a very good morning to all of you

and a very good morning to my online students as well

who is raining outside right and I thought that you won't be coming it's great to
see you look at your spirits and passion
so how many of you online are attending the lecture from Delhi if I may ask
nobody
okay very good morning
absolutely
so yesterday we were studying startup India and I told you that if you fulfill all
the six conditions only then you get any benefit whether it's startup India or
stand-up India you have to fulfill the conditions then only you get any of the
benefits is there anything in Kerala to are you from Kerala Mukesh
yeah it must be raining hard there
it's it's known for that
for Delhi it's new
but there is normal
Athletico how I have designed the lecture today
haryana also is raining whatever is raining everywhere
so pulkit a singer foreign direct investment I will do in the lecture called as
foreign investment as Nick renge the time is not right today we will do Industries
only
so I have decided a sequence or sequence figure don't worry
now what I have decided today so first we will do some schemes related to Startup
that is what we'll start the lecture with the you have to open page number
page number 34
page number 34
so we will start the lecture with some scheme related to startups
and then
we will do msme today first of all then I will teach you answer writing through
msme question that how to write introduction body and conclusion one question
related to msme and then we will do one class assignment today
where I will give you some basic training related to a question
and then I will give you 10 minutes because this is a beginning
and will take a 10 minutes time slot and then you have to pend down or you have to
write a Mains related answer in front of me
if you are online you have to write it I'll ask you what you have written
to my offline students also I'll ask you the same I'll ask you what you have
written in introduction what you have written in the body how you have arrange the
things I just want to see on the spot how your mind is going in different
directions this will do today
because I think that I have given you so many questions that answers so far
through class dictation so through that basic training which I provided you I just
want to see your progress if it's going good great if not will improve
so that one question I had get for class assignment but pehle let us do this basic
things yes hundred percent it will be available to you God you just need to update
your address update your address on the portal the material will be available to
you and
for this schemes sacred later since this is a story based lecture again so for
next one and half hour
I will speak in a form of different stories stories Stories We Will interact
if you have any doubts in between please type your question there and if you have
any doubts please keep it the moment the story is over because story is required
certain flow the moment story is over first doubts and then question answer as
early fine so let's start with the basic
schemes
like a
this is something which is so good which has started
I really like these two three skips so we are going to cover it in the class it's
really good and we should mention it in the exam they okay
 you would have experienced in life
that if you are young if you are absolutely Young
and if you try to give Big Ideas to people what people will do is they would first
demotivate You by saying what is your age 25 27 21 what kind of Big Ideas you are
talking about have you seen life so they will associate your creativity with your
age
which is such a bad thing why because age and creativity no correlation the person
who gave the concept of rational expectation theory that whatever you expect
becomes true yes I will give you an example
so guys you know in the economy there is a beautiful Theory it works in the share
market also that theory says that if everybody in the economy starts to behave that
there will be a Slowdown in the share market actually there will be a Slowdown
because everybody behaves that everybody feels like that so if listen to this one
carefully
if today there is a rumor in the economy which says that the price of rice will
rise there is a rumor that price of rice will rise you know what we would start to
do in the society all of us would go and start to buy rice whether the price will
rise or not we don't know we'll go ahead and we will start to buy rice when you
start to buy unlimited amount of rice Supply will come down because you are buying
a lot of rice
So when you buy a lot of rice but Supply is limited what will the producers and
the sellers do they will increase the price if there is only one pen one kg rice
everybody is coming in the Q and saying give me this pen give me this pen if the
price is hundred rupees I am the seller I will increase it to 1 lakh rupees
so if everybody in the society starts to behave there will be inflation 100% there
will be inflation that is why rumors are very dangerous right upsc paper is tough
oh here absolutely you'll find it tough why because everybody says so yes I
psychology also posted that direction should upsc paper is stuff and if nobody
tells you anything that yeah you see just like any other exam even if it's tough
you will take normal only take care Everyday Life Psychology is very important who
gave this Theory Robert Lucas
Robert Lucas gave this Theory at the age of 31
right he is considered to be a genius
imagine at the age of 31 this guy gives this Theory and within five six years he
leaves this world
he's no more we are talking about like almost like 70 80 years back hundred years
back
so what was I trying to prove age has nothing to do with your creativity people
live up to 70 years they don't even understand what theory he gave this guy lived
for 30 31 years he wanted Nobel Prize gave this Theory departed this world
by added the age of 1335 we start our career he ended his life his life got ended
with the Nobel Prize thank you so much I gave you the theory by so if anybody tells
you and raises a question against you say yeah you are young what will you say they
don't understand life right so what has happened in India is there were many
startups the answer very very important there were many startups who just
formulated an idea and they said we want to manufacture flying cars example or
somebody was there who said I want to manufacture solar cell for hundred rupees I
have a design in my mind they took their design in the laptop they bought a laptop
pre-seed fund they went to incubators incubator said better you are very young your
company is less than two years old so please take time let your idea become more
mature you also grow in age then come back please we are not saying we will not
help you but you are come on you are very young you need time to become mature this
is the most useless argument I have heard
but yes it happens in the society so where will those startups go they have
nowhere to go
so the government of India told this problem to DPI ID that dpid you are the one
who gives certificate of startup you are supposed somebody's coming to you in
somebody's rejecting those young startup by saying hey come on you are a young we
can't help you where will the young startups go you have already given them
certificate of being a startup that yes your idea is good they're looking for help
now it is your duty to help
so DPI it said okay sorry I should have thought about it in 2015 only it took me
two three years to think they lost this program
it is called as the startup India seed fund scheme what is this program this
program says if dpiit has given you a certificate that yes your company has
potential and yes you can become big in life but nobody's helping you with cash or
incubation or idea don't lose heart go back to DPI it and tell them nobody helps me
what will dpid do look at this fund this fund is with DPI it only the IIT has not
been this money to anybody DPI it keeps this 945 crore and DPI it said I will
enroll you under a steam code AS startup India seed fund scheme and there you will
get both incubation and financial support So DPI it becomes your Mentor direct
mentorship of DPI why because we don't want those startups who are less than two
years old to suffer discrimination in the society so beautiful
now there are people who have crazy ideas in their mind not solar cell solar cell
though is still is very good but somebody says that I want to create a satellite
which will capture direct image the core of the Sun everybody will laugh at a core
of the Sun nobody has even reached the surface of this in your talk about core of
the Sun imagine the kind of Technology you require to capture the image of core of
the Sun which is beyond imagination but somebody says I want to do it
like super crazy idea but it will help you Humanity it will help us to understand
if we can derive energy out of it and we can sustain life on Earth for next
thousand years it is possible so somebody says I want to do that imagine the age of
that somebody 25 years just like you guys entire world will call you crazy so you
will go to dpid and say DPI it can you please provide me some incubation under your
startup India seed fund scheme I have crazy idea the life of the age of my
company's less than two years DPI it says sorry it is beyond my capacity I can
bring you but what incubation we like give you if I knew how to find the image of
the core of the Sun I would have done that
so then where will you go Niti aayog because neeti aayog is not a Ministry or
Department it's a think tank
so you go to nitr because nithya yoga has experts from different fields of Life
the moment you step inside the nithyag office no you will see Department of
Agriculture you know Industries so many Science and Tech Telecom you name the
department you find the expert sir best of India's brain working for the government
of India is here and and interestingly you will find students and young kids
starting from the age of 1920 till the age of 80 you will find those experts
initial there are internship programs for 19 year old kid in India there are
internship programs for retired people post to retirement they can come and
contribute this beautiful body
so you come to nithya you can tell them and neetiayo I have a very complicated
plan of capturing the image of the sun this is my company which will do that
so can you provide me incubation if you have said yes under this program called as
self employment and talent utilization I would provide you incubation because you
are a technologically very sophisticated company your idea is very very
technologically Rich nobody else can help you I have the experts if I don't have
expert I will bring them from a foreign country and I will help you I will give you
mentorship plus cash
two things capital and mentorship for complicated ideas here and for normal ideas
there if somebody did you understand this this is hardware please write
some important schemes
location some important schemes
related to
related to
startups some important schemes related to startups please right
some important schemes related to start up
number one
startup India seed fund scheme
startup India seed fund scheme
 startup India seed fund scheme please write
this scheme provides
this scheme provides
support
in the form of
financial assistance
this scheme provides support in the form of financial assistance
as well as incubation
as well as incubation
to absolutely young startups to absolutely young startups
to absolutely
young startups
with age less than two years
with age less than two years
one of the eligibility conditions under it is right one of the eligibility
conditions under it
whose age is less than two years absolutely young startups whose age is less than
2 years ha one of the eligibility conditions and it is that
one of the eligibility conditions and Delite is that
the startup should not have received
the startup should not have received
more than 10 lakh Rupees financial assistance
more than 10 lakh Rupees financial assistance
under any other scheme under any other scheme
by government of India
by government of India
so guys if you upsc will ask you that what are the two eligibility conditions to
get assistance mentorship as well as capital under the program called as startup
India seed fund schemataya what is the first condition your age should be less than
two years your age means companies is your startups should be less than two years
that's condition number one what is condition number two please identify from the
dictation I gave you and tell me
should not have
received
more than
10 lakh Rupees from whom
any other government scheme so if you are a guy is not focused please this is what
I wanted you to identify they could this capacities should be there in you this
capability should be there that when you read something you should filter out the
most important part from that right up yeah capacity every bureaucrat should every
leader should have the capacity only then when you read newspaper you will be able
to filter out a touch this is important I see so what are the two eligibility
conditions the two eligibility conditions are number one but the answer number one
that the age of your company should be less than two years and number two under any
other government scheme you should not have received more than 10 lakh Rupees I
have used the word government not most validity local government central government
includes everything
right so please pay attention under any other government scheme you should not
have received more than 10 lakh Rupees in the name of startup because if you have
that means you have got the help and others also deserve some help because if
government keeps on only giving you money what will happen to another startup they
will be deprived of fun so government says if you have already got 10 lakh Rupees
at least you have got a start please work on it and wait for some time but if you
have not received more than 10 lakh Rupees then you deserve some extra help if your
idea is super figure that is actually now please write second
self-employment as I told you Services one of your online friends is asking that
can they receive funds from a foreign country that we will discuss in foreign
investment it's a big topic
 because if foreign investment could be answered in one sentence photo everybody
will bring money from a foreign country store that easy please write self-
employment and talent utilization
self-employment and talent utilization
but yes they can receive funds from others
self-employment and talent utilization
I said I hope if you want to be a leader and a policy maker you should develop one
habit the moment you read something the moment you read it just try to look at the
name and see why this name because name gives a lot of information when the
government names something in the form of a scheme the names are put based on some
philosophies or principles right so see it's copper yes self-employment and talent
utilization now this name is Talent utilization which means if needy ayog feels
that there is a startup which is very very sophisticated and complicated in nature
but it has talent there is core what ever complication is there nithya says don't
worry come to me if I have the expert I will help you if I do not have the experts
I'll bring them from rest of the world
so Talent has to be respected see Talent utilization whatever Talent we have in
India Niti have says we can't let it go waste that's the beauty of this scheme so
what ever idea you have in your mind related to start up if nobody respects you
just go to Nidia that's the beauty here so when you are rejected everywhere meet
you have is the place you should go because nithya have says I will utilize your
talent if I feel the talent is there otherwise I will let you become more mature
but they never say no to anybody the moment you go there either they will help you
or they will show you the path and say Hey kid go work little more do your homework
and come back again that's the beauty here that's a why do we want to utilize
talent because imagine if India has 100 Sunder pitches and every sooner which I Mr
Sundar pichai people like them if they leave this country it's a big loss for India
we want people like satyanadela and Mr Sundar pichai's to be there in a country
like India some of them are leaving its fine their dream their career but if we can
retain them by giving them the right environment and say that hey stay in this
country we will support you imagine the kind of innovation they will do imagine the
kind of companies they will create in this country and the kind of jobs they will
create isn't it because these people they are not just talented people they are the
people who do holistic development in a society people like Mr Sundar pichai they
are not just normal Engineers ingenious so you'll find everywhere but he's an
entrepreneur he's a technocrat he's a leader in himself without even working in a
lab he has created a company worth trillions of dollars he's that kind of Innovator
same with Satan adila and it has nothing to do with degree so government of India
says why should we let these people go outside why not capture them in India when
they are young and why not use their talent to create employment in India so the
ultimate objective is put them in India help them give them to our ship give them
the
environment and then let them create jobs for this country either this is that
scheme right so please write
that's how by the way
in the previous scheme when we were doing this
so you should write a note I think I missed out on that equation that it has been
started by DPI it
that I missed please right
it has been
so the previous one startup India seed fund scheme so can the write a short note
show us a one sentence it was started by DPI it important
now close the bracket
now write the next one
so self-employment and talent utilization is right it has been
started by neetiayog
it has been started by neetiayo
it has been started by nitpio
please put a full stop and write that under it
 under it
Niti ayog provides incubation nithya provides incubation
and financial assistance
especially
specially
to Technology based startups
especially to Technology based startups
if they have the potential if they have the potential
to generate employment to generate employment
the idea of this scheme like a the idea of this scheme
is to groom is to groom
the idea of this scheme is to groom domestic Talent
and improve
the condition of job market
improve the condition of job market
please put off install
by the way did you notice in upsc Gs paper 3 see prelims Kato we are looking at
different questions and answer and we are learning that how questions can be framed
in upsc but did you also notice that in upsc in Gs paper 3 they are asking a mix of
questions I tell you the type of questions they are asking one day I will give you
the detail but I'll be just a glimpse so for example the moment you open GS paper 3
in Mains in last two three years you will see first or second question will be very
sort of
let's say Evergreen kind of Concepts example they will say explain the method of
calculation of GDP was Full Stop done
right then second year they will say explain the composition of budget
right revenue account Capital account when you expenditure capital expenditure
these things done full stop
in one year they would say explain national food Security Act full stop next day
they will ask you discuss the land reforms I mean who discusses land reforms who is
reforms the whiny right so reforms happened long time back it is not current in
nature but they will give you these Evergreen kind of questions that discuss Land
Reform full stop so one question I have observed that since last five years it
looks as if there is a conscious effort of upsc and it clearly shows in the paper
