 We are continuing with our fourth session on economic survey today there will be only two chapters which will be discussed one is upon the services another one is upon agriculture. So once we are done with this the last session will have on the other infrastructure things which I told you which will be happening in the subsequent week with that we will be finishing the survey. And whatever we are going to see now will be mostly factual and data based most of the schemes and the programs which are there in the services sector and in the agriculture sector you might be knowing. So it's only going to be like a revision for you about the current of us whatever you have done so far. So some data and statistics we will be presenting here it's not mandatory for us to memorize such data or the statistics. It is only to know the positioning of India in terms of like exports or in terms of the FDA performance. So we are going to give you some picture about the country's position in the global level. So they are all going to be useful later when you are going to write your main examination in the problems they won't ask you about exactly about the data or the statistics. Anyways it's going to be analytical. Right. So with this first we'll have a look at the services I hope in the last class we were talking about the external sector. We did a bit on the basics also we studied about the balance of payment and we studied about external debt right in that larger discussions were happening in terms of balance of invisibles if you remember upon the services account. So under the balance of invisibles you had three things the services investment income as well as the transfers. Today we are going to talk only about the services in this particular chapter. There are lots of merits which are going with the services sector. The moment I mentioned the services sector you all will be remembering about the IT services. Secondly the major word which will go with the services will be exports. So these are the two key things which anybody will expect out of this chapter. There are lots of statistics supporting that. But before getting into the chapter also I would like to mention the two key words which now it is very essential for us to remember. One is about the contact intensive services and then the contact less services. So if you recall back our first chapter you would have like heard about the point that the contact intensive services all got into trouble. The contact less services were the one which were doing well in spite of COVID. But now this chapter is going to tell you all the types of services are bouncing back. There is a resilience in all the types of services and repeatedly you are going to hear about the word called as the pent up demand. You remember that day we made use of the word pent up demand which means like there was a lower level of demand and suddenly there is a spike in demand. So these will be the major essence of this services and economic survey has named the chapter as services are sources of strength. So if you look at all the key points what we said is going to come into the introduction. We are into the top 10 service exporting countries. We are actually seeing the rebounding or bouncing back of all the contact intensive service sector. Can you give me some examples of this contact intensive services sector tourism, hospitality, the hotel industry. Banking was also done online but of course certain parts of banking we do have to come offline. Education of course it was also done online. Hospital was anyways done because for COVID we had to go to the hospital. So hospitality, tourism and transportation, all types of transportation, railways, roadways, airways, everything was affected at the time of the COVID restrictions. So they are all the things which are actually bouncing back. And also they are talking about the release of the pent up demand mainly because of the universal vaccination which we were able to achieve. We would have studied about this index in the first two chapters called as purchasing managers index if you remember. We would have mentioned in different different contexts but there is a PMI which is specifically given for services as such. So anywhere this kind of a PMI index if you see you have to interpret that if the value is more than 50 that particular sector is expanding. If the value is less than 50 that particular sector is contracting. So they are looking at for the services as a sector and they are saying that now it is bouncing back and the values are going above 50. So mainly to show that there is a demand for the raw materials purchasing managers index are going to tell you about whether we need the raw materials to do the particular service or not. So here we are giving you the percentage of the growth specific to the services sector. There is a merit to this sector. You know that GDP usually they mentioned the number like 5% 6% 7% right. But always the services sector will be on a higher level than the overall GDP to be somewhere around 8% 9% 10% right. So after a long time we are again moving out of that 7.8% to 8.4% and the third point they would have said like the government is again expecting that it will grow up to 9% in the future right. So the diagram you can also see in 2021 there was a dip. But when again if you see on the right hand side you can see that it's between this 8 to 9% and even sometimes above 10% right. So you are all clear with the word GVA. We know the difference between GDP at market price GDP at factor cost and GVA at basic price right. So here they are basically calling it as GVA instead of GDP. So that is what is presented and year on year growth is also given right. So again they have mentioned that mainly because your hotel and the tourism industry has recovered the rate is actually expected to go to 9%. This is that PMI services. You can see that there is one black dotted light which is marking that 50. So if the graph is falling below that this is all that COVID period where we can see that services were shrinking. Slowly now we are rising above that 50 number mark and towards December 2022 it has started slowly increasing. So we are seeing that there is lot of demand which is getting created for the services. Of course after the COVID there was also a slump mainly because of the war situation. But now slowly we are increasing at least from December we can September to December we can see an increasing trend right. When the sector is doing better off than the before it will also require financial support mainly the institutional credit. So you can see that the credit has started growing very fastly like around 20-21 percentage. These are all different percentage numbers to show year on year growth but generally to indicate to that the sector is actually bouncing back. These are all the evidences which we are generating here. So they are saying in November 2022 we had the very highest growth which is something like which we have not seen in the past 46 months. Just like in 2-3 years we have not seen such a kind of growth. This data again we would have seen as part of our external sector the last class where we talked about the merchandise trade and services trade. So again they are presenting here three things in the balance of invisible just to pick up only the services account nothing else here. So you are seeing this services import in the green colored graph services exports in the red colored graph. And the difference between these two things is what has been presented as the gray color bar. So you can see that there is a net to positive receipt and that receipt is actually increasing. There can be two reasons for this one either the imports are reducing to the exports can be increasing. So you can see actually the imports are remaining the same