Introduction of e-Invoicing Facility for Recipient Generated Self Invoices under Reverse Charge Mechanism for Domestic Supplies from Unregistered Pers...
Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman participates in the 114th meeting of the Development Committee Plenary of the W...
Directorate of Revenue Intelligence (DRI) and Central Bureau of Narcotics (CBN) destroy 2.87 Hectares (7.08 Acres) of illicit cannabis (ganja) cultiva...
The cumulative exports (merchandise & services) during April-September 2026-27 are estimated at US$ 476.20 Billion, as compared to US$ 418.31 Billion ...
Narcotics trafficking enforcement led to airport and road interceptions, baggage concealment detection, seizures, and arrests under the NDPS framework. Narcotics trafficking enforcement under the Narcotic Drugs and Psychotropic Substances Act, 1985, involved intelligence-led interceptions at Bengaluru and Delhi airports and near Nagpur. Passenger baggage and a backpack were examined, leading to the seizure of amphetamine and cocaine and the arrest of three passengers. The recoveries included amphetamine concealed in baggage, a ladies' suit and a backpack lining, and cocaine contained in transparent packets within baggage.
Gold smuggling syndicate enforcement traces concealed imports through airport handlers, illicit melting, and jewellery-market disposal under customs law. Directorate of Revenue Intelligence enforcement action identified an organised gold-smuggling syndicate importing foreign-origin gold through Ahmedabad and Surat airports, followed by handover to handlers, intermediary routing, illegal melting, and cash-based supply through an Ahmedabad jewellery outlet. Further searches recovered undocumented foreign-origin gold bars and records concerning smuggled gold linked to a Dubai-based financier. The investigation identified interconnected roles across the movement, processing, and disposal of smuggled gold; three persons were arrested under the Customs Act, 1962.
Free trade agreement utilisation requires origin compliance, product standards, and documentation to secure preferential export market access. Effective FTA utilisation requires businesses to identify eligible products and markets, assess tariff preferences and rules of origin, and meet applicable quality, certification, documentation and importing-country requirements. Preferential access under agreements with the UAE, Australia, EFTA countries and the United Kingdom remains subject to each agreement's provisions and implementation status. Tariff preferences may improve price competitiveness and facilitate participation in international supply chains where product- and partner-specific conditions are satisfied.
Drug prevention awareness initiatives engage students through health education, interactive activities and pledges supporting a drug-free society. Mission Yuva Raksha advances preventive drug awareness and demand-reduction efforts among students through programmes at educational institutions in Madhya Pradesh. Sessions addressed the harmful effects of substance abuse on physical and mental health, education, family life and careers, supported by interactive learning activities. Participants were encouraged to avoid drugs, adopt healthy lifestyles, take pledges and support awareness initiatives in their schools, families and communities. Preventive education and youth engagement complement enforcement-oriented work through informed choices and community-based resistance to substance abuse.
Coastal narcotics trafficking enforcement addresses suspected maritime methamphetamine smuggling through seizure, asset recovery, and arrests under drug-control law. Intelligence-led narcotics enforcement addressed suspected coastal storage and maritime transfer of methamphetamine to Sri Lanka. Searches recovered crystal methamphetamine concealed in foil packets within duffel bags, which was seized under the Narcotic Drugs and Psychotropic Substances Act, 1985. Searches also recovered suspected drug-sale proceeds and vehicles allegedly used in transportation. Persons allegedly involved in organising coastal export, transport, storage and logistics were arrested and remanded to judicial custody.
Centralised audit framework targets lower physical branch audit coverage while preserving regulatory oversight and maintaining remuneration. For FY 2026-27, audit remuneration is to remain at existing levels. Member banks are advised to accelerate a centralised audit framework to improve cost efficiency while retaining comprehensive risk oversight. Physical statutory branch audit coverage should be reduced to cover 50% of total business, apart from centralised treasury audits. Audit coverage must align with SEBI listing and disclosure requirements and RBI guidelines, supported by a Board-approved policy for the centralised audit roadmap.