that they want to see if the candidate who is going to become the future policy
maker of this country leader of this country or a bureaucrat if they are familiar
with the core ideas of Indian economy or not how to calculate GDP core idea
what is the composition of budget core idea land reforms because you will work
directly with people in the districts so you have to be familiar with what happened
to the land distribution Etc core idea
so if we can national food Security Act this I told you this is a country where 23
crore people do not get food twice daily below poverty line core idea that discuss
how to calculate poverty in India core idea
so there are some core ideas which I have identified for you for GSP paper 3 where
they can directly ask you questions it won't look like a very difficult question
but it will be very difficult to answer the question why because you will run out
of ideas what to write after a point of time national food Security Act you can
write the provisions rise we serials three rupees two rupees one rupees are kg
until 35 kilogram of food grains every month to the family full stop done after
that what will you write ahead two main provisions of national food security maybe
you'll ride one more paragraph after that what will you write it's a 15 mark
question 250 words you have to write it in three sides what will you write and if
you write things which are not useful upsc will not give you marks in fact they
will deduct marks they will say that the candidate is trying to fool us play around
with us right they don't appreciate these things so
when they ask you very simple things calculate GDP of calculation of GDP you but
there is a book how to calculate GDP in India there is a book by government of
India and it is available on Ministry of Finance portal it's a 38 page book are you
supposed to hide that in the exam
 what are you supposed to write it's a very very easy yet very challenging question
so what we will do is that as we go on studying these things I said today I will
give you an exposure to one of the easy questions that is an evergreen kind of
questions which I expect it can be asked any air in upsc we'll start today itself
so when I tell you in the class that hey kids see please mark it as Evergreen
question you should understand this has the potential to be asked as first or
second question of upsc GS paper 3 guaranteed not because I'm saying it because
Evergreen things are fixed in nature there are hardly 15 16 Evergreen things in you
economics which can be asking yes paper three if you do it problem solid right
today we'll do one of them now yeah not necessary if you remember it it's great if
not no problem so yes no please write third one I'll tell you Innovation mission
I tell Innovation mission
or tell Innovation mission
but you are genuinely thank you to you guys for one thing for turning up in the
class despite the rail and because I was expecting him teachers I thought nobody
will come everybody will go online today but this this is a real surprise you have
motivated we had I should never be late in the class even if it's five minutes I
should come five minutes early this is so good to see this beautiful it shows your
commitment is seriously very impressive I haven't seen I mean too many of these
kind of passionate incidences I've always seen it's very it's raining a lot it's
that I would see that students won't turn up and they will say yes sir it rained
with you guys look at you I mean amazing kudos to you brilliant
so
here they go this is atal innovation Mission let me explain what atal Innovation
mission is
beautiful scheme by government of India
beautiful skin thank you so much thank you the answer again
so I'll take the five minutes to explain this then we will have a proper dictation
on what this scheme is this is given in this year's budget a budget me here this
year it is mentioned properly in the budget because government of India is trying
to put a lot of money in this scheme like okay see what the idea and philosophy of
the government is government says
that we simply do not want people who are good in physics maths Sciences why
because they will become engineers they will work for big companies and they will
go away from this country
country will never come to know if a particular engineer who is working for
infrases ACT Infosys actually had a very creative mind to become an entrepreneur
if you never explore your mind you will never come to know what a genius you have
inside you somebody needs to sit with you and scratch your mind and see that oh
huge potential who will do that parents
family Society government these three have the responsibility what is government
extended family it should be the duty of the government of India and the family in
a democracy to do that for you because how would kids discover themselves so
government of India says that imagine just like it is done in China just like it is
done in a few other countries of the world like Germany like France UK why can't we
have that model whereby we can go to the schools and we can give exposure to the
school children see standard second and third is too young so government of India
said we will go to standard six to standard 12th and we will introduce a robotics
in the lab we will give them laptops we will give them 3D printers there and we
will give them artificial intelligence kind of knowledge and we will tell these
kids play around
and then we start to observe which are those kids who are showing interest in
these gadgets natural interest in these gadgets if a kid is very interested in
sports we will not force them to sit here because we also need personalities who
are good in sports different kids different qualities why to force them here right
we can't make a Sachin Tendulkar sit here and say you please indulge into robotics
then who will play cricket for us right so government of India says we will expose
the children into Science and Technology based gadgets and we will watch them
and if we observe that they are showing some natural inclination towards it will
identify those kids and in future we are going to identify give them scholarships
and send them to the right places so that they can be trained in science technology
engineering and Mathematics stem what is the meaning of stem
science technology engineering and Mathematics once we identify these kids and
once we start to train them when they start to grow up in future then India will
not only get engineers and who are good in physics and Mathematics India is going
to get those students who are very good in Science and Mathematics and who are
innovators and then we will get more sooner pitch eyes and more satyana delas
because they will not only innovate for themselves they will you know wait for the
whole world and they will create jobs for us what have we trying to identify we are
not trying to identify Engineers here we are trying to identify creative minds here
like Mr Narayan murti like Mr Azeem premji because they are not other people who
are normally ingenious they are innovators we want to innovators out of these
people these kids right this type of lab that you find in schools is called as
adult tinkering Lab what is adult tinkering Lab or tell tinkering lab is these kind
of set up in the school between standard Sixth and 12th and this is for government
Schools and Government Aid schools they go priv
schools are rich in fund anyway why should government of India waste its money in
private schools when we have government schools who badly need fund so government
says no I will first help the government and government aided school to give equal
opportunity to everyone so it has started with that but if a private school says
are also need some help and assistance it can be provided to them under any other
scheme not this but something similar to this can be done for them but this is
specially reserve for government and government aided school just for inclusion of
those students who don't have opportunities in private setup so this is called atel
tinkering lab how they go when these children will grow natural question that
between standard Sixth and 12th you are providing this but children will go and go
to college Suppose there are some children there are some students who wake up
little late so like in school they will say no I don't want to study no problem
nothing wrong but suppose in college all of sudden you will see that I want to
innovate
what will you do with them so will you tell them no you did not wake up when you
were in school so I'm not going to help you know so government of India had started
this program called as atal incubation Center which is an incubator in colleges
here this is one real picture
so government of India has created incubation Center in colleges called as uttle
incubation Center so see there is a higher key for school tinkering lab for
colleges incubation Center update this one is very important
now look at this gentleman
here
you see
what is it doing here he's making are then parts now if you ask me
I think he's he's one of the best guys in the universe why look at his Focus
look how dedicated just like you kids I told you despite rain you are in their
class there is no difference between you and him just like you are passionate
similarly he's passionate so government of India says if this guy is so good he
might belong to Coastal area hilly area tribal area with these kind of areas have
certain geographical disadvantage they are not connected to the mainland like a
place like Mumbai Delhi Bangalore is so government of India says we will go to
these places which are coastal areas Hillary areas tribal areas and government said
we will create these incubation centers
we don't need to tease them rocket science here we just need to polish them they
are already good I'm guessing I get they will teach us because these are artists
artists what are people like I and you going to tease them they already know
everything so what we'll do is we'll tell them that hey Mr artist please do not
manufacture big size pot are then pot manufacturer a middle small size Urban part
it has more demand in us this is what we will train them and then we will train
them that okay just change the color of the pot it will be more attractive in
European market then we will tell them create your board we will give you a great
packaging material so that your pot becomes unbreakable in the then part if you add
just one polymer one fiber it becomes Unbreakable
so we will tell this guy that you are a great artist you are then parties awesome
just add one new polymer and then you see the the tendency of your rather than part
to break it goes away so we'll just introduce some new scientific ideas with them
they will become great in their product we are going to export it and then whatever
money comes we will directly send the money in their account so no middleman is
required we are trying to make them more self-dependent and strong so what kind of
incubator is this they go this incubator you find only in coastal areas hilly area
and tribal area because they face discrimination so government said we will give
Coastal leaders and tribal area incubation called as atal Community Innovation
Center
right so this is the beauty of this so
if you do not have a degree
if you do not have any kind of formal certification that you are artists you know
all these things if you don't have money if you do not belong to a great urban area
no problem go there
for the answer if nobody is helping you they will help you that is why they are
there for actually go you can criticize the government by saying are so what but I
don't see India has become industrialized country or India has become a developed
country come on
when we want to become developed when we want to get some qualities it takes us 10
20 years of life to become successful and to become super successful it takes us 10
20 years this is a country
country with 150 crore people how can it become successful in two years it
requires at least 25 30 years of non-stop consistent efforts so that these people
can become successful Casey upgrade in two years and five years China made efforts
for 25 years then China became a manufacturing Hub India at least needs to take
effort for next 20 years then we will become a hub
so expecting something that Miracle doesn't happen why we are not getting results
who knows and who says we are not getting this results are happening but of course
the pace is little slow so if upsc asks you how successful are these schemes then
we should say that these are long-term schemes they don't give results short-term
if a kid is in standard sixth a day will come after 20 years when the kid will be
mature you have to wait for 20 years
how can you expect somebody to all of a sudden wake up standard six kid and say I
am going to son how
he needs training right so we will write the criticism also and we will say that
the coverage should be increased state governments participation should be
increased and little more fund allocation should happen then over a period of time
we will definitely get the result please
so I'm going to give you dictation on atel Innovation Mission please write that
or tell Innovation mission
I tell Innovation mission
contains
contains
three components three components
contains three components number one
adult tinkering Lab
are telling tinkering lab
so guys in the bracket you should write a TL are telling lab in short it is called
as ATL adult tinkering Lab right
now please write that under it
the government provides financial assistance
under it
the government provides
financial assistance financial assistance
to school
to schools
 in order to give exposure
in order to give exposure
to the school children between
to the school children
between standard Sixth and 12th
related to
science and technology related gadgets science and technology related gadgets
science and technology related gadgets
the idea is to
the idea is to
generate curiosity
and increase awareness among children
and increase awareness among children
the idea is to generate curiosity and increase awareness in children
so that
they can also participate
in innovation
and technology related developments
Innovation and technology related developments in future
right full stop please second one preside Hotel incubation Center okay until
incubation Center
utterly incubation Center
is right it provides
incubation facilities it provides incubation facilities
it provides incubation facilities
at the college and university level at the college and university level
it provides incubation facilities at the college and university level
curly care please write next one
artel Community Innovation Center acic
artel Community Innovation Center acic
artell Community Innovation Center acic it is right
under it the government provides incubation
under it the government provides incubation
in the coastal areas
hilly areas
in the coastal areas hilly areas and tribal areas
and tribal areas
this beautiful stop
see I got a picture for you
I know that
I don't know if it makes sense to show you these things or not but since these are
the things that motivate me so I thought that I'll share something with you which
motivates me as well when I prepare lectures for you guys everybody has some source
of motivation so these are the people who are my source of motivation I thought
I'll bring it in front of you they are the unsung heroes about which Bollywood and
Hollywood won't talk about so media won't show you these people I'll tell you
who he is and what he's doing for this country he's your senior
right he's doing exactly what you will do after a few years he is a bureaucrat
actually ex-bureaucrat so let me tell you what he has been doing and why this guy
is special now so RC it is all related to Niti aayog
to see this so this guy is a Doctor prabhat Kumar right what is so special about
him never thought
they go what happens is when you start to prepare for this exam there would be
times when people will come to your life and they will tell you this exam is so
useless right what are you trying to become in life you'll be a puppet in the hands
of this politician that politician bureaucracies useless blah all these things
people are going to tell you but this kind of thing is true for them every
profession why do single out one profession and say this is bad this is good and
perhaps when somebody makes and see I'm not trying to glamorize the profession but
I'm just going to show you the other side which very rarely we see
so you know when
when people will tell you that this is kind of you know what kind of profession
you are getting into Etc they don't understand one thing see even if you are a
doctor you are an engineer you are a teacher whatever you are you can contribute to
the society but the level at which you can contribute when in you enter into this
kind of profession is humongous it is unparalleled I'll show you how they care so
his Doctor prabhat Kumar what he did is look at the beauty of this guy what he did
is
before I start the story
so it is funded directly
aim is funded directly by the central government through budget budgetary
allocation
chaleview office tele Innovation Mission gone don't be stuck there you should move
on in life it is funded by the central government come here I'm showing you your
motivation where are you focusing Focus here so see what Doctor prabhat Kumar did
is he actually completed his MSC in in physics from allahabad University then he
completed his Ms scene mathematics from allahabad University look at the education
of this guy and just keep looking what he did for India and you'll be surprised and
so proud of him and you would feel like becoming almost like him in future not
exactly but like him but he thought of you so he completed his MSC in physics first
allahabad University mathematics MSC allahabad University then he did not stop he
learned physics that match he said only one subject is left right yes paper 3
economics so he went to London School of economics and he did his MSC in economics
from London School of Economics then he comes back to India and he finds out is
there any subject which I can learn people tell you nice are oh yeah you have
learned everything
now so he said now only one thing is left upsc
so he appeared in upsc cracked the exam and he became a civil servant after
cracking upsc look at the greatness of this guy what a genius says so after he
cracked upsc by the way he was a Bihar card or is Officer he worked in at grassroot
level so I'll tell you what he did
so after he cracked upsc he started to work like a normal is Officer but secretly
he pursued his passion what was his passion Academy
because imagine a guy learning physics maths and economics he can't just work in
the office 24/7 he must be doing something extra which nobody knew about so he was
silently working on a model so as to make the small industries of India strong in
future
he said I want to make small Industries super strong in future so that the Small
industry should become the backbone of Indian economy and they should Propel
India's growth story this he was thinking almost 40 years back when nobody else was
even knowing what is a small industry that time he was creating policies and model
secretly after writing a lot of research papers he got it published he published
them across the world in some you know top-class journals he published them in
India also and then some of the state governments got to know that wow there is a
guy who is writing research papers on how to improve their small Industries and
mind you
just one one thing for you guys
I always try not to bring any political Personalities in the class I don't feel
that politics is a bad thing but I feel this is not the platform to introduce
politics in the class so if I bring some personality in the class you will always
see if you do your homework that these are the people who are not having some kind