exports are slowly increasing which is the reason why this gray color bar is actually becoming taller. Which means that why is this exports increasing. You remember they were mentioning about the global growth may actually slow down a bit and all they were cautioning in the first chapter. Because everywhere there is monetary tightening happening everywhere there is a inflationary condition whenever tightening happens obviously the growth will have a compromise. But in spite of that in spite of the warning there can be situation that in other countries because of the inflationary situation. Things may be or the services may be costlier so in which case they may be wanting to outsource to other countries. You remember we mentioned the word export is other countries consumption. Whereas we produce this mic we consume it here it is domestic consumption. If we produce this and send it abroad it is other countries consumption though we are going to call it as export it is somebody else's demand. It's not our country's demand. So in such case because of this kind of a difficult situation across the world may be their own country's production will be difficult. But they may be importing from us which becomes export to us. So therefore the second point they have given here mainly because of the runway inflation in many countries we have a good scope of exporting the services at a lower price. Therefore we are also seeing this exports are actually increasing. Are you all familiar with the word runway inflation? No. Creeping inflation, working inflation, running inflation. After that what type? Hyperinflation and in the middle you see galloping inflation right. Running inflation means it has actually started to go involved. Ten percent and above is it not? Yes or no? So therefore we are trying to say double digit inflations are there in many countries. Keeping that in the scenario we are trying to export our services to other countries which is why this spike is happening. But still we have to be cautious about the global level growth be slowing down. So these are the warnings which are given here. So far we had been mentioning like services services in the specific word under the services. They are going to the components. If you ask what are all the major services which you know the first and top most thing which you are going to mention as the software IT related things. So that is what is actually having this kind of an increasing trend. It may be looking like the previous graph on this graph is almost the same but that is how the trend for the services exports are also there that software exports. So among the services exports, software exports are very very resilient mainly because of the digital support and the cloud things. We are all now making more use of the word cloud because of the online services utilization. And the ones which got impacted again needless to mention it was about the transportation services which we also saw in the external sector. This is a data about FDI in services. We have studied enough basics about the foreign direct investment so they are coming to do business over here. Whenever somebody is coming from abroad we should give them ease of doing business so that they will be able to invest more in our country. And approvals, regulations, rules everything should be simplified and there should be some single window system so that they will be able to approach one particular ministry or one particular window and get all the sanctions done so that they can start with the business. All of these things are improving in the country and whenever you talk about the FDI you should talk about the limits. Say for example in insurance they have increased it from 49% to 74%. In telecommunications they have opened up up to 100%. I know you know the basic rules of the FDI investments except for the strategic sector, the rest of the sector, so the government keeps revising how much amount of foreigners they can come and invest in India. Mostly it is 49% or 74% or 100%. So these are all the different ranges within which the investment comes in. So they keep on revising these things, they keep on opening up the new avenues. Therefore more investment is actually coming inside the services sector. If we say like FDI is coming like up to 80 US dollar billion, up to 10% are specifically all going into this software related thing. Already I showed you in the previous slide, services means it's mostly dominated by the IT or the software sector. The dollar is also mostly moving into the services sector specifically to the software things. So these are all the measures which have been taken by India to improve the FDI. With that we are seeing as the 7th largest recipient of FDI. There are lots of largest for India. If you remember remittances also they are one of the largest countries receiving lot of ammo. Similarly FDI also we are on the 7th largest recipient. The last point we mentioned about insurance in the previous slide. FDI is coming like 49% to 74%. So a bit more of detail on the insurance sector. Again you remember we mentioned something about insurance penetration, insurance density. In one of the chapters of economic survey we mentioned about that. How many people go for insurance? How much premium is being paid for the insurance? Those are all, see as much as we are going ahead for the insurance, more and more organized system is happening in the country. If you go and see the developed countries and all, most of them will be insured. Very less this dependent population and unemployed people. They are the people who will not be insuring themselves. Insurance means it's not just for the life. If you remember we had even discussed about the life on the non-life. Under the non-life we discussed about the motor, health related, theft related, fire related. There were varieties of things. So here we are trying to say that insurance is being discussed as a service sector major one kind of a service. Where we are again seeing one single window portal where we can go and approach for the issuance. This is not just on the consumer side. So you people will apply for the insurance. But there should be providers who can give the insurance with the different types of products. And there should be easiness from the provider side also so that more business will happen in the insurance sector. So which is what we are mentioning. You don't have to go and talk to Uridai every time you launch one new product or a service. The rules and regulations in India are very very strict. You are familiar with SEBI. You know SEBI? What is SEBI? What does SEBI do? Regulating share market. You know anything like even that you would have heard very familiar word mutual funds is it not? Every time a scheme is launched under the mutual fund you have to go and seek approval of SEBI to launch it into the market. Similarly whatever you do in the insurance market you have to go to Uridai to get it approved. But nowadays they are making the rules and regulations much more simpler. So that these people they don't have to go and tell I am launching a new product, new service kind of a thing. So these are all getting simplified. That's why we call it as ease of doing business. And there are lots of technologies these days even for the two wheeler. I think if you get into a petrol bunk you'll be able to do an insurance. Is it not? And they give you most of the online facilities ICICI Lombard. Many things are available today so that with the technology available you can do the insurance at the fastest rate. So they are saying all of these things are slowly improving India's stature. And you can see India is becoming 10th largest in the world in terms of starting to apply for the insurance. Now about the tourism sector which was the hardcore hit during the COVID