Kottayam. For details of salary, selection and eligibilty criteria follow the link...
http://www.ipsr.org/placements/fsource25th.asp
Remember u have to confirm your participation on or before 05-05-2010
You may ring this number for any clarification : +91-9446922478
2008, 2009, 2010 batches can participate. This is a good opportunity. Don't miss this
Registration and Details are available in the following links...
http://www.ipsr.org/placements/mega-recruitment-drives.asp
The third largest IT company in India recruiting Candidates for their BPO Division:
Date: IPSR Office Kottayam (05/05/2010) ..... Details follow the link below http://www.ipsr.org/placements/largestitcompany-recruitment-drive.asp
Poornam Info Vision Recruiting Graduates and Post Graduates
Date: 7th may 2010 @ St.Theresa's College Ernakulam.
Send resume to CV@ipsr.org on or before May 5, 2010.
Salary details, job description, selection procedure etc are available in the following link.
http://www.ipsr.org/placements/poornam07.asp
First Source - Recruitment For Domestic and International Process
Date:08-05-2010 IPSR Offices - Kozhikode,Cochin, and Kottayam. For details of salary, selection and eligibilty criteria follow the link...
http://www.ipsr.org/placements/fsource25th.asp
Remember u have to confirm your participation on or before 05-05-2010
You may ring this number for any clarification : +91-9446922478
National Eligibility Test June-2010 for Junior Research Fellowship and Eligibility for Lectureship - Apply Online
HOW TO APPLY:
(APPLICATIONS HAVE TO BE SUBMITTED ONLINE)
i) Before applying Online, the candidates must possess the following : (i) Scanned passport (pp) size photograph in JPEG format, (ii) Copy of Bank Challan (fee receipt).
ii)Candidate seeking admission to the Test must apply online (i.e. http://www.ugcnetonline.in/ OR through a link available on the UGC website: http://www.ugc.ac.in/). The candidates are required to download the Bank Challan Performa from the above website OR take photocopy from the UGC-NET Notification to be published in the Employment News dated 10-04-2010. and then deposit the requisite test fee in any branch of State Bank of India along with the bank charges (commission) of Rs.20/-. Candidate after successfully filling the online application is required to take printout of the Online Application Form, Attendance Slip and Admission Card on separate A-4 size papers and paste his/her recent passport sized photograph, put his/her signature at the required space, attach attested copy of SC/ST/OBC(Non-creamy layer)/PH/VH certificate, if applicable together with certificate of educational qualification/ research experience entitling the candidate for age relaxation and send the same with UGC marked copy of Bank Challan to the Registrar of the university (UGC Test Centre) from where the candidate has opted to appear for the Test. In case, the printout of Online Application Form along with the required documents does not reach the Test Centre on or before 30-04-2010, the candidature of the applicant shall be rejected. Before applying On line, candidates are advised to go through detailed notification available at UGC website and also to be shortly published in the Employment News. Please note that Fee submitted through any other mode like Money Order, Demand Draft, IPO etc. will be summarily rejected.
iii)The envelope containing the Application Form should be superscribed “UGC NATIONAL ELIGIBILITY TEST FOR JUNIOR RESEARCH FELLOWSHIP AND ELIGIBILITY FOR LECTURESHIP, JUNE, 2010”.
iv)The candidates must affix their recent identical passport size photographs, at the places indicated, on the printout of Online Application Form and must sign across the photograph after it is affixed so that a part of the signature spreads over the Application Form beyond the photograph. Besides, it should be duly attested by the Head of the University Department/Principal of the College/Class-I Gazetted Officer.
v)In order to avoid last minute rush, the candidates are advised to apply early enough. UGC will not be responsible for network problems or any other problem of this nature.
SCHEME OF TEST
i)The Test will consist of three papers. All the three papers will be held on 27th June, 2010 in two separate sessions as under :
Session Paper Marks Duration
First I 100 1¼ Hours (09.30 A.M. to 10.45 A.M.)
First II 100 1¼ Hours (10.45 A.M. to 12.00 NOON)
Second III 200 2½ Hours (01.30 P.M. to 04.00 P.M.)
Paper-I shall be of general nature, intended to assess the teaching/research aptitude of the candidate. It will primarily be designed to test reasoning ability, comprehension, divergent thinking and general awareness of the candidate. UGC has decided to provide choice to the candidates from the December 2009 UGC-NET onwards. Sixty (60) multiple choice questions of two marks each will be given, out of which the candidate would be required to answer any fifty (50). In the event of the candidate attempting more than fifty questions, the first fifty questions attempted by the candidate would be evaluated.
Paper-II shall consist of questions based on the subject selected by the candidate. Each of these papers will consist of a Test Booklet containing 50 compulsory objective type questions of two marks each.The candidate will have to mark the response for question of Paper-I and Paper-II on the Optical Mark Reader (OMR) sheet provided alongwith the Test Booklet. The detailed instructions for filling up the OMR Sheet will be sent to the candidate along with the Admit Card.
Paper-III will consist of only descriptive questions from the subject selected by the candidate. The candidate will be required to attempt questions in the space provided in the Test Booklet. The structure of Paper-III has been revised from June,2010 UGC-NET and is available on the UGC website www.ugc.ac.in. Paper-III will be evaluated only for those candidates who are able to secure the minimum qualifying marks in Paper-I and Paper-II.
Negative Marking in Paper-I & Paper-II : Negative marking at the rate of 25% has been introduced from December 2009 UGC-NET onwards. For each incorrect answer, 0.5 marks shall be deducted.
For Syllabus: http://www.ugc.ac.in/inside/syllabus.html
(APPLICATIONS HAVE TO BE SUBMITTED ONLINE)
i) Before applying Online, the candidates must possess the following : (i) Scanned passport (pp) size photograph in JPEG format, (ii) Copy of Bank Challan (fee receipt).
ii)Candidate seeking admission to the Test must apply online (i.e. http://www.ugcnetonline.in/ OR through a link available on the UGC website: http://www.ugc.ac.in/). The candidates are required to download the Bank Challan Performa from the above website OR take photocopy from the UGC-NET Notification to be published in the Employment News dated 10-04-2010. and then deposit the requisite test fee in any branch of State Bank of India along with the bank charges (commission) of Rs.20/-. Candidate after successfully filling the online application is required to take printout of the Online Application Form, Attendance Slip and Admission Card on separate A-4 size papers and paste his/her recent passport sized photograph, put his/her signature at the required space, attach attested copy of SC/ST/OBC(Non-creamy layer)/PH/VH certificate, if applicable together with certificate of educational qualification/ research experience entitling the candidate for age relaxation and send the same with UGC marked copy of Bank Challan to the Registrar of the university (UGC Test Centre) from where the candidate has opted to appear for the Test. In case, the printout of Online Application Form along with the required documents does not reach the Test Centre on or before 30-04-2010, the candidature of the applicant shall be rejected. Before applying On line, candidates are advised to go through detailed notification available at UGC website and also to be shortly published in the Employment News. Please note that Fee submitted through any other mode like Money Order, Demand Draft, IPO etc. will be summarily rejected.
iii)The envelope containing the Application Form should be superscribed “UGC NATIONAL ELIGIBILITY TEST FOR JUNIOR RESEARCH FELLOWSHIP AND ELIGIBILITY FOR LECTURESHIP, JUNE, 2010”.
iv)The candidates must affix their recent identical passport size photographs, at the places indicated, on the printout of Online Application Form and must sign across the photograph after it is affixed so that a part of the signature spreads over the Application Form beyond the photograph. Besides, it should be duly attested by the Head of the University Department/Principal of the College/Class-I Gazetted Officer.
v)In order to avoid last minute rush, the candidates are advised to apply early enough. UGC will not be responsible for network problems or any other problem of this nature.
SCHEME OF TEST
i)The Test will consist of three papers. All the three papers will be held on 27th June, 2010 in two separate sessions as under :
Session Paper Marks Duration
First I 100 1¼ Hours (09.30 A.M. to 10.45 A.M.)
First II 100 1¼ Hours (10.45 A.M. to 12.00 NOON)
Second III 200 2½ Hours (01.30 P.M. to 04.00 P.M.)
Paper-I shall be of general nature, intended to assess the teaching/research aptitude of the candidate. It will primarily be designed to test reasoning ability, comprehension, divergent thinking and general awareness of the candidate. UGC has decided to provide choice to the candidates from the December 2009 UGC-NET onwards. Sixty (60) multiple choice questions of two marks each will be given, out of which the candidate would be required to answer any fifty (50). In the event of the candidate attempting more than fifty questions, the first fifty questions attempted by the candidate would be evaluated.
Paper-II shall consist of questions based on the subject selected by the candidate. Each of these papers will consist of a Test Booklet containing 50 compulsory objective type questions of two marks each.The candidate will have to mark the response for question of Paper-I and Paper-II on the Optical Mark Reader (OMR) sheet provided alongwith the Test Booklet. The detailed instructions for filling up the OMR Sheet will be sent to the candidate along with the Admit Card.
Paper-III will consist of only descriptive questions from the subject selected by the candidate. The candidate will be required to attempt questions in the space provided in the Test Booklet. The structure of Paper-III has been revised from June,2010 UGC-NET and is available on the UGC website www.ugc.ac.in. Paper-III will be evaluated only for those candidates who are able to secure the minimum qualifying marks in Paper-I and Paper-II.
Negative Marking in Paper-I & Paper-II : Negative marking at the rate of 25% has been introduced from December 2009 UGC-NET onwards. For each incorrect answer, 0.5 marks shall be deducted.
For Syllabus: http://www.ugc.ac.in/inside/syllabus.html
For details log on to: http://www.ugc.ac.in/inside/lateststructureofpapaer3net.pdf
Canara Bank - Recruitment Project 2010
RECRUITMENT OF PROBATIONARY OFFICERS & PROBATIONARY CLERKS
APPLICATIONS ARE INVITED FROM INDIAN CITIZENS FOR APPOINTMENT TO THE POSTS MENTIONED BELOW
Eligible candidates are requested to apply ON-LINE through Bank’s website www.canarabank.com. No other means / mode of Application will be accepted.
Important Dates
Closing Date for on-line registration in Website
24.04.2010
Tentative Date of Written Test
04.07.2010 (Probationary Officer)
18.07.2010 (Probationary Clerk)
The details of Number of Posts are as follows
1 Probationary Officer [JMGS-I] Posts: 500 Min-Max Age 21 – 30
2 Probationary Clerk Posts: 1000 Min-Max Age 18 – 28
For details log on to
http://www.canarabank.com/English/Scripts/RecruitmentProjectAdver.aspx
Recruitment Drive - Royal Bank of Scotland
Royal Bank Of Scotland
BA / BCom / BSc / BBA / MSc / MBA( Finance only)
23rd, 24th 25th April 2010 at Calicut and Cochin
Royal Bank of Scotland an MNC present in more than 56 countries with more than 1,70,000 employees world wide is conducting recruitment drive in kerala for the job ‘Back end Operations of Banking’ (Job Location: Chennai) on 23rd April (Calicut) and 24th April (Cochin). This is not a call centre or BPO Job. Eligibility: Any Graduate BA / BCom / BSc / BBA / MSc / MBA ( Finance only). BE/ BTech/ME/MTech/MCA/ BSc (CS/IT) MSc ( CS/IT)/ Not eligible.) All other graduates and post graduates can apply. No % bar.
