Economy

JAM stands for Jan Dhan Yojana, Aadhaar and Mobile number. The government intends to use these three modes of identification to implement one of the biggest reforms in independent India – direct subsidy transfers to the poor. Current subsidy schemes take an indirect route to reach the poor of the country. Examples are the PDS, … Read more

The transfer of ownership, property or business from the government to the private sector is termed privatization. The government ceases to be the owner of the entity or business. Currently PSU’s like Air India, BSNL are loss making affair for long and there is a demand to privatise them . Benefits of Privatisation are as … Read more

The 1991 is a hallmark year as it launched Indian into a new era of economic freedom. It majorly changed our economy from controlled to a free economy. One of the ingredient was tax reforms. The major changes one can observed in the tax system are as follows: Widening of tax bases both by addition … Read more

Real estate sector is highly unregulated where black money find its place. Major issues with real estate sector are lengthy approval process for project clearances, lack of clear land titles, diversion of funds received by the developer towards one project to more lucrative ones. Changing of layouts by the developer and legal disputes between buyers … Read more

India is currently the second largest producer of fisheries after China. To double the Farmer’s income by 2022 the government has created the Fisheries andAquaculture Infrastructure Development Fund (FAIDF) in 2018. Salient Features of the FAIDF: The main aim is to boost fish production to achieve the target of producing 15 million tonnes of fishproduction … 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 physical, institutional, social and economic infrastructure. All are important in improving the quality of life … Read more

Depository is a place where financial securities are held in dematerialised (DEMAT) i.e. in electronic form. It is responsible for maintenance of ownership records and the facilitation of trading in dematerialized securities. A depository eliminates the risk associated with holding physical securities. Earlier, the buyer would have to keep checking if the shares have been … Read more

As a host of emerging technologies change the future of work, a massive disruption is facing the IT-ITES industry today. Of the 4.5 m people employed in the industry today, 1.5 -2 m are expected to require reskilling in the next 4-5 years. A decoupling of revenue and headcount growth is visible even today and … Read more

Monetary transmission refers to the process by which a central bank’s monetary policy signals (like repo rate) are passed on, through financial system to influence the businesses and households.  There are many monetary policy signals by the RBI; the most powerful one is the repo rate. When repo rate is changed, it brings changes in … Read more

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

Issues Involved: One of the major issues faced by this sector is declining profitability which is further exacerbating the twin balance sheet (TBS) problem. Profitability is being affected by following issues:    Low revenues – Dramatic reduction of prices & coming down of average revenue per user by 22% due to new entrant. High Debt – Unsustainable spectrum … Read more

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

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

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

The Scheme of Mega Food Park aims at providing a mechanism to link agricultural production to the market by bringing together farmers, processors and retailers so as to ensure maximizing value addition, minimizing wastage, increasing farmers income and creating employment opportunities particularly in rural sector. The Mega Food Park Scheme is based on “Cluster” approach … 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 the masses, given their illiteracy and ignorance. There is also an absence of any monitoring … Read more

Big data is the huge amount of data which is present in an unprocessed way. It is a complex data. Big data is characterised by 3 Vs ie. Volume of data, velocity of data i.e. processed and complex variety of data. Big data has various useful application. The application of Big data can be seen … Read more

The Fund was established with a corpus of 500 crore which aims to establish price stability through Promotion of direct purchase from farmers /farmers’ associations at farm gate/Mandi. Maintaining a strategic buffer stock that would discourage hoarding and unscrupulousspeculation. Protecting consumers by supplying such commodities at reasonable prices throughcalibrated release of stock. It is a … Read more

Growth is inclusive when: It takes place in the sectors in which the poor work (e.g. agriculture); Occurs in places where the poor live (e.g. undeveloped areas with few resources); Uses the factors of production that the poor possess (e.g. unskilled labour); Reduces the prices of consumption items that the poor consume (e.g. food, fuel … Read more

Demand-Pull Effect The demand-pull effect states that as wages increase within an economic system (often the case in a growing economy with low unemployment), people will have more money to spend on consumer goods. This increase in liquidity and demand for consumer goods results in an increase in demand for products. As a result of … Read more

The  major reasons are: Rise in Prices and galloping inflation. It surged from 6.7% to near about 16% Increase in the Fiscal deficit. Increase in non -development expenditure. Adverse Balance of payment and pressure on Balance of Payment. Iran-Kuwait war led to increase in Petrol price and hence pressure on Indian Imports. Adopted approach of … Read more

On May 12 GOI, announced a special economic package of Rs 20 lakh crore (equivalent to 10% of India’s GDP) with the aim of making the country independent against the tough competition in the global supply chain and to help in empowering the poor, labourers, migrants who have been adversely affected by COVID. Collateral free … Read more

PPIs are instruments that facilitate the purchase of goods and services, including financial services, remittance facilities, etc., against the value stored on such instruments. The value stored on such instruments represents the value paid for by the holders by cash, by debit to a bank account, or by credit card. The pre-paid instruments can be … Read more

AIM (Atal Innovation Mission), in association with CSIRO, is organizing a two-day hackathon on circular economy, ‘India–Australia Circular Economy Hackathon (I-ACE)’ I-ACE will focus on identification and development of innovative technology solutions by bright-minded students, startups and MSMEs of both nations. The four key themes for the hackathon are as follows: Innovation in packaging reducing … Read more

FAME stands for faster adoption and market creation of both hybrid and electric technologies vehicle in the country.  The scheme is under Ministry of Heavy Industries and public enterprise. It was launched in 2015 under National electric mobility mission plan. The scheme aims to provide fiscal and monetary incentives for adoption and market creation of … Read more

