Economy

DMPQ- Write short note on Voluntary retention route.

by

‘Voluntary Retention Route’ (VRR) to encourage Foreign Portfolio Investors (FPIs) to undertake long-term investments in Indian debt markets. Under this scheme, FPIs have been given greater operational flexibility in terms of instrument choices besides exemptions from certain regulatory requirements. The details are as under: -The aggregate investment limit shall be ₹ 40,000 crores for VRR-Govt … Read more DMPQ- Write short note on Voluntary retention route.

Explain the different type of subsidies as per WTO agreements

by

Ans:  Green Box Subsidies: The subsidies which cause no, or at most minimal, trade distorting effects or effects on production. These subsidies are permitted under WTO regime, for instance; Government services such as research, disease control, and infrastructure and food security.   Amber Box Subsidies : All domestic support measures considered to distort production and … Read more Explain the different type of subsidies as per WTO agreements

Indian economy is facing lot of challenges including structural challenges. Outline the structural challenges of Indian economy.

by

Structural challenges :  definition   Redistribution:  intrinsic limitation in terms of the effectiveness of targeting. State capacity: to handle its domain of delivering on health and education remain impaired for maximum number of states. Competitive federalism failed to idealised a model of delivery of essential services like health and education. Competitive populism needs a counterpart … Read more Indian economy is facing lot of challenges including structural challenges. Outline the structural challenges of Indian economy.

DMPQ- What are the Implications of Rupee Depreciation on the Indian Economy?

by

India’s imports comprises of essentials such as crude petroleum, machineries and  fertilizers which become expensive raising their prices facilitating ‘import’ of inflation.  India is very susceptible to a stubborn and sticky inflation. It hurts the masses in terms of  across the board higher prices. All imports become expensive including raw materials, goods and machineries which  … Read more DMPQ- What are the Implications of Rupee Depreciation on the Indian Economy?

DMPQ- Why there is a reluctance on the part of Indian authorities to let the Yes Bank fail even though it is a Private Bank ?

by

Recently a moratorium was put on withdrawal limit upto 50,000 by RBI circular. This lead to panic among the YES bank consumers which led to fall in the share price. RBi came up with restructuring scheme. SBI will invest in 49% stake and other private investors have also invested in the bank. Even though the … Read more DMPQ- Why there is a reluctance on the part of Indian authorities to let the Yes Bank fail even though it is a Private Bank ?

DMPQ- In the current COVID-19 crisis , the government is facing the issue of breaching the comfortable limit of fiscal deficit. What are the consequences of high fiscal deficit?

by

Fiscal deficit refers to the excess of total budget expenditure over total budget receipts excluding borrowings during a fiscal year. Fiscal Deficit = Total Budget Expenditure – Total Receipts excluding borrowings = Revenue Expenditure + Capital Expenditure – Revenue receipts – Capital Receipts of only non-debt type   Implications of high fiscal deficit on economy: … Read more DMPQ- In the current COVID-19 crisis , the government is facing the issue of breaching the comfortable limit of fiscal deficit. What are the consequences of high fiscal deficit?

DMPQ-Write down the difference between NBFC and Schedule commercial bank.

by

A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 engaged in the business of loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by Government or local authority or other marketable securities of a like nature, leasing, hire-purchase, insurance business, chit business but does not include any institution whose principal business is … Read more DMPQ-Write down the difference between NBFC and Schedule commercial bank.