Indian Economy -Civil Service Gurukul

30 Oct 2017 16:23

Sovereign Gold Bonds
Ministry/Department :  Ministry of Finance in association with RBI

 

Objective: To reduce the demand for physical gold by shifting a part of the demand for physical gold into investment in Gold Bonds

 

Scheme:

* Bonds will be issued by RBI on behalf of govt. 

* To be sold through bank, post offices and Stock Holding Corporation of India Limited

* The risk of gold price changes will be borne by the Gold Reserve Fund that is being created

* Sovereign Gold Bonds will be issued on payment of rupees and denominated in grams of gold

* Customers can buy gold bonds which will be relatable to the weight of gold.

* The bonds will be issued in various denominations for 5-7 years with a rate of interest to calculated on the value of the metal at the time of investment.

* Max 500 gms gold equivalent bond can be purchased in a year by one person. (This has been changed. See below)

* Only offered to Indian citizen and institutions.

* Strict KYC norms.

* Interest taxable as per IT Act,

* Capital gains tax treatment will be the same as for physical gold for an 'individual' investor. 

* Rate of interest will be decided by government

* The bonds will be issued in denominations of 5,10,50,100 grams of gold or other denominations

* Bonds can be used as collateral for loans

* On maturity, the redemption will be in rupee amount only.

* The rate of interest on the bonds will be calculated on the value of the gold at the time of investment.

 Factual Information:

* Started in 2015

 

Progress so far and changes:

* The mobilisation target under the scheme was Rs. 15,000 crore in 2015-16 and at Rs.10,000 crore in 2016-17. However, the amount so far credited in Government account is Rs. 4,769 crore.

* Changes in scheme:

    * The investment limit under the scheme per fiscal year has been increased to 4 kg for individuals, 4 Kg for Hindu Undivided Family (HUF) and 20 Kg for Trusts and similar entities notified by the Government. The ceiling will be counted on financial year basis and will include the SGBs purchased during the trading in the secondary market.  

    * Ministry of Finance (the issuer) has been given flexibility to design and introduce variants of SGBs with different interest rates and risk protection that will offer investment alternatives to different category of investors.

Indian Economy -Civil Service Gurukul

30 Oct 2017 08:54

Q3 ▶️⏭⏯Critically examine why economic growth in India during last two decades has not resulted in the growth of jobs during the same period. (200 Words)
✅✅✅✅✅✅✅✅✅✅✅✅
ANSWER

India has witnessed much better economic growth during last two decades than it previously had, but certainly employment generation has not matched up with the growth rate. The reason for such a jobless growth is inherent in the policies that have been followed for economic growth.

Reasons for jobless growth:
Weak Manufacturing sector growth: While every other nation in the world has achieved economic growth by gradually shifting from agri to manufacture then to tertiary sectors such as services. Indian policy was an abrupt shift from agri to services. So the jobs (semi-skilled to skilled) which could have generated in manufacturing sector have lost.

Unskilled workforce: with rapid growth in young population India has lagged in adequately training its youth. So demographic dividend has not been properly utilized.

Education policy: last decades has seen mushrooming of poorly regulated private engineering and mgmt. colleges, producing huge number of degree holders but unskilled for the job. Even govt institutes and vocational centres have largely failed to meet the objectives.

Less focus on MSMSEs: While in India a large population is dependent on these unorganised sectors for living. MSME sector has witness poor growth rate during last decade.

Automation in different sector has also resulted in loss of manual jobs.

LPG reforms: while it opened up Indian economy for huge investments from across the world the relative in-competitiveness of Indian industries at the time of reforms led to investment and growth in only few sectors like IT, Banking etc.

Poor R&D investment, Lack of better infrastructures etc.

As most of reasons for jobless growth are the results of either poor policy decisions or lack of
implementation/corruption at groundwork which has resulted in gross inequalities in society.
There is dire need to provide skill training to our youth, Capital investment in Infra, better education policy, and investment in R&D etc. if we want to achieve the goal of social and economic democracy for all.

You can join our Guidance program for indian economy upsc prelims and GS paper 3 answer writing practice
For more details contact at
CA Dhananjay
telegram id @cadhananjay
mobile no 7678456921.

Indian Economy -Civil Service Gurukul

30 Oct 2017 08:54

Q.1▶️⏯⏭ The recently released Shanta Kumar Committee report on issues related to procurement, storage and distribution of food grains in India is deeply flawed and runs contrary to the aim of achieving the MDGs. Critically analyse. (200 Words)
✅✅✅✅✅✅✅✅✅✅✅✅

ANSWER

In spite of the reduction of malnourishment to move close towards the MDG goal of eradicating hunger through India's food security schemes like ICDS, PDS, etc., it is still home to the largest malnourished population in the world. Further adding to the worry is the recommendation of Shanta Kumar Committee like-

Restructuring the NFSA by decreasing its coverage from 67 per cent of population to about 40 per cent population. When the coverage is relatively broad, the collective pressure on the system will be even greater and it serves the goal of avoiding exclusion errors as the households "below the poverty line" are more or less intractable. Further, the official poverty line is abysmally low.