situation. After the pandemic they are trying to say that like around 60 to 65 percentage recovery is there now. So people were travelling to every destination. We have not reached back the full swing of what we were doing pre-pandemic. At least 60 to 65 percentage we have reached to that level. And they have introduced a word called as mice. What is this mice? They are talking about meetings, incentives, conventions, exhibitions. They are all contact intensive things. Meetings means physical meetings like this gathering should happen. All because of relaxation of the COVID restrictions only. Now it is becoming possible for the meetings people are travelling abroad everywhere through the flights. So that is actually bouncing back. And tourism is also bouncing back for the leisure. We have different types of tourism and the next slide we are also going to talk about the medical tourism. So these two statistics are belonging to the academic or the business oriented trips and leisure related trips. Everything is improving. And when they are saying the trips are actually increasing the average room rate and occupancy, how much revenue. All those things are important for the hospitality industry. So they are giving statistics. This blue colour line you can see that average 2019 levels. So pre-pandemic how much occupancy rate was all there. How much revenue the hotels were earning. So are we getting closer to it? By November 2022 we are seeing that we are actually reaching the 2019 levels. So this is for the hotel occupancy rate and this is for the revenue per available room. So this is also slowly improving and we are reaching the pre-pandemic levels. And this is about the foreign tourist arrivals. We still have not reached the 2019 level but definitely there is a spike. You can see that towards the end of the last year like October 2020 and all we were trying to fill in the gap. Which means like apart from the academic thing leisure tourism is also starting to increase. Now we are going a bit on the medical tourism side. So India is considered to be a very good destination for lot of medical facilities here. Government is also putting up websites like Heal in India. Have you seen this website? Heal in India, Ministry of Health and Family Welfare, Ministry of Ayush. They all have combinedly given things. So starting from enquiring which type of facility, cardiology facility or whatever they want to do. Which doctor, which hospital, how do I travel, how do I book an appointment. Everything is done online. So this Heal in India is a global medical tourism market related website. Which is a government's website coming under Ministry of Health and Family Welfare. This itself could be a question in your problems. Who is actually hosting this Heal in India? So we are again ranked at 10 out of the top countries in the world for the medical tourism. And Nidhi and Sati, they both are talking about the hospitality industry. Hospitality is again about your hotels, on the tourism related, all the facilities only. But they are having one perspective from the COVID related restrictions. Because post to COVID, there were lots of restrictions. How many people can stay? What are all these sanitation requirements? There were lots of requirements which they had to fulfil. So according to that, how they should be trained. All those things has been given under Sati. Nidhi is national integrated database of hospitality industry. So there are lots of hotels and other varieties of facilities in India to address this hospitality. But everything is getting regulated by the government. So they are all coming under the government's purview. And a loan guarantee scheme for COVID affected tourism service like that. If you have heard, many of them would have even sold their businesses during the COVID. Mainly the small MSMEs relating to the hospitality industry. Paying the rents or paying the running expenses during the COVID without having a business is a very, very risky thing for the business people. And at that time if they had taken... You remember there were like EMI's can be deferred for 3 months, 6 months. RBA was giving us some options. So loan guarantee scheme was also given for this kind of tourism affected, like due to the affected sector. And regional connectivity scheme. This is very, very essential because Udhan scheme is actually helping in different ways to connect different parts of the country. If this improves only, again the tourism can actually bounce back. And visas were also issued freely post this pandemic level in order to improve the tourism sector. This is a real estate sector picture. We are slowly moving ahead from the services software slowly into tourism. And then the next sector is the real estate. The first point is actually a very interesting point for all of us to know. Working from anywhere boosted residential real estate's entire 2 and entire 3 cities. So we will be wondering why work from home should be boosting the real estate sector. Is it not? If you have to come to the job physically, only then you have to be within the city limits so that you will get a bus or you can come by a two wheeler or anything. If you can sit and work from home, whether you are in outer suburban or you are Kanchipuram or you are in Salem, nothing matters. Is it not? So the tier 2, tier 3 cities, real estate actually improved because people, they wanted to go back to their native places. They wanted to settle there. They felt much safer not being in Chennai was very, very seen as a safer option when COVID was there. People fled out of Chennai. At that time when they will give that relaxation, after 15 days, after 15 days they will open up for 1 or 2 days. You should have seen the roads on those 2 days. People will always want to go back to their native place. If they are doing farming, they will feel very, very safe. So those were the conditions. And therefore real estate sector has taken edge based upon that work from home thing also. Of course regarding this real estate, government has also come forward to give this housing for all. And you know the Aava Zyogina which is running for several years constructing their houses in the rural regions. Smart city projects, recently they announced in Pundamali that area some 1000 pros or kind of, they keep identifying areas and then they do the smart city projects that is also improving now. But with all these positive things, there is still difficulty because in the construction, real estate means obviously you have to acquire a land and then start doing the construction. But getting the raw materials there is lot of problems. Right from the steel iron, several other raw materials which is required, cement and all those things which we are importing also many of the raw materials. It's getting affected due to the war and the inflationary situations. This is one interesting index. You can see that global real estate transparency index. India has improved a lot in this. Which means that see when we were discussing about the types of investments in the last class, did we mention that whenever there is a share market problems, people go towards gold, right? So whenever there is a share market problem, it's not just with the gold, people also go and buy land, right? If you talk about physical assets, there are only two major types of assets which you can talk. One is the gold, another one is the land. Both are in our Indian's mind, both are equivalent to each other. Gold and the land, value based. So therefore, we are actually talking about the property acquiring the real estate sector here. So when the rules are, and you also know that both these physical assets, gold and the land is the area where you have more of black money circulation. Have you heard about it? Have you heard about the guideline values? Guideline value means to what value you can buy that land, government will have a value. You know how much one ground is valued in Ananagar? One ground, you're all fitting in Ananagar. According to the guideline value, if you say like one square feet is something like 10,000 or 11,000, in the market rate it will be 20,000. So there is a difference. 