Economy

The Build Operate and Transfer (BOT) Annuity Model   Under BOT annuity, a developer builds the highway, operates it for a specified duration and transfers it back to the government. The government starts payment to the developer after the launch of commercial operation of the project. Payment will be made on a six month basis. … Read more DMPQ: Explain the following terms: a) The Built operate and transfer (BOT) Annuity Model b) BOT toll model c) Engineering, Procurement and Construction Model

The Mega Food ParksScheme aims to provide a mechanism to bring together farmers, processors and retailers and link agriculture production to the market so as to ensure maximization of value addition, minimization of wastages and improving farmers’ income. The primary objective of the Scheme is to provide modern infrastructure facilities for the food processing along … Read more DMPQ: What is Mega food park Scheme?

HELP is the new Hydrocarbon exploration Licensing policy. The key features of HELP are as follows:   India has announced HELP, which offers single license to explore conventional and unconventional oil and gas resources. The new policy also gives the investors the much needed freedom in pricing and marketing for crude oil and natural gas. … Read more DMPQ: What is HELP? What are its key provisions?

GST as a reform has a far reaching consequences. MSME sector is going to get benefit in the long run. But in the short run as per CII, the MSME sector is facing following issues:   A complicated compliances system and a rigid taxation regime place added limits on the growth potential of small enterprises. … Read more DMPQ:What are the negative effects of GST on MSME?

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 DMPQ:. What are the issues attached with the Telecom sector in India?

Key features of National Telecom Policy, 2012  Licensing: It aims to simplify licensing framework by establishing a unified license for all telecom services,converting to a single-license system for the entire country and removing roaming charges. Spectrum: It seeks to liberalise spectrum through a system where spectrum can be pooled, shared and traded.  Connectivity: The policy … Read more DMPQ:What are the provisions of National Telecom Policy,2012?

Major reasons are: Low capital investment in infrastructure. Rising NPA after financial crisis and Twin balance sheet problem. Opening up of economy in 1991 had make us vulnerable as manufacturing country. We did capitalise on service sector. Labour laws skewed in favour of non-setting up of manufacturing units. Low investment in Research and development sector. … Read more DMPQ: Why manufacturing sector in India failed to realise its potential?

Bad bank or PARA (Public Sector Asset Rehabilitation Agency) was proposed in Economic Survey 2016-17. Bad Bank is an institution which specializes in loan resolution process, so that banking system is free to focus on core banking solutions. Need for PARA According to Economic Survey, need for PARA arises because: Early resolution so that Funds for creation … Read more DMPQ:What is bad bank? Why there is need of Bad bank?

Higher Education Financing Agency (HEFA) is a joint venture of MHRD Government of India and Canara Bank for financing creation of capital assets in premier educational institutions in India as part of rising 2022 HEFA’s scope is greatly expanded to cover school education, educational institutes under Ministry of health etc.HEFA is registered under Section 8 … Read more DMPQ: Write a short note on Higher education financing agency

Pollution: Conventional tanning process leads to environmental pollution e.g. Liquid effluent from light leather processing contains organic matter, chromium, sulphide, and solid waste. Raw material: Economic Survey – 2016-17 pointed out non- availability of cattle for slaughter is an impediment for raw material supplier. Lack of warehousing support: from the government results into huge loss … Read more DMPQ: . What are the challenges faced by the leather Industry in India?

:  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 DMPQ: What is value capture financing?

Objectives of the Agriculture Export Policy are as under:   To double agricultural exports from the present US $ 30+?Billion to US $ 60+?Billion by 2022 and reach US $ 100 Billion in the next few years thereafter, with a stable trade policy regime. To diversify our export basket, destinations and boost high value and … Read more DMPQ: . What are the objectives of our agriculture export policy of India?

Unemployment is a phenomenon that occurs when a person who is capable of working and is actively searching for the work is unable to find work. Different types of unemployment are as follows: Frictional Unemployment:The minimum amount of unemployment that prevails in an economy due to workers quitting their previous jobs and are searching for … Read more DMPQ: What is unemployment? Explain the types of unemployment.