Recruitment Dates:
23rd April 2010 at Calicut (JDT Islam Campus, Vellimadu Kunnu, Calicut 12)
24th April 2010 at Cochin (Rajagiri Engineering College, Kakkanad, Cochin)
The selection process consists of the following stages;
1.Group Discussion
2.Online test
3.Business & HR round of interview
Skills needed:
Ability to organise own tasks/duties
Capability to understand procedures
Numerical insight
Ability to work in a team
Ability to use systems
Ability to work in Shifts is a must
Computer proficiency (Word, Excel, Lotus Notes, Internet)
Good English & Second language (third language is an advantage)
Mandatory Skills:
Graduate/Post Graduate in any disciplines.Except MCA 's & BEs
Good communication skills.
Consistent academic record.
Ability to handle numerical data.
High degree of proficiency in MS-office
Interested eligible candidates can report at the test venue ( If possible , after sending the mail with subject "RBS - Confirmation" to office@shredskerala.org)
All the candidates should bring the following.
1.Two copies of RESUME
2.Two sets of photocopies of your mark lists
3.Three copies of passport size photographs
4.Rs.100/- to be paid to SHREDS towards examination fees
5.5 self addressed Rs.5/- stamped long envelopes
6.Gum
7.Valid photo identity card (Driving licence or Voters id or Passport or College id)
For details, visit
http://www.shredskerala.org/D_ABN%20Amro%200910%202310410.html
BA / BCom / BSc / BBA / MSc / MBA( Finance only)
23rd, 24th 25th April 2010 at Calicut and Cochin
Royal Bank of Scotland an MNC present in more than 56 countries with more than 1,70,000 employees world wide is conducting recruitment drive in kerala for the job ‘Back end Operations of Banking’ (Job Location: Chennai) on 23rd April (Calicut) and 24th April (Cochin). This is not a call centre or BPO Job. Eligibility: Any Graduate BA / BCom / BSc / BBA / MSc / MBA ( Finance only). BE/ BTech/ME/MTech/MCA/ BSc (CS/IT) MSc ( CS/IT)/ Not eligible.) All other graduates and post graduates can apply. No % bar.
Recruitment Dates:
23rd April 2010 at Calicut (JDT Islam Campus, Vellimadu Kunnu, Calicut 12)
24th April 2010 at Cochin (Rajagiri Engineering College, Kakkanad, Cochin)
The selection process consists of the following stages;
1.Group Discussion
2.Online test
3.Business & HR round of interview
Skills needed:
Ability to organise own tasks/duties
Capability to understand procedures
Numerical insight
Ability to work in a team
Ability to use systems
Ability to work in Shifts is a must
Computer proficiency (Word, Excel, Lotus Notes, Internet)
Good English & Second language (third language is an advantage)
Mandatory Skills:
Graduate/Post Graduate in any disciplines.Except MCA 's & BEs
Good communication skills.
Consistent academic record.
Ability to handle numerical data.
High degree of proficiency in MS-office
Interested eligible candidates can report at the test venue ( If possible , after sending the mail with subject "RBS - Confirmation" to office@shredskerala.org)
All the candidates should bring the following.
1.Two copies of RESUME
2.Two sets of photocopies of your mark lists
3.Three copies of passport size photographs
4.Rs.100/- to be paid to SHREDS towards examination fees
5.5 self addressed Rs.5/- stamped long envelopes
6.Gum
7.Valid photo identity card (Driving licence or Voters id or Passport or College id)
For details, visit
http://www.shredskerala.org/D_ABN%20Amro%200910%202310410.html
SIB Campus Recruitment Drive @ Deva Matha College KVLD
CAMPUS RECRUITMENT OF MARKETING EXECUTIVES
The South Indian Bank Ltd., a premier commercial bank in the Private Sector in India, having business of Rs.38,000 crores and 580 branches spread over 26 states in the country is looking for talented and bright youngsters from various reputed colleges, who aspire to build a good career in the bank. Our college is also included in the recruitment programme of South Indian Bank.
Initially the appointment will be on a contractual basis subject to satisfactory performance for which quarterly reviews will be made based on the targets given. On successful completion of one year as Marketing executives, they are eligible to be absorbed in the Bank in the Clerical Cadre in full time scale wages as per the terms and conditions applicable for appointment in that cadre in the Bank’s regular pay rolls.
Eligibility norms for the candidates:
1.Shall be a final year Graduate/Post Graduate Students
2.Educational Qualification
a.For Final Year graduate students:
i.60% marks in SSLC
ii.Pass in 1st chance in 1st and 2nd year of Degree – 55% or above for Science streams and 50% or above for other streams.
iii.Pass in ensuing final exams in 1st attempt-overall percentage -55% or above in Science stream/50% or above in other streams.
b.For Final year post graduate students:
i.SSLC : Minimum 60%
ii.Degree: 55% or above in Science Stream and 50% or above in other streams.
iii.P.G. : 1st year 50% and above in 1st chance and shall score similar % for final exam in first attempt.
3.Age : Maximum 21 years as on 31.12.2009
Relaxation of 2 years for PG students
The selection will be done on the basis of G.D. and interviews. The selected candidates will be given necessary training and will be paid Rs.10,000/-per month.
Interested students may submit application forms to the College office (form available in office) on or before 31.03.2010.
UNION BUDGET 2010 - KEY FEATURES
CHALLENGES
! To quickly revert to the high GDP growth path of 9 per cent and then find the
means to cross the ‘double digit growth barrier’.
! To harness economic growth to consolidate the recent gains in making development
more inclusive.
! To address the weaknesses in government systems, structures and institutions at
different levels of governance.
OVERVIEW OF THE ECONOMY
! India among the first few countries in the world to implement a broad-based
counter-cyclic policy package to respond to the negative fallout of the global
slowdown.
! The Advance Estimates for Gross Domestic Product (GDP) growth for 2009-10
pegged at 7.2 per cent. The final figure expected to be higher when the third and
fourth quarter GDP estimates for 2009-10 become available.
! The growth rate in manufacturing sector in December 2009 was 18.5 per cent – the
highest in the past two decades.
! A major concern during the second half of 2009-10 has been the emergence of
double digit food inflation. Government has set in motion steps, in consultation
with the State Chief Ministers, which should bring down the inflation in the next
few months and ensure that there is better management of food security in the
country.
CONSOLIDATING GROWTH
Fiscal Consolidation
! With recovery taking root, there is a need to review public spending, mobilise
resources and gear them towards building the productivity of the economy.
! Fiscal policy shaped with reference to the recommendations of the Thirteenth
Finance Commission, which has recommended a calibrated exit strategy from the
expansionary fiscal stance of last two years.
! It would be for the first time that the Government would target an explicit reduction
in its domestic public debt-GDP ratio.
On the Direct Tax Code (DTC) the wide-ranging discussions with stakeholders
have been concluded – Government will be in a position to implement the DTC
from April 1, 2011.
! Centre actively engaged with the Empowered Committee of State Finance Ministers
to finalise the structure of Goods and Services Tax (GST) as well as the modalities
of its expeditious implementation. Endeavour to introduce GST by April, 2011
People’s ownership of PSUs
! Ownership has been broad based in Oil India Limited, NHPC, NTPC and Rural
Electrification Corporation while the process is on for National Mineral
Development Corporation and Satluj Jal Vidyut Nigam. This will raise about
Rs 25,000 crore during the current year.
! Higher amount proposed to be raised during the year 2010-11.
Fertiliser subsidy
! A Nutrient Based Subsidy policy for the fertiliser sector has been approved by the
Government and will become effective from April 1, 2010.
! This will lead to an increase in agricultural productivity and better returns for the
farmers, and overtime reduce the volatility in demand for fertiliser subsidy and
contain the subsidy bill.
Petroleum and Diesel pricing policy
! Expert Group to advise the Government on a viable and sustainable system of
pricing of petroleum products has submitted its recommendations.
! Decision on these recommendations will be taken in due course.
Improving Investment Environment
Foreign Direct Investment
! Number of steps taken to simplify the FDI regime.
! Methodology for calculation of indirect foreign investment in Indian companies
has been clearly defined.
! Complete liberalisation of pricing and payment of technology transfer fee and
trademark, brand name and royalty payments.
Financial Stability and Development Council
! An apex level Financial Stability and Development Council to be set up with a
view to strengthen and institutionalise the mechanism for maintaining financial
stability.
! This Council would monitor macro-prudential supervision of the economy,
including the functioning of large financial conglomerates, and address interregulatory
coordination issues.
Banking Licences
! RBI is considering giving some additional banking licenses to private sector players.
Non Banking Financial Companies could also be considered, if they meet the RBI’s
eligibility criteria.
Public Sector Bank Capitalisation
! Rs.16,500 crore provided to ensure that the Public Sector Banks are able to attain
a minimum 8 per cent Tier-I capital by March 31, 2011.
Recapitalisation of Regional Rural Banks (RRB)
! Government to provide further capital to strengthen the RRBs so that they have
adequate capital base to support increased lending to the rural economy.
Corporate Governance
! Government has introduced the Companies Bill, 2009 in the Parliament to replace
the existing Companies Act, 1956, which will address issues related to regulation
in corporate sector in the context of the changing business environment.
Exports
! Extension of existing interest subvention of 2 per cent for one more year for exports
covering handicrafts, carpets, handlooms and small and medium enterprises.
Agriculture Growth
! Government will follow a four-pronged strategy, covering
(a) Agricultural production
! Rs. 400 crore provided to extend the green revolution to the eastern region of the
country comprising Bihar, Chattisgarh, Jharkhand, Eastern UP, West Bengal and
Orissa.
! Rs. 300 crore provided to organise 60,000 “pulses and oil seed villages” in rain-fed
areas during 2010-11 and provide an integrated intervention for water harvesting,
watershed management and soil health, to enhance the productivity of the dry land
farming areas.
! Rs. 200 crore provided for sustaining the gains already made in the green revolution
areas through conservation farming, which involves concurrent attention to soil
health, water conservation and preservation of biodiversity.
(b) Reduction in wastage of produce
! Government to address the issue of opening up of retail trade. It will help in bringing
down the considerable difference between farm gate, wholesale and retail prices.
! Deficit in the storage capacity met through an ongoing scheme for private sector
participation – FCI to hire godowns from private parties for a guaranteed period of
7 years.
(c) Credit support to farmers
! Banks have been consistently meeting the targets set for agriculture credit flow in
the past few years. For the year 2010-11, the target has been set at Rs.3,75,000
crore.
In view of the recent drought in some States and the severe floods in some other
parts of the country, the period for repayment of the loan amount by farmers extended
by six months from December 31, 2009 to June 30, 2010 under the Debt Waiver
and Debt Relief Scheme for Farmers.
! Incentive of additional one per cent interest subvention to farmers who repay
short-term crop loans as per schedule, increased to 2% for 2010-11.
(d) Impetus to the food processing sector
! In addition to the ten mega food park projects already being set up, the Government
has decided to set up five more such parks.
! External Commercial Borrowings to be available for cold storage or cold room
facility, including for farm level pre-cooling, for preservation or storage of
agricultural and allied produce, marine products and meat.
Infrastructure
! Rs 1,73,552 crore provided for infrastructure development which accounts for over
46 per cent of the total plan allocation.
! Allocation for road transport increased by over 13 per cent from Rs. 17,520 crore
to Rs 19,894 crore.
! Rs 16,752 crore provided for Railways, which is about Rs.950 crore more than last
year.
India Infrastructure Finance Company Limited (IIFCL)
! IIFCL’s disbursements are expected to touch Rs 9,000 crore by end March 2010
and reach around Rs 20,000 crore by March 2011.
! IIFCL has refinanced bank lending to infrastructure projects of Rs. 3,000 crore during
the current year and is expected to more than double that amount in 2010-11.