of business towards or against somebody these are neutral personalities that is why
I bring them in the class right now so see so what if this guy do imagine the kind
of neutrality and always believe in one thing guys yeah yeah this is universal
neutral is the most powerful of their cleaner you see it in life neutral is the
most powerful thing whether in terms of Personality choices Etc when you are a
leader when you are in the government the more neutral you are the more powerful
you'll be and the more respected you will be so what he did he started to share his
research with all the state governments of India whosoever used to call him without
any bias and he used to say you want my help I'll definitely tell you what to do so
at a very personal level he started to help everybody so he got good amazing
kind of name and frame why because state governments started to get benefit
because of this guy
then a Time came that you know jharkhand got carved out of Bihar right so Bihar
and jharkhand got separated jharkhand became a new state when jharkhand became a
new state government of India appointed him as the first governor of jharkhand the
moment he became Governor see what he did action speaks louder than words so what
is the first thing that he did in jharkhand the first thing he did he went to
tribal areas first he went to those areas which are in the you know vicinity or the
Border areas of jharkhand odisha Etc no so places like when I was doing some
research I found out the places that he went he went to places like same day Etc
these are very close to jharkhand already supported
tribal areas absolutely and then there he said I want to open schools and he
started to work non-stop towards the education of the tribal children not only
tribal children but in rural areas also he said education is my top priority of
course he will say this entire life he spent in education of course we need people
like him in bureaucracy so that our future generation can also get some kind of
qualities like him so he started to deliver despite being a governor he was showing
interest I don't know what chief minister was doing a set I didn't do my homework
on that but I did homework on him he was amazing in terms of promotion of health
and education especially in rural area and traveling
once he did all this government of India to believe you were to governor governor
there is a ten years after that you will retire so government told him that you are
retired 2015 what are you doing these days the government asked him called him what
are you doing he said nothing much I am not a political person I am not contesting
elections so government said you must be doing something no what are you doing he
said after retirement I just opened a research institute called as I see Center for
governance yeah they k
look what people like him do
they are not into elections so far otherwise I would not have brought him in the
class what did you do when he retired he quietly came to Delhi and he started
research institution based on governance good governance so he has incorporated
some best brains of this country and they are writing models after models about how
to improve governance of India governance of other countries Think Tank private
think tank now government told him
by the way he recently wrote a book I read this book last month his book is on
ethical governance so if you want to find great ideas related to GS paper 2 and GS
paper 4 it's a deadly combination of paper 2 and paper for in one single book
called ethical governance amazing book you should read his book it's available on
Amazon promoting it but he's good guy what to do so there are very few Heroes like
him so I thought I'll bring it so now see what he did government called him in
government said so Mr prabhat Kumar Dr prabhat Kumar what are you doing he said
research
then government told him can you become head of the committee
which is going to write some kind of you know structure for the msme is of India
micro small and medium Industries the government of India was creating a committee
and government said we want to improve the strength and power of small Industries
in India can you become the head of that committee if we appoint that committee and
bring you
he said I will do that hold my life entire life I was doing that only of course I
will do it so he became the head of the committee and the government of India
called that committee as prabhat Kumar committee for msmes 2015
so now he asked government of India who are the other members of the committee
government of India said do you need any other member there is nobody who is as
capable as you in the field of Small industry you are the only one who did research
so he said no problem so government said this will be a 1% committee called as one
man committee so one man committee called as Dr prabhat Kumar committee has been
established by government of India which gave its report in 2015 it is called as
National msme policy 2015 it was created thanks to this genius now see
block mechanica what did you notice irrespective of political parties who were in
power state government central government everybody was taking advantage of this
creative guy isn't it now see what he did
so the moment he became the head of the committee the first thing he told the
government of India was government your definition of msme or whatever is called as
small Industries fraud
government of India says don't hurt me like this like don't say I'm a you know
faulty person Etc just do one thing Mr prabhat Kumar so why don't you write a
report I said okay take up piece of paper and write your report he wrote a report
what did he write the first paragraph the first page of the report says new
definition of msme so he gave a philosophy and he said this is how definition
should be created Point number one then next page what he did next section of his
report in the next section he said government of India I first give you definition
now I'm going to tell you what is the significance of msmes so nicely in 10 pages
he wrote the significance after writing significance what he did he said government
Ms Amy's are facing challenges in this country then he wrote challenges once he
wrote the challenges government said everything there is only one thing left yes
paper three will be prepared can you also tell us how to remove the challenge yes
he said of course so what did he do then he gave a set of recommendations that okay
do these 10 things m
will become better government read the report and say thank you ready made
material
right what did government do very slowly government started to implement one by
one whatever he said and today I'm going to teach you a lot of schemes more than
half a dozen schemes related to msme's all the schemes derived their Source from
his recommendations every recommendation that he gave became a scheme in government
of India first point of recommendation scheme number one point number two scheme
number two this is the beauty of this guy right so next time whenever somebody
tells you that bureaucrats are puppets they don't do anything Etc tell them oh Ms
Amica entire structure of this country it has been given by a bureaucrat and you
know how many people are working in the field of Ms 12 group people 12 crore people
are directly working in the field of msme and every person who works in msme
supports four other people because in India the average family size in India
according to government of India's five
we consider five members to be average number of members in a family so if one
person is working that person is supporting five people including himself or
herself
so 12 crore people who are working in msme which means 60 crore people are
deriving their livelihood from msme and thanks to this guy that he has created such
an amazing policy every batato let me tell you more then we will come to the
definition part see what he did
the first thing he told the government of India Focus please the first thing he
told the government of India is that government see this is
the Decay this is msme you said government you should divide the msme like this
this is micro
this is small and this is medium and it's kevath comes
so there are four type of Industries in India guys
this is Tata
see so
there are four type of Industries basically the first industry is called as micro
what is the meaning of micro Industries those Industries there you see micro the
first one yeah micro this is micro would be in the almost household kind of
industry so if I convert mangoes into pickle at my home and if I am manufacturing
matchboxes or candles these are micro Enterprises absolutely small almost a
household kind of industry you will not be able to differentiate whether they're
Industries or their households so at home people start to manufacture pickles
that's micro what is a small if you convert Tomatoes into tomato ketchup you just
need one room and you can do that a basic one or two machines you can do it and a
packaging material so this is called as small and what is medium medium would mean
somebody manufacturing the let's say the keyboard of a computer that's called as
medium so micro small and medium Enterprises and what comes after medium large
Enterprises like for example Reliance jio you know Tata Enterprises
forces we prove these are large industry but see this is the sequence of
Industries officially of the code what did you tell government of India he told
government of India that government
you have defined msmees they are Serena is very crucial he told government of LED
at government you have defined micro small and medium
as those Industries
whose
total income total income would mean let's say let's use a perfect word he used
the word turnover what is the meaning of turnover I told you yesterday and day
before yes turn over means Revenue so guys suppose I am a factory owner and I sell
one pen in the market price of one pen is 10,000 rupee if I sell the pen I get
10,000 10,000 is called total revenue or turn over
so how were the msme is defined in India the msmees were defined in India before
him the government used to say that anybody whose turned over his up to 50 crore I
am giving an example I will give you real figures a little later so earlier the
government used to say any industry whose turnover is up to 50 crore will be called
as medium
and less than 50 crore would mean this micro small Etc which means if you are
revenue is less than 50 crore you will be in the category of msme and you will get
huge subsidies from government of India you will get free land free cash even if
you take loan the rate of interest will be 1% you will get machines technology
everything and you don't have to pay a tax
so what happened in India there were some big companies like them
what they used to do is they used to hide their income and they used to tell the
government government our revenue is 50 crores or 49 crores and then what they used
to do is
big companies of India they used to come here and they used to say government
our revenue is also 49 crore what to do please give us the benefits and they
started to take benefits
more people came to know that oh
if my income is 60 crore
if my revenue is 60 crore I am a factory I just need to hide and I need to go here
and tell the government government my revenue is 50 crore only please give me
benefits everybody started to take benefit so even if your revenue is 200 crore or
250 crore government realized that most of the companies in India who's revenues up
to 250 crore they are telling that they belong to this category by hiding their
income so guys imagine I have a factory in Karol bag area of Delhi I open my
factory of manufacturing I screams and tomato ketchup in Corolla in a basement and
what do I do so I take 10 20 basements like that in different areas of Delhi one
basement in rajendra nagar one in Karol bagh one in dwarka and in every basement I
am appointing 20 workers basement of the building which is so difficult to inspect
20 workers and I'm creating ice cream and my yearly Revenue let's say my yearly
revenues 250 grows government of India comes to me in Corolla and says hey Factory
owner
what is your yearly Revenue I will say government of India I have just one factor
in Karol work sorry my revenue is just 10 crore Rupees I have 70 factories in Delhi
and I am showing one Factory because nobody knows what goes on in the basement of
the building residential areas basement who will come to know what is going on
unorganized sector so they started to hide and then they did not pay taxes and
everybody was taking benefits of msme so Dr prabhat Kumar said government of India
is so bad that you have not been able to create a proper definition and proper
mechanism because people who should not take the benefit are taking benefit and
which are these micro and small they are not getting any benefit because big ones
are taking all the benefit please change the definition
 government of India said how to
how to create a new definition so Dr prabhat Kumar said government of India please
use double filter so please use two eligibility conditions to identify msme so that
if somebody cheats in the first condition they'll be caught in the second condition
two filters government said why can't we add of five filters he said then you will
never be able to find Ms saves because everybody will say government of India's
definition is complicated let us go to other countries let us not remain an operate
so they said don't make it complicated to filter only government said done what are
these two filters of the heart of let me show you
okay
so what has he done
so if you open
I will tell you which page you should open
if you open page number 30
if you open page number 30 in your handout
you will see this
what did you do
so guys I told you that
my lectures are mostly story based so I need to complete the story and then only
you will understand the complete picture what the answer again I'm going to tell
you something really interesting done by Dr Kumar and what government has done
Focus please this question was asking upsc last year when I was teaching this event
I never thought that this could be asking UPS he come on why would upsc ask this is
the like question with no concept at all but this was asked so guys we have to
focus on everything whatever we are studying we don't know what will be asked so we
have to cover everything see yeah okay please Focus
there are three types of industries that we are talking about micro small and
medium
then comes the large Industries
the government of India says large Industries are anyway getting benefits so let
us take them out for some time remove them for some time let us focus on micro
small and medium
Dr prabhat Kumar told the government of India right government of India
there should be two eligibility conditions to identify who is micro who is small
and who is medium because if somebody is micro we should give them more subsidy
if somebody is small we should give them little less subsidy and if somebody is
medium we should give them least subsidy the most help should be given to micro and
small but we have to identify who is micro in small so two criterias are that first
of all we look into investment in plant machinery and equipment we go to a factory
so for example suppose somebody is manufacturing tomato ketchup we go to them and
ask them that okay in your tomato ketchup Factory what is the investment you have
made in your factory in the machines and in the technology plus over daddy capital
investment so what is the value of your machine factory or equipments that is
called as investment
right then second criteria is turned over then we ask them that every year
what is the money you collect by selling your product
second criteria
so guys
if investment is less than one grow and if turnover is less than 5 grow then you
are called as micro
if your investment is between 1 to 10 crore turnover is 5 to 50 crore you are
called as small
if your investment is 10 to 50 grow turnover is 50 to 250 crore you are called as
medium
the moment this 250 crore was written here that if your revenue is up to 250 crore
you will be called as medium everybody in the economy started to say what are you
doing
if you put a revenue of 250 crore that means they're large Industries
so prabhat Kumar laughed and he told the government of the government of India you
know why I'm asking you this he recommended it long time back to the government
government took five years to implement
he told the government that government if you put 250 crores here what will happen
is those Industries whose actual revenue is 250 crore but they're hiding and
they're saying my revenue is 50 crores
so there are companies whose actual revenues 250 crore earlier they were hiding
and they were saying my revenues 50 grow now Dr prabhat Kumar is saying official
figure is 250 growth so even if your income is 250 grow Revenue yet you will get
all the benefits of msme so what happens you don't have any incentive to hide
because even if you are having 250 crore Revenue you don't need to hide just tell
the government my revenues 250 grow government will still give you benefits
so everybody said what are you saying if you give benefits to 250 crore while I
Industries what will happen to the small ones prabhat Kumar laughed and he said you
are not understanding this is a trap
this is the only way to find out which are the industries who have revenue of
around 250 crores and who are hiding
so he next five years they will come out and they will reveal government why
revenues 250 crore let them come out first five years otherwise the we will never
come to know that how many ice cream factories you have got 60 or 70 through this
method we will because they will come out not today not tomorrow five years six
years 10 years and then they will tell the government government our revenues 250
crore please give us the benefit then the government will say my dear kid enough of
benefits now we will put taxes over you and then in future this definition might be
changed but for the time being because we genuinely want to find out who are the
people who are actually big but they pretend to be small so the government of India
put a 250 crore and said even if you're revenues to 50 grow we will give you the
benefits just because we want to find out which are those companies so that is
point number one point number two
this point is very important then I'll make you write always the answer the case
go
a question was asked to Dr prabhat Kumar
that Dr Kumar can you please tell us one thing the answer is very crucial
Suppose there is a factory
whose investment is less than one crore
but their revenue is 50 crore
investment in machine is one crore
but revenue is 50 crore
under which category will you put them question
and a doubt
that your machine is one crore but your revenues 50 crore
so Dr prabhat Kumar said government come on
if your machine is less than one crore but that one crore machine is giving you a
revenue of 50 crore of course your productivity is good you are using good
technology you are using very Superior Workforce you must be paying good salary to
the workers that is why your productivity is very good so you would be considered
to be a small one
because we have already as achieved the status of a small one
so he gave a philosophy he said whenever
somebody Falls in two criterias so suppose investment is here
but revenue is here
so he said pick the Higher One
because you have already become big so we should give more benefits to the small
ones not to the big ones so that is the second doubt that he cleared third doubt
what the answers only third down and listen to this very very carefully okay
so what happens is suppose guys
there is a factory
please look at this one is the last point at very crucial point so there is a
factory which produces let's say Pence