Contract farming is agricultural production carried out according to an agreement between farmers and a buyer, which places conditions on the production and marketing of the commodity. Contract farming (CF) is defined as forward agreements specifying the obligations of farmers and buyers as partners in business. Legally, farming contracts entail the sellers’ (farmers’) obligation to … Read more DMPQ:What is contract farming? Why there is a need of contract farming?

Brief Intro- of Scheme Points against: The Programme is targeted cash transfer and hence high chances of exclusion errors. The landless tenant are out of the beneficiary list. Will lead to fragmentation of the land. Beneficiary will fragment the land to avail the benefit of the scheme. In long run it is not good for … Read more DMPQ: Do you think PM KISAN scheme is going to alleviate the widespread rural distress in the country. (ECONOMY)

:  To provide an assured income support to the small and marginal farmers, Government is launching a historic programme namely “Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)”. Under this programme, vulnerable landholding farmer families, having cultivable land upto 2 hectares, will be provided direct income support at the rate of Rs 6,000 per year. This income … Read more DMPQ: . PM KISAN (Schemes)

Ans: Angel tax is a term used to refer to the income tax payable on capital raised by unlisted companies via issue of shares where the share price is seen in excess of the fair market value of the shares sold. The excess realisation is treated as income and taxed accordingly. The tax was introduced … Read more DMPQ: . What is Angel Tax? What are the concerns attached with the Angel Tax?

Minimum support price is the government scheme to safeguard the interest of the farmers. GOI declares the MSP of various agricultural produce and assures the farmers that their agriculture produce will be purchased at the MSP. The Food Corporation of India acts as the Nodal agency of the GoI. MSP scheme is implemented through state … Read more DMPQ: What is Minimum Support Price? How will MSP rescue the farmers from low income trap?

SFIO stands for serious frauds investigation office. It is a investigation agency which is under the jurisdiction of ministry of corporate affairs.  The mandate of SFIO is as under: The SFIO is involved in major fraud probes and is the co-ordinating agency with the Income Tax Department and the Central Bureau of Investigation. It is … Read more DMPQ: What is the mandate of SFIO? ( ECONOMY)

Major advantages:   It will help to regulate the highly unregulated real estate sector. Will help to deal with the undue delay in project implementation. Will help to streamline the data of the project across the country and hence will bring homogeneity and rule bas e pricing in the sector. It will enhance the transparency … Read more DMPQ: What are the major advantages of the Real estate regulation act 2016? ( ECONOMICS)

    Establishment of state level regulatory authorities- Real Estate Regulatory Authority (RERA)- the Act provides for State governments to establish more than one regulatory authority Functions: Register and maintain a database of real estate projects; publish it on its website for public viewing, Protection of interest of promoters, buyers and real estate agents development … Read more DMPQ: What are the key provisions of the Real estate regulation act? (ECONOMY)

:  Government budget is the annual financial statement presented by the finance minister which contains the following figure: Actual estimate for FY 2017-18 Budget estimate for FY 2018-19 and Revised estimate for FY 2018-19 Budget estimate for FY 2019-2020   The budget is divide into two parts:   Revenue budget Capital budget  

Protectionism is the economic policy of restricting imports from other countries through methods such as tariffs on imported goods, import quotas, and a variety of other government regulations. Protectionist policies help immune the producers, businesses, and workers of the import-competing sector in the country from foreign competitors.   Impact on India   Positive: India has … Read more DMPQ: What is protectionism? How does it affect India? (Economy)

Monetary transmission refers to the process by which a central bank’s monetary policy decisions are passed on, through financial markets, to businesses and households.     A Ponzi scheme is a fraudulent investing scam promising high rates of return with little risk to investors. Instances of people losing their hard-earned money to Ponzi schemes keep … Read more DMPQ: Give a brief account on following term. (Economy) a) Monetary policy transmission b) Ponzi scheme

Recapitalisation plan is a mechanism to deal with the problems of NPA in the financial institutions. It is one of the four R’s to address the issue of NPA’s.  In Oct,17 Centre has announced a 2.11 lakh crore recapitalisation plan for the public sector banks over the next two years. The recapitalisation plan is a … Read more DMPQ: . What is the recapitalisation plan for the banks? Discuss the implication of the plan. (Economy)

