Re: Indian Economy News & Discussion - Nov 27 2017
Posted: 09 Apr 2024 08:02
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India will by the end of 2025 stop importing urea as a massive push for domestic manufacturing has helped bridge the gap between supply and demand, Chemicals and Fertilisers Minister Mansukh Mandaviya has said. In an interaction with PTI, the minister noted that the availability of fertilisers is very important for Indian agriculture.
He said the country has been using chemical fertilisers for the last 60-65 years to enhance crop production.
Now, Mandaviya said, the government is making efforts to promote alternate fertilisers like nano liquid urea and nano liquid di-ammonium phosphate (DAP).
"Use of alternate fertilisers is good for crops and soil health. We are promoting it," he said.
Asked about achieving self-sufficiency in urea production, Mandaviya said the Modi government has adopted a two-pronged strategy to end dependency on urea imports.
The minister highlighted that the government has revived four closed urea plants and is reviving one another factory.
He noted that India needs around 350 lakh tonnes of urea annually to meet domestic demand.
Mandaviya said the installed domestic production capacities have been increased to around 310 lakh tonne from 225 lakh tonne in 2014-15. "At present, the gap between annual domestic production and demand is around 40 lakh tonne," the minister said.
Mandaviya said the annual domestic production capacity of urea would reach around 325 lakh tonnes after the commissioning of the fifth plant and the target is to replace the use of 20-25 lakh tonne of conventional urea with nano liquid urea.
"Our agenda is very clear. By the end of 2025, Modiji will end the country's import dependency on urea," he said while asserting that the import bill of urea would become zero.
According to the government data, imports of urea fell to 75.8 lakh tonne in 2022-23 from 91.36 lakh tonne in the previous year. Urea imports stood at 98.28 lakh tonne in 2020-21, 91.23 lakh tonne in 2019-20 and 74.81 lakh tonne in 2018-19.
Mandaviya highlighted that the Modi government in the last 10 years has ensured an adequate supply of fertilisers for the agriculture sector. He said the Centre also protected Indian farmers from a sharp rise in prices of fertilisers in global markets by increasing the subsidy on key crop nutrients.
For 2024-25, the government has allocated a fertiliser subsidy of Rs 1.64 lakh crore as against the revised estimates of Rs 1.89 lakh crore for the 2023-24 fiscal. In 2022-23, the fertiliser subsidy had shot up to Rs 2.55 lakh crore.
Last month, Mandaviya had informed that India's conventional urea consumption is estimated to have declined 25 lakh tonne during the last fiscal on increase in demand of nano liquid urea and the government's efforts to discourage the use of chemical fertilisers.
Urea consumption stood at 357 lakh tonne during 2022-23. Cooperative organisation IFFCO had launched nano liquid urea a few years back. It has also provided technology to some other companies to set up nano urea plant.
A total of 7 crore nano urea bottles (of 500 ml each) have been sold during the August 2021 and February 2024 period. One bottle of nano urea is equivalent to one bag (45 kg) of conventional urea.
The government has also launched 'PM Programme for Restoration, Awareness, Nourishment and Amelioration of Mother Earth' (PM-PRANAM) scheme to incentivise states and Union Territories (UTs) to promote the usage of alternative fertilisers and balanced use of chemical fertilisers.
Under the Urea Subsidy Scheme (USS), urea is provided to the farmers at a statutorily notified Maximum Retail Price (MRP). The difference between the urea MRP and the production cost is being paid to manufacturers.
Besides, under the Nutrient Based Subsidy Policy, a fixed amount of subsidy is notified on an annual/semi-annual basis, which ensures availability of P&K (phosphatic and potassic) fertilizers at reasonable prices to farmers.
Urea is imported on a government account.
However, all P&K fertilisers (DAP, MOP and NPK) are covered under Open General License (OGL) under the Nutrient Based Subsidy (NBS) Scheme and they are imported by the fertilizer companies on commercially viable terms.
In 2004, India's per capita GDP was $635, while these countries had a per capita GDP of $1790. In other words, India's per capita GDP was about 35 percent of its peer group. But by 2014, this actually fell to 30 percent. This means that those other countries did better than India. During the UPA years, India actually became poorer compared to the rest of the developing world. This should end the idea that the economy did particularly well under the leadership of Dr Manmohan Singh.
How do the Modi years compare? From 30 percent in 2014, India increased this ratio to 37 percent in 2019 and further to 42 percent in 2024. India's per capita GDP now stands at $2850, compared to $6770 for its peers. There is still a long way to go. But in the Modi years, India has at least taken a big leap forward. Unlike the years between 2004 and 2014, when India was going backwards.
During the Vajpayee years, between 1998 and 2004, this ratio rose from 30 percent to 35 percent, before falling back to 30 percent at the end of UPA. Again, between 1991 and 1998, the ratio fell slightly from 31 percent to 30 percent. Whenever the Congress was in power, by itself or in the ruling mix, such as from 1991 to 1998, and from 2004 to 2014, India's economy lagged behind its peers. During the Vajpayee years and the Modi years, India moved ahead.
In 2004, India's economy was 37 percent the size of the Chinese economy. By 2014, it had shrunk to 19 percent. In relative terms, India's economic size had been cut in half during the UPA years. In 2024, it now stands at 22 percent. That is only slightly better. But at least the gap is no longer increasing.
