Economy

. The main objective of the committee was to recommend what needs to be done to revise and  strengthen the current monetary policy framework with a view to making it transparent and  predictable with a focus on inflation management. The group submitted its report in January, 2014 and inter-alia, made the following recommendations with regard … Read more DMPQ- . Discuss the recommendations given by Urjit patel committee for monetary policy framework.

Today, employment share of three sectors of economy is roughly – industry (17%), agriculture (57%) and  services (26%). Unemployment is mainly of two types – disguised unemployment and open unemployment. Disguised  unemployment is also called under-employment. It is a situation in which a person is not contributing  fully to his potential for example, a task … Read more DMPQ- Explain the reasons why India’s growth is called ‘growth without employment.’

. In order to boost the MSME sector, several schemes are operational. Some of the major initiatives taken for the development of this sector are : Many financing bodies like IDBI and SIDBI provide concessional loans. Credit Guarantee Fund was established in 2000 to ensure supply of credit without  Credit Linked Capital Subsidy and Credit … Read more DMPQ- Discuss the initiatives taken by government taken to boost the MSME sector.

Revenue Expenditure Broadly the expenditure which does not result in creation of assets for Government of India is treated as revenue expenditure. An expenditure that neither creates assets nor  reduces a liability is categorized as revenue expenditure. Revenue expenditure is for the normal running of Government departments and various services, interest payments on debt, subsidies, … Read more DMPQ- Write a short essay on followings: (A) Revenue Expenditure (B) Rolling plan (C) Round Tripping

. Capital Account Convertibility is a feature of a nation’s financial  regime that centers on the ability to conduct transactions of local financial assets (money, stocks, bonds,  real estate, FDI, FII, account receivable, inventory etc) into foreign financial assets freely and at market  determined exchange rates. In layman’s terms, full capital account convertibility allows local … Read more DMPQ- Explain the concept of capital account convertibility. Compare the advantages and disadvantages of full capital account convertibility.

. It refers to the effect of tax avoidance strategies used by  multinational corporations on countries’ tax basis. The term was used for the first time by OECD. In an  increasingly interconnected world, national tax laws have not kept pace with global corporations, fluid  capital, and the digital economy, leaving gaps that can be exploited … Read more DMPQ- Briefly discuss the concept of Base erosion and profit shifting.

. 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 for houses included under the mission. The coverage of the Mission was earlier limited to … Read more DMPQ- Evaluate the progress made by the Pradhan Mantri Awas Yojana in achieving the goal of housing for all .

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 market. Along with foreign direct investment (FDI), FPI is one of the common ways to … Read more DMPQ-What is Foreign portfolio investment(FPI) ? How is it different from FDI ?

. 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. Secondly,  organized retailing is selling of these household commonly used goods to the people  directly, … Read more DMPQ-. Explain the routes of foreign direct investment in organized retail sector. Also mention the benefits of FDI in retail sector.

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 economy in recent  times has outpaced the trade growth or that trade growth has lagged … Read more DMPQ-Critically evaluate India’s export sector performance in last two decades.

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 Stimulate a dynamic, vibrant and balanced intellectual property rights system in India to: foster creativity … Read more DMPQ- Explain the mission and objectives of India’s Intellectual property rights(IPR) policy 2016.

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 an  action plan for the next three years, aimed at raising the contribution of the … Read more DMPQ- How ‘Make in India’ Programme has made progress in India’s manufacturing sector ?

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 low penetration of life  insurance in India or lack of awareness of the need for … Read more DMPQ- What is ULIP (Unit-linked insurance plans) ? How does it links insurance companies with stock markets?

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 are making complete disclosures about their company and their functioning. Pricing has been determined through … Read more DMPQ- What is the role of SEBI (Securities exchange beuro of India) in order to regulate Capital market of India ?

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 the economy for its development.  The key objectives of this scheme are stated as under: … Read more DMPQ- What are the major objectives of Gold monetization scheme? How it’s going to benefit india’s financial situation?

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 RBI which can be raised by the RBI to  drain out excess liquidity or reduced … Read more DMPQ- Discuss the various quantitative and qualitative measures implemented by RBI to manage liquidity in market.

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 or department is analyzed for its needs and costs. Budget  allocations are then made according … Read more DMPQ- Throw light on some of other forms of budgeting in India.

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 government raises money  primarily through ‘taxes’ and the spending known as ‘public expenditure’. A policy … Read more DMPQ- What are the main objectives of Fiscal policy in India ?