Promissory estoppel cannot prevent Government shareholding dilution where enacted legislation imposes no restriction on strategic disinvestment. Government shareholding in IDBI may be reduced or divested because the IDBI (Repeal) Act, 2003 contains no restriction on dilution of the Government's stake. A proposed amendment to limit dilution was rejected and not incorporated into the enacted law. Parliamentary statements cannot override statutory text, and promissory estoppel cannot be invoked on the basis of legislative debate statements to prevent dilution of Government shareholding. Successive Union Budget speeches also reflected a policy of transformation and strategic disinvestment of IDBI Bank.
Recipient-generated e-invoicing under reverse charge enables eligible taxpayers to obtain IRNs for domestic unregistered supplies and imported services. Eligible active registered recipients meeting the applicable aggregate annual turnover threshold may report recipient-generated self-invoices for specified reverse-charge domestic supplies from unregistered persons and imports of services. RCMDOM and RCMIMP must be selected as the relevant e-invoice supply types when reporting through an authorised Invoice Registration Portal. Submission and validation of prescribed invoice particulars would generate an Invoice Reference Number, subject to applicable GST provisions, notifications and e-invoice specifications.
Reservation Policy Implementation in public financial institutions was examined through capacity building, practical deliberations, and measures for consistent application. Implementation of the Government of India's Reservation Policy across public sector banks, public sector insurance companies, sectoral regulators and public financial institutions was addressed through capacity building to support uniform and effective application. Deliberations considered practical implementation issues, operational challenges and actionable measures for consistent policy application, alongside related welfare measures and interactive discussion of implementation questions.
Organic agricultural export certification supports overseas market access for Palmyra Jaggery Powder through export-oriented producer linkages. APEDA facilitated the maiden sea export of NPOP- and EU-certified organic Palmyra Jaggery Powder from Tamil Nadu to Bulgaria. The initiative seeks to diversify India's organic export basket, create market linkages for traditional Palmyra-based products, and improve producer access through export-oriented value chains. It covers organic cultivation and reports improved price realisation for participating farmers and the manufacturer compared with the domestic market. APEDA supports certified organic and value-added agricultural exports through market development, quality compliance, and overseas buyer linkages.
Data-driven trade governance enables integrated monitoring, application analysis and evidence-based policy inputs through the National Strategic Trade Command Centre. The National Strategic Trade Command Centre provides an integrated analytics and visualisation platform consolidating trade data to monitor trade indicators, scheme performance, application pendency, processing timelines, regional trends and compliance-related parameters. It enables analysis across national trade performance, Regional Authorities, schemes, products, destination markets and individual applications, subject to role-based access permissions. Initial dashboards cover key trade-facilitation and regulatory processes, including SCOMET, export promotion schemes, certificates of origin, importer-exporter registration and restricted imports and exports.
Private capital mobilisation should use competitive financing, guarantees and risk mitigation to expand productive employment and productivity. Private capital mobilisation is treated as essential to employment generation and productivity growth. Private enterprises, MSMEs and startups should remain central to job creation, with financing assessed by employment and productivity outcomes rather than volume. Guarantees, risk-mitigation instruments, local-currency financing and lower transaction costs are identified as means to expand affordable and predictable access to capital. Methodologies underlying governance indicators should be transparent, objective, evidence-based and responsive to diverse development experiences.
Narcotics smuggling through misdeclared air cargo triggered seizure, arrest, and ongoing investigation into concealed hydroponic weed imports. A Bangkok-origin air-cargo consignment declared as PU Tubes was examined on suspicion of mis-declaration. Plastic spools were found to contain concealed cavities holding polythene-wrapped packets of compacted green substance, preliminarily identified as suspected ganja/marijuana and described as hydroponic weed. The concealed substance, packaging and concealment material were seized under the NDPS Act, 1985. One person was arrested, and follow-up searches produced leads for continuing investigation.