The same story repeats with the rest of the BRIC countries. Between 2004 and 2014, China increased its GDP by 440 percent, Brazil by 267 percent, Russia by 223 percent, and India by only 182 percent. Same with per capita GDP growth, where India again comes in last among the BRIC. In 2004, India’s economy was bigger than Brazil or Russia. By 2014, both countries had crossed India in GDP rankings. Meanwhile, India remained stuck at almost the same position, rising just 1 place from 12th in 2004 to 11th in 2014.
In its final budget in 2014, the UPA set a target of 2043 for India to become the third largest economy in the world. That is not much of an ambition for a country of 1.4 billion people. Since 2014, India has grown faster than any other major economy, including China. Today India is fifth, and is expected to take the third position by 2029. That is a full 14 years ahead of the target set by the UPA government in 2014. Still a lot for India to do, but one step closer to fulfilling our potential.
Agree with all your points and i noted the same things in the Modi 3.0 wishlist thread.rahulm wrote: ↑27 Apr 2024 06:25 Agree with everything in relation to economy , fit and finish, reducing poverty etc.
I visit India at least twice a year from Oz. Sometimes thrice. Infact reached yesterday for a quickie cheeky visit.
PUNE garbage issue is bad and no sign of getting better. Street Cleaners sweep every day. Sweep everything in a pile. Then they leave the pile there. During the day the pile disperses. Next morning voila they sweep yesterdays plus incremental delta into a new pile. And life goes on. The pile keeps growing day after day , week after week, month after month. Simply ridiculous.
While M has an excellent cabinet . State and municipality BJP units are mostly the same old. Any state uplifts seem to be due to central schemes.
Less said about traffic and suicidal and homicidal driving practices the better. Previously accidents happened at 40 kmoh now 40 kmph driving habits carried over to 120 or more kmoh are terribly ugly. And no signs anyone , gobarmint or drivers want to make it better. Who cares about fatality statistics when concrete road record statistics are brung created. A few more dead are, well simply a statistic.
Usinng hazard lights seems to be the pinnacle of driving competency. Bad drivers pass on bad practices to next generation of drivers. It seems as long a hazard lights are on anything goes.
The Gross Goods and Services Tax (GST) collections hit a record high in April 2024 at ₹2.10 lakh crore. This represents a significant 12.4% year-on-year growth, driven by a strong increase in domestic transactions (up 13.4%) and imports (up 8.3%). After accounting for refunds, the net GST revenue for April 2024 stands at ₹1.92 lakh crore, reflecting an impressive 15.5% growth compared to the same period last year.
UP is 4th now crossing Tamil Nadu. They are very close to Gujrath.A_Gupta wrote: ↑02 May 2024 18:28 https://pib.gov.in/PressReleasePage.aspx?PRID=2019262The Gross Goods and Services Tax (GST) collections hit a record high in April 2024 at ₹2.10 lakh crore. This represents a significant 12.4% year-on-year growth, driven by a strong increase in domestic transactions (up 13.4%) and imports (up 8.3%). After accounting for refunds, the net GST revenue for April 2024 stands at ₹1.92 lakh crore, reflecting an impressive 15.5% growth compared to the same period last year.
There is no information on the GST slabs but UP will have lower value but higher volume slabs. The DMK and the KA congress will be dismayed when UP comes second in another year or two. All freebies oriented states have less than 10 percent yoy growth but not freebies state have more than 10 in the top 5 states. KA growth rate is falling and I expect this to be start of KA tax collections and then going towards Kerala model.
Right, May should go back to approx 1.80 lakh crore. The full year 2023-24 data is in this PIB release for March 2024. By around October, if the current buoyancy continues we should start seeing monthly collections hit 2 lakh crore or more.
GST is less than 20% of revenues. Rest of it from varieties sources. This Deccan Herald report maybe of interest to you for this year's breakup.
I believe Income Tax (individual or Corporate) should be the biggest contributor.
5% of 4 trillion is $200 Billion.
Mukesh.Kumar wrote: ↑04 May 2024 00:35GST is less than 20% of revenues. Rest of it from varieties sources. This Deccan Herald report maybe of interest to you for this year's breakup.
But an approximate breakup infographic is given below.
For more details please check out the government budget document here.
It would be interesting to see how Government debt had been increasing
The first step is to shift excess labour from agriculture to other occupations. Once that's done, we can start thinking about labour productivity.
This indicates that there is an issue with the landfilling system. There is no place to transport the waste to. This appears a similar story to Trivandrum, which now seems to have resolved this issue.rahulm wrote: ↑27 Apr 2024 06:25 PUNE garbage issue is bad and no sign of getting better. Street Cleaners sweep every day. Sweep everything in a pile. Then they leave the pile there. During the day the pile disperses. Next morning voila they sweep yesterdays plus incremental delta into a new pile. And life goes on. The pile keeps growing day after day , week after week, month after month. Simply ridiculous.
At a minimum, they have to have some other income generating activities whether at home or elsewhere.
I guess we will cross 2L crore per month from Jan 2025. Oct 2024 could be an outlier, but we can't say for sure.