economic development Current Affairs - 2019
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The 7th India-US Economic and Financial partnership meeting was held in New Delhi. It was Co-chaired by Finance Minister Nirmala Seetharaman and US Secretary Steven T Minuchin. The leaders took efforts to improve mutual cooperation on wide range of multilateral subjects. It included combating financing of terrorism and anti-money laundering.
- India and US discussed policies related to stimulate economic growth
- The countries noted significant steps taken by India to strengthen financial sector that includes
- Plans to merge state-owned banks
- PSB recapitalization plans
- Both the sides also discussed capital flows, external economic environment and investment promotion related issues
- The US offered its support to stand by India for its Presidency of G20 summit in 2022.
- The Financial Regulatory Dialogue was also held alongside where the financial regulatory developments in both the sides were discussed
- In 2017, the US helped the Indian city Pune by financing governmental needs in support of government’s Smart City initiative.
Tags: economic development • Finance Ministry • Foreign funds • India-US • Indo- US Investment Initiative
India ranked 68th in the annual Global Competitiveness Index. It is the worst performing among the BRICS nations along with Brazil that is ranked at 71. The Global Competitive Index is compiled by World Economic Forum. The Forum has mapped 141 countries using 103 indicators.
India had dropped 10 places. A number of similar economies like South Africa, Turkey and Colombia have improved over the past year and have overtaken India.
This year Singapore has replaced US as the world’s most competitive country. The US was positioned at 2nd place and was followed by Hong Kong at third place and Netherlands and Switzerland at 4th and 5th places respectively. China was ranked at 28th position and was the highest ranked among BRICS nations. Vietnam showed higher improvements in the region and was ranked at 67
The report also said that Asia Pacific was the most competitive region globally. It was followed by Europe and North America.
Key findings of the report on India
- India ranked high in terms of macroeconomic stability and market size.
- India also ranked high in terms of corporate Governance. India was at 15th place in the category.
- In terms of market India ranked third.
- India had positive remarks in terms of renewable regulation.
- In terms of innovation, India has punched above its development status. It was well ahead of most of the emerging economies that are on par with the advanced economies.
- Poor health conditions and low Life Expectancy were the shortcomings in the country according to the report. In terms of life expectancy India ranked 109 out of 141 countries. This is one of the shortest as compared to South Asian average.
- According to the report, India also needs to grow its skill base, market efficiency. Trade openness and worker protection rights according to the report are insufficiently developed.
- The ratio of female workers to male workers in India was 0.26. It ranked 128th place and was very low as compared certain other developing countries.
- India ranked 118 in incentivization and 107th place for skills
The US Economy
- Though US performance as compared to 2018 slowed own, it scored in sub categories like employee skills, venture capital availability and business dynamism pillar
- The decline of life expectancy in the US was huge. It was lower than China. Singapore ranked first in terms of life expectancy.
- The education system of the world’s largest and most innovative economies failed to keep up the pace of innovation. IT included India, China, Brazil, France and South Korea.
- Economic stagnation was widespread. This has happened in spite of the central banks injecting more than 10 trillion dollars last year
- Many of governments and central banks failed to use correct monetary policies to stimulate economic growth