Objectives of the Agriculture Export Policy are as under: To double agricultural exports from the present US $ 30+?Billion to US $ 60+?Billion by 2022 and reach US $ 100 Billion in the next few years thereafter, with a stable trade policy regime. To diversify our export basket, destinations and boost high value and value-added agricultural exports … Read more DMPQ: Recently the agriculture export policy was announced by the government of India. Discuss the objectives of the agriculture export policy. (Economy)

  Changes in the Income tax act: one of the condition for resident of India was leading to creation of shell companies i.e. during a financial year, a company shall have management of its affairs wholly in India. This provision was leading to creation of shell companies.   Ministry of Corporate Affairs (MCA) and Central … Read more DMPQ: What were the steps taken by government of India to regulate the Shell companies? (Economy)

Shell companies are typically corporate entities which do not have any active business operations or significant assets in their possession.  A shell company may be a legal entity or not. Issues associated with shell companies: There is no clear definition of shell companies. Even under the companies act they are not defined. Out of the … Read more DMPQ: What are shell companies? What are the concerns associated with shell companies. (Economy)

: Brent Crude is a major trading classification of sweet light crude oil that serves as a major benchmark price for purchases of oil worldwide. This grade is described as light because of its relatively low density, and sweet because of its low sulphur content. Brent Crude is extracted from the North Sea and comprises … Read more DMPQ: What is brent crude? What are the impact of rising oil prices on India?

Base erosion and profit sharing is a tax avoidance strategy by multinational companies, where in profits are shifted from shifted from jurisdiction that have high taxes to jurisdiction that have low tax. Base erosion and profit shifting project is a joint initiative between G20 countries and the OECD , towards the development of a coherent … Read more DMPQ: What is Base erosion and profit sharing? Discuss the provisions of the Base erosion and profit sharing project? (Economy)

External commercial borrowing (ECB) is basically a loan availed by an Indian entity from a non-resident lender.  They are used widely in India to facilitate access to foreign money by Indian corporations and PSUs (public sector undertakings).  Most of these loans are provided by foreign commercial banks and other institutions.  In the post reform period, … Read more DMPQ: What is external commercial borrowing? Who controls External commercial borrowing and discuss its advantages.

The New Development Bank (NDB), formerly referred to as the BRICS Development Bank, is a multilateral development bank established by the BRICS states (Brazil, Russia, India, China and South Africa). The Bank supports public or private projects through loans, guarantees, equity participation and other financial instruments. It is headquartered in Shanghai, China. The first regional … Read more DMPQ:What is New Development Bank and explain its mandate? (International organisation)

  The stability of FDI even during the crisis period led many developing countries to favour FDI over other forms of Short-term inflows. The Foreign Countries Investors are willing to invest in Developing countries because it allows them to seek highest returns. It also reduces the risk faced by the owner of capital by allowing … Read more DMPQ: How beneficial is FDI for developing countries like India?

  Foreign Direct Investment Foreign Portfolio Investment FDI is an investment made by a company or individual in the business of another country in the form of either establishing a new business or acquiring the existing business. FPI is an investment made by a company or an individual in the stock markets or debt markets … Read more DMPQ: What is the difference between FDI and FII. ( Economy)

:  It is a web-based software application developed and implemented by the Office of Controller General of Accounts (CGA).  Its coverage includes Central Sector and Centrally Sponsored Schemes as well as other expenditures including the Finance Commission Grants. Advantages of PMFS:  Better monitoring of funds and transparency: It establishes a common electronic platform for complete tracking … Read more DMPQ: What is Public financial management system? Discuss its advantages. ( economy)

A public-private partnership (P3) is a contractual arrangement between a public agency and a private sector entity, typically of a long term nature. Through this agreement, the skills and assets of each sector (public and private) are shared in delivering a service or facility for the use of the general public. In addition to the … Read more DMPQ: What is PPP model? What are the advantages of PPP?(Economy)

After the recent Assembly elections, the new governments in Rajasthan, Madhya Pradesh and Chhattisgarh announced farm loan waivers. According to SBI Research, around ?70,000 crore will be spent on farm debt waivers till May 2019.? Rising costs, drop in income and increasing incidence of indebtedness among small and marginal farmers manifested in a spate of suicides over … Read more DMPQ: Farm loan waiver has become a populist tool. Do you think loan waiver is the ultimate solution? (Economy)

