Economy

Currency convertibility is the ease with which the currency of a country can be freely converted into any other foreign currency or gold at market determined exchange rate based on demand and supply for that currency. For example, convertibility of Indian rupee is the ease with which rupee be converted into any foreign exchange like … 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

Budget is the annual financial statement of income and expenditure of government. The Constitution of India has a provision (Art. 112) for such a document called Annual Financial Statement to be presented in the Parliament before the commencement of every new fiscal year—popular as the Union Budget. The budget is prepared by the Budget Division … Read more

Economic growth is inclusive when growth percolates to all the sectors of the economy and the development is not concentrated to certain pockets but in all region.  The growth should reduce the inequality between the rich and the poor. SALIENT FEATURES OF INCLUSIVE GROWTH Participation– People are able to participate fully in economic life and … Read more

The GDP deflator, also called implicit price deflator, is a measure of inflation. It is the ratio of the value of goods and services an economy produces in a particular year at current prices to that of prices that prevailed during the base year. This ratio helps show the extent to which the increase in … Read more

In 1991, India launched a process of economic reforms in response to a fiscal and balance-of-payments (BoP) crisis. The reforms and the related programmes are still going on with changing emphasis and dimensions. The economic reform programme, that India launched, consisted of two categories of measures: Macroeconomic Stabilisation Measures and Structural Reform Measures. POSITIVE IMPACTS … Read more

The Ministry of road transport and highways has taken up detailed review of NHs network with a view to develop the road connectivity to Border areas, development of Coastal roads including road connectivity for Non-Major ports, improvement in the efficiency of National Corridors, development of Economic Corridors, Inter Corridors and Feeder Routes along with integration … Read more

Interim Budget, also known as ‘a vote on account’, essentially means that the government seeks the approval of Parliament for meeting expenditure for the first four months of the fisca l year (April-March) — paying salaries, ongoing programmes in various sectors etc — with no changes in the taxation structure, until a new government takes … Read more

The Ease of Doing Business Rank (EODB) is a measure of an economy’s position to the best regulatory practices. Though World Bank used to publish the ‘Doing Business’ reports from 2003, the ranking of economies started only from 2006. The EODB study tries to capture the experience of small and mid-sized companies in a country with their … Read more

MSMEs are labour intensive, have the advantage of low cost of production and can make good use of locally available resources pushing demand and growth The sector offers wide range of employment opportunities and absorbs most of the working age population Majorly consists of handlooms, handicrafts, coir, sericulture, khadi and village industries, small scale industries … Read more