and this Factory has sold
 pen in India for four crore rupees
so Suppose there is a factory which sells spends and the number of pens they sold
is huge one lakh pence they sold in India and they got a revenue of four crore they
will be turnover or revenue of four group they will be considered to be micro isn't
it micro Factory
now all of sudden from Africa there is a demand of pens here
and African countries are saying to this Factory that hey Factory your pen is very
good because it's not very costly quality is good and students in India love it we
also want this pen so what happens this Factory starts to export pen and supporting
export they get two crore rupees
right so now the government of India comes and says hello Vista Factory
your total revenue is four plus two six crore
which means the subsidy we were giving you here for micro more subsidies are given
now we will not give you subsidies we will put you under small
this Factory says oh really thank you government of India I'm going to stop my
export
next year this Factory stops the export and say I won't export why because when he
was small the factory was small the factory was getting more benefits
so now the factory says I don't want to export and I don't want to get too crore
rupees because if I'm small the government of India gives me a subsidy of three
crore rupees why will I leave a subsidy of three crore to get a foreign income of
to grow
so he says sorry I don't want this and the factory comes back to small government
of India realized this is bad
so Dr prabhat Kumar told the government of India government India also wants to
become a exporting country so do one thing when you calculate this turnover look at
the look at this genius what did he do he told the government of India that this
turnover should be defined
as
turnover minus export
so don't call it turned over call it net turnover
so what did you do he said that to calculate the revenue of the company whatever
they are exporting should be removed excluded
which means only domestic sales should be considered actually it is not turned
over it is net turnover so net turnover is total turnover so what is the total
turnover is Factory guys four plus two crore six crore
six screw 4 domestic 2 export 6 so here we will write 6 and what is the export to
so 6 minus 2 4 is the net so this Factory will be covered under micro
and why did Dr prabhat Kumar suggest to the government of India Dr prabhat Kumar
did this because he said if you do not exclude export to problems will happen
nobody would export everybody would say what's the benefit if we export we will not
get subsidy
so he said remove export so that they are motivated to export as well and number
two we will get the real capacity of the factory also
or two things right it's very complicated this guy created a policy which is so
complicated in nature we are learning it for upsc purpose at a very basic level but
if you study the same thing in real life no it will take you 10 20 hours to
understand what he has done but we are just covering the things at a very basic
level imagine this is basic right so he has defined this term turnover as neck
turnover of somebody this is advice now next point up they go the beauty again then
only you'll understand the complete picture somebody asked Dr prabhat Kumar at that
time that hey Doctor Kumar I manufactured tomato ketchup
so you can call me as micro small and medium and give me the benefits but my
brother is a doctor
and he has a small Clinic here okay so my brother is a doctor he has a small
clinic and in his Clinic he has x-ray machines MRI machines the total investment in
x-ray machine is 50 lakh rupees which means if it's here
and the revenue that my brother who is a doctor my doctor brother gets a yearly
revenue of let's say 60 laps
 and the value of his MRI machine xray machine which means investment is 50 lakhs
and his turnover net turnover is 60 lakhs
so he is a doctor he's not the producer of tomato ketchup
so can he get the benefits of msmees
so Dr Kumar said of course yes
because there are two types of activities in the economy manufacturing and
services how can you just give benefits to the manufacturing what about Chartered
Accountants lawyers doctors etc those who provide services they also deserve to get
support like this so Dr Kumar said that this definition will apply same same
definition will apply to both manufacturing plus service
this is what he did the government of India was very happy that yes manufacturing
covered services covered
then Dr Kumar asked a question to government Dr Kumar said government
are you giving any benefit to grocery stores
so government of India said what are grocery stores
so he said about grocery stores will you put them under manufacturing or will you
put them under Services grocery stores
manufacturing or Services what services are they giving you
what services consultancy doctors Engineers lawyers teachers
no services are being given there and they are not manufacturing also their
Traders
there are three activities in the economy manufacturing where you manufacture pens
like this Services of doctors lawyer teachers accountants that Services it
Engineers Services Infosys services so Manufacturing Services and then there is
something called as Traders what are Traders Traders are the people for example
suppose I am a Trader what will I do I will buy this pen from the factory and I
will deliver the pen to you through my grocery stores stationary stores I'm a
Trader
so somebody told that government of India Dr prabhat was said government what
support are you giving to Traders they also deserve some trading is also business
guys wholesale trade retail trade go to Chandni Chowk daryaganj Karol bagh area you
will see Traders shopkeepers unke against how can you discriminate there is no
policy for them
so then Dr prabhat Kumar said government of India include Traders also in this
definition for the first time government said you are so right because we used to
leave the Traders so retail Traders means those who sell one pen are called retail
Traders those who sell hundred pens are called as wholesale Traders so he
specifically told government you should write retail Trader wholesale Trader both
will be included in this definition board deserve the benefit then the government
of India say thank you Dr prabhat Kumar manufacturing included service included
retail Trader included wholesale Trader included
then he told the government of India
their Traders only sivasis any Trader is regarded as a separate economic activity
not manufacturing or Services ah so there is one activity which is left which has
been told by Dr Kumar and that is why he is my favorite he told government of India
red government
there are people in this country course of people who sell samosas on the street
who sell newspaper on the street street vendors who sell twice on the street
street vendors they're neither manufacturers they are nor considered to be service
providers and they are not even included as shopkeepers we call them Street vendors
so which benefit are you trying to give to them government said we don't have any
benefits for them
so then the government of India was told by Dr Kumar that do you know how many
Street vendors there are today in this country more than two crores more than two
crores so he told the government of any government this is so bad because you are
helping manufacturers service providers and you are also helping shopkeepers and
Traders you should definitely include Street vendors in this definition government
said where will I fit Street vendors he said Traders
Traders
 so now the government of India is including Focus please now the government of
India is including Street vendors as an economic activity to give them benefits of
msmes and you also know that it's three Defenders will get which benefit micro
automatically my mism is the maximum benefit is given to micro and Street vendors
are a part of it now
right so guys this is how holistically he gave that are you understanding the
entire picture that how slowly one by one he started to include all these things
now
since I told you that government of India is giving so many benefits to them micro
small and medium but at the moment you get these benefits
the moment you get this benefits one question arises that how long will you get
the benefits so government of India says
till you fulfill the condition of micro you will get the benefits of micro
the tax burden on you will also be minimum you have to pay taxes but very very
minimum taxes and if you become small your tax burden will increase likely because
for msme is the tax structure is different and then if you become medium your tax
burden will be slightly higher I don't want to do taxes today because I told you
that everybody has a different method of teaching my method of teaching is that I
keep the topic separate so as not to confuse you see for me it is so easy if I can
teach you definition of msme in next one hour I can teach you taxation also but
what kind of lecture are we going to have if you mix everything like a khichdrie we
will not understand anything we have to become experts slowly over a period of time
today is the time for him SME a day will come when I will give you more than 15
lectures in taxation also so you will become experts I will not turn you into
chattered accountants but I will give you a lot of expertise related to taxation so
right the moment you see these definition in future you will say oh micro 10% tax
so you'll quickly be able to associate not today but at the right
but I gave you a hint that yes as very small kind of Taxation has to be paid by
them little bit more by them little bit more by them I say the tax structure is
absolutely different let's go for a side
guys so now I'm going to ask you some questions then I'll give you dictation
proper dictation on definition in itself it's a big dictation so please tell me
question number one for all of you so to my online students and offline students
please be ready you guys are very very passionate kids right so that is why you are
attending 7:30 Lexus please answer the questions question number one
is service included in the definition of msme services included manufacturing
included trading included which trading is included retail or wholesale
both are included so where do you put Street vendors in the definition
because it's Street vendors can't be called as manufacturers they don't fit in the
definition of manufacturing Street vendors don't fit in the definition of services
so there is only one economic activity where you can put them it is called as
trading so these is number one number two can you please tell me how do you define
net turnover in MSM in net turnover is equal to Total turnover or total turnover
minus exports
a total turnover minus export can you give me one single term to capture this
entire thing called as total turnover minus export
net turnover net turnover means which turnover domestic turnover or foreign
turnover domestic turnover which means whatever you are selling domestically only
that money is considered as turnover for this definition so when I was reading the
original msme document of the government of India I found two words for first word
they said is net turnover net turnover means total turnover
netted over is total turnover minus
total turnover minus export is net turnover but I also saw that government of
India in the report has written that this net turnover is the domestic turnover
though I don't like that term domestic turnover because it is not an economic term
it has been created in the sense of literature domestic turnover patainy care
domestic term but it's okay if they have used it we will also use it so this is
domestic turnover basically now can you please tell me guys Focus can you please
tell me what are the two eligibility criterias to identify msme number one is
investment what what is the other term for this in which kind of investment is this
capital investment capital investment means investment in machines plant Factory
equipment and what is the another criteria turn over our net turnover net turnover
brilliant so in upsc now you have to be careful well they grow I was trying to do
something with you that is why I give you elaborate session on the definition of
the answer so now what was I trying to do with you
I was trying to give you a hint or train you that when you prepare for an exam
like upsc so that in future you don't need me huh after a few months you will never
require me I'll tell you why because suppose you learn this art that today you are
understanding the definition of msme what did we do we went in different directions
and we tried to see that in how many ways questions can be created related to this
topic these are the only questions possible which we have discussed like what are
the eligibility conditions for msme that is question number one question number two
what are these cutoffs question number two a complicated question could be that if
the msme falls in this criteria of investment and this criteria of Revenue where
will you consider them this is a third question next question is how do you define
turnover next question which turnover is this that's the next question another
question could be which are the economic activities covered here so matter of
factoring Services trading which trading retail and wholesale both our street
vendors included 100% yes our taxation is
actuation applicable over all of them yes relevant taxation is applicable is
questioning you find the question and tell me if you can find another question in
it there is no question and if a question will be there it will be related to
government of India not to UPS right so this is how we close the circle of
preparation we pick up a topic we go in multidirectional ways and then we try to
find out in how many ways can we be attacked that is it it's not possible to go
beyond this please write
okay
that msme is
msme's
are defined on the basis of
msmes are defined
on the basis of
two eligibility conditions to eligibility conditions
to eligibility number one
investment in
plant
machinery
and equipment
plant machinery and equipment
Deepak we will consider only these Investments plant machinery and equipment
yes PB if they start to grow they will be considered in the next one
so investment in plant machinery and equipment number two
number two what will you write you are smart kids now what will you write
net turned over brilliant please write net turnover
put a hyphen in front of net turnover and right it is defined as
total turnover
it is defined as total turnover excluding
exports
right excluding exports
please put a full stop continue in that point only exports have been excluded
exports have been excluded
in order to motivate the msmes in order to motivate the msmes
to manufacture
to manufacture
export oriented products also
to manufacture export oriented products also
right
it's beautiful stop
 now write a note please note like it
note number one please write note number one
in the definition of msme's
in the definition of msme's
composite criteria composite criteria
in the brackets right
investment
and net turnover
investment and net turnover
close the bracket
is used
for both manufacturing and services
for both manufacturing and services
right node number two is Right second note
retail and wholesale trade
retail and wholesale trade
are also included
retail and wholesale trade are also included
in the definition of MSN
in the definition of msme
next point
in the definition of MSM
next point
Street vendors
Street vendors
are also included
Street vendors are also included
in the definition
to provide them the benefits
given to msms
given to msme's
Facebook
by the way guys
let me inform you this
so in upsc this year they asked a question where they said
that what is the cutoff limit
for msme so you had to memorize these cut off limits they asked you this question
only
so in that McQ the first part was this cutoffs the second part was there is
something called as priority sector Lending
right so second part was that priority sector lending is applicable to msme's or
not
priority sector of course it is applicable so priority sector lending belongs to
banking chapter so when I teach you banking I will give you a dedicated discussion
on what is priority sector lending what is the meaning of priority sector lending
certification Etc it's a you know very deep kind of topic
which again I don't want to mix here so I'm keeping this topic industry separate
when I teach you banking there I will bring two points again what the answers in a
very very crucial when I teach you priority sector lending you will see that I will
tell you in the class that priority sector lending means banks have it mandatory
that they have to provide loan to startups they have to provide loan to agriculture
they have to provide learn to msmes and that loan amount is fixed every bank has to
do that if they're registered with RBI they have to do that that is priority sector
lending so there we will bring this point of startups India again these points
again but not today because I told you that the way I teach is first I want you to
train in these kind of pillars that is the basic concept so industry agriculture
Services etc etc first we will get the training then when we do banking we will
know that oh how banking is applicable in all the various sectors this is the way
I'll teach you things right could you write that next Point okay next point please
right
that
in terms of benefits in terms of benefits
and to my online students I told you could be if you are having any doubt you
please type it there when I complete the story I'll answer like DJ in terms of
benefits the micro Enterprises get the maximum benefit
the micro Enterprises get the maximum benefit
followed by
small and medium followed by small and medium
followed by small and medium
now please write a new topic a matter of topic is same msme you just have to give
a new headline so please write
role played by msme's in India
okay role played by msme's in India
role played by msmees in India
now see I'm going to tell you one or two tricks of how to frame your sentences in
the mains listen to it carefully please and by the way I strongly believe that
answer I think cannot be taught in one or two sessions because there is no Mantra
of answer writing answer writing is a continuous process which you can only learn
in two three or four months before that it is not possible to learn all the nitty
gritties and all the fine details of answer item it's an art actually and art has
to be learned slowly like I gave you some dose in the previous lectures some knows
in yesterday's lecture and today I'm going to give you some dose of hats writing so
you will see that over a period of next three four months if you accumulate all the
points we'll see okay this is how I answer writing is done I'll give you an example
now okay so what we have written is that what are the roles played by MSP in India
the moment somebody says role played by somebody so the biggest role played by a
sector like msme would be in terms of GDP would be in terms of employment
would be in terms of production of goods and services these are some of the roles
but these are economic in nature
do you really believe that if something is only giving economic benefits to this
country government of India will give them huge subsidies special status only for
economic benefits impossible we are not a capitalist country so we don't only with
we are a welfare state it is written in the directive principle of State society
dpsp that India is a welfare state right which means that we give special status to
a particular industry or a type of Industry only when it gives us two benefits both
economic and social so we have to keep that in mind please do not focus only on
