- SHAHI LITCHI
- FOREIGN DIRECT INVESTMENT 2020-21
Focus: GS III- Geographical Indications
Why in news?
In a major boost to export of GI certified products, season’s first consignment of Shahi Litchi from Bihar was exported to United Kingdom by air route.
About Shahi Litchi:
- The Shahi Litchi variety grown in Muzaffarpur has high pulp and is juicier compared to the litchi grown in other parts of the country.
- In Muzaffarpur, Darbhanga and nearby areas, the conditions are ideal for litchi cultivation, because of humid conditions and alluvial soil.
- Litchi cultivation in India was initially introduced in Bengal after which it spread to other regions including Bihar, Uttar Pradesh and Punjab.
- India is the second-largest producer of litchi in the world and Bihar is the leading state for litchi production in the country.
- It was accorded the Geographical Indication (GI) Tag in 2018.
- Shahi litchi was the fourth agricultural products to get GI certification from Bihar in 2018, after Jardalu mango, Katarni rice and Magahi paan. GI registration for Shahi Litchi is held with the Muzaffarpur-based Litchi Growers Association of Bihar.
- The lychee (Litchi chinensis) is the sole member of the genus Litchi in the soapberry family, Sapindaceae.
- It is a tropical and subtropical fruit tree native to southern China, Taiwan, Bangladesh and Southeast Asia, and now cultivated in many parts of the world.
About GI Tag
- Geographical Indications of Goods are defined as that aspect of industrial property which refer to the geographical indication referring to a country or to a place situated therein as being the country or place of origin of that product.
- Typically, such a name conveys an assurance of quality and distinctiveness which is essentially attributable to the fact of its origin in that defined geographical locality, region or country.
- Geographical Indications are covered as a component of intellectual property rights (IPRs) under the Paris Convention for the Protection of Industrial Property.
- GI is also governed by the World Trade Organization’s (WTO’s) Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).
- In India, Geographical Indications registration is administered by the Geographical Indications of Goods (Registration and Protection) Act, 1999 which came into force with effect from September 2003, this tag is issued by the Geographical Indication Registry under the Department of Industry Promotion and Internal Trade (DIPIT), Ministry of Commerce and Industry.
- The first product in India to be accorded with GI tag was Darjeeling tea in the year 2004-05.
- The registration of a geographical indication is valid for a period of 10 years.
- It can be renewed from time to time for further period of 10 years each.
- The Geographical Indications Registry would be located at Chennai.
- Any association of persons, producers, organisation or authority established by or under the law can be a registered proprietor.
- Their name should be entered in the Register of Geographical Indication as registered proprietor for the Geographical Indication applied for.
- Karnataka has the highest number of GI tags i.e. 47 products followed by Tamil Nadu (39).
FOREIGN DIRECT INVESTMENT 2020-21
Focus: GS III- Indian Economy
Why in news?
India has attracted highest ever total FDI inflow of US$ 81.72 billion during the financial year 2020-21 and it is 10% higher as compared to the last financial year 2019-20 (US$ 74.39 billion).
- FDI equity inflow grew by 19% in the F.Y. 2020-21 (US$ 59.64 billion) compared to the previous year F.Y. 2019-20 (US$ 49.98 billion).
- In terms of top investor countries, ‘Singapore’ is at the apex with 29%, followed by the U.S.A (23%) and Mauritius (9%) for the F.Y. 2020-21.
- ‘Computer Software & Hardware’ has emerged as the top sector during F.Y. 2020-21 with around 44% share of the total FDI Equity inflow followed by Construction (Infrastructure) Activities (13%) and Services Sector (8%) respectively.
- Under the sector `Computer Software & Hardware’, the major recipient states are Gujarat (78%), Karnataka (9%) and Delhi (5%) in F.Y. 2020-21.
- Gujarat is the top recipient state during the F.Y. 2020-21 with 37% share of the total FDI Equity inflows followed by Maharashtra (27%) and Karnataka (13%).
- Out of top 10 countries, Saudi Arabia is the top investor in terms of percentage increase during F.Y. 2020-21. It invested US$ 2816.08 million in comparison to US$ 89.93 million reported in the previous financial year.
Foreign Direct Investment
- FDI is an investment made by a firm or individual in one country into business interests located in another country.
- Generally, FDI takes place when an investor establishes foreign business operations or acquires foreign business assets, including establishing ownership or controlling interest in a foreign company.
- It is different from Foreign Portfolio Investment where the foreign entity merely buys equity shares of a company. FPI does not provide the investor with control over the business.
- In FDI, the foreign entity has a say in the day-to-day operations of the company.
- FDI is not just the inflow of money, but also the inflow of technology, knowledge, skills and expertise/know-how.
- The advantages of FDI are not evenly distributed. It depends on the host country’s systems and infrastructure.
Routes through which India gets FDI:
- Automatic Route: In this, the foreign entity does not require the prior approval of the government or the RBI.
- Government route: In this, the foreign entity has to take the approval of the government.
- The Foreign Investment Facilitation Portal (FIFP) facilitates the single window clearance of applications which are through approval route.
- This portal is administered by the Department for Promotion of Industry and Internal Trade (DPIIT).