Govt aims record 273MT foodgrain output in 2017-18 

The country is likely to produce an all-time high 273 million tonnes (MT) of foodgrain in the 2017-18 crop year starting July and maintain 4 percent farm growth, anticipating a good monsoon. The country is likely to produce an all-time high 273 million tonnes (MT) of foodgrain in the 2017-18 crop year starting July and maintain 4 percent farm growth, anticipating a good monsoon. Foodgrain production is estimated to touch a record 271.98 MT in the current year (July-June) on the back of good rains after two years of drought, according to the second estimate of the agriculture ministry. "Foodgrain production target for next year is set at record 273 million tonnes," Agriculture Minister Radha Mohan Singh said while addressing a two-day national conference that is discussing sowing strategy for the coming kharif season. Southwest monsoon is forecast to be normal which will help achieve the desired target, he said without disclosing the season-specific production targets. It may be noted that 50 percent of the foodgrain output comes from both kharif (summer) and rabi (winter) seasons. Kharif crops are normally sown in around 72 million hectares. 

NITI's 3-year agenda suggests key reforms to bolster economy 

Niti Aayog in its three-year draft action agenda today suggested a host of reforms in taxation, agriculture and energy sectors with the objective of accelerating growth and increasing employment opportunities. Niti Aayog in its three-year draft action agenda today suggested a host of reforms in taxation, agriculture and energy sectors with the objective of accelerating growth and increasing employment opportunities. The draft agenda, released by Niti Aayog Vice Chairman Arvind Panagariya today, also underlined the need for recalibrating the role of the government by limiting its involvement in activities that do not serve a public purpose. Among other things, the Aayog has also suggested the closure of loss-making CPSEs and strategic disinvestment in 20 state-owned companies. 

Tax agriculture income, says NITI Aayog member Debroy 

NITI Aayog member Bibek Debroy today made a strong case for taxing agriculture income, an opinion contrary to the government's stated position. NITI Aayog member Bibek Debroy today made a strong case for taxing agriculture income, an opinion contrary to the government's stated position. In addition, the member of the government's top think tank also suggested that exemptions on personal income tax should be removed to increase tax base from the current about 37 million in the country of 1.3 billion of people. "On expanding the base on the personal income tax side, other than elimination of exemptions, is to also tax rural sector, including agriculture income above certain threshold," Debroy said in a press conference. Taxing agriculture income is a politically sensitive issue and successive governments have refrained from doing so. As recent at March 22, Finance Minister Arun Jaitley had assured Parliament: "Agriculture income is not taxed and will not be taxed" 

China policymakers bullish on economy, cite strong Q1 GDP, stable yuan

 Speaking at a G20 summit meeting of the world's top economies in Washington last week, finance minister Xiao Jie said an increasing number of positive signs were seen in the Chinese economy in the first quarter gross domestic product Policymakers in China are pushing a bullish message on the world's second-biggest economy after a solid first quarter, pointing to a slow down in capital outflows and a stable yuan after a selloff last year stoked fears of instability. Speaking at a G20 summit meeting of the world's top economies in Washington last week, finance minister Xiao Jie said an increasing number of positive signs were seen in Chinese economy in the first quarter gross domestic product report. China is confident of reaching the government's 6.5 percent GDP growth target this year, Xiao said in a notice published on the Ministry of Finance's website on Saturday. Separately, People's Bank of China (PBOC) adviser Sheng Songcheng said the improving economy has been matched by a stable yuan, with signs that capital is starting to return to China

Ensure free and fair trade practices for global recovery: 
 
FM Global economic outlook has changed for the better with some silver linings finally emerging, Jaitley said at the meeting of the International Monetary and Financial Committee (IMFC). Monetary policy stance of advanced economies and increasing protectionism were among the reasons for weak confidence in the global economic recovery, Finance Minister Arun Jaitley has said, while calling for efforts to ensure free and fair trade practices Global economic outlook has changed for the better with some silver linings finally emerging, Jaitley said at the meeting of the International Monetary and Financial Committee (IMFC). Jaitley noted that this momentum was expected to strengthen in 2017 based on gradual improvement in economic conditions in advanced economies, particularly in the US, as well as due to the pick-up in growth in some large emerging markets.

Protectionism will hurt global economy, people welfare: 

Jaitley "Questions are raised today in certain quarters about the global compact, which we have developed over the years- multilateralism driving the rule-based flow of goods and services- to deliver growth, development and poverty reduction for all and achievement of global public good. Increasing trade protectionism will hurt the global economy and welfare of people, Finance Minister Arun Jaitley has warned. "Questions are raised today in certain quarters about the global compact, which we have developed over the years- multilateralism driving the rule-based flow of goods and services- to deliver growth, development and poverty reduction for all and achievement of global public good. The attempt to change the discourse from opening up and focusing on competitive advantage to increased protectionism will only hurt the global economy and welfare of people, Jaitley said in his address to the World Bank Development Committee. "We need to bond together and renew our compact to protect the World from falling into spiral of slow economic growth, rising inequality and irreversibly altered climate, conflict and fragility," said the Finance Minister

India must work on raising its global trade share:

 Panagariya India needs to focus on domestic policies to step up its share in global trade to 4-5 percent from the current 1.7 percent and not get perturbed by what is happening in the US, NITI Aayog Vice-Chairman Arvind Panagariya said today. India needs to focus on domestic policies to step up its share in global trade to 4-5 percent from the current 1.7 percent and not get perturbed by what is happening in the US, NITI Aayog Vice-Chairman Arvind Panagariya said today. He offered a simple solution to bump up India's share in global merchandise exports, saying "what matters more is what we do in India". The global merchandise export is USD 16-17 trillion. He suggested that the effort should be to raise India's pie, irrespective of increase or decrease in global trade. "What happens to the size of global merchandise exports, whether it remains at USD 16 trillion or goes up to USD 18-19 trillion, is of less consequence.