Unaccompanied baggage gold smuggling: concealed hardware and insider coordination triggered interception, seizure, and arrests under customs law. Foreign-origin gold smuggling through the unaccompanied baggage channel involved concealment of gold within hardware items and coordinated retrieval through warehouse personnel and intermediaries. Intelligence-led interception resulted in recovery and seizure of foreign-origin gold concealed in a floor spring, metal locks, a grease gun and a door closer. The arrangement used a trolley secured by a pre-decided number-lock combination, with a warehouse staff member, mediator and receiver allegedly involved in delivery of the concealed gold.
Opium cultivation licensing grievance redressal advances through public hearings, administrative remedies, policy recording, and a planned cultivator helpline. Opium cultivation licensing grievances were addressed through a public hearing where cultivators raised irrigation, climatic, single-plot licensing, and village-wise allocation concerns. Participants were informed of available legal provisions and administrative remedies. Requests for more licences and larger cultivation plots were considered, with policy matters recorded. A helpline is intended to assist cultivators during the 2026-27 licensing operation.
Illicit cannabis cultivation: crop destruction followed legal formalities, while investigation continues in a remote wildlife sanctuary. Illicit cannabis cultivation was located by a joint DRI and CBN team across five stretches of remote, densely forested wildlife-sanctuary land near village Jamniapani, Shirpur, District Dhule, Maharashtra. The cultivation covered 2.87 hectares. Following requisite legal formalities, the cannabis crop was destroyed using a rotavator in the presence of Police and Forest Department officials. Investigation remains in progress.
Merchandise and services trade estimates show export growth, import expansion, and a wider combined trade deficit over the reporting period. Combined trade estimates for April-September 2026-27 show exports of US$ 476.20 billion and imports of US$ 551.13 billion, resulting in a trade deficit of US$ 74.93 billion. Merchandise exports rose to US$ 259.89 billion, while merchandise imports reached US$ 437.53 billion. Estimated services exports were US$ 216.31 billion and services imports were US$ 113.60 billion, producing a services trade surplus of US$ 102.71 billion. September services figures are estimates, and specified earlier-period data were revised using quarterly balance-of-payments data.
Emerging technology skills and resilient supply chains are positioned as foundations for investment competitiveness and inclusive economic growth. Ministerial policy priorities for India's trade, investment and technology agenda emphasise artificial intelligence, cybersecurity, technology adoption, manufacturing investment and lifelong skill development. Investment competitiveness is linked to political stability, resilient supply chains, and fair and transparent trading practices. The first tranche of a bilateral trade agreement with the United States has been finalised, while final contours and legal drafting continue before operationalisation.
Majority stake acquisition in the jewellery sector receives competition clearance for GRT Jewellers' purchase of Tribhovandas Bhimji Zaveri. Competition Commission of India approved GRT Jewellers (India) Private Limited's proposed acquisition of a majority stake in Tribhovandas Bhimji Zaveri Limited. The transaction concerns entities operating in the Indian gems and jewellery market, including a private limited acquirer and a publicly listed target engaged in manufacturing and sale of gems and jewellery.
Minority shareholding acquisition in mother and baby healthcare receives competition clearance for a private equity-backed investment. Competition Commission of India clearance authorises NuageLux BidCo S.a r.l. to acquire approximately 23% of the fully diluted shareholding in Kids Clinic India Ltd. The transaction constitutes an acquisition of a minority equity interest in a healthcare provider operating under the Cloudnine brand. NuageLux BidCo is a Luxembourg-incorporated private limited special purpose vehicle, ultimately controlled by Permira Holdings Ltd.
Inclusive Development Needs to be Combined with Consolidation of Public Finances, Financial Stability, Employment Generation and Economic Growth to Achieve Unhampered Growth : FM
November 30, 2010
Contents
Summary
Note
Bookmark
Share
✓ Copied successfully !