! The take-out financing scheme announced in the last Budget is expected to initially
provide finance for about Rs. 25,000 crore in the next three years.
Energy
! Plan allocation for power sector excluding RGGVY doubled from Rs.2230 crore
in 2009-10 to Rs.5,130 crore in 2010-11.
! Government proposes to introduce a competitive bidding process for allocating
coal blocks for captive mining to ensure greater transparency and increased
participation in production from these blocks.
! A “Coal Regulatory Authority” to create a level playing field in the coal sector
proposed to be set up.
! Plan outlay for the Ministry of New and Renewable Energy increased by 61 per
cent from Rs.620 crore in 2009-10 to Rs.1,000 crore in 2010-11.
! Solar, small hydro and micro power projects at a cost of about Rs.500 crore to be
set up in Ladakh region of Jammu and Kashmir.
Environment and Climate change
! National Clean Energy Fund for funding research and innovative projects in clean
energy technologies to be established.
! One-time grant of Rs.200 crore to the Government of Tamil Nadu towards the cost of
installation of a zero liquid discharge system at Tirupur to sustain knitwear industry.
! Rs.200 crore provided as a Special Golden Jubilee package for Goa to preserve the
natural resources of the State, including sea beaches and forest cover.
! Allocation for National Ganga River Basin Authority (NGRBA) doubled in
2010-11 to Rs.500 crore.
! Schemes on bank protection works along river Bhagirathi and river Ganga-Padma
in parts of Murshidabad and Nadia district of West Bengal included in the Centrally
Sponsored Flood Management Programme.
! A project at Sagar Island to be developed to provide an alternate port facility in
West Bengal.
INCLUSIVE DEVELOPMENT
! The spending on social sector has been gradually increased to Rs.1,37,674 crore in
2010-11, which is 37% of the total plan outlay in 2010-11.
! Another 25 per cent of the plan allocations are devoted to the development of rural
infrastructure.
Education
! Plan allocation for school education increased by 16 per cent from Rs.26,800 crore
in 2009-10 to Rs.31,036 crore in 2010-11.
! In addition, States will have access to Rs.3,675 crore for elementary education
under the Thirteenth Finance Commission grants for 2010-11.
Health
! An Annual Health Survey to prepare the District Health Profile of all Districts
shall be conducted in 2010-11.
! Plan allocation to Ministry of Health & Family Welfare increased from Rs 19,534
crore in 2009-10 to Rs 22,300 crore for 2010-11.
Financial Inclusion
! Appropriate Banking facilities to be provided to habitations having population in
excess of 2000 by March, 2012.
! Insurance and other services to be provided using the Business Correspondent model.
By this arrangement, it is proposed to cover 60,000 habitations.
! Augmentation of Rs.100 crore each for the Financial Inclusion Fund (FIF) and the
Financial Inclusion Technology Fund, which shall be contributed by Government
of India, RBI and NABARD
! Rs. 66,100 crore provided for Rural Development.
! Allocation for Mahatma Gandhi National Rural Employment Guarantee Scheme
stepped up to Rs.40,100 crore in 2010-11.
! An amount of Rs.48,000 crore allocated for rural infrastructure programmes under
Bharat Nirman.
! Unit cost under Indira Awas Yojana increased to Rs.45,000 in the plain areas and
to Rs.48,500 in the hilly areas. Allocation for this scheme increased to Rs.10,000
crore.
! Allocation to Backward Region Grant Fund enhanced by 26 per cent from Rs.5,800
crore in 2009-10 to Rs 7,300 crore in 2010-11.
! Additional central assistance of Rs 1,200 crore provided for drought mitigation in
the Bundelkhand region.
Urban Development and Housing
! Allocation for urban development increased by more than 75 per cent from Rs.3,060
crore to Rs.5,400 crore in 2010-11.
! Allocation for Housing and Urban Poverty Alleviation raised from Rs.850 crore to
Rs.1,000 crore in 2010-11.
! Scheme of one per cent interest subvention on housing loan upto Rs.10 lakh, where
the cost of the house does not exceed Rs.20 lakh — announced in the last
Budget — extended up to March 31, 2011. Rs.700 crore provided for this scheme
for the year 2010-11.
! Rs.1,270 crore allocated for Rajiv Awas Yojana as compared to Rs.150 crore last
year.
Micro, Small & Medium Enterprises
! High Level Council on Micro and Small Enterprises to monitor the implementation
of the recommendations of High-Level Task Force constituted by Prime Minister.
! Allocation for this sector to be increased from Rs.1,794 crore to Rs.2,400 crore for
the year 2010-11.
! The corpus for Micro-Finance Development and Equity Fund doubled to Rs.400
crore in 2010-11.
Unorganised Sector
National Social Security Fund for unorganised sector workers
! National Social Security Fund for unorganised sector workers to be set up with an
initial allocation of Rs.1000 crore. This fund will support schemes for weavers,
toddy tappers, rickshaw pullers, bidi workers etc.
! Rashtriya Swasthya Bima Yojana benefits extended to all such Mahatma Gandhi
NREGA beneficiaries who have worked for more than 15 days during the preceding
financial year.
A new initiative, “Swavalamban” will be available for persons who join New
Pension Scheme (NPS), with a minimum contribution of Rs.1,000 and a maximum
contribution of Rs.12,000 per annum during the financial year 2010-11, wherein
Government will contribute Rs.1,000 per year to each NPS account opened in the
year 2010-11. Allocation of Rs.100 crore made for this initiative.
Skill development
! National Skill Development Corporation has approved three projects worth about
Rs 45 crore to create 10 lakh skilled manpower at the rate of one lakh per annum.
! An extensive skill development programme in the textile and garment sector to be
launched by leveraging the strength of existing institutions and instruments of the
Textile Ministry to train 30 lakh persons over 5 years.
Social Welfare
! Plan outlay for Women and Child Development stepped up by almost 50 per cent.
! The ICDS platform being expanded for effective implementation of the Rajiv Gandhi
Scheme for Adolescent Girls.
! “Saakshar Bharat” to further improve female literacy rate launched with a target
of 7 crore non-literate adults which includes 6 crore women.
! Mahila Kisan Sashaktikaran Pariyojana to meet the specific needs of women
farmers to be launched with a provision of Rs 100 crore as a sub-component of the
National Rural Livelihood Mission.
! Plan outlay of the Ministry of Social Justice and Empowerment enhanced by 80
per cent to Rs.4500 crore. With this enhancement, the Ministry will be able to
revise rates of scholarship under its post-matric scholarship schemes for SCs and
OBC students.
! Plan allocation for the Ministry of Minority Affairs increased by 50 per cent from
Rs.1,740 crore to Rs.2,600 crore for the year 2010-11.
STRENGTHENING TRANSPARENCY & PUBLIC ACCOUNTABILTY
! Financial Sector Legislative Reforms Commission to be set up to rewrite and clean
up the financial sector laws to bring them in line with the requirements of the
sector.
! Rs 1,900 crore allocated to the Unique Identification Authority of India (UIDAI)
for 2010-11. UIDAI will be able to meet its commitments of issuing the first set of
UID numbers in the coming year
! A Technology Advisory Group for Unique Projects (TAGUP) to be set up to look
into various technological and systemic issues for effective tax administration and
financial governance.
! Independent Evaluation Office (IEO) chaired by the Deputy Chairman, Planning
Commission to be set up to evaluate the impact of flagship programmes.
Security and Justice
! Allocation for Defence increased to Rs. 1,47,344 crore including Rs 60,000 crore
for capital expenditure.
! About 2,000 youth to be recruited as constables in five Central Para Military Forces
from Jammu and Kashmir in the year 2010.
! Planning Commission to prepare an integrated action plan for the thirty-three left
wing extremism affected districts. Adequate funds will be made available to support
the action plan.
! Government has approved the setting up of the National Mission for Delivery of
Justice and Legal Reforms to help reduce legal backlog in courts from an average
of 15 years at present to 3 years by 2012.
BUDGET ESTIMATES 2010-11
! The Gross Tax Receipts are estimated at Rs. 7,46,651 crore
! The Non Tax Revenue Receipts are estimated at Rs. 1,48,118 crore.
! The net tax revenue to the Centre as well as the expenditure provisions in 2010-11
have been estimated with reference to the recommendations of the Thirteenth
Finance Commission.
! The total expenditure proposed in the Budget Estimates is Rs. 11,08,749 crore,
which is an increase of 8.6 per cent over last year.
! The Plan and Non Plan expenditures in BE 2010-11 are estimated at Rs. 3,73,092
crore and Rs. 7,35,657 crore respectively. While there is 15 per cent increase in
Plan expenditure, the increase in Non Plan expenditure is only 6 per cent over the
BE of previous year.
! Fiscal deficit for BE 2010-11 at 5.5 per cent of GDP, which works out to Rs.3,81,408
crore.
! Taking into account the various other financing items for fiscal deficit, the actual
net market borrowing of the Government in 2010-11 would be of the order of
Rs.3,45,010 crore. This would leave enough space to meet the credit needs of the
private sector.
! The rolling targets for fiscal deficit are pegged at 4.8 per cent and 4.1 per cent for
2011-12 and 2012-13, respectively.
! Against a fiscal deficit of 7.8 per cent in 2008-09, inclusive of oil and fertilizer
bonds, the comparable fiscal deficit is 6.9 per cent as per the Revised Estimates for
2009-10.
! Conscious effort made to avoid issuing bonds to oil and fertilizer companies.
Government would like to continue with this practice of extending Government
subsidy in cash, thereby bringing all subsidy related liabilities into Government’s
fiscal accounting.
TAX PROPOSALS
! The Centralized Processing Centre at Bengaluru is now fully functional and is
processing around 20,000 returns daily. This initiative will be taken forward by
setting up two more Centres during the year.
! The Income Tax department has introduced “Sevottam”, a pilot project at Pune,
Kochi and Chandigarh through Aayakar Seva Kendras, which provide a single window
system for registration of all applications including those for redressal of grievances
as well as paper returns. The scheme will be extended to four more cities in the year.
! Automation of Central Excise & Service Tax, has already been rolled out throughout
the country this year. Similarly, a Mission Mode Project for computerization of
Commercial Taxes in States has been approved recently. With an outlay of
Rs. 1133 crore of which the Centre’s share is Rs. 800 crore, the project will lay the
foundation for the launch of GST.
! The income tax department to notify SARAL-II form for individual salaried
taxpayers for the coming assessment year.
! Scope of cases which may be admitted by the Settlement Commission expanded to
include proceedings related to search and seizure cases pending for assessment.
Scope of Settlement Commission also expanded in respect of Central Excise and
Customs to include certain categories of cases that hitherto fell outside its
jurisdiction.
! Bi-lateral discussions commenced to enhance the exchange of bank related and
other information to effectively track tax evasion and identify undisclosed assets
of resident Indians lying abroad.
Direct Taxes
! Income tax slabs for individual taxpayers to be as follows
Income upto Rs 1.6 lakh Nil
Income above Rs 1.6 lakh and upto Rs. 5 lakh 10 per cent
Income above Rs.5 lakh and upto Rs. 8 lakh 20 per cent
Income above Rs. 8 lakh 30 per cent
! Deduction of an additional amount of Rs. 20,000 allowed, over and above the
existing limit of Rs.1 lakh on tax savings, for investment in long-term infrastructure
bonds as notified by the Central Government
! Besides contributions to health insurance schemes which is currently allowed as a
deduction under the Income-tax Act, contributions to the Central Government Health
Scheme also allowed as a deduction under the same provision.
! Current surcharge of 10 per cent on domestic companies reduced to 7.5 per cent.
