#Economy_Basics #PT2020
Activity Status: The activity status of a person is determined on the basis of the activities pursued by the person during the specified reference period.
Two Types -
1. Usual Status: determined on the basis of the reference period of the last 365 days preceding the date of survey.
2. Current Weekly Status (CWS): determined on the basis of a reference period of the last 7 days preceding the date of survey
Activity Status: The activity status of a person is determined on the basis of the activities pursued by the person during the specified reference period.
Two Types -
1. Usual Status: determined on the basis of the reference period of the last 365 days preceding the date of survey.
2. Current Weekly Status (CWS): determined on the basis of a reference period of the last 7 days preceding the date of survey
#Economy_Basics #PT2020
Forex Reserves
- RBI Act and the Foreign Exchange Management Act, 1999 set the legal provisions for governing the foreign exchange reserves.
- RBI accumulates foreign currency reserves by purchasing from authorized dealers in open market operations.
- India's total Forex reserves stand at around US$ 493.48 Billion on 29th May 2020 (all time high).
Forex reserves are held by RBI in
1. Foreign Currency Assets
2. Gold
3. Special Drawing Rights (SDRs) of IMF
4. Reserve Tranche Position
Forex Reserves
- RBI Act and the Foreign Exchange Management Act, 1999 set the legal provisions for governing the foreign exchange reserves.
- RBI accumulates foreign currency reserves by purchasing from authorized dealers in open market operations.
- India's total Forex reserves stand at around US$ 493.48 Billion on 29th May 2020 (all time high).
Forex reserves are held by RBI in
1. Foreign Currency Assets
2. Gold
3. Special Drawing Rights (SDRs) of IMF
4. Reserve Tranche Position
#Economy_Current #PT2020 #2MinRead
Border Adjustment tax
- It is a duty that is imposed on imports in addition to the customs levy.
- It is charged on goods or services in accordance with the destination principle of taxation.
- seeks to promote “equal conditions of competition” for foreign and domestic companies
News - Recently a NITI Ayog member has favoured BAT, thus created a debate on a policy making.
Border Adjustment tax
- It is a duty that is imposed on imports in addition to the customs levy.
- It is charged on goods or services in accordance with the destination principle of taxation.
- seeks to promote “equal conditions of competition” for foreign and domestic companies
News - Recently a NITI Ayog member has favoured BAT, thus created a debate on a policy making.
#Economy_Current #PT2020
Adjusted Gross Revenue (AGR)
- It is the usage and licensing fee that telecom operators are charged by the Department of Telecommunications (DoT).
- It is divided into spectrum usage charges(around 3-5% and licensing fees(around 8%).
- Charges are calculated based on all revenues earned by a telco – including non-telecom related sources such as deposit interests and asset sales.
(As per DoT and Supreme Court judgement)
Adjusted Gross Revenue (AGR)
- It is the usage and licensing fee that telecom operators are charged by the Department of Telecommunications (DoT).
- It is divided into spectrum usage charges(around 3-5% and licensing fees(around 8%).
- Charges are calculated based on all revenues earned by a telco – including non-telecom related sources such as deposit interests and asset sales.
(As per DoT and Supreme Court judgement)
#Economy_Basics #PT2020
Gig economy
- Companies tend towards hiring independent contractors and freelancers instead of full-time employees.
- It undermines the traditional economy of full-time workers.
- As per an estimate, the gig economy is generating 56% employment in India and going to grow 25-30 % per annum.
Gig economy
- Companies tend towards hiring independent contractors and freelancers instead of full-time employees.
- It undermines the traditional economy of full-time workers.
- As per an estimate, the gig economy is generating 56% employment in India and going to grow 25-30 % per annum.
#Economy_Current #PT2020 #2MinRead
National Financial Reporting Authority (NFRA)
- Constituted in 2018 under the Companies Act, 2013.
- It is an independent regulator for enforcement of auditing standards so as to enhance investor and public confidence in financial disclosures of companies.
Composition:
Chairperson - appointed by the Central Govt
Members - max 15
Functions
- To Recommend the centra govt on accounting and auditing policies and standards to be adopted by companies
- Monitor and enforce compliance with accounting standards and auditing standards
- It can probe listed companies and those unlisted public companies( paid-up capital of Rs 500 crore or annual turnover of at least Rs 1,000 crore.)
