Economy

Financial inclusion refers to delivery of financial services, including banking services and credit, at an affordable cost to the vast sections of disadvantaged and low-income groups who tend to be excluding.   Financial inclusion can lead to inclusive growth in following ways:   Formalization of economy:    A well spread out financial system engenders economic … Read more

In the last few years, a large number of farmers have committed suicide.  Cases of suicides have been reported from states such as Andhra Pradesh, Karnataka, Maharashtra, Kerala, Punjab, Rajasthan, Orissa and Madhya Pradesh. Some of measures suggested include: Provide affordable health insurance and revitalize primary healthcare centres. The National Rural Health Mission should be … Read more

The Nirvik scheme announced by the Union Government would give a fillip to export lending and insurance cover for export credit. The scheme aims to ease the lending process and enhance loanavailability for exporters.Under the scheme,the insurance cover guaranteed will cover up to 90% of the principaland interest. The insurance cover will include both pre … Read more

Recently Trump administration decided to do away with relaxation to major importers of Iran’s oil resource. US govt. has decided to be more proactive and want more imposition of sanctions on Iran to derail Iranian economy and eventually dis courage nuclear activity and funding to terrorist groups. This step is going to affect India as … Read more

JAM stands for Jan Dhan Yojana, Aadhaar and Mobile number. The government intends to use these three modes of identification to implement one of the biggest reforms in independent India – direct subsidy transfers to the poor. Current subsidy schemes take an indirect route to reach the poor of the country. Examples are the PDS, … Read more

The period 2000-2010 was a golden period for growth of services in India, one of rapid services-led economic growth in India; the economy grew at an average annual rate of 7.2 per cent, and around 63 per cent of this growth came from growth of services. Such growth leads to a belief that India is … Read more

The term refers to the practice of banking like activities performed by non-banking finance companies, which are not subject to strict regulation. However, these institutions function as intermediaries between the investors and the borrowers, providing credit and generating liquidity in the system. Although these entities do not accept traditional demand deposits offered by banks, they … Read more

A credit rating agency (CRA, also called a ratings service) is a company that assigns credit ratings, which rate a debtor’s ability to pay back debt by making timely principal and interest payments and the likelihood of default. An agency may rate the creditworthiness of issuers of debt obligations, of debt instruments, and in some … Read more

The Reserve Bank of India gives temporary loan facilities to the centre and state governments as a banker to government.  This temporary loan facility is called Ways and Means Advances (WMA).The WMA scheme for the Central Government was introduced on April 1, 1997, after putting an end to the four-decade old system of adhoc (temporary) … Read more

Goods and Services Tax Network (GSTN) is a Section 8 (under new companies Act, not for profit companies are governed under section 8), non-Government, private limited company. It was incorporated on March 28, 2013. The Government of India holds 24.5% equity in GSTN and all States of the Indian Union, including NCT of Delhi and … Read more