2,400 square feet, if you want to buy in one rate, the market rate will be actually double. If you can buy in one crore or two crore, the market rate will be around four crores. What is happening with this two crore? Where is this amount going on? It is all the black money circulation. If you declare and do the, of course you can do the registration for four crores, but the moment you want to do the registration, you have to pay the stamp duty, 11%. Now they have reduced a bit, but anyway 7 to 11% you will have to pay it. Therefore people in gold also, anybody is giving money and then taking bill for a gold thing. Of course some of the bigger shops, they do that, they insist upon doing the billing of it. But gold as well as the land, both are the places where you can do the black money circulation. Land in a larger level, gold to a limited level. That is why this word transparency is very, very important. See we have to bring in more rules and regulations to make the process transparent so that people will avoid doing these kind of black money transactions. So they are doing lots of these activities from the government. How can we register all the details? How can we give online pata? There are different states like Maharashtra which is giving up RERA platforms. So digitization of the land records, everything is going to help us make this transparency a bit better. I'll show you one. This is the index from which the economic survey has taken out the data. So explore real estate transparency by market. I want a map to come. Here is the map. So you are going to see how transparent is India in terms of, they have given six key categories. You can see here, investment performance, market fundamentals, governance of listed vehicles, regulatory and legal environment, transaction process, sustainability, transparency. These are the six categories in which basically they are wanting to judge whether our market is transparent or not. And you can read the graph. Very light-colored things are transparent. It goes with the logic. Light-colored things will be more transparent. Is it not? So as much as it is becoming dark-colored, you are very rigid. You are not very transparent, which means you are bad. So where should India be? Light-colored or dark-colored? Light-colored. Wait, wait, wait. You are seeing the different colors. Is it not? Looking at the colors, can you say which is the first or top countries? I am waiting for the answer. I'll show you. As soon as you keep, it will show you the rank and the score. You are seeing United States of America. And you are seeing the red-colored things. All of them should be fully red. Then it means you are having good value and you gain higher ranks. So this is rank two. You want to see rank one? We'll see what is India first. We are going to purchase it. But this itself, our country is saying we have become very good. That you should see. I'll show you this and I'll go back there. We have become better from 2.82 to 2.73. So that they are saying we have improved a lot in terms of the transparency. So now you know how much transparent we are. You see this? UK, right? So US is in the second rank. There are lots of countries which are ranked two. But you can see the United Kingdom having 1.25. How much was our data? 2.73, right? So like very much lesser than us. And this is the market score for the six different key indicators. And US is actually ranking first. So India's rank is 36 in this. So a long way to go. But still at least we can understand how the countries are being positioned across things. So that's about the real estate transparency index. How we are becoming better off. This is about that IT, BPM. What is this BPM? Business, process management. So basically again another form of our services. That's taking the major share. I'm going to show you graphs in the next slide regarding this. And we are calling ourselves as very much a digitally talented. And this particular sector is growing by 10% right? So this is the statistics related to it. One is given as the countries. Another one is given as the types of services. So where exactly you know we are a very good export. I services exporting country, particularly it BPM exporting country. So where exactly it is going. This is going to Asia Pacific region. That's what is written here as a pack. And then we also send to USA, UK and Europe. Those are the three other things. Whereas in terms of the types of services, you can see that it is again your IT services, which is dominating with the 51%. And then you have your business process management, which is this 19 to 20%. Followed by your research and development software products is very less. The rest of the things are larger. But 51% to the IT services, 62% to the Asia Pacific region. These are the statistics which the government wants to present. So IT sector performance is very good in terms of exporting. Coming to the e-commerce slide, I have put the first three points up and then the next four points down. First three points are basically to talk about the private sectors role in the e-commerce promotion. Of course, we have lots of online facilities now, thanks to all our financial interfaces, whichever has come in. It has helped us a lot in terms of doing the e-commerce. And with the smart phone penetration, with phone pay, your Google pay, many things have started becoming possible even in the rural India. And they are talking about tier 3, tier 4 CPC companies like Misho, these kind of companies are also penetrating at lower levels. Looking at the government side, of course, we've already talked about this government. Basically, we have to look at all the e-commerce platforms. One is the government's platform and then one district, one product. What is all? What is it all about? One district, one product. E-commerce is a vehicle number. What is so specific about this? Have you studied this in our current affairs? Can you tell me one feature of this? Apart from the title, whichever is specific to that particular district, mostly it is agricultural in nature, which is what I wanted as the answer. Mostly identification of one particular, whichever good product is there coming from the district. It belongs to the basic sector, subsistence sector. It comes from the agriculture sector. We are discussing about services sector chapter, but we are talking about the subsistence sector product. We are bringing that product and we are exchanging it through the service, which is available in the e-commerce. So this is also helping a lot of exchange between the producers and the consumers. This particular scheme of the government. Triford is again trying to help the tribal people to bring in their products and then sell it on the e-commerce. An open network for digital commerce, I think we have discussed enough of it, which is helping both the buyers and the sellers to connect to each other to do the transactions. So all of these efforts are seeming to be coming from the government side in order to promote the e-commerce. Now when you look at what are all the items which are getting actually traded on the e-commerce, you can see that mobile electronic appliances is contributing up to 45 to 50 percentage. Your fashion items, what are the fashion items? Anything which is related to the cosmetics and other things. So that's like around 20 to 25 percentage, groceries and general merchandise. So basically to buy from the big basket kind of things, lots of the