- It can also investigate professional misconduct committed by members of the Institute of Chartered Accountants of India (ICAI)..
National Financial Reporting Authority (NFRA)
- Constituted in 2018 under the Companies Act, 2013.
- It is an independent regulator for enforcement of auditing standards so as to enhance investor and public confidence in financial disclosures of companies.
Composition:
Chairperson - appointed by the Central Govt
Members - max 15
Functions
- To Recommend the centra govt on accounting and auditing policies and standards to be adopted by companies
- Monitor and enforce compliance with accounting standards and auditing standards
- It can probe listed companies and those unlisted public companies( paid-up capital of Rs 500 crore or annual turnover of at least Rs 1,000 crore.)
- It can also investigate professional misconduct committed by members of the Institute of Chartered Accountants of India (ICAI)..
#Economy_Current #PT2020
1. V Kamath Committee
- constituted by the RBI
- to make recommendations on norms for the resolution of COVID-19 related stressed loans.
2. Kavkaz 2020
- It is the Russian strategic command-post exercise.
- India will take part in the exercise next month.
1. V Kamath Committee
- constituted by the RBI
- to make recommendations on norms for the resolution of COVID-19 related stressed loans.
2. Kavkaz 2020
- It is the Russian strategic command-post exercise.
- India will take part in the exercise next month.
#Economy_Current #PT2020
Business confidence index
- By National Council for Applied Economic Research (NCAER)
- on a quarterly basis since 1991
- It tracks the business sentiments of around 600 Indian companies to compute the composite index.
- It stood at 46.4 in the first quarter of 2020-21, a drop of 40.1 per cent from its level of 77.4 in the previous quarter.
- It fell 62 per cent in the June 2020 quarter on a year-on-year (y-o-y) basis,
Business confidence index
- By National Council for Applied Economic Research (NCAER)
- on a quarterly basis since 1991
- It tracks the business sentiments of around 600 Indian companies to compute the composite index.
- It stood at 46.4 in the first quarter of 2020-21, a drop of 40.1 per cent from its level of 77.4 in the previous quarter.
- It fell 62 per cent in the June 2020 quarter on a year-on-year (y-o-y) basis,
#Economy_Basics #Pre_cum_Mains
Index of Industrial Production
- an index that shows the growth rates in different industry groups of the economy in a fixed period of time.
- published monthly by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation.
- Broad sectors, namely, Mining, Manufacturing, and Electricity.
Use-based sectors, namely Basic Goods, Capital Goods, and Intermediate Goods.
- The eight core sector industries represent about 40% of the weight of items that are included in the IIP.
- The eight core industries in decreasing order of their weightage: Refinery Products (28.04 %)> Electricity (19.85 %)> Steel (17.92 %) > Coal (10.33 %)> Crude Oil (8.98 %)> Natural Gas (6.88 %)> Cement (5.37 %)> Fertilizers (2.63 %).
- Base Year for IIP calculation is 2011-2012.
Index of Industrial Production
- an index that shows the growth rates in different industry groups of the economy in a fixed period of time.
- published monthly by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation.
- Broad sectors, namely, Mining, Manufacturing, and Electricity.
Use-based sectors, namely Basic Goods, Capital Goods, and Intermediate Goods.
- The eight core sector industries represent about 40% of the weight of items that are included in the IIP.
- The eight core industries in decreasing order of their weightage: Refinery Products (28.04 %)> Electricity (19.85 %)> Steel (17.92 %) > Coal (10.33 %)> Crude Oil (8.98 %)> Natural Gas (6.88 %)> Cement (5.37 %)> Fertilizers (2.63 %).
- Base Year for IIP calculation is 2011-2012.
#PT2021 #Economy_Current
New Development Bank
News
- It has approved infrastructure projects worth 741 million dollars in India.
- a multilateral development bank operated by the BRICS states (Brazil, Russia, India, China and South Africa).
- established in 2014, at the 6th BRICS Summit at Fortaleza, Brazil.
- Headquarter - Shanghai, China.
- Aim - to foster greater financial and development cooperation among the five emerging markets.
In 2018 received observer status in the United Nations General Assembly.
Voting:
One country one vote.
No veto power.
New Development Bank
News
- It has approved infrastructure projects worth 741 million dollars in India.
- a multilateral development bank operated by the BRICS states (Brazil, Russia, India, China and South Africa).
- established in 2014, at the 6th BRICS Summit at Fortaleza, Brazil.
