Economy

The fiscal deficit is the difference between the government’s total expenditure and its total receipts excluding borrowing. Current account deficit is when country’s export of goods, services and transfers are lesser than its imports of goods, services and transfers.   Impacts of Fiscal deficit: If unchecked it will lead to crowding out effect, manipulation of … Read more DMPQ: Why twin deficit is a concern for any economy? Outline the methods adopted by Government of India to deal with twin deficit.

Due to globalization, the economies of world are more inter-connected than ever. With increased growth of economic activities around the world, it has impacted India’s GDP in several ways.   How global economic environment affects GDP of India: Global crisis will severely affect certain sector, which will then have spill over effects there by affecting … Read more DMPQ: Although India is one of the fastest growing economy the global environment is not conducive enough. Explain the interdependence of global economy with Indian economy.

Financial inclusion refers to delivery of financial services, including banking services and credit, at an affordable cost to the vast sections of disadvantaged and low-income groups who tend to be excluding.   Financial inclusion can lead to inclusive growth in following ways:   Formalization of economy:    A well spread out financial system engenders economic … Read more DMPQ: What is financial inclusion? How financial inclusion can lead to inclusive growth? ( economy)

Bharatmala is an ambitious project to improve the road infrastructure in the country. It is an umbrella project under the Ministry of road transport and highways. It will subsume the unfinished project under National Highway development programme.   Under the plan the government intends to develop 83,677 km of highways and roads at an investment … Read more DMPQ: A healthy infrastructure is  must for a sustained economic growth. Bharatmala project was one of the step towards healthy infrastructure. What is Bharatmala project? What are the challenges in its implementation? ( Govt. Schemes)

With growing sectors like automotive components, pharmaceuticals, cement, textiles, FMCG and e-commerce, there was the need of the healthy and efficient logistics sector. India rank 35 out of 160 in the logistics performance index. ( This is quite low). Hence GOI recently granted infrastructure status to the logistics.   Major benefits attached by granting infra. … Read more DMPQ: Recently infrastructure status was given to the logistics sector? Analyse the advantages and major hurdles. (economy)

India’s growth period has not been able to create job opportunities and hence sometimes it is termed as jobless growth.  According to a report of CII, 12 million are entering into work force annually. This figure reaches to 18-19 million if we count the people leaving the already saturated agriculture sector. But catch lies in … Read more DMPQ: Unutilised employment potential in the phase of demographic transition will only lead to demographic catastrophe. Explain the cause of Unemployment in India. Steps taken by India to tackle unemployment.

On 8th Nov, 2016 86% of the currency in circulation was declared as not legal tenders.   The stated objective of demonetisation was : Reduction of black money Achieving lower cash/ gdp ration An attack on fake currency To stop terror financing Increasing digital transactions Increasing tax net   Positive effects of  Demonetisation are as … Read more DMPQ: What were the objectives of Demonetisation? What were the positive effects?

Investment – For sustaining high growth, the economy need to continuously add to its “production capacity” through new investment flows. • Productive investment is money that is spent for – building roads, ports (and other public infrastructure), factories, and workforce quality enhancement. • Currently, India is seeing a sharp decline in the rate of investments … Read more DMPQ: Even though Indian economy is growing at a rate of 7% GDP, but still it has some  Inherent vulnerabilities? Discuss

The Insolvency and Bankruptcy Code (IBC) was enacted in 2016 to facilitate a time-bound resolution for ailing and sick firms. It could either be through closure or revival, while protecting the interests of creditors. Under IBC, either the creditor (banks) or the loaner (defaulter) can initiate insolvency proceedings. It is done by submitting a plea … Read more DMPQ: Exit problem is the biggest hurdle for Indian firms as per economic survey. To get rid of this Insolvency and Bankruptcy code was passed. What are the features of IBC.

Rapid agriculture growth and rapid rural employment growth were always the focus of India’s policy makers. But despite the efforts of the Government since independence a large proportion in rural India lives below poverty line. Schemes introduced by Government to improve Rural Income: In Agriculture sector following programs have been introduced: Rashtriya Krishi Vikas Yojana … Read more DMPQ: 2/3rd of our population lies in the rural India. In rural India incidence of poverty is high. Discuss the methods adopted by the Government of India to address rural distress.

Commerce ministry has released a consolidated policy for FDI  in 2017. This time they have included start ups in the FDI policy also. The major features of FDI are as follows: With the dilution of FIPB, the power for clearance has been delegated to the administrative departments. The proposal relating to the banking, mining, defence, … Read more DMPQ: Discuss the features of consolidated FDI Policy for 2017.