economic points that's a very myopic way of understanding things you know we have
to broaden your objective so we have to find out which are the economic objectives
they fulfill and which are the social objectives that fulfill whenever somebody
says discuss the role you have to write data without data you cannot write such an
answer if somebody says discuss the significance they want to know data from you
guaranteed data will be looked and if you do not write data in such answer you will
not get even
percent marks so to get good marks in such questions where they say discuss the
role discuss the significance or discuss the importance the moment somebody uses
these three words data is a must now some of us are not very good in data hotel in
a natural look that some of us are very good in theory and concept so some of us
are good in data but even if you are not a good in data upsc does not understand
that upsc says data please how to write data in such case my batao you see this is
msme
and I told you that India is a country which is a welfare state we are not a
capitalist country since we are not a capitalist country if you count the number of
large Industries in India you can count them on finger trips right for example
adani is reliance tatas Wipro Infosys as aggregate if you count the number of large
Industries hardly 20
which means that it is not possible that only these 20 Industries are giving us
everything these msmes must be giving a lot of things to us that is why we have
products very small products like candles matchboxes tomato ketchup who is giving
all this a big Industries are doing it but the small Industries are doing it even
more that is why government is nurturing them that is why I told you the story of
Dr prabhat Kumar he said I will make small Industries the Soul of India that means
contribution of small Industries must be significant
so what is the significant contribution out of hundred
if somebody is contributing one-third very significant like remember what did I
tell you in Venture Capital that when Venture Capital comes what do they tell you
they tell you give me one third of your company 30% 35% one third significant
number right easily object go passing marks in the exam
33 percent I see in many of the exams you'll see 33% passing Mark 40% Posse marks
significant number essay you should remember so when somebody says that these msmes
are significant they're actually saying that the contribution of this must be
something around 33 or 40%
right so that is important so if they go income what is their contribution in
India's national income 33%
what is their contribution in India's industrial production 40%
what is their contribution in India's export 50% what is their contribution in
India's employment 12 crores
this is their contribution right so please write
I said they could like I said please right number one
number one
msabies contribute
msme is contribute
around
one-third
two India's
income
please put a full stop
did you notice something
that we said it contributes one-third we did not write 32% 33% and we have used
the word around
what are we trying to tell the example we are trying to tell the examiner that
these numbers keep on changing sir
that is why we are not writing 32.33% because today it's 32.33% tomorrow it will
become 34 percent so around so in upsc when you are not very sure of what digit to
write just use the word around and you are very not very sure whether it's 33% or
35% just write one third and right around one third which means you are telling the
examiner that in qualitative sense I know what it is
by data wise I might not be great 32 33 I don't know actually so qualitative sense
around 1/3 solves the problem and it's very qualitative and it's almost like yes I
know it right slick and I exam please write number two
msme is contribute
msme is contribute around why same thing around
40% four zero
MSM is contribute around 40% to India's industrial production
to India's industrial production
India's industrial production full stop please so guys whatever we produce in
Industries 40% is produced in msme is India right third
msme is contribute
around
job SE questions
you know if you look at the contribution of msme is in India's export
sometimes it's 45% sometimes it's 47% sometimes 48 percent so roughly 45 to 48
percent is the contribution of MSM is in India's export what will you write in upsc
around
40
46 how we are neerato
around 50 because anything above 45 so 45 46 47 48 49 we will just write around 50
percent because around 50 would give an idea yes around for absolutely around 50
would give an idea to the examine and you know that it's getting very close to half
mark right so please write MSM is contribute around half of India's export
half of India's export
absolutely correct shubham half of India's export please put a full stop now next
point please write Asha by the way just a second
ambuja
did you join us today itself
I didn't welcome you first lecture
welcome to the class
so amuse what you need to do is a friend is asking question what is venture
capital a camel Jay so if you have just joined us today no problem so what I can do
for is all of you who have joined us little late so what you can do is just watch
the previous three four videos update increase the speed and watch the videos and
then when I meet you next week after you watch all the videos next week you just
let me know in the class which are the areas where you have doubts so once the like
formal class time is over I'll stay back and I will take you outside and help you
so right you are also at par with rest of us this weekend right so we will do that
okay so please watch it and you let me know I'll help you
now next point
MSM is
provide employment
to around
12 crore workers 12 crore workers
next point
as Alberto according to you you tell me please according to you msme's produce
huge variety of products small small products but huge variety or limited variety
of products huge variety because they're small no they can experiment so they will
produce Scandal match boxes these diet computer keyboard everything so you know the
number of varieties they produce more than 8,000 and this these figures that I'm
telling you these are all from this year's budget and economic survey so please
write msme's produce
more than 8,000 varieties of products
msme is produce more than 8000 varieties of products
more than 8000 rieties of products
right now this would have been stopped
now please give the next title and please write
challenges faced by msme's in India
challenges faced by msmees in India
underline it please
let me ask you this point only how about you are smart kids tell me my first
question to you is Think Like An is Officer and tell me that
in terms of businesses and in terms of Industries according to you just think and
let me know what your intuition is in terms of business and in terms of economic
activities government of India requires a lot of licenses isn't it earlier 1960 and
70 government of India used to require license no license Raj is not there these
days you need certifications permissions from the government of India you want to
start an industry permission permission from Ministry of corporate Affairs
permission from for example Ministry of environment permission from Ministry of
external Affairs if you are exporting importing so many permissions are required
similarly if you want to register yourself permissions adhar and this that so can
you please tell me if you are manufacturing candles matchboxes and converting
mangoes into pickles you are very micro kind of company you're working in a village
in your house would you bother to go to Ministry of corporate Affairs would you
bother to go to Ministry of external Affairs and these different Ministries and
tell them hey Ministry please give me
see some sort of certification that I am msme
will you do that who will guide you in all this one great who will come to your
village will our Top Class chartered accountant go to a village in the households
and say hey come I am the best CEO of India I will make you into msme I said it
doesn't happen like that
and we have so many villages and rural areas so those typical micro kind of
businesses they have remained outside the msme certification so far more than 90%
Ms of India are not registered
and what did you tell the government of India you told the government of India if
you are Doctor prabhat Kumar that government of India you should help the micro and
small especially but they are not registered so imagine guys that I manufacture
matchboxes SSH Deco I manufacturer matchboxes and suppose you are the branch
manager of SBI State Bank of India I come to your branch and tell you sir or ma'am
I am just a small producer of matchboxes I'm a micro company I work from my
household lonely I just need 10 lakh Rupees loan I have to expand my business and I
have to export because in European countries they are asking for my Matchbox can
you please give me 10 lakh Rupees loan I have to buy some machines equipment Etc
if you are SBI branch manager what will you say other than lunchtime what will you
say
so you first reaction will be lunchtime and your second reaction will be go to
dress number 13 why evening okay so what will you tell the person you'll tell the
person certificate of msme please
I am MSM yeah so we will say certificate of msme please and then I will tell you
come on I am a matchbox manufacturing guy I am not even a company from where will I
bring certificate so you you are the branch manager you will say sorry sir ma'am
we can't give you loan if you don't have certificate because we also have to
answer to Reserve Bank of India we can't give loans without certificate so then
what will I do I will say I'll be where do I go for certificate so then I contact a
chartered accountant hello Mr CA can you give me certificate of msme Chartered
accountancy yeah why not certificate charges thirty thousand rupees my fees 20,000
total 50,000 Rupees I said wait what did you say 50,000 is not even my income in
six months from where will I bring 50,000 Rupees if I had 50,000 Rupees I would
have gone to UK and become the prime minister of UK by now I don't have 50,000
Rupees caused complicated process costly process of registration very demotivating
in nature so guys if I'm a micro Enterprise I am not able to register myself
because it's costly it's complicated it requires a chartered accountant from where
do I bring chart at account number one number two if I'm not registered bank will
never give
alone and if the bank gives me loan bank will say my dear Matchbox Manufacturing
Company please bring some collaterals because if I'm not registered they will give
me loan personal loan but they will say collateral please bring land bring office
bring those property papers I mean I'm a micro Enterprise from where will I bring
land and properties if I had land and properties I would have become Reliance by
now I do not have land in property so either I will never get loan or if I get loan
they will say collateral like yeah bring collateral which I don't have so I will
never get alone so in that case what will I do since I am a micro company up they
came it's very interesting I'm a micro company what will I have I will have just a
small amount of hundred rupees in my pocket I'll say we what do I do so now I will
go back
and now I will say let me buy inferior quality of raw material because pascinia I
don't have cash I convert Tomatoes into tomato ketchup I'm a micro company I don't
have cash what will I do limited cash I will buy Rotten Tomatoes and I will convert
them into tomato ketchup this is what I will
what kind of machine will I use I will use outdated technology and machine I don't
have cash nobody helps me there is no program to help me that is why I was
criticizing make in India
so there is nothing to help so I will buy bad quality raw material bad quality
technology and when my product is ready everybody will say useless product because
toxic in nature these are the problems right so then I will call the government and
say government of India at least give me infrastructure
government says sorry
you are not covered under making India no infrastructure for you
infrastructure is only meant for industrial Corridor make in India you are not
making India because the word msme has not been used there of now I'll feel hurt
I'll say where do I go now so see no raw material no cash no infrastructure and
when my tomato ketchup is ready people are saying your quality of the product is
questionable and then if I create good quality product also I'm not able to Market
it why because I'm msme I don't have 100 Crow Rupees to give to Shahrukh Khan and
Amitabh Bachchan because Shahrukh Khan Amitabh Bachchan these kind of Sachin
Tendulkar if you tell them that hey please Brand my product please popularize my
product advertise them they will say pause hundred crore rupees for 10 second
advertisement hundred crore rupees for 10 seconds can you believe it
I'm not saying they are getting illegal money that is their talent and creativity
so they are commanding that money but from where will the msav bring 100 crore
rupees so their product will never be sold in the market right these are the
problems so you tell me please I want to ask you a question so it's about
that if you become the IAS officer what is the first thing that you will do with
msme but think and then answer please the first thing that you will do with MSM is
is give them cash
or help them to register
you won't give them cash
you don't want to help the small Industries
very
if you give cash
you can give cash once twice Thrice four times that's the first question for how
long will you give cash number one number two whom will you give cash to how will
you know somebody is micro and somebody's fall it's not written on the face no I am
a rich guy I will go to you and I will tell you I am a poor guy I will wear you
know dresses which will make me look like a poor guy say please help me I'm small
and I have one crew rupees in my pocket I will take benefits from you if you don't
register me and if you don't find out if in real life or not so what should I and
is Officer do give cash or first find out who is actually micro small and medium
registration first always registration first and should you make the registration
process complicated or absolutely simple and zero cost
simple and zero cost so if you are a nice office or government of India which
recommendation will you give to the government of India don't give money first
first identify right so zero cost registration it has started in India by the way
zero cost registration I will tell you see this 0 cost registration amazing kind of
program 0 cost registration is there in front of you
see what government of India has done government of India has started with them
portal what is udham Portal it's a website by government of India I have tried this
by the way so when you go to this website and if you are msme you just need to
upload your pan card and aadhar card that's it that's it and using your pan and
other they will find out all your details that's surveys done by the government is
very smart digital Technologies so using pan and aadhar you just need to upload it
on the portal within 30 minutes you'll get a certificate from government of India
and that certificate will say Ms heavy registration done uskeban you will think
that wow I have the certificate of the nobody will come to me you have no idea
after giving you certificate the government Machinery starts its role and they will
identify who you are within seven days they will do all these things don't worry
yeah so with them portal is for quick and easy registration of msmes this is one
example I think bar with all
if you are msme and somebody is not giving you infrastructure in the state you
want roads you want electricity nobody's helping you you are not even a part of
make in India so where will you go and say government of India can you please give
me roads and electricity where will you
Champions portal
Champions portal Champions portal is a website which is maintained directly by
Ministry of msme so if any msme of India is facing any kind of problem doesn't
matter what problem right the mail to them within 48 Hours you will get help and
response
quick registration would be important and
 and some kind of problems you are facing in life if you are msme champions portal
right up there taking a possible please write okay
so guys what are we writing
challenges metallic again what is the first challenge you write first related to
money or related to registration the registration please write
most of the msmes
most of the MS I means yes ayush we will see that okay most of the msme's
are not registered in India
are not registered in India
number two
hence they are unable to access
hence their unable to access
loans
and other financial assistance hence they are unable to access loans and other
financial assistance
from Banks
and other financial institutions
and other Finance Banks and other financial institutions
Facebook stock next point
they also face issues related to collaterals
they also face issues related to
whole lateral
they also face issues related to collateral
next point
msme's face difficulties
MSM is face difficulties
in accessing
in accessing
good quality
msme is also face difficulties in accessing good quality and affordable raw
material good quality and affordable raw material
good quality and affordable raw material
these portable stop next point is right
msme is also face
okay
msme is also face what conclusion made along with it will look good
msme is also face
scarcity of infrastructure
scarcity of infrastructure like
transportation
electricity
water
Etc
next point
marketing facilities
are relatively costly
marketing facilities are relatively costly
for msmes
for msms
next point
they generally use old and outdated technology
they generally use old and outdated technology
full stop how many points have it
7.25 now please write
steps taken by government
next title steps taken by government
to promote msme's
steps taken by government to promote msms
number one
 see you guys this is what we have to write
please write number one the government has started with them portal
the government had started with them portal
for smooth
and quick registration for smooth
and quick registration
smooth and quick registration
for msmes
right number two
number two please write
Ministry of msme maintains
Ministry of msme maintains
Champions portal Ministry of Heaven semi maintains Champions portal
to solve
various difficulties faced by msmes
to solve various difficulties faced by msmes
right
third point please write
now guys please focus on the board here they can is a very interesting point what
did I tell you that if you are msme
and if you go to a bank and tell the bank bank can you please give me loan First
Bank princess certificate please I've actually you will say see I have what a
certificate msme certificate then the bank will say no problem please tell me how
much loan do you need you will say 10 lakh Rupees bank will say collateral please
because Bank also have to follow rules and regulations of RBI
State Bank of India cannot give you loan without collateral what if you don't
return the money
so State Bank of India say sorry msmese I can't give you loan just like your paper
is fine I can give you loan I agree and I will give you loan at a very low rate of
interest I will not discriminate just bring some collateral please this is the
problem who can bring collateral the medium ones can bring collateral because
somebody who's manufacturing keyboard of a computer 100% they have a factory and
they must be having Factory paper but from where the person who is converting
Tomatoes into tomato ketchup or mangoes into pickle which are from where we bring
the property people it doesn't have property so the government of India said that's