- Headquarter - Shanghai, China.
- Aim - to foster greater financial and development cooperation among the five emerging markets.
In 2018 received observer status in the United Nations General Assembly.
Voting:
One country one vote.
No veto power.
#PT2021 #Economy_Current
NBFC- MFIs
NBFC MFI is a non-deposit taking NBFC (other than a company licensed u/s 25 of the Indian Companies Act, 1956) that meets the following conditions:
1. Minimum Net Owned Funds (NOF) of Rs.5 crore. (Rs. 2 crore for the North Eastern Region)
2. At least 85% of its Total Net Assets are in the nature of “Qualifying Assets.”
NBFC- MFIs
NBFC MFI is a non-deposit taking NBFC (other than a company licensed u/s 25 of the Indian Companies Act, 1956) that meets the following conditions:
1. Minimum Net Owned Funds (NOF) of Rs.5 crore. (Rs. 2 crore for the North Eastern Region)
2. At least 85% of its Total Net Assets are in the nature of “Qualifying Assets.”
#Economy
New Rules for Trusts and Non-profit Organisations
- The Central Board of Direct Taxes (CDBT) has notified a new set of rules and application forms.
- It is for trusts and non-profit organizations.
- It will help them to get tax exemption for their own income.
Key points about exemptions:
1. Incomes from certain funds, universities, educational institutions, hospitals, etc,
2. Contributions made to certain relief funds and charitable institutions.
3. Donations made to the prescribed funds and institutions that have been defined in the notification qualify as a deduction.
New Rules for Trusts and Non-profit Organisations
- The Central Board of Direct Taxes (CDBT) has notified a new set of rules and application forms.
- It is for trusts and non-profit organizations.
- It will help them to get tax exemption for their own income.
Key points about exemptions:
1. Incomes from certain funds, universities, educational institutions, hospitals, etc,
2. Contributions made to certain relief funds and charitable institutions.
3. Donations made to the prescribed funds and institutions that have been defined in the notification qualify as a deduction.
#Economy
Global Gender Gap Index 2021
- Released by the World Economic Forum since 2006.
- The Gender Gap Index serves as a compass to track the progress on their towards gender parity.
Based on four areas:
1. Political Empowerment
2. Economic Participation and Opportunity,
3. Educational Attainment
4. Health and Survival.
- It also examines the drivers of gender gaps.
- It outlines the policies and practices needed for a gender-inclusive recovery.
- The index scores the countries
from 0 (inequality) to 1 (equality).
About the reports –
1. 156 countries ranked by the Gender Gap Report 2021
2. Iceland is the most gender-equal country in the world.
3. India has ranked 140th rank, becoming the third-worst performer in South Asia.
3. India has closed 62.5% of its gender gap till date.
Global Gender Gap Index 2021
- Released by the World Economic Forum since 2006.
- The Gender Gap Index serves as a compass to track the progress on their towards gender parity.
Based on four areas:
1. Political Empowerment
2. Economic Participation and Opportunity,
3. Educational Attainment
4. Health and Survival.
- It also examines the drivers of gender gaps.
- It outlines the policies and practices needed for a gender-inclusive recovery.
- The index scores the countries
from 0 (inequality) to 1 (equality).
About the reports –
1. 156 countries ranked by the Gender Gap Report 2021
2. Iceland is the most gender-equal country in the world.
3. India has ranked 140th rank, becoming the third-worst performer in South Asia.
3. India has closed 62.5% of its gender gap till date.
#Economy
Credit Guarantee Scheme for Subordinate Debt
- News: It has been extended up to September 30, 2021.
- Launched by the Ministry of Ministry of Micro, Small and Medium Enterprises.
- Year: in 2020
- Aim: to provide financial facility to stressed MSMEs, under the AtmaNirbhar Bharat Package.
Key points:
1. It extends support to the promoters of the MSMEs with Special Mention Accounts-2 (SMA-2)
2. Also supports NPA accounts which are stressed and have become NPA as on April 30, 2020.
3. The eligible accounts for restructuring are selected as per RBI guidelines.
4. The promoters of the MSME unit will be given credit equal to 15% of stake in the company or Rs 75 lakh, whichever is lower.
5. Fraud/wilful defaulter accounts won’t be considered under the scheme.
Credit Guarantee Scheme for Subordinate Debt
- News: It has been extended up to September 30, 2021.
