#Economy_Basics #PT2020
MSP
- Its an agricultural product price set by the government to purchase directly from the farmer.
- It is guarantee price for farmers produce from the Government.
- Objectives - to support the farmers from distress sales and to procure food grains for public distribution.
- Announced at the beginning of the sowing season for certain crops on the basis of the recommendations of Commission for Agricultural Costs and Prices (CACP).
List of crops
Cereals (7) - paddy, wheat, barley, jowar, bajra, maize and ragi
Pulses (5) - gram, arhar/tur, moong, urad and lentil
Oilseeds (8) - groundnut, rapeseed/mustard, toria, soyabean, sunflower seed, sesamum, safflower seed and nigerseed
Raw cotton, Raw jute, Copra, De-husked coconut
Sugarcane (Fair and remunerative price)
Virginia flu cured (VFC) tobacco
MSP
- Its an agricultural product price set by the government to purchase directly from the farmer.
- It is guarantee price for farmers produce from the Government.
- Objectives - to support the farmers from distress sales and to procure food grains for public distribution.
- Announced at the beginning of the sowing season for certain crops on the basis of the recommendations of Commission for Agricultural Costs and Prices (CACP).
List of crops
Cereals (7) - paddy, wheat, barley, jowar, bajra, maize and ragi
Pulses (5) - gram, arhar/tur, moong, urad and lentil
Oilseeds (8) - groundnut, rapeseed/mustard, toria, soyabean, sunflower seed, sesamum, safflower seed and nigerseed
Raw cotton, Raw jute, Copra, De-husked coconut
Sugarcane (Fair and remunerative price)
Virginia flu cured (VFC) tobacco
#Economy_Basics #PT2020
Securitization
Its conversion of an asset(like Loan), into marketable securities for raising cash by selling them.
Asset Reconstruction
Its buying of bad loans/ NPAs by a Company from banks and financial institutions(FIs), so that banks/FIs could make recovery of their bad loan
Securitization
Its conversion of an asset(like Loan), into marketable securities for raising cash by selling them.
Asset Reconstruction
Its buying of bad loans/ NPAs by a Company from banks and financial institutions(FIs), so that banks/FIs could make recovery of their bad loan
#Economy_Basics #PT2020
Trade war
A trade war happens when one country retaliates against another by raising import tariffs or placing other restrictions on the opposing country's imports.
Currency war
A currency war refers to a situation where a number of nations seek to deliberately depreciate the value of their domestic currencies in order to stimulate their economies by stimulating exports.
Trade war
A trade war happens when one country retaliates against another by raising import tariffs or placing other restrictions on the opposing country's imports.
Currency war
A currency war refers to a situation where a number of nations seek to deliberately depreciate the value of their domestic currencies in order to stimulate their economies by stimulating exports.
#Economy_Basics #PT2020
External Commercial Borrowing
- It is instrument used in India to facilitate Indian companies to raise money outside the country in foreign currency.
- ECBs are governed by Foreign Exchange Management Act (FEMA), 1999 along with Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000.
- ECB is not Foreign Direct Investment (FDI). In case of FDI, foreign money is only used to finance equity capital, But in case of ECB, foreign money is used to finance any kind of funding other than equity.
External Commercial Borrowing
- It is instrument used in India to facilitate Indian companies to raise money outside the country in foreign currency.
- ECBs are governed by Foreign Exchange Management Act (FEMA), 1999 along with Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000.
- ECB is not Foreign Direct Investment (FDI). In case of FDI, foreign money is only used to finance equity capital, But in case of ECB, foreign money is used to finance any kind of funding other than equity.
#Economy_Basics #PT2020
gig economy
- Companies tend toward hiring independent contractors and freelancers temporarily instead of full-time employees.
- A gig economy undermines the traditional economy of full-time workers who rarely change positions and instead focus on a lifetime career.
- 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 toward hiring independent contractors and freelancers temporarily instead of full-time employees.
- A gig economy undermines the traditional economy of full-time workers who rarely change positions and instead focus on a lifetime career.
- As per an estimate, the gig economy is generating 56% employment in India and going to grow 25-30 % per annum.
#Economy_Basics #PT2020
Essential Commodities Act 1955
- It is used by the Government to regulate the production, supply and distribution of commodities declared as ‘essentials' in order to make them available to consumers at fair prices.
- The list of items under the Act include drugs, fertilisers, petroleum and petroleum products.
- Centre can include/exclude commodities
- Centre can also fix the Maximum Retail Price (MRP) of any packaged product that it declares an 'essential commodity'.
Essential Commodities Act 1955
- It is used by the Government to regulate the production, supply and distribution of commodities declared as ‘essentials' in order to make them available to consumers at fair prices.
- The list of items under the Act include drugs, fertilisers, petroleum and petroleum products.
- Centre can include/exclude commodities
- Centre can also fix the Maximum Retail Price (MRP) of any packaged product that it declares an 'essential commodity'.
#Economy_Basics #PT2020
Sample Registration System (SRS)
- It is released by the Registrar General of India
- It is a annual demographic survey for social indicators like infant mortality rate, birth rate, death rate and other fertility and mortality indicators.
- Initiated in 1964-65
Sample Registration System (SRS)
- It is released by the Registrar General of India
- It is a annual demographic survey for social indicators like infant mortality rate, birth rate, death rate and other fertility and mortality indicators.
- Initiated in 1964-65
#Economy_Basics #PT2020
Periodic Labour Force Survey (PLFS)
- It is India’s first computer-based survey launched by the National Statistical Office (NSO) in 2017.
- It has been constituted based on the recommendation of Amitabh Kundu Committee
- Two objectives
- To estimate the key employment and unemployment indicators (viz. Worker Population Ratio, Labour Force Participation Rate, Unemployment Rate) in the short time interval of three months for the urban areas only in the Current Weekly Status (CWS).
- To estimate employment and unemployment indicators in both usual status and CWS in both rural and urban areas annually.
- Before PLFS the NSSO (previous name of NSO) used to bring the data related to employment and unemployment based household socio-economic survey programme.
Periodic Labour Force Survey (PLFS)
- It is India’s first computer-based survey launched by the National Statistical Office (NSO) in 2017.
- It has been constituted based on the recommendation of Amitabh Kundu Committee
- Two objectives
- To estimate the key employment and unemployment indicators (viz. Worker Population Ratio, Labour Force Participation Rate, Unemployment Rate) in the short time interval of three months for the urban areas only in the Current Weekly Status (CWS).
- To estimate employment and unemployment indicators in both usual status and CWS in both rural and urban areas annually.
- Before PLFS the NSSO (previous name of NSO) used to bring the data related to employment and unemployment based household socio-economic survey programme.
#Economy_Basics #PT2020
Unemployment Rate (UR): UR is defined as the percentage of persons unemployed among the persons in the labour force.
Labour Force Participation Rate (LFPR): LFPR is defined as the percentage of persons in the labour force (i.e. working or seeking or available for work) in the population.
Female Labour Force Participation Rate: It is the share of working-age women who report either being employed, or being available for work.
Worker Population Ratio (WPR): WPR is defined as the percentage of employed persons in the population.
Unemployment Rate (UR): UR is defined as the percentage of persons unemployed among the persons in the labour force.
Labour Force Participation Rate (LFPR): LFPR is defined as the percentage of persons in the labour force (i.e. working or seeking or available for work) in the population.
Female Labour Force Participation Rate: It is the share of working-age women who report either being employed, or being available for work.
Worker Population Ratio (WPR): WPR is defined as the percentage of employed persons in the population.
#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_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_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.