discrimination so let us create one more policy which is called mudra yojana
another mudra USANA what happens if you are msme and if you have certificate like
this oh if is required us certificate is required if you have a certificate of msme
you can go to any Bank government Bank Private Bank any bank and you can say please
give me 10 lakh Rupees loan at very low rate of interest without collateral you do
not need to give collateral now if you take
phones the answer decade this question has been asked in upsc by the way if you
take loans which are less than 50,000 Rupees under mudra yojana that loan is called
shishu loan right in facts shishu infants like you guys
Kishore loan fifty thousand rupees to 5 lakh rupees that is called Kishore after
infants you become Kishore and then you become tarun so five lakh Rupees to 10 lakh
Rupees if you take this load you are called in the classroom no Kishore okay in one
of the batches I had both Kishore and tarun in the class right so imagine how
difficult their life would have been after the lecture what the french would have
been doing saying you are not alone from today you are five black to 10 Lakers hey
so Kishore 50,000 to 5 lakh rupees sorry if there is any Kishore tarun five lag to
10 lakh Rupees under mudra use they grow up are you noticing something for upsc I'm
not saying this upsc is doing it with you what upsc is doing is every year
without fail upsc brings one factual point from msme they convert it into McQ in
prelims they are not asking conceptual questions from this topic because there is
no concept
what are they doing they just pick one point they say in the year 2019 or 2020
they picked this point mudra yoshra and they said under shishu which of the
following loans are given this is the question they had asked so I told you and
this year what do they do they pick the definition of msme and they said that which
of the following are the criteria of msap what is the cutoff value 50 crore 250
crore etc etc these are the kind of points they're asking from this topic so we
should be prepared silly please write that government provides okay
government provides
collateral free loan up to 10 lakh Rupees
collateral free loan up to 10 life rupees
collateral free loan up to 10 lakh Rupees
to the msme's
under mudra yojana
under mudra yojana
mudra yojana
is what I will stop change the paragraph and write
mudra loans are of three types mudra loans are of three types
please write this mudra loans are of three types guys please write mudra loans are
of three types
you just have to note it down number one issue
up to 50,000
Kishore
and then tarun noted down please
for employment Generations came out different
a very simple I'll tell you
for a startup you need to fulfill six conditions
so after fulfilling six conditions
if you fit in any of these categories you will be called as a msme startup
you already have the certificate done
msme startup
have you written guys wonderful
Bata diaper this I told you Naveen I told you know that
if your investment is lower
and suppose your revenue is higher you will be considered in the higher category
but suppose that your revenue is low your investment is high then also you are
considered in the higher category because if you had the money only then you
invested
so always the higher one is
this loan it's very simple they go if you go to a bank and take a loan up to
50,000 Rupees you will be called as a shishu loan if you take loan between 50,000
to 5 lakh money will be given to USA okay this money is given to you and in the
paper it will be written it is Kishore loan
and if you get a loan of five lakh to 10 lakh is just that one term will be used
it will be called as tarun load that's it it's just a matter of terminology right
so roughly side the next one it's forty
yeah they okay number fourty
please write spurti
let me explain what this is so guys do you remember that yesterday I gave you the
example of fox nuts from from Bihar Fox nuts yes so I want to give you two examples
it will help you to understand this part well
again you know every year what government of India does is government of India
gives Padma Awards Dana every year the government of India gives Padma Awards this
year also Padma Works were given
one of the winners of the Padma world was a lady a Google gonna what is the name
of that lady so there is a lady who won the Padma Awards who creates mithila
paintings
I also had as madhubani paintings so she's a painter she won the Padma Awards this
year
as a printer
now what happened is collator luck Call It by chance I don't know how it happened
last year by the way the Padma words were declared on January 26th this year but I
had a good fortune of meeting this lady and her son last year around the end of
November and first week of December last year I met them in Delhi
in one of the events so when I met them I didn't know who they are so when I was
introduced to them I got to know that okay they are the painters then I asked them
that which painting do you do so they said mithila paintings then I asked them that
how come you are here in Delhi so they said that most of the time when the Prime
Minister and president of India when they go abroad and when they gift those
methara printings we are the ones who created those paintings for him and we have
created more than half a dozen special paintings which is there in European
Parliament it is there in UK all of that has been created by us that lady said
her son is I think 23 year old
so what has happened is so I asked them I asked the son that how much do you
charge for a painting right being an economic student the first question that he'll
ask is how much do you charge so he said that our painting starts from 30 rupees I
literally got a mini heart attack 30 rupees painting that's it
so he said yeah 30 rupees I said what is the size of the painting he said it would
be 12 inches 12 inches by six inches 30 rupees so this size but I said 30 rupees
this is like no cost at all it's like free of cost so I said how do you survive he
said survive as in we are doing well I said where are you doing well so he said I
stay in darbhanga region I stay in the methylanchal reason of Bihar so I said which
place he said that is called methyl Angel reason only in the village we stay I am
there my mother is there I have a brother as well two brothers of that of that guy
so that lady has two sons
so is there all of us say stay in the village we don't need much for survival we
have the crops which are cultivated in the village our life is very simple so I
said you deserve more he said I don't know if we deserve more or not but we are
happy I said I said tell me what is the price of your painting in Delhi
he said 15,000 rupees to 30,000 rupees
I said who sells it so he said people like you come to our village you buy our
paintings for 30 rupees you bring it in Delhi and you sell it for 15,000 rupees I
don't look at literally I don't do all these things then I asked him do you know
what is the cost of your painting in us and UK he said yeah we know it one Laker
place I said why don't you increase the price because you sell it for 30 Rupees to
the middle men
he said if I start calculating things like you urban area people then I will not
remain as an artist I will become a Trader and there is a difference between artist
and Trader a Trader buys and sell artists paint set so he said that the day we
start to calculate money we will become corrupt our mind will only go in that
direction we will lose that fine art and we will not be able to create the painting
I said okay so guys
what happens is even a 21 22 year old kid
that what is 21 years of his is nothing 23 years of his is nothing look at the
great thinking of this guy imagine what kind of upbringing that person is getting
from his mother and his father and at this age 23 24 25 this person understands the
difference between art craft and trade which we don't understand even if we attain
the age of 70 years we keep calculating money and the artists keep on creating art
so then I asked him that then you will never be able to progress in life because
some material things are also required so he said no no we don't need to do this
government has called us for help I say wait
which help
so he told me this interesting thing he told me that what government of India has
done is government of India made an announcement in his village which is
mithilanchal reason so he said there was an announcement in our village that all
the artists of the village and our village is full of artists so government said we
cannot give benefits and separate money and capital allocation to every artist
because there are thousand of artists in this country not just you know Bihar and
go to nearby States biharaj jharkhand bring all odisha Northeast go to any part of
India go to southern part of India you will find artists after artists so the
government of India made an announcement in government said that if you belong to a
particular Village and if a group of artists will approach the government of India
let's say 500 artists together 500 Fox Nets producers together government of India
allocates one point five crore rupees Fund in the name of that group so suppose 500
mithila painting artists come together they write their name on the piece of paper
they present it to the government of
with their icard and detail and tell the government government we 500 artists have
created a group called as cluster cluster of artists officially we are together
they have to give it in writing so once it reaches government of India government
of India says now we are going to release 1.5 crore rupees in the name of your
group
using that 1.5 crore rupees the group of artists will buy good quality raw
material together wholesale huge amounts so it's cheaper once you buy the raw
material then you can buy painting Etc you can paint together and then all the
paintings that has been created it will be packaged in nice packets that packet
will be of International Quality using that 1.5 crore rupees once it is packaged
then they hire advertising and marketing agencies who take this products to us UK
Etc it is real it is happening and then these advertising agencies take these
products to foreign countries without any middle men directly government appoints
them and then they sell these products there and directly money comes in the
account of these individual artists in that group so why is the government of India
giving 1.5 crore rupee in the name of the group so as to promote a particular art
in a particular region government said every Regional art and craft must be
protected so for that
for that the government of India is doing this now the government of India says
why to only protect art why not protect the local products also like Fox nuts and
makanas both have been included under this scheme solicit
under it
the government promotes
under it means understood the
the government promotes cluster formation
the government promotes cluster formation
the government promotes cluster formation please put a full stop
local producers and artists
are encouraged
or encouraged
to create clusters
or groups
clusters or groups
and based on the group size
based on the group size the government releases funds
the government releases funds
to improve the production
and export
to improve the production and export
please beautiful stop
now next one please write Aspire scheme
remember Aspire fund of fund
a spiral front of fund was different because underfund of fund only money is given
but this is Aspire scheme under scheme not only money but other things will also be
given so please write Aspire scheme but the answer SUNY I'm going to explain what
is a spiral scheme right Aspire scheme please
now see the story it's hardly a 30-40 Second Story please listen to it now see you
guys what do you write tell you yesterday I told you yesterday that you belong to a
hilly area you belong to a hilly area like Himachal uttarakhand Etc remember the
story and you want to manufacture solar cells for your area why do you want to
manufacture solar cell because you want to solve the problem of lack of electricity
in your rural area what the answer to me so if there is a startup in India Focus
please if there is a startup in India which tells the government of India that
government of India we are a startup and we are trying to solve the problem of a
rural area in India
 for that we need Capital means cash and we need incubation facility
but since we are focusing on rural area nobody is helping us everybody says well
you are risky please wait when your turn comes we will see nobody is trying to help
us with open heart people are discriminating against us where do we go so the
government of India says don't worry
Aspire scheme is there whereby if you are trying to create a startup which is
dedicated to solve the problem of rural areas of India then you will get direct
entry into the incubator called as Lively wood business incubator LBI this is an
incubator so if you are looking that's one of the answers for your question so if
you are trying to solve a rural area problem of India any rural area of India
and if you want help you will get two kinds of help first you will get money and
you will get incubation under this
but suppose you want to solve the rural area problem but your solution requires
high level technology like you want to manufacture drones for rural areas right it
requires high level technology LBI cannot help you
because LBI has a limitation LBI is level of Technologies only normal so if you
are trying to solve rural area problem but you need very sophisticated technology
then you should go to technology business incubator called TBI
so you have two incubators for normal technology LBI for sophisticated technology
TBI and through this scheme the government of India is trying to promote startups
dedicated to rural development about a chair you can write this in Gs paper 2 also
you can write this in governance related answers also that this will also promote
use of Technology penetration in rural area which will improve governance solves
because rural area needs technology related solutions for multiple things health
education governance and using this schemes you can make rural areas better please
under it under it
the government has created
two types of incubators
the government has created two types of incubators
number one number one
to provide solution to rural area problems
to provide solution to rural area problems
incubation facility is provided through
incubation facilities provided through
incubation facilities provided through
livelihood business incubator
livelihood business incubator LBI livelihood business incubator
number two
technology business incubator is used
TBI technology business incubator is used technology business incubator is used
to provide
incubation to
to provide incubation to
startups
which use sophisticated technology which use sophisticated technology
which use sophisticated
technology
now please write the next one
even I please draw this
draw this please
this is called as credit linked subsidy scheme
so one of you have typed online that I missed various parts due to network issues
sorry to hear that what you can do is once this lecture is over just watch that
part
which you have missed and please take down the notes it's important
credit linked subsidy scheme
I say you are smart kids you would have understood the scheme even before I start
speaking isn't it
you would have understood 90% of it I am sure
 credit linked subsidy scheme
can you use this diagram in the exam 100% yes
you can
but there is only one condition if you use this diagram in the exam you have to
write three four line explanation below it otherwise you can't use it
okay let me explain okay
now take it in a very simple manner
by the way I asked you this already yesterday and day before and many of you gave
me the answers so today I'm asking this question again
could you manage time to watch those two three current interface videos which I
have posted
did you watch it only one or both
did you watch the one related to banking NPA problem because the recently Reserve
Bank of India spoke something about willful defaulters
in that context only I had created that video you was only one video not both as I
come grow so as I was telling you yesterday I gave you a tip that this week we call
so we are having I think four lectures only so which means that you will have three
days right after four days you will have three days where you will not have any
task in the worldly morning time 7:30 8:30 Etc you should wake up early morning
just like you are waking up now and 732 8:30 you should watch those three current
interface videos take reason there is a reason I want you to watch it because you
will understand some basic concepts related to banking GDP etc etc so by the time
we reach proper banking topic if you're reading something in the newspaper you will
already have an understanding of it which means you will not feel left out you will
feel I already know half of banking so if you give watching those videos I assure
you at 70 80% of the banking you anyway come to know
under percentage essay career so please dedicate those three days that you have
for watching those current affairs videos I promise you it will help you it will
change your perspective towards banking NPA Etc please watch it because the method
which I have followed in the current affairs to teach you banking I will exactly
follow the same method to teach you banking in the class so entire banking I'm
going to teach you like this
so I will give you lot of diagrams pictures stories with dictations mcqs answer
writing everything but the lecture will be designed like this only please get used
to it it will really help you I know it must be sometimes what must be a little
baffling that what are we doing is okay how can you use this kind of diagram for
credit link subsidiously but we can see
now imagine guys that
you are the owner of One MS baby answer again is very important suppose you are
the owner of msme which kind of msme are you owning so you are owning the msme
which is like belongs to SC St Northeast so suppose you belong to North East
category and you own msme
so if there is a msme which is owned by sc's St is Northeast Haley areas right or
the msme is owned by women
or the msme is owned by any combination of these so suppose you are a male
and you belong to hilly area you fit here
because it says hilly area it doesn't say women from hilly area
so if you are a CST Northeast hilly area or women based msme or a combination of
these things then suppose you go to a bank what dances today suppose you go to a
bank and you tell the bank at hello Mr Bank can you please provide me
100 rupees because I want to buy a new machine new equipment for my factory only
for that you can ask for law
so the bank says yeah since you have come to the branch what we can do is out of
the 100 rupees requirement that you are saying let us first verify if you are
really msme or not so they will do a thorough paper check then they will ask you
which equipment and machine are you trying to buy so you will say I'm trying to buy
a machine or a refrigerator from this Factory they will say please give us the
details of the factory price of the refrigerator and the will
they estimated will so now you have to go to the person who is selling the
refrigerator you have to take an estimated quotation of refrigerator then you have
to come to the bank and say yeah they could see hundred rupees I have to buy
refrigerator please give me money then the bank will tell you okay out of your 100
rupees requirement 25 rupees we are depositing in your account as cash subsidy
no questions asked 25% subsidy given to you the rest remaining amount 75% which
means 75 rupees will be deposited in your account but this will be a loan
