June

2,
2018
PURCHASING MANAGERS INDEX (PMI)
In May 2018, the Nikkei India Manufacturing Purchasing Managers Index (PMI) fell from
51.6 in April to 51.2 in May. This indicates a slower improvement in the health of the
manufacturing sector in May.
About:

 What is a PMI? Purchasing Managers’ Index (PMI) is an indicator of business activity -- both in the
manufacturing and services sectors.
 Methodology:
o It is a survey-based measures that asks the respondents about changes in their perception
of some key business variables (New Orders, Output, Employment, Stocks of Purchases etc.)
from the month before.
o It is calculated separately for the manufacturing and services sectors and then a composite
index is constructed.
o The headline PMI is a number from 0 to 100. A PMI above 50 represents an expansion when
compared to the previous month. A PMI reading under 50 represents a contraction, and a
reading at 50 indicates no change.
o The PMI is usually released at the start of the month.
 Global scenario:
o PMI was originally developed in 1948 by the US-based non-profit group namely Institute of
Supply Management (ISM).
o Now it is published in a variety of different places, depending on the company and country.
For India, the PMI Data is published by Japanese firm Nikkei but compiled and constructed
by Markit Economics.
 Significance of PMI: Advantages offered by PMI data reflect deficiencies in official economic
statistics, which include:
o Infrequent publication: Many government data series, such as gross domestic product
(GDP), are published only quarterly. The PMI is published monthly.
o Delays in publication: Since, PMI surveys are among the first indicators of economic
conditions published each month, it is considered a good leading indicator of economic
activity.
o Subject to revision after first publication: Official data even after getting published are
frequently subject to substantial revision which makes it hard to confidently make business
decisions based only on these statistics. PMI data, in contrast, are not revised after first
publication.
 Comparison of PMI (Manufacturing) with Index of Industrial Production (IIP):
o The popular index that measures growth in the industrial sector in India Index of Industrial
Production (IIP) prepared by CSO.

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o In terms of composition, one can say that PMI is a sentiment tracking index, whereas IIP
indicates changes in production volume or output.
o IIP covers broader industrial sector (manufacturing, mining and electricity) compared to
PMI.

BENAMI TRANSACTIONS INFORMANTS REWARD SCHEME,

2018
In June 2018, the Income Tax Department launched a new Benami Transactions Informants
Reward Scheme, 2018.
About:

 Under it, a person can get reward up to Rs. One crore for giving specific information in prescribed
manner to the Joint or Additional Commissioners of Benami Prohibition Units (BPUs) in
Investigation.
 Its objective is to encourage people to give information about Benami transactions and properties as
well as income earned on such properties by such hidden investors and beneficial owners.

INCOME TAX INFORMANTS REWARD SCHEME, 2018

In June 2018, Income tax department issued revised Income Tax Informants Reward
Scheme, 2018.
About:

 The scheme supersedes the earlier reward scheme issued in 2007.

 Under it, a person can get reward up to Rs. 50 lakhs for giving specific information about substantial
evasion of tax in prescribed manner to the designated officers of Investigation Directorates in
Income Tax Department.
 Its objective is to obtain people’s participation in the Income Tax Department’s efforts to unearth
black money and reduce tax evasion.

CAUVERY WATER MANAGEMENT AUTHORITY

In June 2018, the Union government issued a notification for the establishment of Cauvery
Water Management Authority.
About:

 Mandate: The authority will decide water-sharing among Karnataka, Kerala and Tamil Nadu and the
Union Territory of Puducherry.
 Power: If the Authority finds that any Government of the party States do not cooperate in
implementing the decision of the Tribunal, it can seek the help of the Central Government for
implementation of the Award of the Tribunal as modified by the Supreme Court in February, 2018.

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 Composition:
o Chairman: The chairman will be appointed by the Central government for a tenure of 5
years. He has to be a senior and eminent engineer with wide experience in water resource
management or an IAS office in the rank of secretary or additional secretary.
o Members: There will be six part-time members –
 two as representatives of the Central Government and
 four from party States (Kerala, Karnataka, Tamil Nadu and the union territory of
Puducherry).

SAKHI SURAKSHA ADVANCED DNA FORENSIC LABORATORY

In June 2018, Union Minister for Women and Child Development laid the foundation of
Sakhi Suraksha Advanced DNA Forensic Laboratory.
About:

 What is it? It will be India’s first advanced forensic lab dedicated to women related cases. It will
contribute to address the gap in forensic DNA analysis of pending sexual assault cases in the
country.
 Location: The Laboratory will be located in the campus of Central Forensic Science Lab, Chandigarh.
 Way Ahead: The lab is being set up as a model forensic lab and would be replicated in other parts of
the country.

SEVA BHOJ YOJNA

In June 2018, the Ministry of Culture introduced a new scheme namely ‘Seva Bhoj Yojna’.
About:

 Objective:
o The scheme envisages to reimburse the Central Government share of Central Goods and
Services Tax (CGST) and Integrated Goods and Service Tax (IGST) on purchase of raw items
such as Food/Prasad/Langar (Community Kitchen)/Bhandara offered free of cost by
Charitable Religious Institutions.
o The objective is to lessen the financial burden of such Charitable Religious Institutions who
provide Food etc. free of cost without any discrimination to Public/Devotees.
 Duration: The scheme has been launched with a total outlay of Rs. 325 Crores for Financial Years
2018-19 and 2019-20.
 Eligibility criteria:
o The Charitable Religious Institutions such as Temples, Gurudwara, Mosque, Church, Dharmik
Ashram, Dargah, Matth, Monasteries etc. which have been in existence for at least five
years and
o which serve free food to at least 5000 people in a month and

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o which are registered as Society under Societies Registration Act (XXI of 1860) or as a Public
Trust under any law shall be eligible for grant under the scheme.
 All the eligible institutions should be registered with Darpan portal.

Darpan portal?
 The NGO-DARPAN is a portal that provides platform for interface between VOs/NGOs and key
Government Ministries / Departments / Government Bodies.
 Its objective is to bring about greater partnership between government & voluntary sector and
foster better transparency, efficiency and accountability.
 It has been developed by National Informatics Centre (NIC) and is managed by NITI Aayog.

NATIONAL SPORTS UNIVERSITY ORDINANCE, 2018

In May 2018, National Sports University Ordinance, 2018 was promulgated.
About:

 It establishes a National Sports University headquartered at Manipur.

 Mandate:
o To promote sports education in the areas of sports sciences, sports technology, sports
management and sports coaching.
o To function as the national training centre for select sports disciplines by adopting the best
international practices.
 Background:
o The proposal was formally announced by the Finance Minister in his Budget speech of 2014
– 15.
o The National Sports University Bill, 2017 was introduced in Lok Sabha in August 2017 and is
still pending.

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