groceries essential. So that's another 20 to 25 percentage, but they are projecting that this grocery should become bigger. Fashion, of course, they want to retain because this is going to become bigger. We expect that the mobile and electronic appliances will become slightly shorter. So there is a larger future which is seen for the general merchandise to improve because of the easily available facilities. Can you mention any of the e-commerce facilities which you are using on the day to day basis? Zepto, Danzo, Porter app. They can lift anything and put it anywhere. Is it not? Anything emergency, Zepto Andal, he says he will deliver in 10 minutes and he does it, right, usually. So there are lots of deliveries and transactions happening. Looking at the digital financial services, India is doing very good in terms of this because we are adopting the financial technology, whatever is coming at the global level. You can see that it is up to 87 percentage. And we have lots of neo banking platforms also coming up. What is the difference between our commercial banks and the neo banks? It is only digital presence. So there will not be any physical presence for these banks. Whatever facilities which the physical present banks, commercial banks are giving, we call it as internet banking, net banking. Whereas these calls are called as neo banking which doesn't have a physical. Are they governed by RBI? They are indirectly governed by RBI. Why we should make use of the word indirect? Can you give me any one example for our neo banks in India? Any facility? Airtel, Paytm banks, you have heard about Razor Pay? Razor Pay. So assume that you want to do a Paytm bank, whatever through the Paytm you are doing it, there will be a valid. There will be a valid. And you have to add the funds into the valid and that will be distributed to whatever QR code or the number you want to give. Razor Pay is also similar. They all will go and touch the commercial banks. How do you fill in the valid? Can you go and pay the cash into the valid? There is no physical presence. So you can't do that. So therefore it is to be called as indirect because commercial banks are all governed by RBI. Whatever neo banks you are mentioning, they will go and touch the commercial banks for the transaction. And therefore they are getting indirectly governed by RBI. There will be some rules and regulations to control them. So this is also giving a lot of help for the improving the digital transactions. You have heard about the central bank digital currency also, is it not? It's like the cryptocurrencies, legalized cryptocurrencies for India. We are trying to bring it on a pilot basis now to the wholesale and the retail segments. Basically, can you and me go and hold an account with RBI today? No. No, yes. No, we can't. But when this digital currency kind of thing comes, we will be able to hold accounts because it's going to be released only by RBI, central bank digital currency. Of course, they will ask us to maintain account with the commercial banks. From there they will elevate us to RBI, but who will be issuing it? It will be issued by the central bank. So slowly we are moving towards that particular system. So which is also helping us to, which is going to help us in terms of the transaction for the buying and the selling of commodities. So that's the digital financial services. I am giving all the examples what is given in survey. It doesn't mean that there are only these many types of services. Whatever has been discussed here, keeping in purview what the survey has told us. Account aggregator framework, I think we already discussed in earlier class. This is basically a non-banking financial company. Please make note of such points because this is what will UPSC ask you. They will say account aggregator framework is a finance company. It is a financial intermediary. It is a new bank, something they will say. You need to know that it is a non-banking financial company which goes and collects all of your data with your consent in order to share with other financial institutions so that they will be giving loans to you. So therefore, credit rating is very, very essential these days. You need to be having good net worthiness, credit worthiness for you to get a loan. So this checking and all will be done by these kinds of accounts aggregator framework. With your concern, suppose if you are having accounts in four or five different banks, they will be getting the details from all the banks and checking your credit rating. Then the loan will be sanctioned to you. But basically that is a non-banking financial company. So these details we are getting to know from the survey which is also taken as part of the services sector. This title is very specific. Dematerialization of documents. So basically they want to say that documents are becoming e-documents. You have heard about digital signatures. So these days they are also talking about digital stamp things. If you have to pay the stamp duty, earlier they will ask us to buy different, different 10,000, 10,000 papers. Nowadays they say that you just get one 10,000 paper, the rest of it you can pay it online. So there are lots of dematerialization of documents. So how do we submit the documents? How do we do the digital signature and paperless efforts are getting improved? So they are mentioning this as the National E-Governance Services Limited. Any SL is there. I put up on graph on this. You can look at this. This is taken from the website. This is not in survey. Survey presents a previous slide. We have gone into the website to look at this. So if you want to generate or if you are going to ask for a loan, they will be generating one online document. And then they will be submitting the document also online. These kind of paper-based work is all getting eliminated because we have digital acceptance through this National E-Governance Services Limited. This is specific to E-N-E-S-L. So remember this agency also if you want to talk about this dematerialization or they call it as DDE. So these are the different types of services which they have mentioned. With that, the services sector is actually done. Now we are moving on to the agriculture sector, the largest subsistence sector. The title of the chapter is written as From Food Security to Nutritional Security which has been a sustainable development goal for a very, very long time for India. So are we really achieving it? The first slide starts by saying like we have a very good agricultural scenario as of now in India and you can look at this number. 81 crore beneficiaries are being covered under this National Food Security Act. How many crores of people are there in India? Now and then we should go and hit the macro data so that we understand what exactly is happening in India. How many crores of people are there in India? There will be a problem in the unit. 1, 1.2, what are you going to say? 140 crores. 140 crores? 140 crores per person, 120, 130, 140. Okay, so if you say 140 crore people, 80 crore people, it is something like what? More than half. Two thirds? No. 60? 65? 