India is mainly a rural country. Nearly 68% of the people reside in the rural area. The reasons for rural poverty are multi dimensional. The reasons are social, economical, geographical.   Economic cause Low agricultural productivity. Over reliance on agriculture.( quote the data) Unequal distribution of land and other assets Decline of Village industries Immobility … Read more DMPQ: If poverty is a problem, rural poverty poses a greater threat . In this context discuss the reasons for rural poverty.

In 2005, another expert group to review methodology for  poverty estimation, chaired by Suresh Tendulkar, was constituted by the Planning Commission.  The reason for formulation of committee was : Issues with the adjustment of prices for inflation, both spatially and temporally. Earlier poverty line assumed that health and education would be provided by the state  … Read more DMPQ: Tendulkar committee on estimation of poverty changed the basis of calculating poverty. Discuss.

Prime Minister Narendra Modi launched the Make in India initiative on September 25, 2014, with the primary goal of making India a global manufacturing hub, by encouraging both multinational as well as domestic companies to manufacture their products within the country. The initiative aims to raise the contribution of the manufacturing sector to 25% of … Read more DMPQ: why make in India is essential for sustained growth of India?

Foreign direct investment (FDI) is an investment made by a company or individual in one country in business interests in another country, in the form of either establishing business operations or acquiring business assets in the other country, such as ownership or controlling interest in a foreign company.   Concerns with FDI:   FDI has … Read more DMPQ: FDI is good for a Country like India. But FDI is also not immune from criticism. Discuss the ill effect of FDI.

In the last decades there has been a considerable increase in the number of technology based startups. Some 800+ startups are coming up every year, going by this trend by 2020 more than 11,500 start-ups are expected to get established in India, generating opportunities for over 2.5 lakhs people. The reasons for startups as drivers … Read more DMPQ: Examine the role of startup as driver of growth.

E commerce is the sale or purchase of goods and services conducted over networks of Tv and computers.  The use of internet and network is the key feature of e commerce.  According to a report by KPMG, e-Commerce sector in India is projected to cross $80 billion by 2020 and $300 billion by 2030. The … Read more DMPQ: What is ecommerce? Various types of models of e-commerce? What are the positives for e commerce.

India is largely a informal economy where various MSME units are there. But these units find hard to access to the formal systems of credit. Before the inception of MUDRA, this sector gets only 4% of its credit needs from banks. The sector used to borrows unspurious rates of interest of 120% and beyond. MUDRA … Read more DMPQ: What is MUDRA? Discuss its significance

India is largely a informal economy where various MSME units are there. But these units find hard to access to the formal systems of credit. Before the inception of MUDRA, this sector gets only 4% of its credit needs from banks. The sector used to borrows unspurious rates of interest of 120% and beyond. MUDRA … Read more DMPQ: What is MUDRA? Discuss its significance

FRBM is fiscal responsibility and budget management act is an act of parliament of India to institutionalise financial discipline, reduce India’s fiscal deficit , improve macroeconomic management and the overall management of the public funds by moving towards a balanced budget. The main purpose of the budget was to eliminate the revenue deficit and to … Read more DMPQ: What is FRBM act? Why the objectives of FRBM were not achieved.

  Tax avoidance Tax evasion Legal way of saving taxes. Illegal in a financial system Recording of income Not recording of income. Help in saving, at the same time money can be channelized for economic growth Help in saving, but since money is not accounted. Money cannot be channelized for economic growth.   Positive extrenalities … Read more DMPQ: What is the difference between Tax evasion and Tax avoidance? What are the methods of Tax evasion?

Disinvestment is the practice of selling of shares by an organisation ( generally used for government) to the private sector. Disinvestment is de-nationalization of lessthan 100 per cent ownership transfer from the state to the private sector. The objective of disinvestment is to mobilise the resources, To use the resources for productive purposes like social … Read more DPMQ : What is Disinvestment? What are its advantages and disadvantages.

Globalisation means integration of economies and societies through cross country flows of information ,ideas ,technologies , goods, services, capital finance and people. The current wave of globalisation, which started after 1991had profound effects on the labour market and the employment situation of workers all over the world. The changes in pattern of employment and labour … Read more DMPQ: What is globalisation? Examine its impact on the pattern of employment.

There is no tool for development more effective than the empowerment of women. Development is incomplete without rendering gender equality. It is a myth when 50% of the biological stream is lagging behind due to unavailability of equality of opportunity. According to the economic survey 2017-18, there are 24% women workforce as compared to men. … Read more DMPQ: Development is a myth without rendering women equality. Discuss in the context with women participation in labor force.

