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Commerce Secretary participates in the 14th BRICS Trade Ministers’ Meeting

Commerce Secretary Shri Sunil Barthwal attended the 14th BRICS Trade Ministers’ Meeting held on 26 July 2024 under the BRICS Presidency of Russian Federation. The theme of BRICS this year is “Strengthening Multilateralism for Just Global Development”. While congratulating the Russian Presidency for the bringing in proposal on contemporary issues, Shri Sunil Barthwal, welcomed the new members of BRICS (Iran, Egypt, Ethiopia and UAE) and congratulated them on their fruitful participation in discussions, this year.

The Commerce Secretary expressed the need for strengthening multilateral trading system with WTO at its core, effective functioning of Joint Value Chains, expanding interaction among MSMEs, India’s successful story on Digitalisation and E-Commerce and the relevance of cooperation among Special Economic Zones.

On the strengthening Multilateralism, he reiterated on the collective efforts to find a solution for long pending mandated issues of WTO, in particular, the development aspect and the Special and Differential treatment. He stressed on the urgent need for resolving the issues including the permanent solution to Public Stock Holding, constitution of two-tier Dispute Settlement system, WTO Reform to be based on the principles & objectives of WTO, leading to more responsive to development requirements of emerging economies, invigorating the WTO through “30 for 30” bringing in alt least 30 operational improvements to the WTO before the organization completes 30 years in 2025. He stressed upon strengthening the resiliency of supply chain through decentralisation and diversification, furthering co-operation in value chains through G20 generic Mapping framework for GVCs and by enunciating guiding principles for collaboration. In this context, as an initial step towards digitalisation, he stressed on paperless trade including digitalisation of documents like Bill of lading.

He laid emphasis on collaboration for making access to affordable emerging technologies critical for green transition and climate resilience. On the climate related unilateral measures impacting trade, Commerce Secretary expressed concern as such measures nullify rights and obligations under specialised Multilateral Environmental Agreements and violative NDC Principles, and ignores the CBDR principles.

The Commerce Secretary also mentioned the importance on MSME related developments and their integration with the Global Value Chains. While re-iterating the Jaipur call for action for enhancing access to information for MSMEs issued during India’s Presidency in 2023, he lauded the Russian Presidency for carrying forward the initiative by making efforts to compile certain basic information pertaining to MSMEs among the BRICS members. As MSME’s are an integral part of the BRICS Members, Commerce Secretary stressed on the importance of cooperation and collective efforts for outcome oriented support for MSMEs. He expressed the need to focus on key areas like, exploring cooperation in the form of Research and Development, Technology transfers and joint Ventures as well as the Business development opportunities.

Commerce Secretary underscored the urgency of accelerating inclusive digital transformation. While referring to India’s success story of building up an open source India Stack of Critical Digital Public infrastructure as part of its digital industrialisation following the core principles of open access, transparency, trust and respect for data protection and privacy, expressed India’s willingness to share its experience with the BRICS countries on the e-revolution in the domains of payments, e-commerce, national identity, banking, education etc,

On the Russian presidency’s initiative on cooperation in Special Economic Zones (SEZs), Commerce Secretary acknowledged the transformative impact of SEZs in providing employment, state of art technologies, boosting exports. He underscored the importance of exchanging information and best practices regarding the same.

In conclusion, Commerce Secretary laid stress upon the importance of collaborative efforts and commitment along with resilience, unity and transparency to face challenges under the principles of compassion, empathy and understanding, for a common brighter future of BRICS countries.

The Trade Minister’s meeting endorsed the Joint Communique and 6 outcome documents pertaining to various issues mentioned earlier.

Further on the sidelines of BRICS TMM, Commerce secretary had bilateral meetings with the Minister for Economic development Maxim Reshetnikov, Member of the Board (Minister) of Trade, Eurasian Economic Commission Andrey Slepnev, Deputy Minister of Industry and Trade Alexey Gruzdev, and Head of FSVPS, Sergei Dankvert of the Russian Federation as well as with the Deputy Minister for the Department of Trade, Industry & Competition, South Africa, Zuko Godlimpi and the Minister of State for foreign Trade, UAE, Thani Bin Ahmed Al Zeyoudi, wherein bilateral trade issues were discussed in brief for their early resolution.