and the rate of interest will be very low based on the economic condition 1% 2% 3%
that's it
so whatever you ask to the bank and say that I need this money please give me this
money I want to buy some equipment bank will verify rigorous verification and if it
is coming out to be true 25% will be given to you as cash subsidy remaining 75% is
given to you as low
but suppose you don't belong to this category of msme so
the msme suppose is not owned by SCS Estes Northeast Hillary or women suppose you
don't belong to this category but still you are a mission
and then you go to a bank and say bank I don't belong to this category can you
please give me hundred rupees loan I have to buy a refrigerator and you don't
belong to the category then also bank will say no problem let me verify you if you
are lying or if you are truthful if you are honest once the bank verifies you then
bank will give you 15% of your requirement as subsidy so for you also there is
something 15% and remaining 85% is given to you in the form of loan at low rest of
Interest one of your online friend is asking so don't worry when the right time
comes I'll teach you but cash subsidi Ka Mata so imagine that I'm your dad
you came to me and you said Dad
I need 100 rupees help from you because I have to buy books I will say you need
100 rupees both only what I can do is
50 rupees I have in my pocket take it that's your gift
subsidy
and the remaining 50 rupees I will give you as a loan and I will say my dear kid
this 50 rupees is gift to you take it 50 rupees done and the remaining 50 rupees
this is a loan to you return it after six months
done that is what the government of India is doing government of India and banks
are behaving like that kind of dad who is saying that I will give you some help and
remaining amount I'll give you as loan because I want you that in future you should
become strong that is what parents do they make a strong so some subsidy and some
loan combination they could normally which is very interesting you have to see it
look carefully
this says credit linked subsidy because the moment you read the word Credit in
economics you should replace the word Credit in your mind with the word loan linked
subsidy
which means
this subsidy of 25% and 15% is only given to those msmes who go to a bank to take
loan
if you sit in your office you are msme nobody will come and give you subsidy
because it says loan linked subsidy so unless you ask for a loan subsidy will not
be given
and the moment you ask for a loan little bit of subsidy little bit of loan will be
even so this is called as credit link subsidy I will teach you the similar thing
when I teach you agriculture not today but when I teach you agriculture in the
agriculture sector same kind of scheme is used there so when a farmer sits in his
house the government doesn't go to them and say hey please take subsidy but the
moment farmer goes to a bank and says I need my loan immediately Bank says don't
worry Mr farmer little bit subsidy little bit long
so this is demand based scheme
so if you demand it you will get the benefit if you do not demand you don't get it
what is fundamental right
fundamental right is guaranteed to you only when you demand it no
for now until rights are guaranted to you even when you don't demand it so even if
you're sitting here nobody's allowed to disturb you in the class come in the class
and say I want to play songs here in the class no you can't do that
even though we have not put a notice here that nobody can play song but actually
nobody can do that because it disturbs our Peace So fundamental rights are
guaranteed even if you don't demand it
but this is not fundamental right this will be given to you only when you demand
it
tested right so this is demand way so in upsc they will ask you this question that
is this scheme demand based 100%
right so subsidy means cash transfer yeah medically kinda you miss this point
cash subsidy so cash is taking by the bank gifted to you yes absolutely please
right under clss
yes I use absolutely correct
please write under clss
a part of the
capital requirement a part of the capital requirement
a part of the capital requirement
of msme's
is provided to them
in the form of
cash subsidy
whereas
the remaining part is provided
the remaining body is provided
remaining parties provided
in the form of loan
in the form of loan
at low rate of interest
no SM they are treated as a separate category separately mentioned not included
huh
so full stop please
now I'm going to most welcome I'm going to show you something ever this is your
answer writing which I was talking about
let me see if you happy I have it adjust many have you got this one
the sheet which I gave you for answer writing for the kath of Apple
there must be one question related to msme
where is that question
page number
page number 10 no page number nine
so let's open page number 9
see you guys this answer writing tips which we are discussing in the class now we
both important because I told you only knowledge will not help us to get great
marks so Skillet thought a little bit of training is required yeah okay
so this is where I will give you little bit of trading for this answer and the next
question which I'm going to give you some note training which you have to write
right calcite let us see
so discuss the challenges faced by msme is in India Focus please discuss the
challenges faced by msme is in India
number two in the same question has the government done enough to improve their
conditions especially in the context of economic slowdown since covid so we're
discussing what are the challenges faced by msmees and number two covid happened
during covid they were badly impacted has the government done enough to help them
become strong again this is the question so they have to answer so I don't do that
you just have to count the number of questions so this is the first question
Challenge and second question has government done enough two questions which means
there will be two introductions
right so now let's see
first will be a common introduction so what can be an introduction what can be a
good introduction here I told you see I could have written a different introduction
also but I just want to give you a structure so I'm using the same part huh you can
use this in exam so if nothing is coming to your mind what did I tell you just
write that msme's are the backbone and if you don't want to write backbone just
write msmies are the soul of Indian economy I will never kidney likes now just
write backbone or solo specific your favorite and just start your answer why that
okay so that's number one number two we see looking at their significance what the
answer they can looking at this significance in atmanir Bharat program because I
see what is there this so see there are two questions question four and five
question four says Define msmes what are the recent changes in their categories
discuss their significance so question forces Define msmes so these two types of
questions are possible one very definition Is Us number two one where their
challenges and government program
areas but if they possible so see how do you how do you open your answer you open
your answer by saying that looking at the significance but they are so important
that during our Bharat program covid at minervar Bharat the government of India
revamped the definition there was some old definition but government of India said
no no hold definitions not working let us change the definition because economy has
changed during covid things were different so just because during covid things were
different we change the definition of msmes and we said msmis also need to be
looked in a different manner so we are moving with time this is the first part of
the answer so we are telling the examiner Examiner
Ms mes are very important and number two msmees are so important that government
changed the definition so we are telling you that we know it definition will come
later but first we are telling you why definition was changed it was changed
because of covid and see
what did we write revamp the definition of msme original originally provided in
micro small and medium Enterprise development act in 2006 so the previous
definition was in 2006 and then Dr prabhat Kumar suggested the government in 2015
to adopt a definition government did not adopted government said yeah we will see
covid happened government of India Dr prabhat Kumar was right let us adopt his
definition and then government of India made some changes adopted his definition oh
yeah this is the paragraph right so see we are not writing unnecessary things and
why did we write the first point we wrote the first point to show The Examiner that
msmies are actually the Heart and Soul of India it is very very important and then
we wrote it is so important that during covid when there were loss of life Etc
government of India was changing its definition it is so important right now then
we come to the first body what is the first body the first body is definition of
msmes
so whenever somebody asks you a definition do not start your definition by saying
micro means less than one crore investment less than five crore turnover no no
first give the basis
so how do you give the basis always use one or two lines to introduce something so
see before we write the table you have a we are writing msmes are defined based on
two criterias and we are writing sentences to save time we could have written it in
the form of bullet points but space will be gone and we have to save space also
it's a big question so we are not writing bullets so msmees are based on two
criteria investment in turnover investment is taken in the sense of plant machine
and factories and then whereas turnover excludes exports that's it
we have written everything there it's gone everything is there so now we don't
need to unnecessary increase the length of the paragraph and then we are writing
following are the cutoff limits done
then you need to draw this table and then you need to write the cutoff limits I
have kept it blank so that you can memorize and you can write it by practice Kar
Lena right intentionally I kept it blank up Carolina practice now see body second
so what are we writing here
this question said define msme's so since you are writing in the answer that
government changed the definition during Atman IR Bharat so you have to write this
special features of the definition without this your answer is incomplete because
this is the biggest change in the definition of msme is how can you not write this
examiner will look for these points these are special points calc it covers both
manufacturing and services using the composite definition right both manufacturing
and services same definition wholesale and Retail trade included Street vendors are
also clubbed under msme to provide them benefit that's it
we are not defining what is the street vendor Etc etcetera that people who sell
the products on the road are called Street vendors because space car where is the
space in the exam for all this you just need to write to the point things done
so see what have we done we have drawn a table in the exam we have written a
paragraph and we have also written the bullet points so there are people who will
suggest you only write bullet points exactly
how will you convert this table into bullet points unnecessarily so sometimes use
paragraphs sometimes you stables and if required bullets combination is always good
now what is the next point we are adding C the reasons for the revised criteria if
upsc will ask you what was the need to change the criteria so then we would say
that the government of India has extended the criteria to 250 crores to cover more
companies inside msme
so that more companies can be given the benefits and then you have a decagalika
that by excluding export the government of India is actually trying to promote
export that is why we have removed exports so see how precisely we have written
these two points that this is the reason it was done so if you upsc asks you what
was the reason for change of definition eligana
right then body three
the question can be asked in upsc discuss
the role played by msme in a country like India they can remember I have given you
this definition in the class that these are the roles played by msme in India so
first is share in India's national income then share in output then variety export
topics they could are you noticing that when somebody asked the role or
significance data
for the first time we use data here because significance is being asked
now let me tell you how examiner will find if you are going to be a very good
policy maker or you are just learning the subject difference batatoma here
if a person is just learning the subject the person will write msme provides
employment 11 to 12 growth full stop but if somebody is very passionate about
becoming an is officer that student will not stop here that employment 11 to 12 Pro
that student will go one step ahead and say that this employment that you see has
the potential to remove rural unemployment problem
because if you create more msme's in rural area rural areas are suffering from a
special type of unemployment called disguised unemployment dedicate what is
disguised unemployment guys please focus when I teach you employment chapter Usman
detail I will give you but today just give let me give you the basics imagine guys
that my father has an agricultural land
and he's doing cultivation on that land
now the Peace of the land is so small that only one fiber is enough to cultivate
on that piece of land
but then fortunately or unfortunately I was born in the family
now what happened is since my father is a farmer he is cultivating the field now I
am the son I will also go in the same field my father will say better you please go
home we don't require you
we will say come on I am a part of your family I will also go in the field he will
say we don't need you because that field is so spoiled at one farmer is enough but
I will force myself and I will stand in the field what is my contribution zero
if I go with my dad in the agricultural field he doesn't need me my contribution
is zero so when the contribution of a worker in a particular industry or a
particular sector contribution is near to zero
yet that person is a part of that sector that person is called as disguised
unemployed
which means it looks as if I am working but I am not required
so in Village area this is the problem so if you open more msme's this problem can
be solved social benefit of MSM these are the points that the examiner is looking
for please don't write only data driven answer put some soul and heart into your
answer by writing these kind of points okay so that is one then you see last point
mechaika that there is a role of MSM is in rural development isn't it by increasing
rural income by solving the problem of unemployment yes of course you have to write
these points in the exam are you getting these points good
now
you see next body
you see these are the problems faced by msme so how did we start it
we don't directly write oh Point number one two three four problems faced by msme
first we write an introduction that what are the problems faced by MSP Decay msme
is being small in size right being small in size and being mostly unregistered face
the following problem so we have given a context that why msmees are facing
challenge two reasons first they are not registered and second they are small by
Nature that is why they are facing this discrimination so then we need to explain
all this and I have given you a dictation that that dictation which we discuss in
the class you just have to fit it here but always remember before writing these
points give one or two lines of context very very important
now once you write this I'll be like a next one what has government of India done
to help the msmes I gave you so many schemes today through dictations and
explanation but before you write the scheme you have to write this introduction
yeah okay before you write the list of schemes you have to introduce them by saying
considering their role
before you write this schema considering their role government has taken many
steps over period of time to strend then them which means since msmies are
important over a period of time government has taken many steps to improve their
situation in okay appointed Doctor prabhat Kumar committee you have to take the
name of this committee because without it the answer is incomplete but you don't
take the name of this committee initially in the definition you take its name at
the right place that prabhat Kumar committee suggested to the government how to
improve Ms that is why we are taking his name so the government of India appointed
Dr prabhat Kumar committee to design the national msme policy and the government of
India took major steps under art many River Bharat package so if anybody will ask
you what is art miniverg package for msmes this is that answer
right so through one answer only I am giving you so many points here right
absolutely so PK you are correct before we write any of the bullet points we have
to write one or two line introduction yeah these are the things which are missing
in our answer in upsc and there we don't get marks so we took the name of committee
and we said Earth minutes were Bharat package also gave these reforms
and then see conclusion yeah okay
this is so important this is so very important because what will the examiner
remember before giving marks Collision
before giving March the evaluator would remember what your telescope pertain let
us see if there is anything special in the conclusion see
government of India has tried to address the challenges faced by msme positive
sentence that yes MSM is face a lot of problem but government has tried of the
quality
the theme of msme day 2023
so every year we celebrate this occasion msme day so the theme for this year is
Future Ready msme for India hundred
75 years of India Amrit call government of India says in next 25 years when India
becomes 100 years of age so they are saying government is saying that in next 25
years we have to make the msme's Future Ready how do you make somebody Future Ready
you make somebody Future Ready by introducing technology
right so government of India about so slow that what would be the aim of the
government of India in future to provide more technology to MSM means this is what
we are trying future adms however we need to address some of the basic issues of
msme to make them which are ready so we are saying government you are right
but there are few things which you need to do we are not saying you are bad we are
saying you are right but you are half right we are telling you how to be more right
see for example providing them affordable And Timely raw material Banks cannot
provide raw material government can provide raw potatoes semiconductor chip why
should only tatas and Infosys get the semiconductor chip why not msmees so that is
one thing dedicated supply chain providing them basic infrastructure oh make in
India gives infrastructure to Big Industries what about them so you should provide
them creating affordable marketing opportunities that is still something which we
haven't achieved so marketing facilities within an outside India and with these
efforts msme can indeed become India's growth engine again positive note right this
is how we have to write is it fine no ASU Mr Point whenever government guys please
please Focus whenever government of India whenever government of India
is a scheme for a particular sector like msme
it doesn't mean that parallely government is not doing something for those people
who are big Industries or service class Etc there are parallel schemes which are
running so just because government releases a scheme for a particular sector
doesn't mean others are being deprived because for others other things are there