The development of small scale industrial sector has been one of the major planks of India?s economic development strategy since independence. India accorded high priority to this sector from the very beginning and pursued support policies to make these enterprises viable and vibrant. Despite numerous protection and policy measures for the past so many years … Read more DMPQ: What are the opportunities and challenges confronting the Indian small scale industrial sector in the era of globalization

Gujarat: Online consent system for environment clearances Geographic Information System (GIS)-based land identification system Maharashtra: Unified process with single identification for Value Added Tax and Professional Tax registration Time required for getting an electricity connection has been reduced to 21 days from 67 days and procedures involved has been cut down to 3 from existing … Read more DMPQ: Explain the State Government initiatives for Ease of doing business.

Masala bonds are bonds issued outside India but denominated in Indian Rupees, rather than the local currency The term was used by the International Finance Corporation (IFC) to evoke the culture and cuisine of India Unlike dollar bonds, where the borrower takes the currency risk, masala bond makes the investors bear the risk The first … Read more DMPQ :What are masala bonds? Explain their significance (ECONOMY)

CAATSA stands for countering American adversaries through trade  act. As the name suggest, it is an act passed by the US congress and it sanctions trade in the field of defence, energy etc. with Russia, Iran and North Korea. This act is going to affect India-Russia and India-Iran Relations. CAATSA, if implemented in its stringent … Read more DMPQ: CAATSA was recently in news. What is CAATSA? How it will affect India? (IR)

The Agreement on Trade-Related Investment Measures (TRIMs) are rules that apply to the domestic regulations a country applies to foreign investors, often as part of an industrial policy. The agreement, concluded in 1994, was negotiated under the WTO’s predecessor, the General Agreement on Tariffs and Trade (GATT), and came into force in 1995. The agreement … Read more DMPQ: What do you mean by Trade-Related Investment Measures (TRIMs) ?

Historically, India has classified and tracked its economy and GDP in three sectors: agriculture, industry and services. Agriculture includes crops, horticulture, milk and animal husbandry, aquaculture, fishing, sericulture, aviculture, forestry and related activities. Industry includes various manufacturing sub-sectors. India’s definition of services sector includes its construction, retail, software, IT, communications, hospitality, infrastructure operations, education, health … Read more DMPQ: Write and Essay on the Sectoral Composition with respect to contribution to Gross Domestic Product (GDP) and Employment

Foreign capital flow in a country can take place either in the form of investment, concessional assistance, foreign aid. Foreign Investment includes Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI) / Foreign Institutional Investment (FII). FPI includes the amounts raised by Indian corporate through Euro Equities, Global Depository Receipts (GDR’s), and American Depository Receipts … Read more DMPQ: What are the Forms and types of foreign Capital

  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 DMPQ: Examine the methods for the calculation of MSP.

There are 3 methods to calculate the National income.These methods are given by Simon Kuznets. PM (Product Method) or Product service method. IM (Income Method) CM (Consumption Method) or expenditure method. In India the combination of Product method and Income methods is used for calculating the National Income.   PRODUCT METHOD: NI = GDP  – income earned in … Read more DMPQ: Explain in detail the methods to calculate National Income.

Pros Economic planning is assumed to modify the restraining influence of limited resources by recogniz­ing the existence of particular constraints and by choosing and coordinating investment projects so as to channel these scarce factors into their most productive outlets. Planning is necessary to take care of the poor and the downtrodden who have little asset … Read more DMPQ: Evaluate the pro and cons of decentralized economic planning.

  Make in India : This programme was launched on 25th September which aims at making India a global hub for manufacturing, research and innovation and integral part of the global chain. The GoI has identified 10 ‘Champion sectors’ that have potential to become global champion, drive double digit growth in manufacturing and generate significant … Read more DMPQ: Industrial efficiency is a key to sound economy. In this contest discuss the key initiative taken by India to boost industrial performance. ( economoy)

According to the recent economic survey, the problems associated with logistics are the main concern for India trade and they are reducing the competitiveness by increasing the cost. Some key challenges are as follows:   High cost of logistics-impacting competitiveness in domestic and global market. The structure of modal mix is an inefficient one ( … Read more DMPQ: Challenges in logistics are main concern for Indian trade. Comment. (Economy)