- Launched by the Ministry of Ministry of Micro, Small and Medium Enterprises.
- Year: in 2020
- Aim: to provide financial facility to stressed MSMEs, under the AtmaNirbhar Bharat Package.
Key points:
1. It extends support to the promoters of the MSMEs with Special Mention Accounts-2 (SMA-2)
2. Also supports NPA accounts which are stressed and have become NPA as on April 30, 2020.
3. The eligible accounts for restructuring are selected as per RBI guidelines.
4. The promoters of the MSME unit will be given credit equal to 15% of stake in the company or Rs 75 lakh, whichever is lower.
5. Fraud/wilful defaulter accounts won’t be considered under the scheme.
#Economy
Retail G-Sec
News: RBI allowed retail investors to participate in the government securities market through ‘Retail Direct’.
- It is an online portal for trading.
- This is a key structural reform since India is only the third country in enacting such a provision.
- The RBI has been allowing small investors to participate in G-Sec market since 2001.
- RBI is going to auction long-term dated securities (G-Secs, State Development Loans) and short-term instruments (Treasury Bills) to retail investors.
Objectives:
- To provide retail investors a digital avenue for their financial savings.
- To meet its mammoth borrowing programme of ₹12 lakh crore in order to bridge its burgeoning fiscal deficit.
- To broaden and deepen the investors’ base for better price discovery in the G-Sec market.
Retail G-Sec
News: RBI allowed retail investors to participate in the government securities market through ‘Retail Direct’.
- It is an online portal for trading.
- This is a key structural reform since India is only the third country in enacting such a provision.
- The RBI has been allowing small investors to participate in G-Sec market since 2001.
- RBI is going to auction long-term dated securities (G-Secs, State Development Loans) and short-term instruments (Treasury Bills) to retail investors.
Objectives:
- To provide retail investors a digital avenue for their financial savings.
- To meet its mammoth borrowing programme of ₹12 lakh crore in order to bridge its burgeoning fiscal deficit.
- To broaden and deepen the investors’ base for better price discovery in the G-Sec market.
#Economy
Ghaziabad Green Municipal Bonds
- Ghaziabad Nagar Nigam has successfully listed India’s first-ever Green Municipal bond issue on the Bombay Stock Exchange.
- Raised Rs. 150 crore by issuing this bond
- Coupon rate of 8.10% with over-subscription.
- The Urban Development Ministry has provided a 2% interest subvention.
Key points:
- The funds for an environmentally sustainable projects.
- Tertiary water treatment plant to benefit industries.
- Supply piped water through water-meters.
- Ghaziabad bond is debt-free
- Maintained a revenue surplus position in the last few years.
- Other Cities – Municipal bonds have been raised by 9 cities - Ahmedabad, Surat, Visakhapatnam, Amravati, Indore, Bhopal, Pune, Hyderabad and Lucknow.
Ghaziabad Green Municipal Bonds
- Ghaziabad Nagar Nigam has successfully listed India’s first-ever Green Municipal bond issue on the Bombay Stock Exchange.
- Raised Rs. 150 crore by issuing this bond
- Coupon rate of 8.10% with over-subscription.
- The Urban Development Ministry has provided a 2% interest subvention.
Key points:
- The funds for an environmentally sustainable projects.
- Tertiary water treatment plant to benefit industries.
- Supply piped water through water-meters.
- Ghaziabad bond is debt-free
- Maintained a revenue surplus position in the last few years.
- Other Cities – Municipal bonds have been raised by 9 cities - Ahmedabad, Surat, Visakhapatnam, Amravati, Indore, Bhopal, Pune, Hyderabad and Lucknow.
#Economy
Bitcoin Mining Council
- It will consist of miners who commit to publishing current and planned renewable usage.
- The Bitcoin Mining Council, formed by cryptocurrency companies like ArgoBlockchain, Galaxy Digital, Core Scientific and Hive,
- It will Standardise energy reporting
- Will pursue industry ESG goals
- Educate and grow the marketplace.
Bitcoin Mining Council
- It will consist of miners who commit to publishing current and planned renewable usage.
- The Bitcoin Mining Council, formed by cryptocurrency companies like ArgoBlockchain, Galaxy Digital, Core Scientific and Hive,
- It will Standardise energy reporting
- Will pursue industry ESG goals
- Educate and grow the marketplace.