60 percentage of the population is getting covered under National Food Security. Right? Anyways, they are giving the details of it. Whenever you are talking about the agriculture sector, they also want you to look at the allied sector, which is about the livestock, animal husbandry, fisheries, forestry, other things. So they are saying that is also improving. First about the growth rate of the agriculture sector. These numbers are all magic numbers for India because we were always with 2 to 3 percentage. We were waiting and longing for years when we could actually have 4 percentage of growth rate in agriculture, which is all becoming true. You can see even up to 6 percentage, 5 percentage. Again, it has slowed down to 3 percentage. But at least these kinds of numbers are very great numbers as long as agriculture sector is concerned. We had a national agriculture mission. The first point in that will be written as 4 percentage growth rate in agriculture. That will be a great achievement for India. But we are averaging out to 4.6 percentage. And again, not only in the services sector, slowly we are calling ourselves, we are a net exporter of agricultural products, which is also something which we should be very proud about. And they are giving the value for it. How did we achieve this much of this thing? The volume of exports and so much of earning all of these things. Mainly because we are doing a lot of crop diversification, intensification, mechanization, some kind of arrangements like the cooperatives or farmer producer organizations. So, varieties of reforms are coming into the agriculture in order to improve it. And you are seeing one agriculture infrastructure fund. The moment you hear this, you shift your mind towards post harvest. It's not for doing agriculture. For doing agriculture, the main infrastructure, what you will be expecting is irrigation. Is it not? Yes or no? The rest of the things are all at the control of the farmer. The only thing which the farmer is going to look up for the government or anybody else to help is water. So, when you talk about the agricultural infrastructure development, first thing which will come into your mind will be the watershed programs or your irrigation facilities. This is not about that. This is not about that. You should shift your mind towards harvest. Agriculture, moodier and alamella infrastructure. What is all about? It's about the post harvest, all your marketing, maintenance, processing, storage. So, that is this agriculture infrastructure fund. Mechanization, they have made a very good point. We'll see that as we go ahead. This is a graph which is again showing in crowding enough private investment in agriculture, which is also an interesting point. You are familiar with this crowding in, crowding out. Crowding in is more things are coming into agriculture, which means that private sector people are also wanting to invest in agriculture. What will they invest in agriculture? We can do different types of things or they can invest in the machines. Mechanization can improve or they can get into the cold storage facilities. So, there are varieties of things in which and they are trying to prove the point that actually the private sector expenditure in agriculture is increasing. Public is lesser in terms of the investment in agriculture than the private sector is way above it. So, this is seen as a very good trend in agriculture. This is again India's electricity consumption in agriculture. So, they are trying to show that it is increasing. Corresponding to the agriculture activities increasing, the consumption is also increasing. And you know the politics, statistics behind it, right? Whatever the agriculture electricity is consumed. It is free of cost, at least in Tamil Nadu it is free of cost. So, that's about the gigawatt consumption. This is the data which you may have to remember. How many tons of million tons of the food grains India is producing? This is one of the sectors which did not get affected by COVID, right? Even at the times of COVID, we were doing well. So, you can see 1920, 20, 21, 21, there is only one increasing graph. That's about the oil seeds, then about the pulses, then about the total food grains. Total food grains is the blue line. So, we are seeing a slight up and down but it is increasing. So, therefore, which is a very good sign, they are trying to say that even though there was a delayed monsoon in between one or two years, we still had a good level of food grains production, right? So, that is about the... You know how they calculate the growth rate in agriculture? At 3%, 4%, say something. One is based upon the value what it generates. That is okay. The other thing is assume that this is 251, then 275, 285, it's all increasing in trim. There is a year, no? 1415 to 1516, there is a slight slump. You are saying 252 to 251, then it's increasing to 275. So, if you say that 252 to 251, it will look like there was a negative growth rate. You know growth rate is always compared to the previous year. It doesn't mean that there was no food grains production. It was there but there was a slight reduction when compared to the previous year. And again, it has shifted onto the higher and higher thing. So, always whenever you are talking about the food grains production, you have to remember this total number. Out of this 312 million tonnes, how much was rice, how much was wheat and how much was pulses, everything they will give in the survey. They have not given in this graph but it is useful for us to at least remember India is producing 315 million tonnes of food grains in a year. Crossing 300 is a very good number for the country. Therefore, when you are producing, you have to sell, is it not? We know the price policy behind agriculture. There are varieties of supporting prices. One is the minimum support price, then the fair and remunerative price. What else do you know? Procurement price, issue price, you know all the varieties of prices. Fair and remunerative price goes to what? Sugarcane. Sugarcane. Issue price will be at the time when you are giving it through the public distribution system. Procurement price will be mainly this thing. From the centre to the states they will be giving. From the states, it will be going to the public distribution system and it is getting issued to the people. So all of these prices are important and you know the calculation doubling of the farmer income, the politics behind it. There are variety kind of committee recommendations which comes. If you say that 100 rupees is the cost of the production, they will be giving you 200 rupees or 150 rupees depending upon the recommendation of the different committees. They are going to tell that we will be giving above the cost of production to the farmers. And if you look at different years they have presented here for the different types of crops. Do they give to oil seeds? Minimum support price? Do they support oil seeds? Do they support pulses? Do you know how many number of crops they are supporting? 23. 23 and sometimes the coconut kind of thing they will include. But at least you can mention that 23. So you can see that oil seeds, pulses, the major cereals, everything is getting covered. So this is actually leading to the self-sufficient because per quintal whenever the price support is actually increasing and the production and the subsequent year with the farmers will also increase. So that's about the minimum support price. Of course, institutional credit to the agriculture sector is increasing. You can see, you would have studied about priority sector lending. PSL, how much is it? In that how much is for agriculture? Mandate rate? Louder? 