Seoul, July 11 (IANS)The Organisation for Economic Cooperation and Development (OECD) called on South Korea on Thursday to introduce tighter fiscal rules and maintain a restrictive policy as its budget is projected to remain in deficit through next year and rapid aging would add longer-term pressure.

“The budget is projected to remain in deficit in 2024 and 2025. South Korea needs to restrain spending through next year,” the OECD said in its biennial economic report on South Korea released in the day, reported Yonhap news agency.

“The government needs to adopt the proposed fiscal rules and continue to carry out regular spending reviews to ensure long-term fiscal sustainability,” it added.

In 2022, the government announced a plan to introduce the fiscal rule that calls for capping the fiscal deficit at 3 per cent of gross domestic product (GDP). If debt exceeds 60 per cent of GDP, the government shall lower the deficit to 2 per cent, though the bill has yet to be passed.

Public debt remains low in South Korea, compared with other OECD peers, but it is “set to increase rapidly going forward and exceed 150 per cent of GDP by 2060” as demographic changes are to increase fiscal pressures from pensions, health care and longer-term care, the OECD said.

In 2023, the country’s total revenue fell 77 trillion won ($55.82 billion) on-year to 497 trillion won, as tax collection went down markedly due to poor corporate performances and the property market slump reducing transaction taxes.

The OECD also pointed to the government’s tax relief as a reason for the marked fall in tax revenue last year.

Responding to population decline, the OECD recommended measures to improve work-life balance and to boost female employment.

The total fertility rate, which means the average number of expected births from a woman in her lifetime, also hit a record yearly low of 0.72 in 2023, which came far below the 2.1 births per woman needed to maintain a stable population without immigration.

“South Korea is advised to tighten and enforce quality criteria for private childcare, improve the accessibility of public childcare, encourage workplace childcare, and extend formal childcare hours to accommodate working parents’ needs,” the organisation said.

Policy suggestions also include expanding parental leave coverage to the entire workplace, increasing the parental leave ceiling for all leave takers, and financing parental leave benefits and other associated charges with public resources.

The OECD also stressed the need to break down labour market dualism, expand social insurance enrollment and consider relaxing regulations on reconstruction and pre-sale price caps as part of efforts to boost the housing supply.

It advised South Korea to introduce a flexible wage system and raise the pension eligibility age so as to extend the retirement age. The current pensionable age in South Korea came to 63, which is one of the lowest among the OECD nations.

The organisation also called on the Seoul government to push for reform of its support scheme for small and mid-sized companies so as to boost their productivity.

–IANS

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Mumbai, July 11 (IANS) Indian equity benchmarks closed flat on Thursday following a volatile session.

At closing, Sensex was at 79,897, down 27 points and Nifty was down 8 points, at 24,315.

During the day, the buying trend was seen in midcap and smallcap stocks rather than largecap stocks.

The Nifty Midcap 100 index closed at 57,148, up 227 points or 0.40 per cent, and the Nifty Smallcap 100 index closed at 18,919, up 129 points or 0.69 per cent.

In the Sensex pack, 16 stocks closed with gains and 14 stocks in the red.

ITC, Tata Motors, Asian Paints, Titan, SBI, Tata Steel, IndusInd Bank, Axis Bank, and HCL Tech were the top gainers. Bajaj Finance, M&M, Sun Pharma, Nestle, NTPC, and Power Grid were the top losers.

The market had started flat in the trading session.

Sensex touched a high of 80,170 and a low of 79,464 during trading hours.

Among the sectoral indices, Media, PSE, Commodity, and Oil & Gas indices were major gainers. Realty, pharma, and auto were the major laggards.

Rupak De, Senior Technical Analyst, LKP Securities said: “The Nifty remained volatile throughout the day before closing flat. In the near term, the Nifty might trade sideways, with 24,150 and 24,400 acting as the key levels. A decisive fall below 24,150 might trigger panic in the market, while a decisive move above 24,400 might induce a rally towards 24,650.”

–IANS

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Lucknow, July 11 (IANS) Uttar Pradesh will now grow apples from Shimla as the apple trees from Shimla have been successfully transplanted from the cold and high mountains to the plain region.

This effort was spearheaded by the Krishi Vigyan Kendra (KVK) in Belipar, the home district of Chief Minister Yogi Adityanath.

Three years ago, in 2021, the Centre introduced some apple varieties from Himachal and planted them locally. By 2023, these trees began bearing fruit.

Dharmendra Singh, a progressive farmer from Unola village in Pipraich, the Chief Minister’s home district, planted 50 apple saplings from Himachal Pradesh in 2022. This year, his trees also bore fruit. This achievement motivated him to establish a one-acre apple orchard this year.

