Index of Industrial Production Q. Why is this in News? Recently, as per official estimates for the Index of Industrial Production (IIP), India’s industrial recovery slowed sharply in December 2021, with output growing just 0.4% year-on-year, and manufacturing activity contracting 0.1%. Contrary to expected growth of 2.5%, growth has come in at 0.4% which is disappointing. Q. What is the Index of
Read moreRatings Agency Q What is the context ? Finance Secretary has accused rating agencies of “double standards” when assessing emerging markets and developing economies. Fitch, a rating agency, has termed India as the most indebted emerging market. It claimed that the latest budget did not provide clarity on fiscal consolidation plans. Q What is a Rating Agency? Rating agencies assess
Read moreLIC Disinvestment Q Why is it in News ? The Union government has filed a draft document with the stock market regulator for selling 5% of its shares in the Life Insurance Corporation (LIC) of India. Q What are details of the IPO ? The IPO is a 100% OFS [offer for sale] by the Government of India and entails
Read moreAbout: Maharatna Scheme Maharatna scheme was introduced by the Government of India for Central Public Sector Enterprises (CPSEs) in May, 2010. Objective: To empower mega CPSEs to expand their operations and emerge as global giants. Under the scheme, a CPSE is accorded the status of “Maharatna” company when it meets certain eligibility criteria. Concerned Department: Department of Public Enterprises, Ministry
Read moreIn Focus: Periodic Labour Force Survey In every economy, estimation of reliable employment and unemployment data is important. The National Sample Survey Office (NSSO) was historically conducting quinquennial (once in every five years) employment and unemployment surveys as part of its National Sample Surveys. From April 2017, the NSSO has adopted a new employment and unemployment survey called Periodic Labour Force Survey (PLFS).
Read moreStructure of the answer: Introduction (about WTO) Challenges faced by WTO Relevance of WTO Reform in functioning of WTO Model Answer WTO was set up under Marrakesh Treaty (1994) and as an organization aim to improve living standards, generate employment, and expand global trade. However, in recent years WTO is facing challenges on various counts such as: Consensus based rule making has become a
Read moreCairn wins arbitration ruling against India in tax dispute In News The Permanent Court of Arbitration (PCA) at The Hague has ruled that the Indian government was wrong in applying retrospective tax on Cairn Energy Plc. This is the second ruling against the Indian government at international tribunals over the retrospective tax issue in three months. In September, 2020, a separate international arbitration
Read moreAbout: Krishna Godavari basin The delta plain formed by Krishna and Godavari rivers in the state of Andhra Pradesh and the adjoining areas of Bay of Bengal is known as Krishna Godavari Basin. It is a proven hydrocarbon reserve, with an inland part that covers an area of 28,000 sq. km and an offshore (located in the sea or near the coast) part that
Read moreAbout: Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was enacted in 2005 providing a legal right to employment for adult members of rural households. It aims at addressing causes of chronic poverty through the ‘works’ (projects) that are undertaken, and thus ensuring sustainable development. Core objectives: Providing not less than 100 days of guaranteed wage employment
Read moreAbout: Foreign Exchange Reserves Foreign exchange reserves are the foreign currencies held by a country’s central bank.The reserves in India are managed by the Reserve Bank of India for the Indian government and the main component is foreign currency assets. Reserve Bank of India accumulates foreign currency reserves by purchasing from authorized dealers in open market operations. Reserve Bank of India Act and
Read moreAbout: India’s agricultural exports Agricultural exports are extremely important as the exports help farmers/producers/exporters to take advantage of wider international market and increase their income. Exports have also resulted in increased production in agriculture sector by increasing area coverage and productivity. Giant strides have been made in agri export since independence. In 1950-51, India’s agri export was about Rs. 149