! Rate of Minimum Alternate Tax (MAT) increased from the current rate of 15 per
cent to 18 per cent of book profits.
To further encourage R&D across all sectors of the economy, weighted deduction
on expenditure incurred on in-house R&D enhanced from 150 per cent to 200 per
cent. Weighted deduction on payments made to National Laboratories, research
associations, colleges, universities and other institutions, for scientific research
enhanced from 125 per cent to 175 per cent.
! Payment made to an approved association engaged in research in social sciences
or statistical research to be allowed as a weighted deduction of 125 per cent. The
income of such approved research association shall be exempt from tax.
! Benefit of investment linked deduction under the Act extended to new hotels of
two-star category and above anywhere in India to boost investment in the tourism
sector.
! Allow pending projects to be completed within a period of five years instead of
four years for claiming a deduction of their profits, as a one time interim relief to
the housing and real estate sector. Norms for built-up area of shops and other
commercial establishments in housing projects to be relaxed to enable basic facilities
for their residents.
! Limits for turnover over which accounts need to be audited enhanced to Rs. 60
lakh for businesses and to Rs. 15 lakh for professions.
! Limit of turnover for the purpose of presumptive taxation of small businesses
enhanced to Rs. 60 lakh.
! If tax has been deducted on payment by way of any expense and is paid before the
due date of filing the return, such expenditure to be allowed for deduction. Interest
charged on tax deducted but not deposited by the specified date to be increased
from 12 per cent to 18 per cent per annum.
! To facilitate the conversion of small companies into Limited Liability Partnerships,
transfer of assets as a result of such conversion not to be subject to capital gains
tax.
! “The advancement of any other object of general public utility” to be considered as
“charitable purpose” even if it involves carrying on of any activity in the nature of
trade, commerce or business provided that the receipts from such activities do not
exceed Rs.10 lakh in the year .
! Proposals on direct taxes estimated to result in a revenue loss of Rs. 26,000 crore
for the year.
Indirect Taxes
! Rate reduction in Central Excise duties to be partially rolled back and the standard
rate on all non-petroleum products enhanced from 8 per cent to 10 per cent
ad valorem.
! The specific rates of duty applicable to portland cement and cement clinker also
adjusted upwards proportionately. Similarly, the ad valorem component of excise
duty on large cars, multi-utility vehicles and sports-utility vehicles increased by 2
percentage points to 22 per cent.
Restore the basic duty of 5 per cent on crude petroleum; 7.5 per cent on diesel and
petrol and 10 per cent on other refined products. Central Excise duty on petrol and
diesel enhanced by Re.1 per litre each.
! Some structural changes in the excise duty on cigarettes, cigars and cigarillos to be
made coupled with some increase in rates. Excise duty on all non-smoking tobacco
such as scented tobacco, snuff, chewing tobacco etc to be enhanced. Compounded
levy scheme for chewing tobacco and branded unmanufactured tobacco based on
the capacity of pouch packing machines to be introduced.
Agriculture & Related Sectors
! Provide project import status with a concessional import duty of 5 per cent for the
setting up of mechanised handling systems and pallet racking systems in ‘mandis’
or warehouses for food grains and sugar as well as full exemption from service tax
for the installation and commissioning of such equipment.
! Provide project import status at a concessional customs duty of 5 per cent with full
exemption from service tax to the initial setting up and expansion of
♦ Cold storage, cold room including farm pre-coolers for preservation or storage
of agriculture and related sectors produce ; and
♦ Processing units for such produce.
! Provide full exemption from customs duty to refrigeration units required for the
manufacture of refrigerated vans or trucks.
! Provide concessional customs duty of 5 per cent to specified agricultural machinery
not manufactured in India;
! Provide central excise exemption to specified equipment for preservation, storage
and processing of agriculture and related sectors and exemption from service tax
to the storage and warehousing of their produce; and
! Provide full exemption from excise duty to trailers and semi-trailers used in
agriculture.
! Concessional import duty to specified machinery for use in the plantation sector to
be, extended up to March 31, 2011 along with a CVD exemption.
! To exempt the testing and certification of agricultural seeds from service tax.
! The transportation by road of cereals, and pulses to be exempted from service tax.
Transportation by rail to remain exempt.
! To ease the cash flow position for small-scale manufacturers, they would be
permitted to take full credit of Central Excise duty paid on capital goods in a single
installment in the year of their receipt. Secondly, they would be permitted to pay
Central Excise duty on a quarterly, rather than monthly, basis.
Environment
! To build the corpus of the National Clean Energy Fund, clean energy cess on coal
produced in India at a nominal rate of Rs.50 per tonne to be levied. This cess will
also apply on imported coal.
Provide a concessional customs duty of 5 per cent to machinery, instruments,
equipment and appliances etc. required for the initial setting up of photovoltaic
and solar thermal power generating units and also exempt them from Central Excise
duty. Ground source heat pumps used to tap geo-thermal energy to be exempted
from basic customs duty and special additional duty.
! Exempt a few more specified inputs required for the manufacture of rotor blades
for wind energy generators from Central Excise duty.
! Central Excise duty on LED lights reduced from 8 per cent to 4 per cent at par with
Compact Fluorescent Lamps.
! To remedy the difficulty faced by manufacturers of electric cars and vehicles in
neutralising the duty paid on their inputs and components, a nominal duty of 4 per
cent on such vehicles imposed. Some critical parts or sub-assemblies of such
vehicles exempted from basic customs duty and special additional duty subject to
actual user condition. These parts would also enjoy a concessional CVD of 4 per
cent.
! A concessional excise duty of 4 per cent provided to “soleckshaw”, a product
developed by CSIR to replace manually-operated rickshaws. Its key parts and
components to be exempted from customs duty.
! Import of compostable polymer exempted from basic customs duty.
Infrastructure
! Project import status to ‘Monorail projects for urban transport’ at a concessional
basic duty of 5 per cent granted.
! To allow resale of specified machinery for road construction projects on payment
of import duty at depreciated value.
! To encourage the domestic manufacture of mobile phones accessories, exemptions
from basic, CVD and special additional duties are now being extended to parts of
battery chargers and hands-free headphones. The validity of the exemption from
special additional duty is being extended till March 31, 2011.
Medical Sector
! Uniform, concessional basic duty of 5 per cent, CVD of 4 per cent with full
exemption from special additional duty prescribed on all medical equipments. A
concessional basic duty of 5 per cent is being prescribed on parts and accessories
for the manufacture of such equipment while they would be exempt from CVD
and special additional duty.
! Full exemption currently available to medical equipment and devices such as
assistive devices, rehabilitation aids etc. retained. The concession available to
Government hospitals or hospitals set up under a statute also retained.
! Specified inputs for the manufacture of orthopaedic implants exempted from import
duty.
Infotainment
! To address the difficulties experienced by film industry in importing digital masters
of films for duplication or distribution loaded on electronic medium vis-a-vis those
imported on cinematographic film, owing to a differential customs duty structure,
customs duty to be charged only on the value of the carrier medium. The same
dispensation would apply to music and gaming software imported for duplication.
In all such cases the value representing the transfer of intellectual property rights
would be subjected to service tax.
! Provide project import status at a concessional customs duty of 5 per cent with full
exemption from special additional duty to the initial setting up “Digital Head End”
equipment by multi-service operators.
Precious Metals
! Rates on precious metals indexed as follows:
♦ On gold and platinum from Rs.200 per 10 grams to Rs.300 per 10 grams
♦ On silver from Rs.1,000 per kg to Rs.1,500 per kg.
! Basic customs on Rhodium – a precious metal used for polishing jewellery reduced
to 2 per cent.
! Basic customs duty on gold ore and concentrates reduced from 2 per cent ad valorem
to a specific duty of Rs.140 per 10 grams of gold content with full exemption from
special additional duty. Further, the excise duty on refined gold made from such
ore or concentrate reduced from 8 per cent to a specific duty of Rs.280 per 10
grams.
Other Proposals
! Full exemption from import duty available to specified inputs or raw materials
required for the manufacture of sports goods expanded to cover a few more items.
! Basic customs duty on one of key components in production of micro-wave ovens,
namely magnetrons, reduced from 10 per cent to 5 per cent.
! Value limit of Rs. 1 lakh per annum on duty-free import of commercial samples as
personal baggage enhanced to Rs. 3 lakh per annum.
! Outright exemption from special additional duty provided to goods imported in a
pre-packaged form for retail sale. This would also cover mobile phones, watches
and ready-made garments even when they are not imported in pre-packaged form.
The refund-based exemption is also being retained for cases not covered by the
new dispensation.
! Toy balloons fully exempted from Central Excise duty.
! Reduction in basic customs duty on long pepper from 70 per cent to 30 per cent;
! Reduction in basic customs duty on asafoetida from 30 per cent to 20 per cent;
! Reduction in central excise duty on replaceable kits for household type water filters
other than those based on RO technology to 4 per cent;
Reduction in central excise duty on corrugated boxes and cartons from 8 per cent
to 4 per cent;
! Reduction in central excise duty on latex rubber thread from 8 per cent to 4 per
cent; and
! Reduction in excise duty on goods covered under the Medicinal and Toilet
Preparations Act from 16 per cent to 10 per cent.
! Proposals relating to customs and central excise are estimated to result in a net
revenue gain of Rs. 43,500 crore for the year.
Service Tax
! Rate of tax on services retained at 10 per cent to pave the way forward for GST.
! Certain services, hitherto untaxed, to be brought within the purview of the service
tax levy. These to be notified separately.
! Process of refund of accumulated credit to exporters of services, especially in the
area of Information Technology and Business Process Outsourcing, made easy by
making necessary changes in the definition of export of services and procedures.
! Accredited news agencies which provide news feed online that meet certain criteria,
exempted from service tax.
! Proposals relating to service tax are estimated to result in a net revenue gain of Rs
3,000 crore for the year.
! Proposals on direct taxes estimated to result in a revenue loss of Rs. 26,000 crore
for the year. Proposals relating to Indirect Taxes estimated to result in a net revenue
gain of Rs.46,500 crore for the year. Taking into account the concessions being
given in the tax proposals and measures taken to mobilise additional resources, the
net revenue gain is estimated to be Rs. 20,500 crore for the year.
! To quickly revert to the high GDP growth path of 9 per cent and then find the
means to cross the ‘double digit growth barrier’.
! To harness economic growth to consolidate the recent gains in making development
more inclusive.
! To address the weaknesses in government systems, structures and institutions at
different levels of governance.
OVERVIEW OF THE ECONOMY
! India among the first few countries in the world to implement a broad-based
counter-cyclic policy package to respond to the negative fallout of the global
slowdown.
! The Advance Estimates for Gross Domestic Product (GDP) growth for 2009-10
pegged at 7.2 per cent. The final figure expected to be higher when the third and
fourth quarter GDP estimates for 2009-10 become available.
! The growth rate in manufacturing sector in December 2009 was 18.5 per cent – the
highest in the past two decades.
! A major concern during the second half of 2009-10 has been the emergence of
double digit food inflation. Government has set in motion steps, in consultation
with the State Chief Ministers, which should bring down the inflation in the next
few months and ensure that there is better management of food security in the
country.
CONSOLIDATING GROWTH
Fiscal Consolidation
! With recovery taking root, there is a need to review public spending, mobilise
resources and gear them towards building the productivity of the economy.
! Fiscal policy shaped with reference to the recommendations of the Thirteenth
Finance Commission, which has recommended a calibrated exit strategy from the
expansionary fiscal stance of last two years.
! It would be for the first time that the Government would target an explicit reduction
in its domestic public debt-GDP ratio.