18% is for the agriculture. And you would have studied about Crissan credit card scheme for running with the operational expenses you can make use of the Crissan credit card scheme. And they keep enhancing the limit based upon whether you are paying back in time or not. In the Crissan credit card scheme, they are talking you can take up to 3 lakh rupees with 7% per annum and additional 3 lakh if you are giving it back properly in time they will be giving you. Either they will be giving you at a lower interest rate or they will be giving you more amount, more than the 3 lakhs. So these are all the crores and crores of money that has been gone through the institutional credit. This mechanization is what I said has another perspective to look at. One is submission on this agricultural mechanization where they are trying to give you missions on hiring also so that you don't have to buy it every time and then incur a larger loans upon it and all. The second thing is the most important point when you have increased fragmentation see mechanization means immediately what comes into your mind is the area should be larger. Only the largest scale farmers will be wanting to take the tractors or fillers or other things. Whereas now they are saying missions should be given viable even for the small sized land holdings. So they are understanding that Indians land holding is all mostly small and marginal. So accordingly the mechanization should happen so they have come to an agreement to that particular point where they still want to mechanize though the size of the land holding is smaller. What is organic farming and what is natural farming? Without applying any chemicals is organic farming. Still you will be doing some practices like tilling, weeding, right? So there will be proper cultivation or practices followed but there will not be any chemical which will be applied. There will be some organic manure which they will be making ready and then applying it in large tunnels to it. Whereas natural farming will be what? Do nothing. You don't have to do anything, you just have to do the farming. You have to just do the seeding and then grow the crops and then take the harvest. So organic farming is one thing which is getting mostly successful in the northeast states particularly we can see that Sikkim has become fully organic which means they are completely chemical free and they are also giving this what is this? Parampara, Krishi, Vikas, Seojana they are going to give you some support, right? If you are doing the organic farming they will give you like 50,000 rupees and that 31,000 you can make use for buying the organic manure. So they are giving you some details about how the financial support is being given to the farmers who are involved in the organic farming. So that's one set particularly in the northeast they are trying to do this. Whereas in case of natural farming you can see that very less in the area has been involved in it and fewer states are involved in it. But here also they are supporting them by bringing the champion farmers they are saying that there are certain farmers who are doing very well in this you look at them and then you do what and it's also called as zero budget natural farming. So get used to this alternative words for the natural farming also. So this is also mentioned in the survey. This is PM Qisan scheme. This is not Qisan credit card scheme. There are varieties of names sounding with Qisan Qisan. So you have to be very, very careful. This is PM Qisan scheme where they are going to give you DBT. 6000 rupees mainly for your operational expenses and that is going to help the farmers for getting the inputs and for the consumption and the Agricultural Infrastructure Fund which they have mentioned for the post harvest management practices. E-Norm we have already mentioned like government marketplace where they are trying to promote the e-commerce here for the agriculture products specifically they want to call it as the E-Norm scheme from 2016 and there is one department now to promote the horticulture climate smart farming practices. What is this? Now with the drone only marriages are also happening. So why should not we make use of drones for everything? So climate smart you send the drone everywhere go find out if there is any loss if there is any too much of watering if the soil type is okay so they are capturing the facts through the climate smart farming practices and there are lots of agree tech startups this is basically to bring in more technology into the agriculture probably after the harvest they'll start making use of this technologies. So our age-old fossil bema yojana which is again going to help the farmers in case if there is a loss they are going to be insured against it. Whenever you talk about the fossil bema yojana there will be problem how to estimate the loss that is the challenge which had been happening so you have to make use of this word area approach basis. So that's the area approach you will be paying some premium depending upon your premium and depending upon that type of the natural calamity they will be estimating how much loss has happened and they will be giving you back some insurance. So that is for the agriculture sector where they say that so many people 5 crore applications are coming every year so much of claim has happened. These are things which we can't remember but at least we can say that the revamped scheme is picking in voluntary participation two step process for doing the crop yield estimation sampling technique so they are trying to improve the methodology by which they can estimate the loss and then give the compensation to the farmers and the one key word which you have to remember is this area approach have you heard this area approach somewhere else banking sector service area approach regional rural banks one district will be adopted what is that scheme called as history of banking nationalization of bank 1969, 1980 1972 lead bank scheme right? international year of the millets service area approach is the major word which you will be making use of lead bank scheme has been asked in preliminary examination several years and you would have also studied about differential rate of interest scheme DIR scheme that is also coming at our banking system have you studied these things post lunch 2.30, 3 o'clock, you people should help you are studying about agriculture you have studied about differential rate of interest scheme you have studied about differential rate of interest scheme we know nationalization of banks happened okay so thankfully so international year of millets this is about UN's announcement that 2023 will be an international year of millets India is a very good producer of millets not many countries have this advantage so we can even export the millets we can improve the nutrition see the title of the chapter they wanted to place it as from food security to nutritional security so this is one of the way how you can actually achieve the nutritional security and this is also taken as one of the major things by which you can achieve the sustainable development goals you can also see this as an alternative livelihood see the major things are your cereals usually you do that so in the off season mostly they will be rain fed crops it is like your narega you have to do this in the off season where it is just based upon the rain fed situation but still you will be able to make some crops out of it and make money out of it so this is also employment generating income generating and it is also nutrition generating so definitely better than narega so that is about the international year of the millets and they also say that India is producing these many million tens, 51 million tens which is accounting for 80% of asias and our productivity is also good it is even higher than the world's average productivity and it is a kareef crop and it is also depending upon the rain fed situation and you can achieve the nutritional support looking at the allied sector we are actually talking about the milk production in the world so India is first in the milk production and egg production also we are doing very well we are third in the world egg production and meat production we are in the 8th so the blue colored thing is the livestock where we are doing very well in the milk production the dark blue and then the light blue is about the forestry and logging fishing and aquaculture the tiniest bar in this you can see that the crop sector the overall agriculture sector as such so this will be helping us for both employment generation as well as for the income generation so they are the allied sector