Economy

FRBM act was brought to bring fiscal discipline in the Indian fiscal milieu. But the objectives of FRBM have been shifted for various reasons in the past due to global reasons as well as the domestic reasons. Hence FRBM panel was set up to review the act. The recommendation are explained hereunder which are nonbinding … Read more

Tier-1 capital:     Tier 1 capital, used to describe the capital adequacy of a bank, is core capital that includes equity capital and disclosed reserves. Tier 1 capital is essentially the most perfect form of a bank’s capital — the money the bank has stored to keep it functioning through all the risky transactions it … Read more

Issues Involved: One of the major issues faced by this sector is declining profitability which is further exacerbating the twin balance sheet (TBS) problem. Profitability is being affected by following issues:    Low revenues – Dramatic reduction of prices & coming down of average revenue per user by 22% due to new entrant. High Debt – Unsustainable spectrum … Read more

  Foreign Direct Investment Foreign Portfolio Investment FDI is an investment made by a company or individual in the business of another country in the form of either establishing a new business or acquiring the existing business. FPI is an investment made by a company or an individual in the stock markets or debt markets … Read more

There are 3 methods to calculate the National income.These methods are given by Simon Kuznets. PM (Product Method) or Product service method. IM (Income Method) CM (Consumption Method) or expenditure method. In India the combination of Product method and Income methods is used for calculating the National Income.   PRODUCT METHOD: NI = GDP  – income earned in … Read more

The National Agriculture Market is envisaged as a pan-India electronic trading portal which seeks to network the existing APMCs and other market yards to create a unified national market for agricultural commodities. NAM is a “virtual” market but it has a physical market (mandi) at the back end. NAM is proposed to be achieved through … Read more

. Despite the efforts of the government as highlighted above infrastructural development  still has a few challenges as mentioned below: The World Economic Forum has ranked India in terms of infrastructure as 89 among 139 countries. Countries such as China have a rank of 50 and Brazil 62. This implies  that our infrastructure is viewed … Read more

GINI INDEX: The Gini index is a simple measure of the distribution of income across income percentiles in a population. A higher Gini index indicates greater inequality, with high income individuals receiving much larger percentages of the total income of the population. Global inequality as measured by the Gini index increased over the 19th and … Read more

GHI considers four parameters to for ranking countries: Undernourishment: share of the population that is undernourished, reflectinginsufficient caloric intake;Child wasting: share of children under the age of five who are wasted (low weightfor-height), reflecting acute under-nutrition;Child stunting: share of children under the age of five who are stunted (low heightfor-, reflecting chronic under-nutrition; andChild mortality: … Read more