Economy

Crowding out is an economic concept that describes a situation where government spending and borrowing reduces overall private sector consumption and investment. Crowding out can be caused by an expansionary fiscal policy financed by increased taxes, borrowing or both. Crowding out can refer to when government borrowing absorbs all the available lending capacity in the … Read more

Foreign capital flow in a country can take place either in the form of investment, concessional assistance, foreign aid. Foreign Investment includes Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI) / Foreign Institutional Investment (FII). FPI includes the amounts raised by Indian corporate through Euro Equities, Global Depository Receipts (GDR’s), and American Depository Receipts … Read more

Launched by the Hon’ble PM in January, the ‘Transformation of Aspirational Districts’ programme aims to quickly and effectively transform these districts. The broad contours of the programme are Convergence (of Central & State Schemes), Collaboration (of Central, State level ‘Prabhari’ Officers & District Collectors), and Competition among districts driven by a mass Movement. With States … Read more

​​​​​​​​National Career Service is a Five Year Mission Mode Project launched by the Hon’ble Prime Minister on 20th July, 2015. The project is being implemented by the Directorate General of Employment, Ministry of Labour & Employment. National Career Service (NCS) is a one-stop solution that provides a wide array of employment and career related services … Read more

HELP is the new Hydrocarbon exploration Licensing policy. The key features of HELP are as follows:   India has announced HELP, which offers single license to explore conventional and unconventional oil and gas resources. The new policy also gives the investors the much needed freedom in pricing and marketing for crude oil and natural gas. … Read more

To sustain the reforms brought in by scheme on ‘End to End Computerization of Targeted Public Distribution System (TPDS) Operations’ the Department of Food & Public Distribution has launched a new scheme namely “Integrated Management of Public Distribution System (IM-PDS)” for implementation during 2018-19 and 2019-20. The main objective of the scheme is to introduce … Read more

Since the beginnings of the last decade as a part of the economic reforms programme, the taxation system in the country has been subjected to consistent and comprehensive programme.  Indian government over the years have introduced tax reforms from time to time.     Direct tax reforms: Reduction and rationalisation of rates- there are only … Read more

CAATSA stands for countering American adversaries through trade  act. As the name suggest, it is an act passed by the US congress and it sanctions trade in the field of defence, energy etc. with Russia, Iran and North Korea. This act is going to affect India-Russia and India-Iran Relations. CAATSA, if implemented in its stringent … Read more

When in an economy aggregate demand falls short of aggregate supply at full employment level, i.e. the production is more than the demand, the demand is said to be deficient demand and the gap is called deflationary gap. Causes of the deflationary gap are: Fall in aggregate demand (AD) due to: Fall in exports (global … Read more

Masala bonds are bonds issued outside India but denominated in Indian Rupees, rather than the local currency The term was used by the International Finance Corporation (IFC) to evoke the culture and cuisine of India Unlike dollar bonds, where the borrower takes the currency risk, masala bond makes the investors bear the risk The first … Read more