Economy

National Statistical Office (NSO) released the first advance estimates of the national income that projected growth in India’s GDP at market prices for 2019-20 at 4.98% in “real” terms, the lowest since the 3.89% in the global financial crisis year of 2008-09. But even more significant was the estimated growth of 7.53% in “nominal” terms, which … Read more

Disinvestment means the dilution of stake of the Government in a public enterprise. According to the government, strategic disinvestment would imply the sale of a substantial portion of the Government shareholding of a central public sector enterprises (CPSE) of upto 50%, or such higher percentage as the competent authority may determine, along with transfer of management … Read more

MSP is a form of government intervention to insure the farmers against a steep decline in the prices of their goods and to help them prevent losses. The government of India sets the MSP twice a year for 24 commodities. This is done by the government to protect the farmers against a fall in prices … 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

GIFT stands for Gujarat International Finance Tec-City (GIFT). GIFT City is an emerging global financial and IT services hub, a first of its kind in India, designed to be at or above par with globally benchmarked business districts. It is supported by state-of-the-art infrastructure encompassing all basic urban infrastructure elements along with an excellent external … Read more

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