Monthly Summary for Cabinet February 2023

: A-45O1 L I 4 I 2Oz3-Coord'II Government of India Ministry of Finance (Department of Economic Affairs) New Delhi, 2oth APril, 2023 OFFICE MEMORANDUM The und.ersigned is directed to circulate herewith the unclassified o.r-i*portant policy decisions in respect of portion of Monthly Summ^ty. Department of Ec6nomic Affairs for t^he Month of Februarl ' 2023' (Arup ShYam Deputy Secretary to the Government of India Tel No. 2309- 5054 To 1. Members of the Union council of Ministers, Government of India' A11 New Delhi. 2. Vice Chairman, Niti Aayog' Yojna B!aw1n' New Delhi' 3. cabinet secretary, cabinet Setretariat, Rashtrapati Bhavan, 4. N see cw r eD tae rl yh i. to the President of Ind'ia, Rashtrapati Bhavan' N:* Delhi' 5. Secretary to trre vice-president of india, 6, Maulana Azad Road, New Delhi. 6,PrincipalSecretarytothePrimeMinister,PMo,SouthBlock,New Delhi T,Chairman,UnionFublicServiceCommission,DholpurHouse,New Delhi. 8 9 A S1 e1 cM ree tm arb iee sr s t oo f d N i tit hi .A - a My io ng T, s Y trio ej sn a / o B eh pa aw rtman e' nN tse ,w GD oe vl eh ri' nment of India' New Delhi. PStoMoS(F),PPStoFinanceSecretary,PPSto.Secretary@A),PPS 10 to Secretary (Revenuel, PPS to Secretary (Expenditure)' PPS to Secretary (DIPAM) i\tgt"*''ran' Chief Economic Adviser' DEA' Shri V. Anantha 11. t2. Additionalsecretary,CabinetSecretariat,RashtrapatiBhavan,New Delhi. 13. Sh.i tut^roj SahaY, AS&FA(Finance) t4. rrn".-np"trrl ekt"iia, Advisor(Admn' / Coord' / C&C )15. Ms. Manisha Sinha, AS(G20 logistics(Coord-Il)/OMI/Crypto assets and CBDC) 16. A11 Heads of Divisions in Department of Economic Affairs. JS (IPPi JS (ISD) / JS (Inv) / JS (Budget)JS (FM) / All Advisers / CAAA L7. Shri Rajesh Malhotra, DG (M&C), M/o Finance, North Block, New Delhi. 18. Guard File - 2023.A-45rOL t I 4 | 2O23'Coord'II Goverament of India MinistrY of Finance (Department oi Economic Affatrs) *lnk pertaining to Monthly summary on important policy decisions Subject: of B"orrorniJ effairs (DEAI for the month of l'ebruary' Department 20.29 during 1. Important poticy decisions taken and major achievements the month: Overview: Macroeconomic India's real GDP growth in Q3 of FY23'^ estimated on the t lQ ::3 'Y ba se n o *f FY22, has come in ^';''; tip - ; cent-"' Growth .of a l 1:d li- ec do a"' c1 t1 iv,- ita ie-u s' mining and been mainly sustained -and' g"ctoi"n'tfatc"t:- int"e"n'ds.i ve services sectors from the quarrying, con ,ts 't aru c pti do "n ^ tt Final Consumption Expenditure (PFCE) and supply side e*ptt'aiture (GFCE) from the demand side' Final Consirirpilot' Government growth in th'e third quarter 1s of resilient economic The inclusiveness indicators' As per the itt tf" i*iptoutrnttt in also reflected -employmtnt rate F"r"" s;;;; t-*tr, the overarl urban unemproyment p foe rri o pd ei oc pL lea b qao ugu aer rd te 1 r 5 o fr " 2" o;" 2' r; ; t o 7 .a 2b o pv ee r d cee ncl ti n oe nd e f yr eo am r l8 a' t7 e r p ie nr Dc ee cn et m in be rth oe f December EPFO witnessed YoY growth of 41'4 per 2022. Netpayroll additions "t'dt' in the formal sector has that employment cent in December ZOZZ' inatcatrng a growth surge' The Nlukri tf passed the stage "";;;;Jls. ar n: r uy pt t; in ckn c in overall hiring activity' observing a J so eb q uS ep ne tia ak l mInd oe nx th a lyls go r o"f wl" th" i" o f 9 per cent in February 2023' prices and gover nment measures commodity Falling international pt""""t" in February 2023 ' CPI inflation have aided tin o easin pg "'' 'n ;;' ;i ;i lt ;" "V p.t*"w 2023 compated to 6'5 per c^e]1t in moderated 6'44 to a 2S-month low of 3'85 per January 2023' With Wp iti " iit t' "n "t ;t *io i"t "t id oe tc ' lin toin Cg Pt inflation is soon expected' zozs' cent in February that have a that India is one of the few countries Analysis reveals GDP in Q3 ol 2022 as compared lower corporate debt """ lO Ot- tt'i t* "" "' t" lng t:f-thl Apart from the lowering of debt ZOOS- to the correspondin dg "l;;;;;itg phase in the credit cvcle' a declining trend with the coinciding i- iJ of a relativlly 1'.ss debt-financed observed since mia-zo"z ^"."n"",ionstrong recovery of India's economy. India's corporate sector credit-GDP ratio is also below its historical trend, indicating ample space for the corporate sector to enlarge its debt burden. The strong debt profile of the corporate sector has provr,i to be key in maintaining the macroeconomic stability of the economy. 