Print
Print Options
For full text, please login
Login to TaxTMI
Verification Pending
The Email Id has not been verified. Click on the link we have sent on
Union Finance Minister, Shri Pranab Mukherjee said that our economic policies need to be designed in such a manner that the redistributing process does not feed off the public finances and the growth process itself is not hampered. Shri Mukherjee said to achieve this objective, inclusive development needs to be combined with consolidation of public finances, financial stability, employment generation and economic growth. The Finance Minister Shri Mukherjee was delivering the inaugural address after inaugurating the two-days International Conference on 'Economic Policies for Inclusive Development', here today. The Finance Minister said that some of the aforesaid competing concerns could be addressed through an optimal policy mix which should also be one of the discussion priorities of this international conference.
Nobel laureate, Professor Michal spank, Shri Rangarajan, Chairman Economic Advisory Council to the Prime Minister, Shri Ashok Chawla, Finance Secretary, Dr. Kaushik Basu, Chief Economic Advisor and Shri Govindrao Director of National Institute of Public Finance and Policy were also present on the occasion. This is the First such International Conference being organized by Department of Economic Affairs, Ministry of Finance in collaboration with National Institute of Public Finance and Policy. The objective of this International Conference is to suggest out of box ideas for financial inclusion and achieving higher GDP growth rate beside containing inflation.
The Finance Minister, Shri Mukherjee further said that India has experienced a fairly long period of rapid economic growth and since 2003-04, there has been a further step up in India's GDP growth rate with the economy moving to a high trajectory growth rate of 8.5% to 9% per annum. He said that India's economy has become remarkably resilient to both external and domestic shocks. He said that it has not only recovered rapidly from the global economic downturn but also took the monsoon failure last year in its stride and is now showing robust growth. The Finance Minister said that 11th Five Year Plan endorsed a need for inclusive growth to ensure equality of opportunity for all. He said that a multipronged strategy was adopted that included rapid growth for reducing poverty and creating employment opportunities, improving access to essential services in health and education especially for the poor, empowerment through education and skill development and creating employment opportunities supplemented by the Mahatma Gandhi National Rural Employment Guarantee Scheme.
The Finance Minister said that in the last few years, we have created entitlements backed by legal guarantees for an individual's Right to Information and his/her Right to Work. He said that this has been followed-up with the enactment of the Right to Education in 2009-10. As the next step, we are working on the National Food Security Bill which is presently under examination by an Expert Committee set-up by the Prime Minister under the chairmanship of Dr. C. Rangarajan, the Minister said. He further said that to fulfil these commitments the spending on social sector has been rapidly increased. With growth and the opportunities that it generates, we hope to further strengthen the process of inclusive development, the Minister added.
The Finance Minister said that the emerging economies though faced with brighter growth prospects are confronting financial instability caused by international capital flows. He said that in advanced economies there is a need to maintain the policy focus on recovery and management of public debt while the emerging economies, on the other hand, need to leverage their growth to improve social outcomes and at the same time monitor the financial sector. He further added that these and other related themes including 'Growth and Employment in Post-Crisis World', 'Corporations and Economic Development' and 'Policies for Inclusive Development' would be discussed in this two days Conference. He hoped that the lessons drawn from this conference will benefit not just the Indian economy but also the world at large.
The Finance Secretary Shri Ashok Chawla delivering the welcome address said that though Indian economy has shown resilience in past many years as far as its GDP growth is concerned yet it faces the challenge of high inflation especially food inflation. Shri Chawla said that the Central Government has taken various anti inflationary measures to contain the inflation especially the food inflation at reasonable and acceptable level. He said that higher agriculture growth will not only help in achieving food security but also in containing food inflation. He said that the Government has accorded high importance to financial inclusion to cover the entire gamut of financial services and to ensure that gains of growth reach to the maximum number of people at large.