Doubling the prices at which food grains are to be sold by linking the price to the MSP and allowing the free play of market forces in procurement and storage of food grains. When issue prices are low, it would attract the poor all the more, because PDS entitlements will be worth more to them. Also linking with the market forces will adversely affect the poor more and may add to the inflation.

Delaying the implementation of the act in states that have not achieved end-to-end computerization may lead to delay in achieving the goal.

Moving towards cash transfers instead of distributing subsidized grain in long run might pose problem if the cash is not used for the intended purpose of fighting hunger.

Though the recommendation on improving the storage and distribution facilities can help in reducing leakages, a comprehensive approach considering the interests of all sections of the society with greater focus on the poor should be taken to fight hunger and poverty.


You can join our Guidance program for indian economy upsc prelims and GS paper 3 answer writing practice
For more details contact at
CA Dhananjay
telegram id @cadhananjay
mobile no 7678456921.

Indian Economy -Civil Service Gurukul

29 Oct 2017 19:03

Phillips Curve
It is a graphic curve which advocates a relationship between inflation and
unemployment in an economy.

As per the curve there is a ‘trade off’ between
inflation and unemployment, i.e., an inverse relationship between them.

The
curve suggests that lower the inflation, higher the unemployment and higher the inflation, lower the unemployment..

Indian Economy -Civil Service Gurukul

29 Oct 2017 19:01

Inflationary Gap



The excess of total government spending above the national income (i.e.,
fiscal deficit) is known as inflationary gap. This is intended to increase the production level, which ultimately pushes the prices up due to extra-creation of money during the process.

Indian Economy -Civil Service Gurukul

29 Oct 2017 07:55

Topic 5 Food processing and related industries in Indian GS paper 3

Indian Economy -Civil Service Gurukul

28 Oct 2017 10:18

GS-3 news
Indian Economy. Planning, Growth and Employment

Indian Economy -Civil Service Gurukul

28 Oct 2017 09:12

Suggesting the 10 commitments, he said:

* “Creating a safer world by organised and coordinated action on at least three issues: counter-terrorism, cyber security and disaster management.” He also said that the bedrock of India’s development agenda laid in the notion of “sabka saath, sabka vikaas” (collective effort, inclusive growth). Stating that India has mapped each of the UN’s 17 Sustainable Development Goals (SDGs) to its own development programmes and scheme, he said: “Our programmes are geared to accomplish these priority goals in a time-bound manner.

“To cite just one example, our three-pronged approach of providing a bank account to the unbanked, providing a biometric identity to all, and using innovative mobile governance solutions, has enabled direct benefit transfers to almost 360 million people for the first time.”

* The Prime Minister called for creating a greener world by taking concerted action on countering climate change, through initiatives such as the India-initiated International Solar Alliance.

* Another suggestion was for creating an enabled world by sharing and deploying suitable technologies to enhance efficiency, economy and effectiveness.

* Reiterating his vision for a digital economic and financial system, Mr. Modi called for creating an inclusive world “by economic mainstreaming of our people including in the banking and financial system”.

* “Creating a digital world by bridging the digital divide within and outside our economies.

* “Creating a skilled world by giving future-ready skills to millions of our youth.”

* Mr.Modi also called for creating a healthier world by cooperating in research and development to eradicate diseases, and enabling affordable health care for all.

* In creating an equitable world, he said the BRICS nations should provide equality of opportunity to all, particularly through gender equality.

* In terms of a connected world, he suggested enabling of free flow of goods, persons and services.

* He also called for creating a harmonious world “by promoting ideologies, practices, and heritage that are centred on peaceful coexistence and living in harmony with nature”.

“Through these agenda points, and action on them, we will be contributing directly to the welfare of the global community in addition to welfare of our own people.

“And in this, India stands ready as a willing and committed partner to enhance cooperation and support each other’s national efforts,”

Indian Economy -Civil Service Gurukul

28 Oct 2017 06:22

🎖👆above pdf file is related with Sample of GS paper 3 model answer submitted to registered students .
for best guidance You can join our Guidance program for indian economy upsc prelims and GS paper 3 answer writing practice
For more details contact at
CA Dhananjay
telegram id @cadhananjay
mobile no 7678456921.