2. ImportantDevelopments: (i) Hon'ble Finance Minister presented the Union Budget for 2023-24 on February 1,2023. (ii) The following Finance Track meetings under G2O India Presidenry were held during this month: a) The First G20 Finance Ministers and Central Bank Governors (FMCBG) meeting, jointly chaired by Hon'ble Finance Minister of India and Governor, Reserve Bank of India was organised in Bengaluru during February 24-25, 2023. The main deliverable of the meeting was the G20 Chair's Summar5r and Outcome Document that was negotiated by the G20 Finance and Central Bank Deputies during February 22-23,2023. b) The following side events/ associated meetings were held at the sidelines of the First G20 FMCBG meeting: a Hon'ble FM held bilateral meetings with her counterparts from Italy, US, Japan, Canada, Argentina, Renesas Electronics Corp, Spain, Indonesia, BIS, European Commission, United Kingdom, Nepal, France and Australia to discuss issues cf mutual interest in G20. I,.:n'ble FM held bilateral meeting with Ms. Kristalina Georgieva, MD, IMF and Ms. Gita Gopinath, FDMD IMF to discuss IMF related matters. a Hon'ble FM held Bilateral meeting with Ms. Nadia Calvino, First Deputy Prime Minister of Spain and IMFC Chair. Following events were organised, with participation at Ministerial and Finance Deputies' level, viz.,o High-Level symposium on Digital Public Infrastructure (DPI); o seminar on 'Policy Perspectives: DebtCingthe Road to Policy consensus on crypto Assets' and 'Leveraging nationalpaymentsystemstoenhancecross-border arrangements'; PaYment o walk the Talk: Policy in Action' event for the Finance Ministers,CentralBankGovernors,Headsof International organwations and' their Deputies involving an exclusive visit to the Indian Institute of Science (IISc), Bengalurutoshowcaseinnovationl.inthelndian technologr ecosYstem' c) The first meeting of Ind.ia's G2O Task Force on Digital Public Infrastructure for Economic Transformation, Financial Inclusion and Development was held virtually under the chairmanship of shri Amitabh Kant (G20 Sherpa of India) and Shri Nandan Nilekani. d) The First meeting of the G2O Sustainable Finance working Group (SFWG)washeldinGuwahatiduringFebrrrary2-3,2023.on side-lines of this meeting, a G2o workshop on the 'capacity- building of the ecosystem for scaling-up sustainable finance' and a G2O panel discussions on 'Financing for SDGs: Blueprint to achieve a Sustainable Future' and on 'Role of Financial sector Regulators in Financing SDGs & Jan Bhagidari events were organized. (iii) Following important meetings were attended by the Hon'ble Finance Minister: MD, IMF to (a) Virtual meeting with Ms' Kristalina Georgieva, discuss IMF related issues (b)MeetingwithDrDavidRMalpass,Presid'entofWorldBank Group. (iv) Following loanf grant agreements were signed with multilateral and bilateral develoPment agencres:(a) Exchange of Notes were signed with Government of Japan and Loan agreement were signed with Japan International cooperation Agency (JICA) for the following projects: . Loan of JPY 9.918 billion (Rs. 560 Crore approx.) for the establishment of Mizoram State Super-Specialty Cancer and Research Centre. o Loan of JPY 30.755 ( Rs. 1,728 Crore approx) billion for Mumbai Trans-Harbour Link Project (III) (b) The Financial cooperation (FC) Umbrella Agreement for the year 2022 was signed with Germany for Euro 899.50 million (Loan of Euro 380 million and Euro 19.50 million grant) for financing various development projects under the "Green and sustainable Development Partnership". (v) Following capacity building programmes in infrastructure sector were held during this month: (a) Training Programme on Project Finance held at IIBF, Mumbai. (b) Training Programme on Project Management and ppp held at IIM Kozhikode. (c) Trainrng Programme on Public privatc partnership a basic perspective held at AJNIFM, Faridabad. (vi) Following important meetings/workshops were held/attended at the official level (a) secretary (EA) attended the First meeting of BRICS Finance and central Bank Deputies, virtually under the South African Presidency. (b) 7tt round of India-UK BIT negotiations in London. (c) 4ft round of India-cambodia BIT discussion held through DVC. (d) stt' round of India-Saudi Arabia BIT discussion held through DVC. (e) The 2nd meeting of the G20 Finance Deputies held in Bengaluru(0 Financial stability Board (FSB) held the steering committee meeting to discuss the FSB's work on crypto-assets and DeFi in 2O2g and the FSB work programme, including deliverables to the c20. (g) FSB held the scSI meeting to discuss the climate risk factors in compensation frameworks, Reform Effectiveness Analysis Network work plan, Thematic review on money market fund (MMF) reforms. (h) AIIB Board of Directors met virtually for Consideration of Investment Projects and Second Interim Review of covid 19 crisis Recovery facilitY (CRF)' (i) 46ft Governing council Meeting of IFAD held in rlome. 0)AS(MBC)attendedSARTTAC,SInterimSteeringCommittee Meeting to discuss on SARTTAC operations and activities in FY 23, SARTTAC Budget for Phase II and sARTTAC',s Workplan and Training Calendar for FY 24' (k) The tg7t, meeting of DEA Screening committee for consideration of proposals seeking financing from Multilateral Development Banks Bilateral Agencies' / 3. Minimum Government, Maximum Governance The use of ICT in submission of information is being encouraged' 4.Non-ComplianceofACCdirections/orders:NIL 5. Details of FDI proposals cleared during the month and status of FDI proposals .*.itiog approval in the Department: NIL Number of ProPosals cleared Awaiting Approval in the Department 07