Aviation sector is one of the promising sector in India. This sector faced a growth rate of 20%  per annum in passenger traffic. As per IATA, India will become the 3rd largest aviation market in the world interms of passenger by 2026. Above data clearly states that aviation sector is not under stressed. The opportunities … Read more DMPQ: Air India is severely under stressed but aviation sector is not. Identify the potential and challenges?

Aviation sector is one of the promising sector in India. This sector faced a growth rate of 20%  per annum in passenger traffic. As per IATA, India will become the 3rd largest aviation market in the world interms of passenger by 2026. Above data clearly states that aviation sector is not under stressed. The opportunities … Read more DMPQ: Air India is severely under stressed but aviation sector is not. Identify the potential and challenges? 

  PPP is public private partnership where a private entity enters into a contract with a government entity to provide public asset or service in which the private party provides its managerial expertise and operational efficiency.   Remuneration in this is linked to performance. PPP model was envisioned for infrastructure sector but now it is present … Read more DMPQ: What is PPP ? Certain issues are faced by PPP. Examine that

According to a report of Oxfam international , India’s richest now hold 58% of country’s wealth. 57 billionaires in the country have the same wealth as that of the bottom 70% population, Wealth inequality is a serious issue. The reasons for wealth inequality are: Growing incidence of Tax avoidance and Tax evasion Existence of black … Read more DMPQ: Wealth inequality is a serious concern for the Government around the world. What are the reasons for wealth inequality in India? List down the consequence of wealth inequality.

The industrial sector has performed poorly in the reform period because of decreasing demand of industrial products due to various reasons’ such as cheaper imports, inadequate investment, infrastructure etc. India is a founder member of WTO and in facilitating globalisation of Indian Economy, India like other developing countries is compelled to open up its economy … Read more DMPQ: India’s growth story has bypassed the industrial sector. what  are the reasons for low performance of industrial sector in India post liberalisation.

Even though India has experienced a high growth period in the last 15 years but its employment elasticity has remained on lower side. The period is sometimes termed as Jobless growth period. Following are the reasons for unemployment in India: Low productivity in agriculture. Disguised unemployment in agriculture is a serious issue. More than 48% … Read more DMPQ: What are the causes of unemployment in India?

Black money is defined  as assets or resources that have neither been reported to the public authorities at the time of their generation nor disclosed at any point of time during the possession. The problem with  black money is huge . It has serious socio-political and economic implications. According to sources the estimate of GDP … Read more DMPQ: What is black money? Discuss its implication in context of India?

India Cash/GDP ratio is 12.24% which makes it one of the largest cash based economy. But there are certain problem for a cashless economy especially for India as : ‘ There is low penetration of internet. Last mile connectivity especially in rural sector is quite low which creates hurdle in digitisation of economy. Lack of … Read more DMPQ: Is cashless economy feasible in India? Also discuss the impact of it on informal economy?

A healthy infrastructure provides platform for smooth functioning of economic activity. Power, telecom, transportation etc are essential for any business or economic activity. If country wants to be on the growth path it needs to work hard on capital formation in terms of infrastructure. According to economic survey, India needs $4.5 trillion for sustaining growth … Read more A healthy Infrastructure is a catalyst for a good economy. Discuss the statement in context of India. List down the key issues faced by infrastructure sector. 

Green revolution is an agricultural revolution in which agricultural productivity was increased by providing package of inputs like High yield variety seeds, chemical fertiliser and better irrigation facility. It lead to the increased agricultural production and made India a self -reliant country in terms of food production. Impact of green revolution are summarised as below: … Read more What is the Green revolution? Analyse the impact of green revolution. 

NITI aayog(National Institute for transforming India)  is a policy think tank of the Government of India to achieve sustainable development goals and to achieve cooperative cooperative federalism by enhancing the role of state government in the economic policy making and to make bottom up approach a reality. The role of NITI aayog will be: Bring … Read more What is the role of NITI aayog?

Inflation is defined as a sustained increase in the general level of prices for goods and services in a county, and is measured as an annual percentage change. Increase in money supply: In the last few years rate of supply of money is very high i.e. near about 15-18% but the national output is hovering around … Read more What do you understand by the term inflation? What are the causes of inflation? List down the tools to curb inflation?

Indian economy has come a long way since independence. From socialist pattern to liberalised era it , from being agrarian to service oriented economy it has seen many ups and downs. The basic features of Indian economy are enumerated as follows: India is a developing economy with low per capita income. Current Per capita income … Read more Highlight the Characteristics of Indian economy