Indian Economy -Civil Service Gurukul

27 Oct 2017 18:13

✅Recent updates
6 model questions with answer related with indian economy GS paper 3 topic -Infrastructure has been sent to registered students.
For registration contact at
Telegram id- @cadhananjay
7678456921
indianeconomyias@gmail.com

Indian Economy -Civil Service Gurukul

27 Oct 2017 10:04

🏆🔵⬇️⭐️✅ Recent Updates
If anyone want to see our guidance program for one month u can see by paying Rs.490 only which is adjustable with ur fees within one month.
Paytm No .9911020626
After making payment , pls send receipt of payment on indianeconomyias@gmail.com

Admin dept will send registration form.
For more details
Contacts @cadhananjay
7678456921

Indian Economy -Civil Service Gurukul

27 Oct 2017 09:54

Special Safeguard Mechanism : WTO's Special Safeguard Mechanism (SSM) is a protection measure allowed
for developing countries to take contingency restrictions against agricultural
imports that are causing injuries to domestic farmers. The contingency measure
is imposition of tariff if the import surge causes welfare loss to the domestic
poor farmers. The design and use of the SSM is an area of conflict under the
WTO.
Join our Guidance progam for Indian economy UPSC prelims and GS paper 3 answer writing practice
For more details contact @cadhananjay

Indian Economy -Civil Service Gurukul

27 Oct 2017 09:54

Demographic Dividend

: Demographic dividend occurs when the proportion of working people in the
total population is high because this indicates that more people have the
potential to be productive and contribute to growth of the economy. this period the labour force temporarily grows more rapidly than the population
dependent on it, releasing resources for investment in economic development
and family welfare and resulting in faster per capita income growth.
Join our Guidance progam for Indian economy UPSC prelims and GS paper 3 answer writing practice
For more details contact @cadhananjay

Indian Economy -Civil Service Gurukul

27 Oct 2017 09:54

Nominal GDP

It refers to the Gross Domestic Product evaluated at current market price, whereas
the real GDP evaluates GDP at prices of Base year (i.e a standard year).

Indian Economy -Civil Service Gurukul

27 Oct 2017 09:54

twin Balance sheet problem

It refers to the poor economic state of Public sector banks at one hand (huge
Non Performing Assets) and Corporate houses on other (due to low profitability
and shortage of loan). In case of India both these problems are interdependent
as a majority share of NPA with the banks are from the corporates and
DISCOMS. This has created a vicious cycle whereby banks avoid lending
corporates and corporates fail to repay their debt owing to lack of capital and
profitability

Indian Economy -Civil Service Gurukul

30 Oct 2017 16:18

🏆🏵✅GS paper 3 guidance will be started from 16 November 2017.🏆🏵✅
1. Value added notes will be provided on every topic of GS paper 3 .
2. All topic with proper guidance will be completed by 31st December 2017.
3. Apart from notes , We will provide model question with answer for every topic of GS paper 3 to improve writing skill.
4. We will cover current affairs portion also.We provides currents affairs news till mains 2018.
5. All Indian economy query will be resolved through mail or phone within 3 days from asking query.
Only registered students will be eligible for guidance . ✅⬇️For registration ...contact at
@cadhananjay or 7678456921
With thanks and best regards
Commece Gurukul
Telegram ID - @cadhananjay
www.commercegurukul.wordpress.com
7678456921.

Indian Economy -Civil Service Gurukul

30 Oct 2017 08:54

Q2▶️⏯⏭Recently the recommendations of the High Level Committee (HLC) to restructure, reorient and reform the Food Corporation of India (FCI) was made public. Critically comment on its recommendations. (200 Words)
✅✅✅✅✅✅✅✅✅✅✅

ANSWER

As an initial step to secure the four pillars of food security viz. availability, affordability, accessibility and stability the FCI was setup in 1964 . However the shortfalls of FCI in its 3 major objectives of procurement, storage and distribution, lead to formation of the Shanta Kumar committee for FCI restructuring.

Some of the progressive recommendations include:

Procurement Payment reforms: Popularize NWRs
Buffer stock reforms: Whenever FCI has grains above buffer norms, it should automatically sell excess stock in open market ―Pro-Active Liquidation Policy.
Storage reforms: End to End computerization and Online tracking of entire system from procurement to retail distribution.
Transport reforms : Improved night security at rail-points, because >85% of PDS Grain is transported through railways and maximum siphoning off occurs here. Use of inland waterways where possible

Though some of its recommendations appear progressive, most of its reforms have been debated and criticized on various grounds:

Survey : Committee report says only 6% farmers benefited from MSP procurement regime and nearly 50% of the food grains are siphoned off from PDS system But experts dispute the NSSO-survey methodology used in deriving these numbers.
Cutting down NFSA : Many poor families will be deprived of their basic right to food.
Recommends FCI to hire contractual staff, close regional offices and give VRS to employees. Trade union leaders are in opposition to this.
Privatization : though many farmers have not benefited from public procurement, but FCI has not opened branches outside selected regions.
Outsourcing procurement to some states :it recommends not to do "open ended procurement" from all states, above buffer stock limits. This will catalyze distress sells and farmer suicides.
Direct cash transfer has its own shortfalls

Hence to achieve the target of food security, what is needed is better targeting and
proper use of technology which is pro-poor

You can join our Guidance program for indian economy upsc prelims and GS paper 3 answer writing practice
For more details contact at
CA Dhananjay
telegram id @cadhananjay
mobile no 7678456921.