all of these things are about the allied sectors here, doubling the farmers income doubling the farmers income can't just be done by the agriculture or by horticulture you have to focus upon the allied sector so therefore animal husbandry infrastructure development fund then the matya sampada yojana aquaculture infrastructure development fund so all of these development funds are focusing towards the allied sectors of agriculture to help the farmers earn more income so these are all larger keywords which you can make use later when you are writing your main censor sahakar says samrithi from cooperation to prosperity there are lots of primary agricultural cooperative societies you would have studied in your general economics under the nabad there is a structure land development banks district cooperative banks state level cooperative banks and you will also have primary agricultural cooperative societies these packs are actually going to help the farmers in terms of the running expenses and small small financing facilities they are going to give so they are trying to improve their presence and there was a ministry which was established in 2021 this can be asked in your examination 2021 they have created a you remember they created a ministry for skill development when they were talking about demographic dividends they were so scared and they were wanting to create a ministry so that skill of the people can be improved so that is similarly now they are also focusing upon the agriculture and they are doing a separate ministry for the cooperation and they are computerizing and making the system better so that financing facilities can be advanced when they talk about the cooperative societies they also talk about the multi-state cooperative societies so bigger numbers are there in Maharashtra Uttar Pradesh, Tamil Nadu you must be wondering why Delhi is sitting in between is it not we are talking about cooperative societies we are talking about primary agricultural cooperative societies and what does national capital territory got to do with this multi-state cooperative societies mainly because it is capital they would have registered everything over there and therefore you see Delhi becoming or taking of the second position over here so Maharashtra leads the country with 661 cooperatives followed by Delhi and Uttar Pradesh this is all to promote the financing facilities to the agriculture sector and to the farmers food processing sector these days is being called as the sunrise sector you studied that agriculture infrastructure fund from there it is all food processing and how much of it is actually helping us to alleviate the poverty and other things they are mentioning here but you can remember this Pradhan Mantri, Kisan, Sampadha Yojana again there is one PM scheme mainly for the food processing sector and there is one district one product which we studied in the previous slide also where it is picked up specifically for doing the food processing so we are identifying the product we are giving the financing to the product and we are wanting to improve the food processing sector so that more employment and more income and poverty alleviation all those things can be done to the food processing sector they are also giving this production linked incentive scheme, PLI is one type of presentation where you are into the food processing sector lots of incentives can be given to you by the government they can help you with the funds or they can help you with the lower level of electricity charges or they can give you some subsidies for the production so there are lots of incentive linked scheme for the food processing sector Krishi Udan you have heard about this mainly to help lift the perishable products from one place to another place we always think about the passengers travel with Udan but this is Krishi Udan and it is about the products right and again they are saying there are lots of perishable food products enormously produced in the northeast zone and other nooks and corners of the country everything has to be transported from the point of production to the point of consumption only if we do this then the food processing can actually happen see actually we are talking about nutritional security nutrition is not just by having variety you have produced variety today but you have to process it and safeguard it so that you can use it for a longer period of time and achieve that nutrition so therefore to the title of this chapter this nutritional security food processing is a very very relevant chapter for a very very relevant point to fulfill this point so now coming back to that first point with which we started with the agriculture sector it is about the minimum food security act where they are trying to give minimum food grains requirement to a household as well as through the where they are finding out the very impoverished people below poverty line that is one level very highly into poverty very much impoverished people so they are trying to give this poorest of the poor and this is by procuring through the minimum support price they are giving it distribution system and trying to reach out to the poorer people so this is allocation of food grains under the national food security act so this is what they would have said about that 80 crores of people are being given with the food and covid also they allocated some amount specifically to all the households through the public distribution system and they also have this one nation one ration card scheme which is also enabling the migrant workers and many other people to get the food grains from anywhere inside the country right so one district one product one nation one ration they are all the key words which you will have to remember and this slide actually shows you the amount of food subsidy what is this how is this food subsidy calculated anybody what is food subsidy subsidy is given for food as food subsidy agreed how do we calculate this different between the procurement price and the difference between the minimum support price and the issue price see when you take a minimum support price it's just the price which you pay to the farmers after that there is one storage and transportation and then finally it comes to the public distribution system so do we pay anything for the food in the public distribution system have you ever gone to a ration shop yes and do we pay anything in the ration shop are you paying in the ration shop not for sugar and kerosene kerosene also I don't know for ice and wheat you are paying for ice and wheat ice and wheat is exemption dal and sugar kerosene you will have to pay so if you say about the food grains mostly if you take the ice and wheat it will be zero priced at least in Tamil Nadu it is zero priced or it is being priced at 1 rupee, 2 rupee very minimal but the minimum support price which the government gives will be high above the cost of production which the farmers are doing so the government makes a policy if you look at minimum support price you can understand that is going to be later becoming into the food subsidy bill I hope you are able to follow what we are saying they are incurring money to buy the products but when they sell the products they are selling it at zero so how much ever they are buying that total value will become the subsidy go on increasing the minimum support price food subsidy is going to continuously increase so that is what is actually happening in this particular year alone they would have done a lot of procurement and giving it off mainly because of the covid situation so that is all from the agriculture sector we are done with these two chapters the next thing will be upon the industry social infrastructure and digital infrastructure so with that class we will be done but today we have completed the chapters