Category: Economy

. Mission Pradhan Mantri Awas Yojana (Urban) for ensuring housing for all in urban areas was launched in 2015 which is to be implemented during 2015-22. The Mission provides central assistance to all eligible families/ beneficiaries across all statutory towns Read More …

Foreign portfolio investment (FPI) consists of securities and other financial assets held by investors in another country. It does not provide the investor with direct ownership of a company’s assets and is relatively liquid depending on the volatility of the Read More …

. Foreign Direct Investment in organized retail is yet another area shrouded in controversy.  What is organized retail? Let us define retail first, it is household requirement of the people  comprising of food and grocery, clothing, convenience, consumer goods, etc. Read More …

The significant openness which started becoming visible in the nineties intensified from  2000 onwards with a sharp focus given through the FTP has resulted in a reversal of the  declining trend in global trade. However, the growth of the Indian Read More …

The National IPR Policy is a vision document that aims to create and exploit synergies  between all forms of intellectual property (IP), concerned statutes and agencies. It sets in  place an institutional mechanism for implementation, monitoring and review. Mission Statement Read More …

The Make in India initiative has been built on layers of collaborative effort of DIPP,  acting as a backbone with Union Ministers, Secretaries to the Government of India, state  governments, industry leaders, and various knowledge partners to debate and formulate Read More …

In recent times, there has been an increased preference of mutual fund companies as well  as insurance companies to combine the investments in stock markets with life insurance  plans, known as ULIPs. This need has arisen as there is very Read More …

All such issuances in terms of quantum to be raised, pricing is left to the company,  however, regulated by the Securities Exchange Board of India (SEBI) which has the  following objectives: To ensure that all companies accessing the primary market Read More …

The Gold Monetization Scheme is a welcome step initiated by the Government of India to  unlock the unused and idle gold lying in households and institutions and bring them into  mainstream and release the capital locked in for use in Read More …

RBI thus has certain quantitative and qualitative tools through which it manages  liquidity and they are as follows: Cash Reserve Ratio (CRR) Every bank has to retain a certain percentage of its  demands and time liabilities in cash with the Read More …

Zero-Based Budgeting – ZBB This is a method of budgeting in which all expenses must be justified for each financial  year. The process of this budgeting starts from a “zero base,” on every financial year. Every  function within the ministry Read More …

The government does not perform any business so it cannot earn money to spend. Hence,  the government has to raise the money from the economy to enable it to spend that  money in terms of requirements and national priorities. The Read More …

. Besides the huge resources required there are structural issues like, one of the highest  Aggregate Transmission and Distribution (AT&D) losses of 25 per cent the highest in the  world. There are other issues like power thefts which along with Read More …

Various investment models which have emerged in recent times especially  in post-reforms and also from experiences of emerging marker economies (EMEs). These  models are not alternates to each other but are only variants of investment models. The policy support will Read More …

The Japan International Cooperation Agency (JICA) which undertook the study on  the feasibility of this prestigious project, submitted its report in July 2015. The project  was approved by the Cabinet Committee on Economic Affairs, in December 2015, to  be implemented Read More …

. First and the foremost reason for this is the high cost of rail movement arising out of policy  of cross subsidization by IR. Passenger fares especially sleeper class are underpriced and  made up through increased freight fares. In India, Read More …

India’s fact sheet of ports consists of twelve major ports (two additionally approved—  one in West Bengal and the second at Andhra Pradesh) and two hundred odd minor ports  accounting for 95 per cent of cargo movement by volume and Read More …

. Despite the efforts of the government as highlighted above infrastructural development  still has a few challenges as mentioned below: The World Economic Forum has ranked India in terms of infrastructure as 89 among 139 countries. Countries such as China Read More …

Smart cities Cities accommodate nearly 31% of India’s current population and contribute 63% of GDP (Census 2011). Urban areas are expected to house 40% of India’s population and contribute 75% of India’s GDP by 2030. This requires comprehensive development of Read More …

The Policy is based on a principle of industrial growth in partnership with the States.  Central Government will create the enabling policy framework, provide incentives for  infrastructure development on a PPP basis through appropriate financing instruments,  while State Governments will Read More …

Both disinvestment as well as privatization is the reverse of investment. For setting up  public sector, the government had to invest by subscribing in shares of the new public  sector from budgetary resources. Thus, disinvestment and privatization both imply ‘selling  Read More …

Several factors and writings of a number of persons contributed to the origin of their political ideology: The collapse of feudalism is an important cause of the origin of liberalism. Let us explain it briefly. In the feudal period the Read More …