like make in India is for big ones but we introduced one district one product and
they're making India msmes are outside making India so we introduce these kind of
schemes which I taught you apparently things are running right up there quick
question let me show you this question
but I have a request that you please don't look at the answer in the class I have
given a standard answer of dehlani let me first teach you that small concept it
will take five six minutes and then I will ask you to note down few things from
here then you have to create an answer and you have to bring it for me okay what is
that this one
you just have to take few notes I will not give you dictation because if I dictate
your entire answer will be dictated I want you guys to write an answer for me so
therefore you can this is called as Regional comprehensive economic partnership
this is called our set reasonable comprehensive economic partnership with other
what is this concept see
guys if you look towards
the map of India in the globe just look at the map of India
so for example suppose this is India
if you look towards this side east of India
you will find these countries
Philippines Malaysia Thailand Indonesia Singapore Brunei Cambodia Laos Myanmar and
Vietnam
these are the 10 countries you will find towards the east of India
long time back in 1990s somebody told government of India right government of
India
East is very important
you should be careful in the west but you should be taking proactive steps to
improve relationship in the East because if the East becomes strong then you can
counter China as well
so see the west of India is Pakistan
Pakistan is not the biggest threat of India
China is the biggest threat of India because China is a threat not only for India
China is a threat for all these countries China's a threat for even Pakistan China
is a threat for China Sri Lanka China is a threat for Taiwan China is a threat for
us UK Europe because it has very aggressive kind of attitude that is why people
consider it as threat
so somebody told government of India that you cannot directly fight with a country
all the time because they are in your neighborhood for some time please do not
focus on the west come to the east make these countries your best friend they will
help you to counter China also in future if required geopolitics then somebody told
government of India that sne and you can directly go to these countries and say hey
become my friend let us fight with China I say you can't do
so what will you do you will go to them and exactly do what you did in
marcosair you will go to them and tell them hey my dear Eastern countries east of
India Northeast of India can we become friends they said how India said Free Trade
Agreement
 right in the house old weapon free trade India did not require this agreement but
for geopoly because we had nothing to export
but we said can we become good friends they said yeah we can become friends but
there is a condition India that this group of countries is called Asian it was
created in 1967
initially they started with five countries then they became 10 so these group of
countries are called asean country so India started to look at them and tell them
hey Philippines you are my favorite country I am only looking at you all the time
can we become friends there's a Sorry boss not possible we had a group like mercos
so if you want to become friends you have to sign so India you have to sign a free
trade agreement with entire group India said yeah with a very heavy heart we are
doing it but India actually wanted that only India wanted a free trade agreement
with all of them we were just pretending yeah we don't want it but if you are
saying Philippines yeah we will do it right so we ended up signing a Free Trade
Agreement called as
asean India Free Trade Agreement aif ta we signed it in 20 10
right when we signed this agreement we told ashiana that ashaan it's a free trade
agreement let us exchange goods and services
Asian said no
let us exchange only Goods
why because they said India if we include Services you will dominate our economy
we know you
India is very good in services and actually this is true countries are scared of
India they're skeptical of India right if if they allow Indian services in their
country Indian services will dominate them look at our software Industries doctors
Engineers shattered the contents lawyers at this cost minimum cost we give good
quality service they got little apprehensive award they said no India not now let
us take more time and guys what did I teach you in every trade agreement you have
to consider three things give time space and respect the sensitivities India said
my dear friend no problem exclude the services let us start with Goods in Free
Trade Agreement then
Asian India Free Trade Agreement was reviewed
and in the year 2015 finally goods and services both were included
finally we got what we wanted right
after this happened
there is something else which came in the news about what happened in the news
around the year 2012 guys
okay this is the map
around the year 2012 what happened in asean is yeah but again look at this
countries so there are these 10 Asian countries and along with 10 Ash and countries
you can see some new names South Korea Japan Australia New Zealand and there's your
India
right
so you can see that there are some new names as well along with Asian so what
happened along with ashaan is 10 countries plus some new countries they started to
Talk Amongst each other that let us do something interesting and what did they want
to do
so for example Asian countries these are 10 Asian countries
and then there are other countries happy they say India Australia New Zealand
China Japan and South Korea
so these are the extra countries so what happened is 10 Asian plus 1 2 3 4 5 6 of
these countries they thought
why can't we do one thing
why can't we create a system whereby all these countries can be put in a box and
asean will sign free trade agreement with India Australia New Zealand China Japan
and South Korea why is it taught possible that entire Russian as a group will sign
free trade agreement with all of these and all of these countries will sign
retirement with Asian which means Sharon will not remain Asian what will happen is
Asian will expand like this now it will become a big family like this whereby every
country will have a free trade agreement with every other country
that was the idea
so country a one country will have free trade agreement with 15 other countries
here that was that total 10 plus 6 16 so every country will have a free trade
agreement with every other country this was their idea and in that Free Trade
Agreement they said we will not just write goods and services we will write Goods
Services investment and Technology everything will be explored everything will be
exchanged in Free Trade Agreement only they said let us customize and let us
exchange everything the name of this big agreement will be our Step regional
comprehensive economic partnership this was the idea and how did it all start it
all started because
India in 1991 had created a policy called as look East policy you study all these
things in IR that India created a policy called look his policy and the look is
policy said that India should make good kind of friendship at India should be
involved in a very deep Association they could this is India India should be
involved in deep Association in the Eastern side and all the remaining 15 countries
more or less if you in exclude India the other 15 countries are towards this side
only so we are very much interested in that so what happened is around the year
2020 there was an announcement that all the 16 countries today are signing our step
there was big announcement in the world let us sign ourselves but India said no
and it was India who actually started this negotiation of our second 2012 and when
the right time came for the marriage what happened the bride and the groom they
disagreed they said no marriage not happening so every country in the world started
to say India are you crazy you created this concept of arsip and you are saying I
will not sign this agreement why what happened to you guys so India said it's not
that we don't want to sign it but this is not the right time immediately China
started to criticize an abuse India saying India believes that it's a super power
it has showing high-headedness India has become rude Etc they started to lambast
India say bad things about India India quietly heard everything and there was a
press conference in which Ministry of external Affairs they sent a great idea
officer and I said go and respond to them
so Ministry of external Affairs greater oppress conference and they said let us
tell you why we did not sign this agreement Point number one well guys Focus I am
not going to give you a dictation on this today because I want you to read this
part which I have given you through type dancer through type points and I want you
to write an answer phone by listening to my points I want to see how you capture my
points in the answer uske what I will give you dictation
so what did India do
the first point told by India was they both such a point it's a beautiful Point
first point told by India was that we started the negotiation in 2012
and we were about to sign this deal in 2020
exactly before we sign the deal
till the year 2019
we kept on telling these people that I see do one thing we know that this deal
must come into Force around 20 20 21 this deal should come into Force but India was
continuously telling them since 2012 that's the economy is changing Society is
changing let us introduce new features in RSM they decided a framework for our
second 2012 from 2013 India was constantly telling them that changed this structure
which we created in 2012 because the world is changing in 2013 they did not listen
to us 2014 they did not listen to us 15 16 17 18 they did not listen to us they're
India said thank you
we are leaving
so one finder India said not possible so they started to tell India that why
didn't you tell all these things earlier than India started to bring out the
details of the official meetings and India started to show the papers see in 2013
we gave you a written reply that we want these changes you are not bringing the
change
so India said we changing times the society has changed so the deal should change
what are those changes that India was looking at maybe there are some big changes
India one day they care
first of all see this
guys the moment you sign a Free Trade Agreement what happens you have to open your
border
the other country opens its border
India was telling China at China look at your history with us the moment we open
our border see what you do look guys this is India's export to China and this is
our import from China see what we are doing
the moment we open our border look what China does to us China starts to send
these Goods to us so many Goods to us and what happens we keep on making payments
today money Indian money it goes to China gone our dollars gone
and what do we export we export nothing because we don't have it
so we told China we are not ready
and we told you that you cannot send these many items to India please put a
restriction China said no I will send you whatever we want that is problem number
one problem number two
you see this what is the trade deficit when China trade deficit means for example
if my income is hundred rupees but I spend hundred twenty rupees 20 Rupees is my
deficit so India has been spending extra money see this is our condition with China
deficit means this is the shortfall
so India did not have money yet India kept on paying them and India kept on buying
goods from them so India said we do not want to continue this we want to put a
control over this that is why we will not sign the agreement with you because we
are not ready now these are two points told by India next Point see
look at this what India did so guys what happened is this I'm talking about the
year 2018 they go 2018 something big happened in the world what happened is Chinese
companies they started to manufacture a lot of steam
and what they did is when they were manufacturing steel the Chinese government was
giving subsidy to its own Industries
and when it gave subsidy to its Steel Industries the cost of production of Steel
came down artificially then China started to sell the cheaper steel to us
us understood that this is not fair because they are giving subsidy to their steel
so us started to increase tariff trade War
and China was not able to sell Steel in US India was scared that if we sign a
trade agreement with China and all the other countries of Asian region what China
will do is China is not able to sell its goods to us because us is putting trade
War so what will China do China will start to sell its entire Goods in India and
Indian domestic still companies like Tata Steel Etc will be wiped out
so India was very scared of this that if we sign a deal with China what will China
do China will divert all its goods towards India we were very skeptical we said
sorry we don't want to do that right these are few of the things another thing done
by India was it they go about mazadar this one
see what is happening
India was telling China and other countries that I will sign the deal only under
one condition if you guys include one rule called as rules of origin what is rules
of origin everybody this is one of the best rules which India wants but other
countries don't want it see what is the road this is India
now India has been telling China that China you are exporting laptop to me no
problem boss I will accept your laptop but I will only accept hundred laptops from
you because my companies are also manufacturing laptop so if you export more than
100 laptops China 100 laptops we will accept without putting any tariff but if
China exports more than 100 laptop 1001 laptops India said we will put 10% taxes on
you
so 100 laptops will not put attacks 101 laptops will put a tax and India said I
will do this because my laptop industry is very new I want to protect it that's it
China said no problem
India said there is a problem
if you send 100 laptops to be
and then you stop
 then I know what you will do China you will send your laptops to Singapore and
Singapore will send your laptops To Us by saying that it is Singaporean laptop
so what will happen China will send laptop to Singapore Singapore will put a new
sticker over it saying made in Singapore and this laptop will be sent to India and
this is how China will be able to give us hundred laptop directly and hundred
laptop through Singapore this is what they will do so India say I don't want this
so I want you to do one thing I want you to sign and agreement with me called as
rules of origin what is rules of origin rules of origin means that whichever
country is sending anything to us that country has to give us in writing that the
laptop from Singapore 50% component belongs to Singapore
which means if Singapore is sending laptops to us they should give us in writing
that half of the laptop has been manufactured at least half of that has been
manufactured in Singapore then only we will call that laptop as Singaporean laptop
otherwise if less than half is manufactured in Singapore we will call it as Chinese
laptop but why would Singapore and China agree for it because then they will be
caught so Singapore in China said no we don't want to sign this agreement and India
said we are coming out right so that is one
now I think I have one more Point how
look at this point
what did I tell you guys I have taught you two types of barriers one is tariff
barrier one is non tariff barrier two various I have put tariff and non tariff apko
patay there is one type of barrier in which India is considered to be a very good
country India does not use that barrier or not that is non-verify anything
this is the level of non tariff barrier used by India look at India's non-type bye
look at Chinese non tariff Barry really this is China this is India look at all the
other Australia non-tier Fair look at Australia's non Terrace barrier okay look at
Australia's non tariff barrier it is this much look at Japan look at India
so India told all these countries that if you want to sign arcef with me
please write in the accept that non tariff barrier will be reduced by you all they
said no we can't write
so guys what did I tell you that India wanted that these countries should reduce
their non-tariff barrier they did not agree and then last point which India told
them is this
you see
this is India India is very good in spices India is very good in milk India is
very good in Meet products these are the products in which India is very good so if
we sign free trade agreement with our aashiyan friends and other countries like
China look what they're waiting to do and this is real what they're waiting to do
is look at Australia Australia New Zealand they are waiting to sell dairy products
look at Sri Lanka Sri Lanka is waiting to send spices and look at illumination
Vietnam they are ready to send Rubber products to India
and what is so special about Australia's and New Zealand's Dairy and meat products
their price is half of that of India so if the price of milk in India is 50 rupees
per liter the price of Australian New Zealand milk is 40 rupees sorry 20 rupees per
liter or 15 rupees per liter imagine 15 rupees per liter milk coming to India what
will happen to Indian Farmers almost six crore Indian farmers will become jobless
government of India said sorry
we cannot accept these products from you because these are the products which
makes our Farmers vulnerable we cannot accept this they said you will never accept
it India said no no for 15 years we will not accept after 15 years we will also
become strong we will accept they did not agree so India said I'll be you don't
agree to any of our points however we going to sign agreement with you so this
agreement India walked out of it and India said sorry boss right so this is a small
story which I told you there is a reason I'm not giving you dictation or write up
yes I'm doing a mapqua I will give you all this but I want you to go through this
document which I provide a skin that I have written all these things it's there if
you open no
you will find it on page number six it's all there I want you to read it all
everything is there and then I want you to attempt that question which I have given
the question says
there is that question the question must be
ha the question says page number four discuss the reasons for India's withdrawal
from ourself page number four there is a question discuss in the reasons for
India's we draw from oursip please write an introduction please write a body please
write a conclusion and then I will discuss it in the class and tell you what should
be a perfect or a good introduction conclusion and body for that secondly let's do
that
now we are again 15 minutes later this time
but I wanted to do those mcqs because we completed the topic essay gray tomorrow
morning we start with mcqs first
else you'll be late for your class many of you have to attend your optional so
come grow tomorrow morning when we come
so even if I'm one or two minutes late you please start with the McQ of this topic
or page number care the McQ right you have to do and these are good mcqs you must
do it tomorrow 10 minutes
page number 26 when we start the lecture the moment it it hits 7:30 am in the
morning please start these mcqs and in 10 minutes try to solve I will come in the
class and discuss all this you tell me your score tomorrow out of 10 how many did
you get
tomorrow we will start Capital Market which is shares bonds and debentures right
so thank you so much guys how you tell me did you find any difficulty or
manageable
manageable
because it was not a conceptual class of marriage level right
so thank you so much see you tomorrow then