Inflation is the general increase in the price level of basket of commodities. In every country there are certain index to map inflation. Following are different types of Inflation: Creeping Inflation: When prices rise at very slow rate, i.e. creeper’s speed, it is called ‘creeping inflation. Generally 3% annual rise in prices is considered as … Read more

Integrated Rural Development Programme (IRDP) The Integrated Rural Development Programme (IRDP) was started in 20 selected districts in the country in 1976-77. Later on in 1980, the programme was extended to all the districts of the country. The scheme was funded by centre. The funds for the scheme are shared by centre and State Govt. … Read more

Skills Acquisition and Knowledge Awareness for Livelihood (SANKALP) is an outcome-oriented programme of Ministry of Skill Development & Entrepreneurship (MSDE) with a special focus on decentralised planning and quality improvement.It is a Centrally Sponsored Scheme which is collaborated with the World Bank. It aims to implement the mandate of the National Skill Development Mission (NSDM). … Read more

The Indian Council of Agricultural Research (ICAR) is an autonomous organisation under the Department of Agricultural Research and Education (DARE), Ministry of Agriculture and Farmers Welfare , Government of India. Formerly known as Imperial Council of Agricultural Research, it was established on 16 July 1929 as a registered society under the Societies Registration Act, 1860 … Read more

The committee, set up in 2015 to recommend measures to enhance combat capability and rebalance defence expenditure of the armed forces, has submitted its final report in December 2016. The committee said that if recommendations are implemented, the government can save up to Rs. 25,000 crore from the current expenditure. The major recommendations are as follows: … 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 counter this imbalance in regional development. Thus, for example, the 1956 Industrial Policy Resolution of … Read more

Solutions:   Allowing market to penetrate in the non -efficient areas. Government need to do way with the fear of private sector intrusion and instead adopt the role of facilitator. Intellectual property rights need to be preserved and ecosystem of safety of IPR should be there. Rational and quick decision making on the unviable public … Read more

Tier-1 capital:     Tier 1 capital, used to describe the capital adequacy of a bank, is core capital that includes equity capital and disclosed reserves. Tier 1 capital is essentially the most perfect form of a bank’s capital — the money the bank has stored to keep it functioning through all the risky transactions it … Read more

Prime Minister Narendra Modi on December 25, 2019 launched a scheme to conserve ground water in regions with low water tables. It is a Rs.6000 crore World Bank approved Central Sector Scheme of the Ministry of Jal Shakti The funding pattern is 50:50 between Government of India and World Bank. Aims to improve ground water management in priority areas in the country through community … 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 have a rank of 50 and Brazil 62. This implies  that our infrastructure is viewed … Read more

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

It is a project to provide the clean energy in eastern part of the country. The gas pipeline will pass through 50 district in the state of Uttar Pradesh, Bihar, Jharkhand, Odisha and West Bengal. It is a two phased Project which was launched in 2016 also known as Jagdishpur-Haldia and Bokaro dharma natural gas … Read more

Global MPI is an international measure of multidimensional poverty covering 107 developing countries and was first developed in 2010 by Oxford Poverty and Human Development Initiative (OPHI) and United Nations Development Programme (UNDP) for UNDP’s Human Development Reports. The Global MPI is released at the High-Level Political Forum (HLPF) on Sustainable Development of the United … Read more

:  Value capture financing (VCF) works on the conviction that public policy and infrastructure projects typically lead to improvement in the quality of housing, jobs access and transportation, yield other social benefits, and lead to the emergence of important commercial, cultural, institutional, or residential developments in the influence area. This, in turn, leads to an … Read more

Tax expenditure is the revenue foregone as a result of exemptions and concessions. Tax expenditure was introduced for the first time in 2006-07 union budget.  Tax expenditure is justified on following grounds: Act as an incentive for priority sector like infrastructure. It promotes balance regional growth It neutralise the disadvantage on account of location It … Read more

It is an information repositorythat collates all loan information of individuals andcorporate borrowers. A credit repository helps banks distinguish between a bad and a good borrower andaccordingly offer attractive interest rates to good borrowers and higher interest rates to badborrowers. The move is based on the recommendations of a committee, headed by Y.M.Deosthalee.PCR will address … Read more

  In formulating the recommendations in respect of the level of minimum support prices and other non-price measures, the CACP takes into account a comprehensive view of the entire structure of the economy of a particular commodity or group of commodities. Other Factors include cost of production, changes in input prices, input-output price parity, trends … Read more

Direct Port Entry Facility is the noteworthy step towards reducing the logistics cost and to increase the velocity of cargo for boosting ease of doing business and economy growth. DPE will help in increasing Ease of Doing Business for the exporters, as the facility will bring efficiency and reduce dwell time, lower tariff cost and … Read more

SHAKTI stands for Scheme for Harnessing and allocating Koyala Transparency in India. It is a  transformational policy for auction and allotment of coal linkages. This policy will award fuel supply agreements to coal plants already holding letter of assurance. Coal linkage would be allocated to state owned power distribution companies. The major objective to bring … Read more

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

Unified payment interface project is to move the country towards a more cashless model. The objective is to achieve financial inclusion. New features in UPI 2.0 Linking of overdraft account – Apart from the savings and current accounts, the UPI users can now link their overdraft account to it and all the facilities and benefits … 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 an  action plan for the next three years, aimed at raising the contribution of the … Read more

Financial problems The paucity of adequate and timely finance and credit is the main setback in the development of SSI units. It is even worse in case of cottage and village industries. The capital base of the small industrial units is usually very weak since they generally have partnership or sole proprietorship form of organization. … Read more