Economy

/Economy

Bad Bank – Idea to tackle NPAs

By | 2018-06-18T09:20:29+00:00 June 18th, 2018|Categories: Economy, GS Paper 3|Tags: , , |

Non-performing assets have become a nightmare for the policymakers as it is currently disarming the ability of Monetary Policy Committee to control the money supply. Multiple ideas to address the menace of NPAs have been discussed but the humongous amount has not yet fallen down from the molehill. Idea of a bad bank - One of the ideas that have been debated and discussed about is the idea of a bad bank. The logic behind the formulation of a bad bank is to transfer all the non-performing assets (NPA) of a bank under the baggage of this entity so as [...]

Petrol and Diesel Pricing

By | 2018-06-09T16:09:03+00:00 June 9th, 2018|Categories: Economy, GS Paper 1, GS Paper 3|Tags: , , , |

In India, we pay so much for petrol and diesel due to tax and levies. Apart from the argument to contain fiscal deficit, the government has other reasons to not lower down these levies on this public utility. Fascinating statistics - For every additional rupee in tax and levies, the government gets Rs 130 billion more revenue while for every $10 per barrel increase in crude oil prices, GDP growth is reduced by almost 0.2-0.3 percent. Why the people must pay high taxes? Those who use vehicles must pay high taxes so that - It acts as a disincentive to [...]

Electric Vehicles | IAS Coaching in Chandigarh

By | 2017-11-16T23:22:46+00:00 November 16th, 2017|Categories: Economy, Editorial Simplified, Environment & Ecology, GS Paper 3|

IAS Coaching in Chandigarh. This article covers a summary of Carnegie India editorial.To reinforce its Paris Climate Change Conference (2015) commitments, the government intends that all vehicles sold in India by 2030 should be electric.NITI Aayog report -A recently released NITI Aayog report on mobility transformation outlines a feasible and phased approach to achieve this goal.Developed in partnership with the Rocky Mountain Institute, it presents the government’s vision of a shared, electric and connected mobility paradigm where mobility is a service based on an electric vehicle (EV) fleet, enabled by the convergence of low-cost technologies, smart designs, business model innovation and [...]

Farm Loan Waiver – Critical Analysis

By | 2017-11-14T22:08:28+00:00 November 14th, 2017|Categories: Agriculture, Economy, GS Paper 3|

Farm loan Waiver. Since Independence, one of the primary objectives of India’s agricultural policy has been to improve farmers’ access to institutional credit and reduce their dependence on informal credit. Steps taken by Government to formalise credit for farmers - Nationalisation of commercial banks, Establishment of Regional Rural Banks, Establishment of National Bank for Agriculture and Rural Development (NABARD). Launching of schemes like - Kisan Credit Card scheme in 1998, the Agricultural Debt Waiver and Debt Relief Scheme in 2008, the Interest Subvention Scheme in 2010-11, and the Pradhan Mantri Jan-Dhan Yojana in 2014. Result of the above measures - The [...]

World Food India for UPSC |

By | 2017-11-12T00:19:00+00:00 November 12th, 2017|Categories: Economy, GS Paper 3|

The World Food India event saw participation of 75 international and national policy makers and heads of state, including Armenian President Serzh Sargsyan and Latvian Prime Minister Maris Kucinskis. Details - In India, food consumption is currently valued at $370 billion and it is expected to touch $1 trillion by 2025. Therefore, a huge opportunity is there for investment in agriculture and food industry of India. India has the second largest arable land area in the world and as many as 127 diverse agro-climate zones. It is the biggest milk producer in the world, while it is second largest producer of [...]

GAAR Rules | IAS Indian Economy |

By | 2017-10-29T20:16:39+00:00 October 29th, 2017|Categories: Economy, GS Paper 3|

With the goods and services tax (GST) having completed the first 100 days, it is time for taxpayers to turn their focus towards another “G”—General Anti-Avoidance Rules (GAAR), which has been made effective from 1 April 2017 in Indian tax law. What is GAAR? The General Anti Avoidance Rule or simply GAAR is an anti-tax avoidance rule which prevents tax evaders, from routing investments through tax havens like Mauritius, Luxembourg, Switzerland. It was first proposed during the annual budget 2012-13 by the then Finance Minister Pranab Mukherjee during 2012-2013 budget. What is good in rolling out GAAR? Given the global developments around [...]

IMF Reforms | All India Radio Summary

By | 2017-10-26T21:49:13+00:00 October 26th, 2017|Categories: AIR Spotlight, Economy, GS Paper 2, GS Paper 3, International Relations, World Affairs|

The keys to ignite the growth of world economy now are undeniably in the hands of dynamic emerging economies. India, therefore, has reminded the International Monetary Fund (IMF) and the World Bank (WB) that there could not be any turning back on committed IMF reforms. The core issue however is the ‘quota reforms’ in the global financial institutions. IMF reforms - The Finance Minister gave a timely reminder that the reformed quota shares in the IMF must align with the strength of the dynamic emerging economy countries. Indeed, IMF reforms in quota share in IMF were agreed to be completed by [...]

Kotak Committee Recommendations on Corp. Governance

By | 2017-10-21T16:34:50+00:00 October 21st, 2017|Categories: Economy, Editorial Simplified, Governance, GS Mains, GS Paper 2, GS Paper 3, GS Paper 4|

Kotak committee headed by Uday Kotak (on Corporate Governance) submitted has submitted its recommendations to the Securities and Exchange Board of India (SEBI) last week. The committee has recommended sweeping changes that will make corporate affairs more transparent as well as improve the standard of corporate governance in listed companies. Background - In improving the standard of corporate governance, India has made progress over the years. Committees in the past, such as those led by Kumar Mangalam Birla and N.R. Narayana Murthy, contributed to the process. The Kotak committee has extensively examined the current state and has made recommendations that will [...]

UBI Feasible?

By | 2017-10-21T16:25:50+00:00 October 21st, 2017|Categories: Economy, Editorial Simplified, Governance, GS Mains, GS Paper 2, GS Paper 3|Tags: , , |

Universal Basic Income (UBI) is seen by many as an alternative to the existing system of subsidies, which is often associated with systemic inefficiencies. What is UBI? A basic income is an income unconditionally granted to all on an individual basis, without means test or work requirement. It is a form of minimum income guarantee that differs from those that now exist in various European countries in three important ways: It is being paid to individuals rather than households; It is paid irrespective of any income from other sources; It is paid without requiring the performance of any work or the [...]

Behavioural economics | All you need to know.

By | 2017-10-15T22:39:45+00:00 October 15th, 2017|Categories: Economy, GS Paper 3|

What is Behavioural economics? Behavioural economics incorporates the study of psychology into the analysis of the decision-making behind an economic outcome, such as the factors leading up to a consumer buying one product instead of another. Unlike the field of classical economics, in which decision-making is entirely based on cold-headed logic, behavioural economics allows for irrational behaviour and attempts to understand why this may be the case. Background - John Maynard Keynes famously wrote about how the economy was driven by animal spirits—or human psychology. But what is human psychology all about? Keynes left the question unanswered. Maurice Allais (Nobel laureate [...]

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