Indian Economy -Civil Service Gurukul

29 Oct 2017 19:14

GS paper 3 guidance will be started from 16 November 2017.
1. Value added notes will be provided on every topic of GS paper 3 .
2. All topic with proper guidance will be completed by 31st December 2017.
3. Apart from notes , We will provide model question with answer for every topic of GS paper 3 to improve writing skill.
4. We will cover current affairs portion also.We provides currents affairs news till mains 2018.
5. All Indian economy query will be resolved through mail or phone within 3 days from asking query.
Only registered students will be eligible for guidance . For registration ...contact at
@cadhananjay or 7678456921
With thanks and best regards
Commece Gurukul
Telegram ID - @cadhananjay
www.commercegurukul.wordpress.com
7678456921.

Indian Economy -Civil Service Gurukul

29 Oct 2017 19:02

Deflationary Gap
The shortfall in total spending of the government (i.e., fiscal surplus) over the
national income creates deflationary gaps in the economy.

This is a situation of producing more than the demand and the economy usually heads for a general slowdown in the level of demand. This is also known as the output gap

Indian Economy -Civil Service Gurukul

29 Oct 2017 07:59

✅Recent updates
model questions with answer related with indian economy GS paper 3 Topic no .5 Food processing industry in india has been sent to registered students.
For registration contact at
Telegram id- @cadhananjay
7678456921
indianeconomyias@gmail.com

Indian Economy -Civil Service Gurukul

28 Oct 2017 10:21

http://www.thehindu.com/todays-paper/tp-business/india-to-flag-worry-on-pace-of-services-talks-at-rcep/article19627132.ece

Indian Economy -Civil Service Gurukul

28 Oct 2017 09:35

👆We are very happy that in section A point no 2 notes , We have provided notes of 7 pages to our registered students on 15 october 2017.

Indian Economy -Civil Service Gurukul

28 Oct 2017 09:11

Modi suggests 10 ‘noble commitments’ for global transformation

Indian Economy -Civil Service Gurukul

27 Oct 2017 18:25

👆really thanks for appreciation from Doctor tripathi.This will motivate us to work hard and guide aspirant in better way.😊

Indian Economy -Civil Service Gurukul

27 Oct 2017 12:22

Recapitalisation of Public Sector Bank.

Indian Economy -Civil Service Gurukul

27 Oct 2017 09:54

Gender Parity Index

It is a socio-economic index usually designed to measure the relative access to
education of males and females. This index is released by UNESCO. In its
simplest form, it is calculated as the quotient of the number of females by the
number of males enrolled in a given stage of education (primary, secondary,
etc.). It is used by international organizations, particularly in measuring the
progress of developing countries.
Join our Guidance progam for Indian economy UPSC prelims and GS paper 3 answer writing practice
For more details contact @cadhananjay

Indian Economy -Civil Service Gurukul

27 Oct 2017 09:54

BHIM App

BHIM (Bharat Interface for Money) is a Mobile App developed by National
Payments Corporation of India (NPCI), based on the Unified Payment Interface
(UPI). This UPI app supports all Indian banks which use that platform, which
is built over the Immediate Payment Service infrastructure and allows the user
to instantly transfer money between the bank accounts of any two parties.
Join our Guidance progam for Indian economy UPSC prelims and GS paper 3 answer writing practice
For more details contact @cadhananjay

Indian Economy -Civil Service Gurukul

27 Oct 2017 09:54

GDP Deflator

It is a measure of the level of prices of all new, domestically produced, final
goods and services in an economy. It is calculated by dividing Nominal GDP/
Real GDP

Indian Economy -Civil Service Gurukul

27 Oct 2017 09:54

Soil rate

Rate at which notes are considered to be too damaged to use and are returned
to the Central Bank. Generally the higher denomination notes have a lower
soil rate than the low denomination notes.
Join our Guidance progam for Indian economy UPSC prelims and GS paper 3 answer writing practice
For more details contact @cadhananjay

Indian Economy -Civil Service Gurukul

27 Oct 2017 09:54

The Real Effective Exchange Rate (REER)

The Real Effective Exchange Rate (REER) is the weighted average of a country's
currency relative to an index or basket of other major currencies, adjusted for
the effects of inflation