On the Direct Tax Code (DTC) the wide-ranging discussions with stakeholders
have been concluded – Government will be in a position to implement the DTC
from April 1, 2011.
! Centre actively engaged with the Empowered Committee of State Finance Ministers
to finalise the structure of Goods and Services Tax (GST) as well as the modalities
of its expeditious implementation. Endeavour to introduce GST by April, 2011
People’s ownership of PSUs
! Ownership has been broad based in Oil India Limited, NHPC, NTPC and Rural
Electrification Corporation while the process is on for National Mineral
Development Corporation and Satluj Jal Vidyut Nigam. This will raise about
Rs 25,000 crore during the current year.
! Higher amount proposed to be raised during the year 2010-11.
Fertiliser subsidy
! A Nutrient Based Subsidy policy for the fertiliser sector has been approved by the
Government and will become effective from April 1, 2010.
! This will lead to an increase in agricultural productivity and better returns for the
farmers, and overtime reduce the volatility in demand for fertiliser subsidy and
contain the subsidy bill.
Petroleum and Diesel pricing policy
! Expert Group to advise the Government on a viable and sustainable system of
pricing of petroleum products has submitted its recommendations.
! Decision on these recommendations will be taken in due course.
Improving Investment Environment
Foreign Direct Investment
! Number of steps taken to simplify the FDI regime.
! Methodology for calculation of indirect foreign investment in Indian companies
has been clearly defined.
! Complete liberalisation of pricing and payment of technology transfer fee and
trademark, brand name and royalty payments.
Financial Stability and Development Council
! An apex level Financial Stability and Development Council to be set up with a
view to strengthen and institutionalise the mechanism for maintaining financial
stability.
! This Council would monitor macro-prudential supervision of the economy,
including the functioning of large financial conglomerates, and address interregulatory
coordination issues.
Banking Licences
! RBI is considering giving some additional banking licenses to private sector players.
Non Banking Financial Companies could also be considered, if they meet the RBI’s
eligibility criteria.
Public Sector Bank Capitalisation
! Rs.16,500 crore provided to ensure that the Public Sector Banks are able to attain
a minimum 8 per cent Tier-I capital by March 31, 2011.
Recapitalisation of Regional Rural Banks (RRB)
! Government to provide further capital to strengthen the RRBs so that they have
adequate capital base to support increased lending to the rural economy.
Corporate Governance
! Government has introduced the Companies Bill, 2009 in the Parliament to replace
the existing Companies Act, 1956, which will address issues related to regulation
in corporate sector in the context of the changing business environment.
Exports
! Extension of existing interest subvention of 2 per cent for one more year for exports
covering handicrafts, carpets, handlooms and small and medium enterprises.
Agriculture Growth
! Government will follow a four-pronged strategy, covering
(a) Agricultural production
! Rs. 400 crore provided to extend the green revolution to the eastern region of the
country comprising Bihar, Chattisgarh, Jharkhand, Eastern UP, West Bengal and
Orissa.
! Rs. 300 crore provided to organise 60,000 “pulses and oil seed villages” in rain-fed
areas during 2010-11 and provide an integrated intervention for water harvesting,
watershed management and soil health, to enhance the productivity of the dry land
farming areas.
! Rs. 200 crore provided for sustaining the gains already made in the green revolution
areas through conservation farming, which involves concurrent attention to soil
health, water conservation and preservation of biodiversity.
(b) Reduction in wastage of produce
! Government to address the issue of opening up of retail trade. It will help in bringing
down the considerable difference between farm gate, wholesale and retail prices.
! Deficit in the storage capacity met through an ongoing scheme for private sector
participation – FCI to hire godowns from private parties for a guaranteed period of
7 years.
(c) Credit support to farmers
! Banks have been consistently meeting the targets set for agriculture credit flow in
the past few years. For the year 2010-11, the target has been set at Rs.3,75,000
crore.
In view of the recent drought in some States and the severe floods in some other
parts of the country, the period for repayment of the loan amount by farmers extended
by six months from December 31, 2009 to June 30, 2010 under the Debt Waiver
and Debt Relief Scheme for Farmers.
! Incentive of additional one per cent interest subvention to farmers who repay
short-term crop loans as per schedule, increased to 2% for 2010-11.
(d) Impetus to the food processing sector
! In addition to the ten mega food park projects already being set up, the Government
has decided to set up five more such parks.
! External Commercial Borrowings to be available for cold storage or cold room
facility, including for farm level pre-cooling, for preservation or storage of
agricultural and allied produce, marine products and meat.
Infrastructure
! Rs 1,73,552 crore provided for infrastructure development which accounts for over
46 per cent of the total plan allocation.
! Allocation for road transport increased by over 13 per cent from Rs. 17,520 crore
to Rs 19,894 crore.
! Rs 16,752 crore provided for Railways, which is about Rs.950 crore more than last
year.
India Infrastructure Finance Company Limited (IIFCL)
! IIFCL’s disbursements are expected to touch Rs 9,000 crore by end March 2010
and reach around Rs 20,000 crore by March 2011.
! IIFCL has refinanced bank lending to infrastructure projects of Rs. 3,000 crore during
the current year and is expected to more than double that amount in 2010-11.
! The take-out financing scheme announced in the last Budget is expected to initially
provide finance for about Rs. 25,000 crore in the next three years.
Energy
! Plan allocation for power sector excluding RGGVY doubled from Rs.2230 crore
in 2009-10 to Rs.5,130 crore in 2010-11.
! Government proposes to introduce a competitive bidding process for allocating
coal blocks for captive mining to ensure greater transparency and increased
participation in production from these blocks.
! A “Coal Regulatory Authority” to create a level playing field in the coal sector
proposed to be set up.
! Plan outlay for the Ministry of New and Renewable Energy increased by 61 per
cent from Rs.620 crore in 2009-10 to Rs.1,000 crore in 2010-11.
! Solar, small hydro and micro power projects at a cost of about Rs.500 crore to be
set up in Ladakh region of Jammu and Kashmir.
Environment and Climate change
! National Clean Energy Fund for funding research and innovative projects in clean
energy technologies to be established.
! One-time grant of Rs.200 crore to the Government of Tamil Nadu towards the cost of
installation of a zero liquid discharge system at Tirupur to sustain knitwear industry.
! Rs.200 crore provided as a Special Golden Jubilee package for Goa to preserve the
natural resources of the State, including sea beaches and forest cover.
! Allocation for National Ganga River Basin Authority (NGRBA) doubled in
2010-11 to Rs.500 crore.
! Schemes on bank protection works along river Bhagirathi and river Ganga-Padma
in parts of Murshidabad and Nadia district of West Bengal included in the Centrally
Sponsored Flood Management Programme.
! A project at Sagar Island to be developed to provide an alternate port facility in
West Bengal.
INCLUSIVE DEVELOPMENT
! The spending on social sector has been gradually increased to Rs.1,37,674 crore in
2010-11, which is 37% of the total plan outlay in 2010-11.
! Another 25 per cent of the plan allocations are devoted to the development of rural
infrastructure.
Education
! Plan allocation for school education increased by 16 per cent from Rs.26,800 crore
in 2009-10 to Rs.31,036 crore in 2010-11.
! In addition, States will have access to Rs.3,675 crore for elementary education
under the Thirteenth Finance Commission grants for 2010-11.
Health
! An Annual Health Survey to prepare the District Health Profile of all Districts
shall be conducted in 2010-11.
! Plan allocation to Ministry of Health & Family Welfare increased from Rs 19,534
crore in 2009-10 to Rs 22,300 crore for 2010-11.
Financial Inclusion
! Appropriate Banking facilities to be provided to habitations having population in
excess of 2000 by March, 2012.
! Insurance and other services to be provided using the Business Correspondent model.
By this arrangement, it is proposed to cover 60,000 habitations.
! Augmentation of Rs.100 crore each for the Financial Inclusion Fund (FIF) and the
Financial Inclusion Technology Fund, which shall be contributed by Government
of India, RBI and NABARD
! Rs. 66,100 crore provided for Rural Development.
! Allocation for Mahatma Gandhi National Rural Employment Guarantee Scheme
stepped up to Rs.40,100 crore in 2010-11.
! An amount of Rs.48,000 crore allocated for rural infrastructure programmes under
Bharat Nirman.
! Unit cost under Indira Awas Yojana increased to Rs.45,000 in the plain areas and
to Rs.48,500 in the hilly areas. Allocation for this scheme increased to Rs.10,000
crore.
! Allocation to Backward Region Grant Fund enhanced by 26 per cent from Rs.5,800
crore in 2009-10 to Rs 7,300 crore in 2010-11.
! Additional central assistance of Rs 1,200 crore provided for drought mitigation in
the Bundelkhand region.
Urban Development and Housing
! Allocation for urban development increased by more than 75 per cent from Rs.3,060
crore to Rs.5,400 crore in 2010-11.
! Allocation for Housing and Urban Poverty Alleviation raised from Rs.850 crore to
Rs.1,000 crore in 2010-11.
! Scheme of one per cent interest subvention on housing loan upto Rs.10 lakh, where
the cost of the house does not exceed Rs.20 lakh — announced in the last
Budget — extended up to March 31, 2011. Rs.700 crore provided for this scheme
for the year 2010-11.
! Rs.1,270 crore allocated for Rajiv Awas Yojana as compared to Rs.150 crore last
year.
Micro, Small & Medium Enterprises
! High Level Council on Micro and Small Enterprises to monitor the implementation
of the recommendations of High-Level Task Force constituted by Prime Minister.
! Allocation for this sector to be increased from Rs.1,794 crore to Rs.2,400 crore for
the year 2010-11.
! The corpus for Micro-Finance Development and Equity Fund doubled to Rs.400
crore in 2010-11.
Unorganised Sector
National Social Security Fund for unorganised sector workers
! National Social Security Fund for unorganised sector workers to be set up with an
initial allocation of Rs.1000 crore. This fund will support schemes for weavers,
toddy tappers, rickshaw pullers, bidi workers etc.
! Rashtriya Swasthya Bima Yojana benefits extended to all such Mahatma Gandhi
NREGA beneficiaries who have worked for more than 15 days during the preceding
financial year.
A new initiative, “Swavalamban” will be available for persons who join New
Pension Scheme (NPS), with a minimum contribution of Rs.1,000 and a maximum
contribution of Rs.12,000 per annum during the financial year 2010-11, wherein
Government will contribute Rs.1,000 per year to each NPS account opened in the
year 2010-11. Allocation of Rs.100 crore made for this initiative.
Skill development
! National Skill Development Corporation has approved three projects worth about
Rs 45 crore to create 10 lakh skilled manpower at the rate of one lakh per annum.
! An extensive skill development programme in the textile and garment sector to be
launched by leveraging the strength of existing institutions and instruments of the
Textile Ministry to train 30 lakh persons over 5 years.
Social Welfare
! Plan outlay for Women and Child Development stepped up by almost 50 per cent.
! The ICDS platform being expanded for effective implementation of the Rajiv Gandhi
Scheme for Adolescent Girls.
! “Saakshar Bharat” to further improve female literacy rate launched with a target
of 7 crore non-literate adults which includes 6 crore women.
! Mahila Kisan Sashaktikaran Pariyojana to meet the specific needs of women
farmers to be launched with a provision of Rs 100 crore as a sub-component of the
National Rural Livelihood Mission.
! Plan outlay of the Ministry of Social Justice and Empowerment enhanced by 80
per cent to Rs.4500 crore. With this enhancement, the Ministry will be able to
revise rates of scholarship under its post-matric scholarship schemes for SCs and
OBC students.