A press release issued the PIB stated that the G20 Labour and Employment Ministers’ (LEMM) assembled in Fortaleza, Brazil have approved the Labour and Employment Ministerial declaration on 26th July, 2024. The final text was approved after the conclusion of the two-day long Labour & Employment Ministers´ meeting (LEMM) on 25-26 July, under the Presidency of Brazil.

Copy of Press Release attached.

The Govt of Maharashtra has notified Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) (Amendment) Rules, 2024 for incorporating details of the Establishment Insurance Certificate in Forms A,D F & R of the Rules.

Copy of notification attached.

The court emphasized that negligence in safety measures directly contributing to a fatal accident can constitute a criminal offense under Section 304-A IPC. The court found that the lack of warning signs was a significant breach of duty, and Agrawal, as a partner and responsible party, failed to ensure these precautions, directly leading to Charan Singh’s death.

Copy of judgement attached.

The court emphasized that negligence in safety measures directly contributing to a fatal accident can constitute a criminal offense under Section 304-A IPC. The court found that the lack of warning signs was a significant breach of duty, and Agrawal, as a partner and responsible party, failed to ensure these precautions, directly leading to Charan Singh’s death.

Copy of judgement attached.

The Bombay High Court, while deciding a question of law as to whether a Director, who is also the occupier, would be personally liable to pay the ESI Dues of the Company, has held as follows:

(a) The liability to pay ESI dues is of the company and in the event of there being an occupier who has ultimate control over the affairs of the factory, he is liable to meet the demand. However, the liability of the occupier is not personal.

(b) If the dues of ESIC are of the company the same can be recovered from the company or from the assets of the company

Copy of judgment attached.

A Division Bench of the Bombay High Court, while dealing with an issue as to whether a mere delay in raising a dispute would be fatal to an order of reference, has held that the object of the Act of 1947 is of ensuring justice for both employers and employees, and advancing industrial progress. It is a legislation that provides and regulates the service conditions of the workers. The provisions of the Act and the fact situation will have to be interpreted in a manner that advances the object of the legislature which is the settlement of industrial disputes.

Copy of judgment attached

Budget FY 24-25: FM Sitharaman announces schemes for women, youth & farmers

Finance Minister Nirmala Sitharaman presented the Union Budget 2024-25, outlining nine priority areas for the Government, including agriculture, employment, social justice and infrastructure. This budget marks the first presented by the Government after its re-election in June 2024, and the seventh consecutive one presented by Sitharaman.

The budget announced a special focus on women and youth, with the allocation of Rs 3 trillion for schemes benefiting women and girls. Sitaraman also made major announcements for Bihar and Andhra Pradesh, including a boost in infrastructure and special financial support. Additionally, she announced the abolition of angel tax for all classes of investors in startups.

In her budget, the FM also announced a scheme to provide internship opportunities to 1 crore youth in 500 top companies over 5 years.

The Centre’s FY25 capex spend is seen at Rs 11.1 lakh crore, unchanged from the Interim Budget, with infrastructure spend at 3.4% of GDP. The budget also increased standard deduction from Rs 50,000 to Rs 75,000 and family pension deduction from Rs 15,000 to Rs 25,000.

Commenting on the budget, Nilesh Shah, Past President, Bombay Chamber & Group President & MD, Kotak Mahindra AMC, said, “Fiscal Prudence of 4.9% for FY 24 will pave the way for Rating upgrade. Support for employment generation will boost growth. Infrastructure investment at 3.4 % of GDP is elevated yet not crowding out others.”

Pinky Mehta, President, Bombay Chamber and Director, Aditya Birla Sun Life Insurance Co, said “The Union Budget 2024-25, with an allocation of Rs 1.48 lakh crore, prioritises education, employment, and skilling, demonstrating a strong commitment to empowering India’s youth. The Government’s nine focus areas outline a clear roadmap for a Viksit Bharat. Additionally, the removal of angel tax and increase in standard deduction limit are notable reforms, fostering a supportive environment for growth and innovation.”

Rajiv Anand, Sr. Vice President, Bombay Chamber & Deputy Managing Director, Axis Bank, added, “Fiscal prudence will bring down cost of capital for industry and will also help in a sovereign rating upgrade. The budget has focused on most of the key issues; agricultural productivity, growth in MSME, employment and energy transition. Resources have been allocated from capital gains to fund removal of angel tax and reduction of income tax, a welcome relief for the middle class.”