. The main flaw in the system that a large chunk of those who are eligible for subsidized  food grains under BPL category have been left out leading to critically question  comprehensiveness of TPDS. The criteria for inclusion in the Read More …

India  is  one  among the  few  countries in the world having government held stocks of  grains, for the following reasons: Buffer for meeting natural calamities Price stabilization in case   of   crop failures; Providing food grains under   public   distribution system. The Read More …

Universal Basic Income is a radical and compelling paradigm shift in thinking about  both social justice and a productive economy. A universal basic income is, like many  rights, unconditional and universal: it requires that every person should have a right  Read More …

Large-scale, technology-enabled, real-time Direct Benefit Transfers can improve the  economic lives of India’s poor, and the JAM Trinity (Jan Dhan, Aadhaar, Mobile) can  help the government implement them. Over the past year, JAM has deepened its coverage  at an astonishing Read More …

. At independence, the leadership recognized that some regions were more backward than others. Only a few enclaves or areas around Calcutta, Bombay and Madras had undergone modern industrial development. From the beginning, the national government felt a responsibility to Read More …

. The Government has well-designed schemes. The question is not about intention but that of implementation of these schemes. There was not a proper identification of the targeted beneficiaries. There is also a lack of awareness of these schemes amongst Read More …

. Micro finance institutions, as a concept have their genesis in  Bangladesh, pioneered by Mohammed Yunus, for which he was awarded the Nobel Prize, as  successful institutions for reaching out to the last unit of any economy not possible through  Read More …

Pink revolution primarily focuses on modernisation of meat and poultry industry. It has  attained India the number 1 position in the world in exports of buffalo meat in 2012, exporting  approximately 1.5 million metric tons of beef. chicken sector has Read More …

Development of port infrastructure in India is not on par with the other ports across  the world. Trade in India has to face severe challenges due to inefficient port services.  Shipping lines avoid touching ports in India because of the Read More …

India’s imports comprises of essentials such as crude petroleum, machineries and  fertilizers which become expensive raising their prices facilitating ‘import’ of inflation.  India is very susceptible to a stubborn and sticky inflation. It hurts the masses in terms of  across Read More …

. India has a large pool of English-speaking workforce, cheap labour, natural resources,  a growing economy, second largest market and a government-favouring FDI. Despite the considerable easing of restrictions there are number of factors which are haltering FDI boost: First Read More …

Along with bringing transparency and accountability in enforcement of Labour Laws, the Government has taken various initiatives to realize and establish the dignity of every worker through provision of social security, enhancing the avenues and quality of employment along with Read More …

An external commercial borrowing (ECB) is an instrument used in India to facilitate Indian companies to raise money outside the country in foreign currency. The government of India permits Indian corporates to raise money via ECB for expansion of existing Read More …

The government of India has taken a series of following measures to improve ‘Ease of  Doing Business’ in the country. Existing rules have been simplified and information tech­ nology is introduced to make governance more efficient and effective: The process Read More …

Liberal entry of private sector and foreign banks. It is as a part of the reforms that today there are big private banks such as ICICI, HDFC, Axis and foreign banks such  as the Citi group, HSBC, Barclays operating along Read More …

Under the Monetary Policy Framework Agreement, the RBI will be responsible for containing inflation targets at 4% (with a standard deviation of 2%) in the medium term. Under Section 45ZA(1) of the RBI Act, 1934, the Central Government determines the Read More …

While globalization does provide for means of betterment for economies, it has some  inherent challenges which will have to be addressed: While decisive thrust on exports is required, there would be pressures for liberal imports which could create issues in Read More …

Financial inclusion involves the availability of sustainable, useful financial products and services for all business and individuals, regardless of company size or individual net worth. It makes financial services such as banking, insurance, equity, etc. available equally to all, without Read More …

End of license raj On 24 July 1991, Prime Minister Narasimha Rao announced the end of the license-permit Raj and Finance Minister Manmohan Singh presented a historic budget that rolled out economic liberalisation in India. It proposed getting rid of Read More …

. As of now Japan-India trade is a mere 5% of Japan-China trade. Today, India-Japan trade languishes at around $15 billion, a quarter of trade with China while Japan-China trade is around $300 billion. India is the largest recipient of Read More …

. The increase in the incomes of our working class population has resulted into increase in disposable income which can be spent on processed food. However, the change in food consumption pattern of the working class who prefer readymade food Read More …