The complete text of the inaugural address made by the Union Finance Minister, Shri Pranab Mukherjee after inaugurating the two-day intentional conference is given below:
"I am very happy to be here today to inaugurate this conference organized by the Economic Division of the Ministry of Finance. Let me start by congratulating Prof Kaushik Basu, Chief Economic Adviser who has been very keen to hold this conference. Though the Finance Ministry has had ongoing research programmes with several premier institutions, this is the first international conference that has been organized. I am aware that this conference has brought together some well know economists from India and abroad, key policymakers and corporate leaders to deliberate on issues of our contemporary relevance. This is for me a matter of great satisfaction.
I am not an economist. But having spent several decades of my working life dealing with issues related to economic policy in the company of many economists, I am aware of the importance of knowledge development, research and innovation in the field of economic policy. I am certain that effective policies can be arrived at only by exploring and demonstrating the complexities, opportunities and risks of economic scenarios.
Ours is an age of ideas and innovation. The pace of innovation and knowledge generation has increased rapidly in modern times. The prosperous societies of today have reached their states of well being not because of the coal mined from their soils or the goods traded on their markets but through the power of great minds. It is essential that policymakers are kept abreast with the latest developments in diverse fields. This conference would allow India's Ministry of Finance to open its windows to new ideas. I hope that this conference would not be a one-off affair but evolve into a much anticipated annual event.
According to some, the world of economic theory and the world of practical policy have little in common. I hold a somewhat contrary view. The two universes I believe run parallel to each other and need to communicate from time to time. This is exactly what I hope this conference would achieve. It is important to merge the abstract clarity of economic theory with the practical problem-solving approach of the policymaker. This endeavour may seem difficult, but let me remind you that some very effective policy solutions like withholding taxes have arisen from the minds of theoretical economists. At the same time economic theory draws on real world experiences to generate its concepts. It is therefore fitting that for this conference the ministry has chosen National Institute of Public Finance and Policy as its partner. NIPFP is a leading Indian think tank for fiscal policy, with a global reputation.
There are times when economics can be confusing, making it difficult to exercise political judgments and policy decisions. When we were in the middle of the global financial crisis that began in 2007 and the consequent global economic slowdown, economists first told us that the recovery would be V-shaped. When the quick recovery did not work, we were told that the recovery would be U-shaped. Nowadays, I keep hearing that it may be W-shaped. I guess this ambiguity is in the nature of economics. This is what makes it a challenging subject. It is important that we have our eyes open to new evidence and new analysis to guide us in making the most appropriate policy decisions.
India has experienced a fairly long period of rapid economic growth and the economy has also evolved considerably. Since about 2003-04, there has been a further step-up in India's GDP growth rate with the economy moving to a higher trend growth path of 8.5 to 9 per cent per annum. More importantly, the economy has become remarkably resilient to both external and domestic shocks. It not only recovered rapidly from the global economic downturn, but also took the monsoon failure last year in its stride and is now showing robust growth.
Despite this, it is evident that the fruits of this prosperity have not been enjoyed equally by all our citizens. Moreover, development needs to be approached in a comprehensive manner so as to include individual freedoms, access to affordable health-care, quality education, social empowerment and social security as the desired goals. This brings me to the theme of this conference namely "Economic Policies for Inclusive Development", a matter close to my heart.
In an ideal case, there should not be any conflict between the objectives of economic development, the reforms for sustaining high growth and ensuring that growth is also inclusive. These objectives should be mutually reinforcing and an integral part of the development strategy. However, in reality that is not always the case, especially in India where structural factors like poverty, illiteracy, deprivation and lack of adequate connectivity have created segmentation in our markets and among our people. As a result while some of us have been able to ride the waves of prosperity that the economic reforms have ushered in the country through the liberalization of markets, there are others who are struggling to stay afloat, as they can barely participate in the markets.