Read moreHeadline : Manufacturing PMI improves Details : In News: The Nikkei India Manufacturing Purchasing Managers’ Index rose in November from October, indicating an increase in manufacturing activity November. About: Purchasing Manager Index (PMI) The Nikkei India Manufacturing PMI is based on data compiled from monthly survey responses by purchasing managers in more than 400 manufacturing companies, on various factors that represent demand conditions. PMI measures activity at the purchasing
Read moreHeadline : Explained: Why interest rates aren’t falling Details : Context for the article: This article explores why, despite significant repo rate cuts by the RBI, the interest rates in the banking system are not falling much. Rate cuts by the RBI: Since February, the Reserve Bank of India (RBI) has aggressively cut the repo rate. Repo rate is the interest
Read moreHeadline : Bank merger announcement is a needless distraction Editorial 5th Sep’19 IndianExpress Details : Public Sector Bank (PSB) merger: In a major reform measure, the Union Finance Ministry has announced the merger of 10 public sector banks (PSBs) into four entities. Seen as a response to slowdown: The announcement comes in the wake of growth sinking to a six-year low,
Read moreHeadline : Fintech committee recommends new legal framework for consumer protection Details : In News: A panel on issues related to financial technology (fintech) has recently submitted its recommendations to the Finance Ministry. The committee has suggested putting in place a comprehensive legal framework to protect consumers of digital services. What Is Financial Technology (Fintech)? Financial technology (Fintech) is used to describe new
Read moreHeadline : Deceleration in economy: Cyclical downswing, not a deep structural slowdown, says RBI Details : In News The Reserve Bank of India has released its annual report for the year 2018-19. The report confirms that several sectors are undergoing a deceleration in the economy. However, it states that the deceleration could turn into cyclical downturn rather than a deep structural
Read moreHeadline : Supreme Court upholds homebuyers’ rights as financial creditors under IBC Details : Why in News: The Supreme Court has upheld the validity of an amendment to the Insolvency and Bankruptcy Code (IBC) that treats homebuyers as financial creditors, thus giving homebuyers the right to take legal recourse against developers under three key laws. Background: The IBC amendment in relation
Read moreHeadline : India connects Bangladesh to Bhutan, through waterway Details : The News: In a first-ever development, Indian waterways is being used to transport cargo between 2 countries i.e. Bhutan and Bangladesh. The inland waterways vessel containing cargo from Bhutan to Bangladesh will move via River Brahmaputra ( NW 2) and the Indo Bangla Protocol Route Telegram: https://t.me/UpscExpress News Summary The
Read moreHeadline : RBI takes offbeat tack to help reverse growth slowdown Details : The News: Telegram: https://t.me/MrunalsEconomy In its monetary policy review, the Monetary Policy Committee of the RBI has decided to cut the repo rate by 35 basis points (bps). In addition, the RBI also announced some measures to boost economic activity. Important Terminologies: Risk Weight: Risk weight is capital required
Read moreHeadline : The name is dollar bond Editorial 3nd Aug’19 IndianExpress Details : Sovereign Bonds: During the recent Budget, the Indian finance minister announced plan of the government of India to borrow in foreign currency to finance the fiscal deficit. The plan is to raise up to 10-15% of government borrowing — $10 billion — from the first overseas sovereign
Read moreNews : RBI divests its entire stake in Nabard, NHB News Analysis Reserve Bank has divested its entire stake in National Housing Bank (NHB) and the National Bank for Agriculture and Rural Development (NABARD), with this the government is now cent percent holder of both these financial institutions. RBI had 100% shareholding in NHB, which was divested for ₹1,450 crore.
Read moreHeadline : WhatsApp yet to comply with data localisation norms: RBI Details : The News Recently, the RBI has made the revelations that WhatsApp is not in compliance with RBI’s data localisation norms. This is the first time ever that the Reserve Bank has made any statement about WhatsApp’s payments business and compliance with data localization norms. Data localisation norm
Read moreHeadline : Climate change may hit India’s wind power Details : The News According to a new study, climate change could significantly affect wind power generation in India. Effect of Climate Change on Wind Energy in India The study According to a study, wind energy production in India is vulnerable to climate change. The wind energy potential in the last
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