! Plan allocation for the Ministry of Minority Affairs increased by 50 per cent from
Rs.1,740 crore to Rs.2,600 crore for the year 2010-11.
STRENGTHENING TRANSPARENCY & PUBLIC ACCOUNTABILTY
! Financial Sector Legislative Reforms Commission to be set up to rewrite and clean
up the financial sector laws to bring them in line with the requirements of the
sector.
! Rs 1,900 crore allocated to the Unique Identification Authority of India (UIDAI)
for 2010-11. UIDAI will be able to meet its commitments of issuing the first set of
UID numbers in the coming year
! A Technology Advisory Group for Unique Projects (TAGUP) to be set up to look
into various technological and systemic issues for effective tax administration and
financial governance.
! Independent Evaluation Office (IEO) chaired by the Deputy Chairman, Planning
Commission to be set up to evaluate the impact of flagship programmes.
Security and Justice
! Allocation for Defence increased to Rs. 1,47,344 crore including Rs 60,000 crore
for capital expenditure.
! About 2,000 youth to be recruited as constables in five Central Para Military Forces
from Jammu and Kashmir in the year 2010.
! Planning Commission to prepare an integrated action plan for the thirty-three left
wing extremism affected districts. Adequate funds will be made available to support
the action plan.
! Government has approved the setting up of the National Mission for Delivery of
Justice and Legal Reforms to help reduce legal backlog in courts from an average
of 15 years at present to 3 years by 2012.
BUDGET ESTIMATES 2010-11
! The Gross Tax Receipts are estimated at Rs. 7,46,651 crore
! The Non Tax Revenue Receipts are estimated at Rs. 1,48,118 crore.
! The net tax revenue to the Centre as well as the expenditure provisions in 2010-11
have been estimated with reference to the recommendations of the Thirteenth
Finance Commission.
! The total expenditure proposed in the Budget Estimates is Rs. 11,08,749 crore,
which is an increase of 8.6 per cent over last year.
! The Plan and Non Plan expenditures in BE 2010-11 are estimated at Rs. 3,73,092
crore and Rs. 7,35,657 crore respectively. While there is 15 per cent increase in
Plan expenditure, the increase in Non Plan expenditure is only 6 per cent over the
BE of previous year.
! Fiscal deficit for BE 2010-11 at 5.5 per cent of GDP, which works out to Rs.3,81,408
crore.
! Taking into account the various other financing items for fiscal deficit, the actual
net market borrowing of the Government in 2010-11 would be of the order of
Rs.3,45,010 crore. This would leave enough space to meet the credit needs of the
private sector.
! The rolling targets for fiscal deficit are pegged at 4.8 per cent and 4.1 per cent for
2011-12 and 2012-13, respectively.
! Against a fiscal deficit of 7.8 per cent in 2008-09, inclusive of oil and fertilizer
bonds, the comparable fiscal deficit is 6.9 per cent as per the Revised Estimates for
2009-10.
! Conscious effort made to avoid issuing bonds to oil and fertilizer companies.
Government would like to continue with this practice of extending Government
subsidy in cash, thereby bringing all subsidy related liabilities into Government’s
fiscal accounting.
TAX PROPOSALS
! The Centralized Processing Centre at Bengaluru is now fully functional and is
processing around 20,000 returns daily. This initiative will be taken forward by
setting up two more Centres during the year.
! The Income Tax department has introduced “Sevottam”, a pilot project at Pune,
Kochi and Chandigarh through Aayakar Seva Kendras, which provide a single window
system for registration of all applications including those for redressal of grievances
as well as paper returns. The scheme will be extended to four more cities in the year.
! Automation of Central Excise & Service Tax, has already been rolled out throughout
the country this year. Similarly, a Mission Mode Project for computerization of
Commercial Taxes in States has been approved recently. With an outlay of
Rs. 1133 crore of which the Centre’s share is Rs. 800 crore, the project will lay the
foundation for the launch of GST.
! The income tax department to notify SARAL-II form for individual salaried
taxpayers for the coming assessment year.
! Scope of cases which may be admitted by the Settlement Commission expanded to
include proceedings related to search and seizure cases pending for assessment.
Scope of Settlement Commission also expanded in respect of Central Excise and
Customs to include certain categories of cases that hitherto fell outside its
jurisdiction.
! Bi-lateral discussions commenced to enhance the exchange of bank related and
other information to effectively track tax evasion and identify undisclosed assets
of resident Indians lying abroad.
Direct Taxes
! Income tax slabs for individual taxpayers to be as follows
Income upto Rs 1.6 lakh Nil
Income above Rs 1.6 lakh and upto Rs. 5 lakh 10 per cent
Income above Rs.5 lakh and upto Rs. 8 lakh 20 per cent
Income above Rs. 8 lakh 30 per cent
! Deduction of an additional amount of Rs. 20,000 allowed, over and above the
existing limit of Rs.1 lakh on tax savings, for investment in long-term infrastructure
bonds as notified by the Central Government
! Besides contributions to health insurance schemes which is currently allowed as a
deduction under the Income-tax Act, contributions to the Central Government Health
Scheme also allowed as a deduction under the same provision.
! Current surcharge of 10 per cent on domestic companies reduced to 7.5 per cent.
! Rate of Minimum Alternate Tax (MAT) increased from the current rate of 15 per
cent to 18 per cent of book profits.
To further encourage R&D across all sectors of the economy, weighted deduction
on expenditure incurred on in-house R&D enhanced from 150 per cent to 200 per
cent. Weighted deduction on payments made to National Laboratories, research
associations, colleges, universities and other institutions, for scientific research
enhanced from 125 per cent to 175 per cent.
! Payment made to an approved association engaged in research in social sciences
or statistical research to be allowed as a weighted deduction of 125 per cent. The
income of such approved research association shall be exempt from tax.
! Benefit of investment linked deduction under the Act extended to new hotels of
two-star category and above anywhere in India to boost investment in the tourism
sector.
! Allow pending projects to be completed within a period of five years instead of
four years for claiming a deduction of their profits, as a one time interim relief to
the housing and real estate sector. Norms for built-up area of shops and other
commercial establishments in housing projects to be relaxed to enable basic facilities
for their residents.
! Limits for turnover over which accounts need to be audited enhanced to Rs. 60
lakh for businesses and to Rs. 15 lakh for professions.
! Limit of turnover for the purpose of presumptive taxation of small businesses
enhanced to Rs. 60 lakh.
! If tax has been deducted on payment by way of any expense and is paid before the
due date of filing the return, such expenditure to be allowed for deduction. Interest
charged on tax deducted but not deposited by the specified date to be increased
from 12 per cent to 18 per cent per annum.
! To facilitate the conversion of small companies into Limited Liability Partnerships,
transfer of assets as a result of such conversion not to be subject to capital gains
tax.
! “The advancement of any other object of general public utility” to be considered as
“charitable purpose” even if it involves carrying on of any activity in the nature of
trade, commerce or business provided that the receipts from such activities do not
exceed Rs.10 lakh in the year .
! Proposals on direct taxes estimated to result in a revenue loss of Rs. 26,000 crore
for the year.
Indirect Taxes
! Rate reduction in Central Excise duties to be partially rolled back and the standard
rate on all non-petroleum products enhanced from 8 per cent to 10 per cent
ad valorem.
! The specific rates of duty applicable to portland cement and cement clinker also
adjusted upwards proportionately. Similarly, the ad valorem component of excise
duty on large cars, multi-utility vehicles and sports-utility vehicles increased by 2
percentage points to 22 per cent.
Restore the basic duty of 5 per cent on crude petroleum; 7.5 per cent on diesel and
petrol and 10 per cent on other refined products. Central Excise duty on petrol and
diesel enhanced by Re.1 per litre each.
! Some structural changes in the excise duty on cigarettes, cigars and cigarillos to be
made coupled with some increase in rates. Excise duty on all non-smoking tobacco
such as scented tobacco, snuff, chewing tobacco etc to be enhanced. Compounded
levy scheme for chewing tobacco and branded unmanufactured tobacco based on
the capacity of pouch packing machines to be introduced.
Agriculture & Related Sectors
! Provide project import status with a concessional import duty of 5 per cent for the
setting up of mechanised handling systems and pallet racking systems in ‘mandis’
or warehouses for food grains and sugar as well as full exemption from service tax
for the installation and commissioning of such equipment.
! Provide project import status at a concessional customs duty of 5 per cent with full
exemption from service tax to the initial setting up and expansion of
♦ Cold storage, cold room including farm pre-coolers for preservation or storage
of agriculture and related sectors produce ; and
♦ Processing units for such produce.
! Provide full exemption from customs duty to refrigeration units required for the
manufacture of refrigerated vans or trucks.
! Provide concessional customs duty of 5 per cent to specified agricultural machinery
not manufactured in India;
! Provide central excise exemption to specified equipment for preservation, storage
and processing of agriculture and related sectors and exemption from service tax
to the storage and warehousing of their produce; and
! Provide full exemption from excise duty to trailers and semi-trailers used in
agriculture.
! Concessional import duty to specified machinery for use in the plantation sector to
be, extended up to March 31, 2011 along with a CVD exemption.
! To exempt the testing and certification of agricultural seeds from service tax.
! The transportation by road of cereals, and pulses to be exempted from service tax.
Transportation by rail to remain exempt.
! To ease the cash flow position for small-scale manufacturers, they would be
permitted to take full credit of Central Excise duty paid on capital goods in a single
installment in the year of their receipt. Secondly, they would be permitted to pay
Central Excise duty on a quarterly, rather than monthly, basis.
Environment
! To build the corpus of the National Clean Energy Fund, clean energy cess on coal
produced in India at a nominal rate of Rs.50 per tonne to be levied. This cess will
also apply on imported coal.
Provide a concessional customs duty of 5 per cent to machinery, instruments,
equipment and appliances etc. required for the initial setting up of photovoltaic
and solar thermal power generating units and also exempt them from Central Excise
duty. Ground source heat pumps used to tap geo-thermal energy to be exempted
from basic customs duty and special additional duty.
! Exempt a few more specified inputs required for the manufacture of rotor blades
for wind energy generators from Central Excise duty.
! Central Excise duty on LED lights reduced from 8 per cent to 4 per cent at par with
Compact Fluorescent Lamps.
! To remedy the difficulty faced by manufacturers of electric cars and vehicles in
neutralising the duty paid on their inputs and components, a nominal duty of 4 per
cent on such vehicles imposed. Some critical parts or sub-assemblies of such
vehicles exempted from basic customs duty and special additional duty subject to
actual user condition. These parts would also enjoy a concessional CVD of 4 per
cent.
! A concessional excise duty of 4 per cent provided to “soleckshaw”, a product
developed by CSIR to replace manually-operated rickshaws. Its key parts and
components to be exempted from customs duty.
! Import of compostable polymer exempted from basic customs duty.
Infrastructure
! Project import status to ‘Monorail projects for urban transport’ at a concessional
basic duty of 5 per cent granted.
! To allow resale of specified machinery for road construction projects on payment
of import duty at depreciated value.
! To encourage the domestic manufacture of mobile phones accessories, exemptions
from basic, CVD and special additional duties are now being extended to parts of
battery chargers and hands-free headphones. The validity of the exemption from
special additional duty is being extended till March 31, 2011.
Medical Sector
! Uniform, concessional basic duty of 5 per cent, CVD of 4 per cent with full
exemption from special additional duty prescribed on all medical equipments. A
concessional basic duty of 5 per cent is being prescribed on parts and accessories
for the manufacture of such equipment while they would be exempt from CVD
and special additional duty.