India's Eleventh Five Year Plan endorsed a need for inclusive growth to ensure equality of opportunity for all. A multi-pronged strategy was adopted that included rapid growth for reducing poverty and creating employment opportunities, improving access to essential services in health and education especially for the poor, empowerment through education and skill development and creating employment opportunities supplemented by the Mahatma Gandhi National Rural Employment Guarantee Scheme. The scheme provides for legal guarantee of 100 days of wage employment in a financial year to every rural household whose adult member volunteers to do unskilled manual work at minimum wage rate for agricultural labour. It is estimated that during the current financial year, around 37 million households have been provided employment under this scheme. In all 1.25 billion person-days have been created under the scheme. There has been a substantial attempt to broad base the programme and target weaker sections including Schedule Castes and Schedule Tribes population, with women accounting for nearly 52 per cent of person-days created under this scheme.
The Rashtriya Swasthya Bema Yojana, a scheme for providing health insurance coverage for below poverty line families has been launched. The Rashtriya Krishi Vikas Yojana has been initiated with a view to improve agriculture productivity and ensure food security. We are implementing a four-pronged strategy covering (a) improvement in agricultural production by extending the green revolution to the Eastern part of India while preserving gains in other areas (b) reduction in wastage of produce, (c) credit support to farmers, and (d) a thrust to the food processing sector. There is also a renewed focus on the development of physical infrastructure.
In the last few years, we have created entitlements backed by legal guarantees for an individual's right to information and her right to work. This has been followed-up with the enactment of the right to education in 2009-10. As the next step, we are working on the National Food Security Bill which is presently under examination by an Expert Committee setup by the Prime Minister under the chair of Dr. C. Rangarajan. To fulfil these commitments the spending on social sector has been rapidly increased. With growth and the opportunities that it generates, we hope to further strengthen the process of inclusive development.
Financial inclusion is a key determinant of sustainable and inclusive growth. We have accorded high importance to financial inclusion to cover the entire gamut of financial services pertaining to savings, credit, insurance and transfers. We are conscious that if our efforts have to bear fruit we have to tackle issues of governance and service delivery. We have taken up an ambitious programme of providing unique identities to the people through the Unique Identification Authority of India. Provision of identity will enhance the access of poor and marginalized to public services and enable efficient delivery of benefits.
Needless to say, much still remains to be done. This is a challenging task in terms of resources, analytical issues, policy design as well as practical aspects of public service delivery. While I am aware that a fair amount of research work has focused on these issues, it is now imperative that their results are projected onto the policy matrix.
We need to design policies in a manner that the redistributive process does not feed off the public finances and the growth process itself is not hampered. To this end, inclusive development needs to be combined with consolidation of public finances, financial stability, employment generation and economic growth. How some of these competing concerns could be addressed through an optimal policy mix should be one of the discussion priorities of this conference.
The challenges I just described are faced not just by the Indian economy but probably the world at large. As a consequence of the global economic crisis the advanced economies are grappling with the issues of public debt and resulting financial strains. The emerging economies though faced with brighter growth prospects are confronting financial instability caused by international capital flows. In advanced economies there is a need to maintain the policy focus on recovery and management of public debt. The emerging economies, on the other hand, need to leverage their growth to improve social outcomes and at the same time monitor the financial sector. These and other related themes including 'Growth and Employment in Post-Crisis World', 'Corporations and Economic Development' and 'Policies for Inclusive Development' would be discussed in this gathering. The lessons drawn from this conference will benefit not just the Indian economy but also the world at large.
I would like to extend my thanks to all the participants, especially to those who have travelled significant distances facing the challenges of varying time zones and persistent jetlag. I wish you all a very stimulating and fruitful period of deliberations."
Inclusive development must be paired with fiscal consolidation to protect public finances and sustain economic growth.
Inclusive development must be combined with consolidation of public finances, financial stability, employment generation and economic growth so that redistributive policies do not feed off public finances or hamper growth. Legally backed social entitlements-such as the Right to Information, Right to Work, and Right to Education-and proposed measures like the National Food Security Bill, alongside schemes for financial inclusion, employment guarantees, health insurance and agricultural support, form a multi-pronged strategy requiring improved governance, service delivery and an optimal policy mix.
Note: It is a system-generated summary and is for quick reference only.