- India can continue with food subsidy for public stockholding purposes
Trade and Commerce Minister Suresh Prabu in a written reply to the Parliament informed that India can continue the public stock holding of food grains for food security purposes. The clarification came in the context of the Buenos Aires Ministerial Conference deadlock where countries failed to provide a final settlement to India’s demand for allowing food subsidy for food security purposes.
According to the Trade Minister, the interim solution agreed at Bali MC is allowed till a permanent solution is reached.
Backgrounder: Public stockholding on food security purposes
This refers to the subsidy incurred by the government for procurement of food grains and keeping it as buffers stock to deliver to the poor people. From 2013 onwards, India’s Food Security Act and the higher allocation for Minimum Support Price oriented food procurement became higher than the WTO permitted subsidy. At the Bali MC, India obtained an interim solution of continuing with the food security programme until a permanent solution is reached in the future Ministerial Conferences of the WTO. But later WTO meetings (Nairobi and Buenos Aires) have failed to produce any consensus. A deadline was crossed at the Buenos Aires MC where a four-year interim time period was closed on the issue to reach a final solution.
- Growth may come down to four-year low in 2017-18: CSO
India’s GDP growth performance in the last two quarters should reach a seemingly high 7% in the current fiscal to reach a downwardly revised 6.5% according to the CSO. Even if that fate is achieved, the economy in 2017-18 is going to witness the lowest growth rate since 2013-14.
According to the CSO, GDP growth may come down to 6.5% for 2017-18 in contrast to the last year’s growth of 7.1%.
In 2013-14, the growth rate was 6.4% and the revised estimate for the current fiscal where three quarters are already completed is just above that figure at 6.5%.
As per the published data, the economy registered a 6% growth in the first two quarters. Third quarter figure are to be published. But realizing 6.5% for the year when two quarters registered just 6% means in the final two quarters, the GDP growth should reach 7%.
- Bill introduced in the Parliament to create a new arbitration institution
A bill to create the New Delhi International Arbitration Centre (NDIAC) was introduce in the Lok Sabha on Friday. The bill seeks to crate the NDIAC which is supposed to enhance arbitration and resolution of international disputes in the country.
The move is after the recommendation of the Srikrishna Committee report that suggested for making India a center for International arbitration and resolution.
NDIAC will have the objective for facilitating both international and domestic arbitrations. The Bill suggests the takeover of the existing International Center for Alternative Dispute Resolution.
Backgrounder
In recent years, India was dragged into several international disputes especially by big MNCs. Continuous arbitration and resolution process were taken place in other destinations and development of an institutional mechanism on Alternative Dispute Resolution and Arbitration became necessary. The government appointed Srikrishna Committee- the ‘High-Level Committee on Making India Hub of Arbitration’ has recommended that government should create an institution for engaging in both international and domestic arbitration.
What is Alternative Dispute Resolution?
Alternative Dispute Resolution (ADR) refers to the practice of settling disputes outside of the courtroom. ADR typically includes early neutral evaluation, negotiation, conciliation, mediation, and arbitration.