In 2022, Dharmendra Singh planted 50 apple saplings of the Anna and Harman 99 varieties from Himachal. This year, they have borne fruit.

When asked about his interest in apple farming, he explained: “I am passionate about trying new things. During Chief Minister Yogi Adityanath’s tenure, there has been a significant focus on agriculture. Fixed grants are readily available transparently, and the Krishi Vigyan Kendra provides necessary advice. These factors motivated me to start apple farming. Now, I plan to expand. I’ve ordered more plants and am waiting for them to be planted from Himachal Pradesh.”

According to S.P. Singh, Senior Scientist at Krishi Vigyan Kendra Belipar Gorakhpur, in January 2021, three apple varieties – Anna, Harman-99, and Dorset Golden – were brought from Himachal Pradesh and planted at the Centre.

They began bearing fruit after two years. These varieties are well-suited to Purvanchal’s agro-climatic conditions.

The ideal time for planting is between November and February, with January to February being the most favourable months for planting saplings, he said.

Saplings should be planted in rows, maintaining a distance of 10 to 12 feet between each plant. This method allows for approximately 400 saplings per acre.

Eighty per cent of the plants begin bearing fruit within three to four years of planting and reach full fruiting maturity in six years. This makes apple cultivation suitable for short-term gardening.

–IANS

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Ahmedabad, July 11 (IANS) Gautam Adani, Chairman of the Adani Group, on Thursday said it is a historic day for Adani Group’s Vizhinjam Port which received its first mothership.

‘San Fernando’, a vessel of the world’s second-largest shipping company Maersk, arrived at the Vizhinjam Port with over 2,000 containers on it.

“Historic Day as Vizhinjam welcomes its 1st container vessel,” Gautam Adani posted on X social media platform.

“This milestone marks India’s entry into global trans-shipment and ushers in a new era in India’s maritime logistics, positioning Vizhinjam as a key player in global trade routes. Jai Hind,” the Adani Group Chairman added.

With the arrival of the first mother ship, Adani Group’s Vizhinjam Port has catapulted India into the world port business as globally this port will rank 6th or 7th. The official function will take place on Friday. It will be attended by Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal, Chief Minister Pinarayi Vijayan and Adani Ports and SEZ Ltd (APSEZ) Managing Director Karan Adani.

Adani Ports and Special Economic Zone (APSEZ) has seven strategically located ports and terminals on the western coast and eight ports and terminals on the eastern coast, representing 27 per cent of the country’s total port volumes. In FY24, APSEZ handled 27 per cent of the country’s total cargo and 44 per cent of container cargo.

–IANS

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New Delhi, July 11 (IANS) The gold processing industry in India is projected to create 25,000 new jobs and witness about Rs 15,000 crore investments by 2030, a new report showed on Thursday.

Domestic gold production of incumbents and new players will expand to 100 tonnes by 2030, adding significantly to the foreign exchange reserves, improving trade balance and contributing to the GDP, said the industry body PHDCCI (PHD Chamber of Commerce and Industry).

“Indian gold processing and manufacturing industry is poised for substantial growth and transformation, promising extensive economic benefits, supporting the Indian economy on a higher growth path to Viksit Bharat’ by 2047,” said Sanjeev Agrawal, President, PHDCCI.

India’s gold processing and manufacturing industry is set to see substantial investments, rising from Rs 1,000 crore in 2023 to Rs 15,000 crore by 2030, he added.

The employment creation due to this will have a positive ripple effect on the economy, improving livelihoods and creating a virtuous cycle of economic growth.

India has a large domestic demand for gold, which is 17 per cent of the total world gold demand and is largely met by imports.

“Backed by expanding domestic gold production from the current level of 16 tonnes to 100 tonnes by 2030, net imports will decrease significantly,” said Agrawal.

Adjusting the value of imported finished gold to that of imported raw gold will likely save $1.2 billion in foreign exchange reserves and improve the trade balance, according to the industry chamber.

Total gold supply is expected to increase from the current level of 857 tonnes to 1,000 tonnes by 2030, driven by a 2.4 per cent (average) annual growth rate.

“This thrust in domestic gold will enhance economic self-sufficiency and contribute to the GDP, with the share of gold production in GDP increasing from 0.04 per cent currently to 0.1 per cent by 2030,” Agrawal noted.

GST paid on gold is expected to increase from Rs 300 crore to Rs 2,250 crore by 2030, whereas the duty foregone by the government is projected to rise from Rs 285 crore in 2023 to Rs 1,820 crore by 2030, reflecting the expanding scale of the domestic gold industry, the industry chamber said.

–IANS

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