Business & Economy Current Affairs 2017

Latest Business & Indian Economy Current Affairs 2017 for UPSC Exams, Bank Exams, Civil Services, SSC and other Competitive Exams. Latest developments in Business and Finance Industry of India and world 2017 all important national updates in Banks and events for the year 2017.

India ranks 51 on IMD Talent Rankings

India ranked 51st among 63 countries on the IMD Talent Rankings in terms of ability to attract, develop and retain talent. In previous rankings, India was ranked 54th.

The annual IMD World Talent Ranking covers 63 countries and assessed methods countries adopted to attract and retain talent. The rankings of countries are based on their performance in three main categories — investment and development, appeal, and readiness.

Highlights of IMD Talent Rankings

Switzerland topped list followed by Denmark, Belgium, Austria, Finland, Netherlands, Norway, Germany, Sweden and Luxembourg in top 10. Globally, Europe continues to dominate rankings being most competitive countries.

Leading Asian economies in rankings are Singapore, Hong Kong and Taiwan. They have cemented their global status as hubs of attracting and retaining highly-skilled workers though they trail Europe in this regard.

Among BRICS bloc, China was in lead with ranking of 40, followed by Russia (43) and South Africa (48). Brazil was ranked 52nd just after India.

India Related Facts

India was ranked 62nd (on investment and development), 43rd (appeal) and 29th (readiness) in three main categories. India is not doing good job at retaining local talent and attracting foreign labour. On both fronts, remuneration levels, quality of life, security and property rights are deterrent to domestic employment

Furthermore, relative to other economies, investment in education is still weak. India ranks among the bottom five countries on list in terms of investment in education as percentage of GDP. India needs to emphasise education system as key to prosperity. It also needs to prevent brain drain by providing better opportunities to local talent.

India has potential to thrive in age of digital economy. Its labour growth provides necessary domestic talent pool. India has performed well on parameters such as science in schools, availability of finance skills and knowledgeable senior managers. But it still needs to invest in all levels of education and job related competence mastering.

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Logistics sector gets Infrastructure Status

The Union Finance Ministry has granted Infrastructure Status to Logistics sector. Logistics Infrastructure was included by insertion of new item in renamed category of ‘Transport and Logistics’.

The inclusion of “Logistics Sector” in the Harmonized Master List of Infrastructure Sub-sectors was considered in the 14th Institutional Mechanism (IM) Meeting chaired by Finance Minister. The proposal was mooted by the Commerce Ministry and was approved by finance ministry.

Logistics Infrastructure means and includes

  • Multi-modal Logistics Park comprising Inland Container Depot (ICD): Minimum investment of Rs. 50 crore and minimum area of 10 acre.
  • Cold Chain Facility: Minimum investment of Rs.15 crore and minimum area of 20,000 sq. ft.
  • Warehousing Facility: Minimum investment of Rs. 25 crore and minimum area of 1 lakh sq ft.

Significance

Coming under infrastructure category will help logistics sector to get credit at competitive rates and on long-term basis with enhanced limits. It will also give access to larger amounts of funds as external commercial borrowings (ECB), longer tenor funds from insurance companies and pension funds.

Besides, logistics sector will be also eligible to borrow from India Infrastructure Financing Company (IIFC). It can also put logistics sector on steady growth path and its benefits could spill over to other sectors such as food processing that use logistics services in a big way.

Need

The need for integrated Logistics sector development was felt in view of fact that logistics cost in India is very high compared to developed countries. High logistics cost reduces the competitiveness of Indian goods both in domestic as well as export market.

In 2017, India’s logistics performance had improved from 54th rank to 35th under World Bank’s Logistics Performance Index (LPI). The government also expects Indian logistics sector to grow to $360 billion by 2032 from current $115 billion. The development of logistics will give boost to both domestic and external demand, thereby encouraging manufacturing and ‘job creation’. This will in turn be instrumental in improving country’s GDP.

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