From UPSC perspective, the following things are important :
Prelims level : Elephant Bonds
Mains level : Financial services sector of India
- High Level Advisory Group (HLAG) headed by Dr. Surjit S. Bhalla has been constituted by the Department of Commerce.
Surjit Bhalla Committee Recommendations
- The HLAG has made several recommendations for boosting India’s share and importance in global merchandise and services trade.
- Among other things, the Report identifies tax reforms also to boost export and investment channels for exports.
- The Committee has recommended “Elephant Bonds” as a specialised security product providing funds towards Long Term Infrastructure.
- HLAG has also made recommendations for reforms in Financial Services Framework for making India a Preferred Destination for financial services.
About Elephant Bonds
- Elephant Bonds are the 25-year sovereign bonds in which people declaring undisclosed income will be bound to invest 50 per cent.
- The fund, made from these bonds, will be utilized only for infrastructure projects.
- It is like an Amnesty scheme to help State treasury raising tax revenues, adding beneficiaries in tax base who have not declared their assets previously.