. 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 distribution losses result  in losses to the State Electricity Boards (SEBs), under pricing, mounting losses … Read more DMPQ- Discuss the major features of Integrated energy policy of India.

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 require well-drafted ‘futuristic policies’ in different areas  especially in the areas of ‘pricing and tax … Read more DMPQ- Suggest appropriate investment model for India’s infrastructure sector.

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 with Japanese technical and financial assistance. The memorandum of  understanding for cooperation between India and … Read more DMPQ- What is High speed railway project ? Throw light on the salient features of the project ?

. 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, passenger rail fares are highly politically  sensitive. However, this is also because of the social … Read more DMPQ- “Currently Railway’s freight sector is possessed by many challenges” Elaborate.

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 70 per cent by value. The  present port capacity is around 1000 million tonnes (MT). … Read more DMPQ- Point out the significance of ‘Maritime Agenda 2010-2020’ for the development of India’s Port sector.

. 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 have a rank of 50 and Brazil 62. This implies  that our infrastructure is viewed … Read more DMPQ- What are the key challenge of Infrastructure development in India ?

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 physical, institutional, social and economic infrastructure. All are important in improving the quality of life … Read more DMPQ- Discuss the major steps taken by central government to boost the Urban infrastructure.

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 identify the suitable land and be equity holders in the  National Investment and Manufacturing Zones … Read more DMPQ- What are the important aspects of national manufacturing policy 2011?

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  of shares of public sector by the government’. We all know that shares are traded … Read more DMPQ- Discuss the approach of disinvestment and privatization in 1991 economic policy.

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 feudal lords practically controlled the economy and politics along with the church and its fall … Read more DMPQ- Discuss the factors contributed to the origin of liberalism in 19th century.

. 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 BPL list are solely economical which is often understated  or under reported because lack of … Read more DMPQ- Throw light on the issues related with Targeted Public Distribution System (TPDS).

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 government has buffer stock norms for different months in a year. At present, the  maximum … Read more DMPQ- What is the purpose of Buffer stock? How does FCI (Food corporation of India) manages it ?

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  to a basic income to cover their needs, just by virtue of being citizens. The … Read more DMPQ- What is the concept of Universal basic income ? Critically evaluate it’s viability for India.

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 rate creating around 4 million accounts per week and several mobile  money operators were licensed. … Read more DMPQ- . What is the concept of JAM ? Point out it’s significance in the modernization of Indian economy.

. 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 counter this imbalance in regional development. Thus, for example, the 1956 Industrial Policy Resolution of … Read more DMPQ- Explain how after the independence economic imbalances gave rise to the regionalism in India.

. 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 the masses, given their illiteracy and ignorance. There is also an absence of any monitoring … Read more DMPQ- Explain why despite the plethora of social sector schemes for poverty eradication they have not yielded the desired results?

. 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  banks and directly contributing to the uplift of the poor especially rural women. In India, … Read more DMPQ- Briefly describe the concept of micro finance. Also discuss the role of SHG (Self help groups) movement in India’s micro finance sector.

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 witnessed a 30 percent growth rate since the year 2009, at the same  time it … Read more DMPQ- What is pink revolution ? point out the potential and challenges of pink revolution.

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 long waiting time. The capacity  of various ports including Mumbai has already been exhausted and … Read more DMPQ- What are the biggest issues India’s port sector’s facing ?

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 the board higher prices. All imports become expensive including raw materials, goods and machineries which  … Read more DMPQ- What are the Implications of Rupee Depreciation on the Indian Economy?

. 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 and the foremost, a foreign investor draws a global comparison before taking a decision on … Read more DMPQ- Despite the considerable easing of restrictions why is India not a preferred destination for FDI ?

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 industrial development. Recent major reforms are: Introduction of Labour Codes In line with recommendations of … Read more DMPQ- Discuss the important government initiatives taken for labor reforms in recent years.

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 capacity as well as for fresh investments. Other such external sources of finance/capital include FCCBs … Read more DMPQ- . What is external commercial borrowing (ECB) ? Point out the importance of ECB for India’s external investment.

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 of applying for Industrial License (IL) and Industrial Entrepreneur Memorandum (IEM) has been made online … Read more DMPQ- “In recent years Government of India has taken several measures to improve the ease of doing business in India.” Elucidate.

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 with the public sector banks. Public sector were provided greater autonomy to function in a … Read more DMPQ- . Indian banking sector is going through tough phase. Suggest some major areas of reforms in Indian banking sector.