The budget aims to support employment generation, infrastructure development, and innovation, while maintaining fiscal prudence.

Key Highlights:

• Angel Tax abolished for all categories of investors
• STT on F&O increased to 0.2%
• FM keeps capex at Rs 11.11 lakh crore or 3.4% of GDP
• Rs 11.11 lakh crore allocated towards capital expenditure. This would account for 3.4% of the GDP.
• Fiscal deficit lowered to 4.9% of GDP, market borrowing unchanged at Rs 14.13 lakh crore.
• Fiscal deficit for FY25 further scaled down to 4.9 from 5.1% in interim Budget.
• Aim to reach a fiscal deficit of below 4.5% by FY26.
• BCD on mobile phones, chargers reduced to 15%.
• Highest Capex Spending proposed to support the economy and job creation.
• Govt allocates over Rs 3 lakh crore for schemes benefiting women, girls.
• Short-term gains tax on specified financial assets increased from 15% to 20%.
• Long-term gains tax on all assets raised to 12.5% from earlier 10%.
• Social and infrastructure funds announced for Andhra Pradesh, with a backward region grant for three districts.
• Package for Vizag-Chennai industrial corridor.
• Rs 15,000 crore financial assistance for Amaravati’s development with promises for future funding.
• Rs 26,000 crore for roads and expressways in Bihar.
• Funds allocated for temple development in Bihar and Odisha.
• Rs 8,000 crore allocated for Atal Mission for Rejuvenation and Urban Transformation.

Indian economy in a strong wicket: Economic Survey of India 2023-24

Union Finance Minister Nirmala Sitharaman presented the Economic Survey of India 2023-24, accompanied by a statistical appendix, in both Houses of Parliament. The survey indicates a bright outlook for India’s financial sector but highlights the need to prepare for potential vulnerabilities. The Indian financial sector is at a “turnpike moment,” with a decreasing reliance on banking for credit and an increasing role of capital markets. The Union Budget for 2024-25 will be presented by Sitharaman in the Lok Sabha on July 23, marking the first budget of the Modi Government since the NDA’s third consecutive term victory.

Highlights of the Economic Survey 2023-24:
Startup Ecosystem Flourishing:

• Over 13,000 DPIIT-recognised startups in AI, IoT, robotics, and nanotech.
• The number of patents filed per year has increased 17-fold between FY15 and FY24.

Agriculture’s Potential:

• Significant potential for growth if incentives and allied services in agriculture are aligned.
• Land consolidation is necessary for the efficiency of mechanisation and technology adoption, as more than 85% of landholdings are two hectares or less.

Extreme Weather and Crop Damage:

• Extreme weather and crop damage have led to a hike in food prices over the past two years.
• Lower reservoir levels have also contributed to higher food prices.

Female Labour Participation:

• Female labour participation has surged by 13.7% over the past six years, reaching 37% in 2022-23.
• Unemployment rate has dropped to 3.2%, with rural India leading this positive trend.

Economic Resilience Amid Global Challenges:

• The Indian economy grew over 7% for the third consecutive year, driven by stable consumption and improving investment demand.
• Gross Value Added (GVA) at 2011-12 prices grew by 7.2% in FY24.
• Net taxes at constant (2011-12) prices grew by 19.1% in FY24.

Banking and Financial Sector Performance:

• Double-digit growth in bank credit.
• Gross and net non-performing assets at multi-year lows.
• Improvement in bank asset quality underscores government’s commitment to a stable banking sector.

Food Inflation:

• Global concern over the past two years due to extreme weather events and crop damage.
• Inflationary pressures have been managed through administrative and monetary policy responses.
• Retail inflation declined to 5.4% in FY24 from 6.7% in FY23.

Capital Formation Growth:

• Government’s focus on capital expenditure and private investment has boosted growth.
• Gross Fixed Capital Formation increased by 9% in real terms in 2023-24.
• Healthier corporate and bank balance sheets are expected to further strengthen private investment.

Jharkhand publishes Draft Bill on Jharkhand Platform Based Gig Workers (Registration and Welfare) Act, 2024 inviting suggestions from stakeholders.

Copy of judgement attached