! Full exemption currently available to medical equipment and devices such as
assistive devices, rehabilitation aids etc. retained. The concession available to
Government hospitals or hospitals set up under a statute also retained.
! Specified inputs for the manufacture of orthopaedic implants exempted from import
duty.
Infotainment
! To address the difficulties experienced by film industry in importing digital masters
of films for duplication or distribution loaded on electronic medium vis-a-vis those
imported on cinematographic film, owing to a differential customs duty structure,
customs duty to be charged only on the value of the carrier medium. The same
dispensation would apply to music and gaming software imported for duplication.
In all such cases the value representing the transfer of intellectual property rights
would be subjected to service tax.
! Provide project import status at a concessional customs duty of 5 per cent with full
exemption from special additional duty to the initial setting up “Digital Head End”
equipment by multi-service operators.
Precious Metals
! Rates on precious metals indexed as follows:
♦ On gold and platinum from Rs.200 per 10 grams to Rs.300 per 10 grams
♦ On silver from Rs.1,000 per kg to Rs.1,500 per kg.
! Basic customs on Rhodium – a precious metal used for polishing jewellery reduced
to 2 per cent.
! Basic customs duty on gold ore and concentrates reduced from 2 per cent ad valorem
to a specific duty of Rs.140 per 10 grams of gold content with full exemption from
special additional duty. Further, the excise duty on refined gold made from such
ore or concentrate reduced from 8 per cent to a specific duty of Rs.280 per 10
grams.
Other Proposals
! Full exemption from import duty available to specified inputs or raw materials
required for the manufacture of sports goods expanded to cover a few more items.
! Basic customs duty on one of key components in production of micro-wave ovens,
namely magnetrons, reduced from 10 per cent to 5 per cent.
! Value limit of Rs. 1 lakh per annum on duty-free import of commercial samples as
personal baggage enhanced to Rs. 3 lakh per annum.
! Outright exemption from special additional duty provided to goods imported in a
pre-packaged form for retail sale. This would also cover mobile phones, watches
and ready-made garments even when they are not imported in pre-packaged form.
The refund-based exemption is also being retained for cases not covered by the
new dispensation.
! Toy balloons fully exempted from Central Excise duty.
! Reduction in basic customs duty on long pepper from 70 per cent to 30 per cent;
! Reduction in basic customs duty on asafoetida from 30 per cent to 20 per cent;
! Reduction in central excise duty on replaceable kits for household type water filters
other than those based on RO technology to 4 per cent;
Reduction in central excise duty on corrugated boxes and cartons from 8 per cent
to 4 per cent;
! Reduction in central excise duty on latex rubber thread from 8 per cent to 4 per
cent; and
! Reduction in excise duty on goods covered under the Medicinal and Toilet
Preparations Act from 16 per cent to 10 per cent.
! Proposals relating to customs and central excise are estimated to result in a net
revenue gain of Rs. 43,500 crore for the year.
Service Tax
! Rate of tax on services retained at 10 per cent to pave the way forward for GST.
! Certain services, hitherto untaxed, to be brought within the purview of the service
tax levy. These to be notified separately.
! Process of refund of accumulated credit to exporters of services, especially in the
area of Information Technology and Business Process Outsourcing, made easy by
making necessary changes in the definition of export of services and procedures.
! Accredited news agencies which provide news feed online that meet certain criteria,
exempted from service tax.
! Proposals relating to service tax are estimated to result in a net revenue gain of Rs
3,000 crore for the year.
! Proposals on direct taxes estimated to result in a revenue loss of Rs. 26,000 crore
for the year. Proposals relating to Indirect Taxes estimated to result in a net revenue
gain of Rs.46,500 crore for the year. Taking into account the concessions being
given in the tax proposals and measures taken to mobilise additional resources, the
net revenue gain is estimated to be Rs. 20,500 crore for the year.
NAAC Re-accreditation Process @ Deva Matha College
THE NATIONAL ASSESSMENT AND ACCREDITATION COUNCIL (NAAC) is an autonomous institution established by the University Grants Commission (UGC) of India, to assess and accredit institutions of higher education in the country.
The vision of the NAAC is:
To make quality the defining element of higher education in India through a combination of self and external quality evaluation, promotion and sustenance initiatives.
The mission statements of the NAAC aim at translating the NAAC’s vision into action plans, to define the following specific tasks of NAAC engagement and endeavour:
•To arrange for periodic assessment and accreditation of institutions of higher education or units thereof, or specific academic programmes or projects;
•To stimulate the academic environment for promotion of quality in teaching-learning and research in higher education institutions;
•To encourage self-evaluation, accountability, autonomy and innovations in higher education;
•To undertake quality-related research studies, consultancy and training programmes, and
•To collaborate with other stakeholders of higher education for quality evaluation, promotion and sustenance.
Striving to achieve its goals as guided by its vision and mission statements, NAAC primarily focuses on assessment of the quality of eligible higher education institutions of the country. NAAC uses an internationally accepted methodology, which consists of self-assessment and external quality assessment.
CORE VALUES
NAAC includes the following core values in its accreditation frame work. ALL Higher education Institutions are supposed to frame their activities to achieve this core values.NAAC assesses institutional functioning with reference to the contributions made by HEIs towards the five core values. In general, HEIs are expected to demonstrate how they achieve the objectives of the core values through the data and information detailed in the SSR (Self Study Report).
1.Contributing to National Development
2.Fostering Global Competencies among Students
3.Inculcating a Value System among Students
4.Promoting the Use of Technology
5.Quest for Excellence
CRITERIA FOR ASSESSMENT
The NAAC has identified the following seven criteria to serve as the basis for assessment of HEIs:
1.Curricular Aspects
2.Teaching-Learning and Evaluation
3.Research, Consultancy and Extension
4.Infrastructure and Learning Resources
5.Student Support and Progression
6.Governance and Leadership and
7.Innovative Practices
The SSR (Self Study Report)is expected to highlight the functioning of an institution with reference to these seven criteria. Each criterion has Key Aspects which form the basis of criterion-wise assessment. One key aspect is dedicated to Best Practices under each criterion.
CRITERIA AND KEY ASPECTS
Criterion I—Curricular Aspects: This criterion deals with how the curriculum - either assigned by a University or marginally supplemented or enriched by an institution, or totally remade, depending on the freedom allowed in curricular design, aligns with the mission statement of the institution. It also considers the practices of an institution in initiating a wide range of programme options and courses that are relevant to the local needs and in tune with the emerging national and global trends. Apart from issues of academic flexibility and diversity, to suit different levels of learners, aspects on career orientation, multi-skill development and involvement of stakeholders in curriculum updation, are also gauged under this criterion.
The focus of this criterion is captured in the following criterion statements and key aspects:
CRITERION STATEMENTS
The institution has clearly stated goals and objectives that are communicated systematically to all its constituencies.
The programmes of the institution are consistent with its goals and objectives.
The institution has a wide range of programme offerings that provide adequate academic flexibility.
Feedback from academic peers, students, employers and other stakeholders are used in the initiation, review and redesign of programmes.
The institution practices sustainable curricular practices, to achieve academic excellence.
KEY ASPECTS
•Curricular design and development
•Academic flexibility
•Feedback on curriculum
•Curriculum update
•Best practices in curricular aspects
The description of the key aspects are given below:
Curriculum design and development
It is a process of developing appropriate need based curricula in consultation with expert groups, based on the feedback from stakeholders, resulting in the development of relevant programmes with flexibility, to suit the professional and personal needs of the students and realization of core values.
Academic flexibility
Choice offered in the curriculum, in terms of programme, curricular transactions and time-frame options.
Feedback on curriculum
Responses from students, academic peers and employers, for review and re-design of curricula.
Curriculum update
The process of revision and redesign of curricula based on recent trends and developments, the feedback from all stakeholders and catering to the needs of the society/ economy/ environment.
Best practices in curricular aspects
Sustainable curricular practices which lead to academic effectiveness and excellence.
Criterion II— Teaching-Learning and Evaluation: This criterion deals with the efforts of an institution to serve students of different backgrounds and abilities, through effective teaching-learning experiences. Interactive instructional techniques that engage students in higher order ‘thinking’ and investigation, through the use of interviews, focused group discussions, debates, projects, presentations, experiments, practicum, internship and application of ICT resources, are important considerations. It also probes into the adequacy, competence as well as the continuous professional development of the faculty who handle the programmes of study. The efficiency of the techniques used to continuously evaluate the performance of teachers and students is also a major concern of this criterion.
The focus of this criterion is captured in the following criterion statements and key aspects:
CRITERION STATEMENTS
The institution has a transparent admission process.
The programmes of teaching and learning cater to individual differences amongst learners.
The institution facilitates the effective conduct of the teaching-learning processes.
The institution has provision for use of ICT in the enhancement of teaching process.
The institution has a well-conceived plan for continuously monitoring student progress.
The institution has an effective mechanism to recruit adequate qualified faculty.
The student evaluation processes are reliable and valid.
The institution has an open and participative mechanism for evaluation of teaching and promoting work satisfaction of the faculty.
The teachers have opportunities for continued academic growth and professional development.
The institution has sustainable good practices in teaching, learning and evaluation to achieve academic excellence.
KEY ASPECTS
•Admission process and student profile
•Catering to diverse needs
•Teaching-learning process
•Teacher quality
•Evaluation process and reforms
•Best practices in teaching, learning and evaluation
The description of the key aspects are given below:
Admission process and student profile
The process of admitting students to the programmes is by a transparent, well-administered mechanism, complying with all the educational norms of the Government. The student profile is reflected from the composition of the student community representing different socio-economic and learner backgrounds.
Catering to diverse needs
The programmes and strategies adopted by institutions satisfy the needs of the students from diverse backgrounds including backward community as well as from different locales. Gender equity and admission opportunity for differently-abled students are also considered.
Teaching-Learning process
Learner-centered education through appropriate methodologies to facilitate effective learning outcome.
Teacher quality
‘Teacher quality’ is a composite term to indicate the quality of teachers in terms of qualification of the faculty, teacher characteristics, the adequacy of recruitment procedures, faculty availability, professional development and recognition of teaching abilities.
Evaluation process and reforms
Assessment of teaching, learning and evaluative processes and reforms, to increase the efficiency and effectiveness of the system. Innovative evaluation process is to gauge the knowledge and skills acquired at various levels of the programmes.
Best practices in teaching- learning and evaluation
The institution has sustainable practices in teaching-learning and evaluation, which have the greatest impact on performance, leading to successful end result in Teaching, Learning and Evaluation
Criterion III— Research, Consultancy and Extension: This criterion seeks information on the policies, practices and outcomes of the institution, with reference to research, consultancy and extension. It deals with the facilities provided and efforts made by the institution to promote a ‘research culture’. The institution has the responsibility to enable faculty to undertake research projects useful to the society. Serving the community through extension, which is a social responsibility and a core value to be demonstrated by institutions, is also a major aspect of this criterion.
The focus of this criterion is captured in the following criterion statements and key aspects:
CRITERION STATEMENTS
The institution promotes research culture among faculty and students.
The institution encourages faculty to publish in academic journals.
The institution encourages faculty to participate in professional academic
programmes.
The institution promotes faculty participation in consultancy work.
The institution is responsive to community needs and conducts relevant extension
programmes.
The institution has sustainable good practices in research, consultancy and
extension to achieve academic excellence.
KEY ASPECTS
•Promotion of research
•Research and publication output
•Consultancy
•Extension activities
•Collaborations
•Best practices in research, consultancy & extension
The descriptions of the Key Aspects are given below:
Promotion of research
The process of promoting research culture among faculty and students is ensured by facilitating participation in research and related activities, providing resources and other facilities
Research and publication output
Quality research outcome, beneficial for the discipline/ society/ industry/ region and the nation. Dissemination of knowledge including theoretical and practical findings of research, through various media.
