PIB Analysis 17-12-22 Part 1

PIB Analysis 17-12-22 Part 1

PIB Analysis 17-12-22

Part 1

Economic Cooperation and Trade Agreement

  • India and Australia have signed the India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA) on 2 April,2022, which will come into force on 29.12.2022.
  • Indian exports will benefit from preferential zero duty market access in Australia for 100% of its tariff lines, which will benefit sectors such as gems and jewellery, textiles, leather, footwear, furniture, food, and agricultural products, engineering products, medical devices, and automobiles.
  • On the other hand, India has provided preferential access to Australia on over 70% of its tariff lines, which are primarily raw materials and intermediaries such as coal, mineral ores etc., which are required for our domestic manufacturing industry.
  • Moreover, Australia has also provided additional market access and mobility facility for Indian professionals including chefs and yoga teachers.

Reforms in Telecom Sector

The Government has approved various structural and procedural reforms in the telecom sector.

These reforms include Rationalization of Adjusted Gross Revenue;

  • Rationalization of Bank Guarantees(BGs);
  • Rationalization of interest rates and removal of penalties;
  • Dispensing with the requirement of BGs (for auctions held after 15.09.2021) to secure instalment payments;
  • Permission for surrender of spectrum after 10 years (in future auctions);
  • Dispensing with the requirement of Spectrum Usage Charge (SUC) for spectrum acquired in spectrum auctions held after 15.09.2021;
  • Removal of additional SUC of 0.5% for spectrum sharing;
  • Permission for 100% Foreign Direct Investment (FDI) in telecom sector under automatic route subject to safeguards;
  • Fixed time for spectrum auctions (normally in the last quarter of every financial year);
  • Requirement of licenses under 1953 Customs Notification for wireless equipment replaced with self-declaration;
  • Permission for Self-KYC; e-KYC rate revised to only one Rupee;
  • Dispensing with the requirement of fresh KYC for shifting from Prepaid to Post-paid and vice-versa;
  • Replacement of paper Customer Acquisition Forms with digital storage of data;
  • Easing SACFA clearance for telecom towers; and Addressing liquidity requirements of the Telecom Service Providers by way of moratorium/deferment.
  • Government has also published draft Telecom Bill on 21st September, 2022.