Consultancy
Activity with or without remuneration, for which the expertise and the specific knowledge base of the faculty becomes the major input.
Extension activities
The aspect of education, which emphasizes community services. These are often integrated with curricula as extended opportunities, intended to help, serve, reflect and learn. The curriculum-extension interface has an educational value, especially in rural India.
Collaborations
A formal agreement/ understanding between any two or more institutions for training/student exchange/faculty exchange or research with or without resource sharing.
Best practices in research, consultancy and extension
Sustainable practices in Research, Consultancy and Extension leading to superior performance resulting in successful outcome in terms of generating knowledge which will be useful for the learner as well as the community.
Criterion IV—Infrastructure and Learning Resources: This criterion seeks to elicit data on the adequacy and optimal use of the facilities available in an institution to maintain the quality of academic and other programmes on the campus. It also requires information on how every constituent of the institution - students, teachers and staff - benefit from these facilities. Expansion of facilities to meet future development is included among other concerns.
The focus of this criterion is captured in the following criterion statements and key aspects:
CRITERION STATEMENTS
The institution has adequate physical facilities for the conduct of the educational programmes efficiently.
The growth of the infrastructure keeps pace with the academic growth of the institution.
The institution has effective mechanisms for maintenance and optimal use of infrastructure.
The institution has adequate library, computer facilities and other learning resources, with easy access to all its constituencies.
The institution has sustainable good practices for ensuring adequate infrastructure and learning resources and its optimum use to facilitate student learning.
KEY ASPECTS
•Physical facilities
•Maintenance of infrastructure
•Library as a learning resource
•ICT as learning resources
•Other facilities
•Best practices in the development of infrastructure and learning resources
The descriptions of the key aspects are given below:
Physical facilities
Adequate infrastructure facilities to conduct the educational programmes. The growth of the infrastructure keeps pace with the academic developments in the institution.
Maintenance of infrastructure
Effective mechanism for the upkeep of the infrastructure facilities and promote the optimum use of the same.
Library as a learning resource
The library holdings in terms of books, journals and other learning materials and technology-aided learning mechanisms which enable students to acquire information, knowledge and skills required for their study programmes.
ICT as learning resources
The ICT facilities and other learning resources are adequately available in the institution for academic purposes.
Other facilities
The other supportive facilities on the campus, which contribute to the effective ambience for curricular, extra- curricular and administrative activities.
Best practices in the development of infrastructure and learning resources
Sustained practices leading to continuous improvement of infrastructure and learning resource development to create an optimum learning ambience.
Criterion V-Student Support and Progression: The highlights of this criterion are the efforts of an institution to provide necessary assistance to students, to acquire meaningful experiences for learning at the campus and to facilitate their holistic progression. It also seeks information on student and alumni profiles.
The focus of this criterion is captured in the following criterion statements and key aspects:
CRITERION STATEMENTS
The institution provides clear information to students about admission, completion requirements for all programmes; the fee-structure and refund policies; financial aid and student support services.
The institution has sufficient and well-run support services to all its students.
Student progression is monitored effectively.
Institution has mechanisms for student counseling and placement services.
The institution has an effective mechanism to use student feedback for quality enhancement.
The institution has good sustainable practices for effective student support and progression.
KEY ASPECTS
•Student progression
•Student support
•Student activities
•Best practices in student support and progression
The descriptions of the key aspects are given below:
Student progression
Vertical movement of students from one level of education to the next higher level or towards gainful employment.
Student support
Facilitating mechanisms like guidance cell, placement cell, grievance redressal cell and welfare measures to support students.
Student activities
The participation of the students in activities, which can develop various skills, to foster holistic personality development.
Best practices in student support and progression
Sustainable good practices which effectively support the students and facilitate optimal progression. Benefits often include the assurance of quality results.
Criterion VI—Governance and Leadership: This criterion helps gather data on the policies and practices of an institution in the matter of planning human power requirement, recruitment, training, performance appraisal, finance management and the role of leadership in institution building.
The focus of this criterion is captured in the following criterion statements and key aspects:
CRITERION STATEMENTS
The leadership provides clear vision and mission to the institution.
The functions of the institution and its academic and administrative units are governed by the principles of participation and transparency.
Academic and administrative planning in the institution move hand in hand.
The institution practices relevant welfare schemes for all its constituencies.
There are fair and expeditious grievance redressal mechanisms at all levels of the institution’s functioning.
The institution is effective in resource mobilization and planning development
strategies.
The finances of the institution are judiciously allocated and effectively utilized by proper budgeting system.
Auditing procedures and the follow up actions are systematized.
Institution has sustainable practices for governance and leadership
KEY ASPECTS
•Institutional vision and leadership
•Organizational arrangements
•Strategy development and deployment
•Human resource management
•Financial management and resource mobilization
•Best practices in governance and leadership
The descriptions of the key aspects are given below:
Institutional vision and leadership
Effective leadership in building the organizational culture by setting values, and demonstrating effectiveness through participative decision-making process to achieve the vision, mission and goals of the institution.
Organizational arrangements
The formal and informal arrangements in the institution to co-ordinate the academic and administrative planning and implementation.
Strategy development and deployment
Formulation of development objectives, directives and guidelines with specific plans for implementation
Human resource management
The process of assessing adequate human power requirements; staff recruiting, monitoring and planning professional development programmes for personnel development and seeking appropriate feedback responses.
Finance management and resource mobilization
Budgeting and optimum utilization of finance, including mobilization of resources. The planning and development strategies adopted by the institution, for mobilizing resources.
Best practices in governance and leadership
Sustainable good practices of Governance and Leadership that would lead to administrative and academic excellence.
Criterion VII—Innovative Practices: This criterion focuses on the innovative efforts of an institution that help in its academic excellence. An innovative practice could be a pathway created to further the interest of the student and the institution, for internal quality assurance, inclusive practices and stakeholder relationships.
The focus of this criterion is captured in the following criterion statements and key aspects:
CRITERION STATEMENTS
The institution displays sensitivity to changing educational, social and market demands.
The institution is geared to promote an ambience of creativity innovation and improving quality.
The institution promotes inclusive practices for social justice and better stakeholder relationships.
The institution adopts quality management strategies in all academic and administrative aspects.
The institution promote value-based education for inculcating social responsibilities and good citizenry amongst its student community.
KEY ASPECTS
•Internal quality assurance System
•Inclusive practices
•Stakeholder relationships
The description of the key aspects are given below:
Internal quality assurance system
Self-regulated responsibilities of the higher education institutions, aimed at continuous improvement of quality, for achieving academic excellence.
Inclusive practices
New and creative approaches in education involving all stakeholders for adopting inclusive practices to promote social justice.
Stakeholder relationships
Affiliation and interaction with groups or individuals who have an interest in the activities of the institution and the ability to influence the actions, decisions, policies, practices or goals of the organization.
SELF-STUDY REPORT (SSR)
While preparing the SSR, institutions may bear in mind that the report should provide information on the following:
-Evidence of contributing to the core values
-Evidence of building on the strengths identified by the institutions
-Action taken to rectify the deficiencies noted by the institutions
-Substantive efforts made by the institution over a period of time, towards quality enhancement
-Specific future plans of the institution for quality enhancement
The SSR shall be in two parts - Part 1 is institutional data and Part II is an evaluative report under the seven criteria of NAAC, along with the inputs from the Departments.
The institution has to submit the SSR in hardcopy as well as a CD containing soft copy.
A bulky SSR with too many details and descriptions may result in lack of clarity. Such a report would also lack focus and would generate more information gaps than explanations. Even for a large and complex institution, it is possible to restrict the essential documentation to manageable proportions. With these considerations, institutions are required to restrict the SSR to the following two aspects only:
-Institutional data
-Criterion-wise Evaluative Report
PREPARATION OF SELF STUDY REPORT
Part-I: Institutional Data
A. Profile of the College
B. Criterion wise Inputs
1. Criterion I: Curricular Aspects
2. Criterion II: Teaching-Learning and Evaluation
3. Criterion III: Research, Consultancy and Extension
4. Criterion IV: Infrastructure and Learning Resources
5. Criterion V: Student Support and Progression
6. Criterion VI: Governance and Leadership
7. Criterion VII: Innovative Practices
C.Profile of the Departments
Part II: The Evaluative Report
A. Executive Summary
B. Criterion-wise Evaluative Report
C. Evaluative Report of the Departments
D. Declaration by the Head of the institution
Appendices
1. Sample Questionnaires for feedback from Students
2. Sample formats for Teacher appraisal Reports
3. Glossary
4. Abbreviations
METHODOLOGYFor the assessment of a University/Autonomous College/ College with Potential for Excellence /Affiliated College /Constituent College as a unit that is eligible to be assessed, the NAAC follows a four-stage process, which is a combination of self-study and peer review. The four stages are:
I.On-line submission of a Letter of Intent (LoI for all institutions and Institutional Eligibility for Quality Assessment (IEQA) format for Affiliated/ Constituent colleges that are seeking Assessment and Accreditation for the first time.
II.Preparation and submission of a Self-Study Report (SSR) by the institution;
III.Peer Team visit to the institution.
IV.Final decision by NAAC.
Stage I: On-line submission of LoI and/or IEQA format:
All HEIs are expected to submit a LoI to NAAC. While Universities, Autonomous Colleges and Colleges with Potential for Excellence submit the LoI to undergo A&A of NAAC directly, Affiliated and Constituent colleges submit their LoI and thereafter submit the filled-in format for IEQA status on line. These institutions become eligible to go to stage-II only after completing the first-step of acquiring the IEQA status.
Stage II: Preparation of the Self-Study Report (SSR):
The first and the most important step in the process of assessment and accreditation is the preparation of the SSR by the institution following the guidelines formulated by the NAAC. The institution has to prepare the SSR in two parts, Part I is the institutional data and Part II is the evaluative report. This will be an internal exercise by the institution that is expected to be done with honest introspection. It aims at providing an opportunity for the institution to measure its effectiveness and efficiency, and to identify its strengths and weaknesses. The NAAC believes that an institution that really understands itself - its strengths and weaknesses, its potentials and limitations - is likely to be effective in carrying out its educational mission and make continuous improvement. Self-study is thus envisaged as the base document for the process of assessment and accreditation. The five core values listed by NAAC form the value framework for assessment of HEIs.
It is through the self-study report that the peer team understands the institution, and gets the required information, for assessment. Hence the institution needs to present the factual details of all aspects of its functioning, namely the inputs, processes and the outputs. As the entire assessment exercise would be based on this document, it should be prepared with utmost care, giving all the relevant information according to the criteria defined by NAAC.
Stage III: Peer Team Visit to the Institution: On receiving the self-study report from the institution, NAAC constitutes the peer team and consults the institution about any justifiable reservation it may have about any member of the team. The peer team visits the institution and looks for evidences, to validate the self-study report, through interactions with the various constituents of the institution, checking documents and visiting the various units of the institution. At the end of the visit, the team shares the draft Peer Team Report with the institution. The PTR duly signed by the Head of the institution and the peer team members, is submitted to NAAC. The team also recommends the criterion-wise Grade Point Averages (GPA), the final Institutional Cumulative Grade Point Average (CGPA) and the Institutional Grade to NAAC.
Stage IV: Final decision by NAAC: The Executive Committee of NAAC reviews the PTR and takes a decision about the institutional CGPA and the Grade. The accreditation certification by NAAC is valid for a period of five years.
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