UPSC Economics Quiz Notes PDF

01 Apr 2025 17:01

Q. The expenditure done by the government on the MGNREGA scheme comes under the:
1. Revenue expenditure
2. Capital Expenditure
3. Planned Expenditure
4. Non Planned expenditure

UPSC Economics Quiz Notes PDF

30 Mar 2025 14:31

✅ Gujarat all set to become second state to implement Uniform Civil Code after Uttarakhand

UPSC Economics Quiz Notes PDF

30 Mar 2025 07:41

✅ Electronics Component Manufacturing Scheme

Union Cabinet of India approved the Electronics Component Manufacturing Scheme. This initiative is backed by a substantial budget of ₹22,919 crore. The scheme aims to enhance India’s electronics manufacturing capabilities, focusing on the production of crucial electronic components. It represents step in the government’s ongoing efforts to establish a robust electronics manufacturing ecosystem.

Objectives of the Scheme
The primary objective is to increase Domestic Value Addition (DVA) in electronics. The government aims to boost DVA from 20% to 40% within five years. This will be achieved by promoting the local manufacturing of passive and active components. The scheme focuses on sub-assemblies and bare components, which are essential for producing finished electronic products.

Investment and Economic Impact
The scheme is expected to attract ₹59,350 crore in investments. It aims to generate production worth ₹4,56,500 crore and create 91,600 direct jobs. The initiative will also lead to numerous indirect employment opportunities. This economic growth is crucial for India’s goal of becoming self-reliant in the electronics sector.

Incentive Structure
Unlike previous schemes based on production-linked incentives, this scheme links incentives to factory turnover and employment creation. Manufacturers will receive differentiated incentives tailored to various categories of components. This approach is designed to help overcome specific challenges faced by manufacturers.

Target Segments
The scheme covers several target segments, including sub-assemblies and bare components. Key components include display modules, camera modules, non-Surface Mount Devices (non-SMD), and lithium-ion cells. The focus on these segments is intended to encourage innovation and technological advancement within the industry.

Focus on Capital Goods
The scheme also emphasises the production of capital goods. These are essential for manufacturing components and sub-assemblies. The growth in finished goods has increased the demand for capital goods, creating opportunities for manufacturers in regions such as Coimbatore and Bengaluru.

Implementation Timeline
The scheme is set to run for six years, with a one-year gestation period. The government has yet to specify the allocation of funds across various categories. Details will be clarified upon the scheme’s official launch, anticipated in the coming weeks.

Strategic Importance
Electronics is a rapidly growing industry with global trade. The sector’s expansion is vital for India’s economic and technological development. Over the past decade, domestic production of electronic goods has surged, denoting the potential for further growth and innovation.

UPSC Economics Quiz Notes PDF

27 Mar 2025 17:50

✅ What is Dx-EDGE Initiative?

Recently, India launched the ‘Digital Excellence for Growth and Enterprise’ (Dx-EDGE) initiative. This platform aims to empower micro, small, and medium enterprises (MSMEs) with essential digital tools and knowledge. The initiative is a collaboration between the Confederation of Indian Industry (CII), NITI Aayog, and the All India Council for Technical Education (AICTE). It seeks to enhance MSME performance through digitalisation, making them competitive and resilient.

Objectives of Dx-EDGE
The primary goal of Dx-EDGE is to future-proof MSMEs. It provides them with access to cutting-edge technology and digital skills. The initiative aims to democratise innovation and skill development across the country. This platform is integral to India’s vision of becoming a developed nation, termed Viksit Bharat.

Key Challenges for MSMEs
MSMEs in India face challenges. These include improving technology adoption, developing a skilled workforce, and obtaining quality certifications. Addressing these issues is crucial for enhancing their competitiveness and operational efficiency.

Role of Collaboration
The success of Dx-EDGE relies on a Public-Private-Academia Partnership (PPAP) approach. This collaborative framework includes private sector involvement, government support, and academic resources. Such partnerships are vital for facilitating MSMEs’ digital transformation journeys.

Establishment of Digital Excellence Centres
A notable feature of Dx-EDGE is the creation of digital excellence centres. These centres will guide MSMEs in identifying tailored digital transformation paths. They will offer training and resources, ensuring that MSMEs can effectively adopt new technologies.

Importance of Education and Skills
Education and skill development are critical components of this initiative. Enhancing the capabilities of the workforce will enable MSMEs to meet global standards. This focus on education aligns with the broader goal of improving India’s manufacturing systems.

Future Prospects
The Dx-EDGE initiative is expected to strengthen India’s position in the global market. By empowering MSMEs through digitalisation, India aims to boost economic growth and resilience. The initiative represents step towards achieving a digitally advanced economy.

UPSC Economics Quiz Notes PDF

20 Mar 2025 12:42

📍 BANK BOARD BUREAU

💡 It is an autonomous body of the Government of India tasked to improve the governance of Public Sector Banks, recommend selection of chiefs of government-owned banks and financial institutions and to help banks in developing strategies and capital raising plans.

💡 The Bureau is also engaging with the Public Sector Banks (PSBs) to help build capacity to attract, retain and nurture both talent and technology - the two key differentiators of business competencies in the days to come.

💡 In its endeavor, the Bureau is mindful of the need to have a fully empowered board in each and every PSB. While the Bureau is working towards attracting the best personages on the boards, it is these boards which should drive the overall strategy of a bank within its risk capacity and also act as custodians who should reconcile the diverse interests of various stakeholders.

UPSC Economics Quiz Notes PDF

20 Mar 2025 12:42

🔍❓ Tax and Non Tax revenue receipts

✔️ The receipts that do not create any liabilities and do not lead to a claim on the government are called revenue receipts.

✔️ These revenue receipts are non-redeemable and can be classified into two categories, namely: tax revenue and non-tax revenue.

✔️ Tax revenues are the vital components of revenue receipts like direct taxes, enterprises, and indirect taxes such as customs duties, excise taxes, and service tax.

✔️ Non-tax revenues, on the other hand, are the recurring income that is earned from sources other than taxes by the government.

🔴 Some of the major sources of non-tax revenue are mentioned below:

➡️ Interests

➡️ Power Supply Fees:  This includes fees received by the central power authority of any nation. In the case of India, this includes fees received by the Central Electricity Authority.

➡️ Fees: They are the charges that cover the cost of recurring services that are provided and imposed by the government.

➡️ Fines and Penalties

UPSC Economics Quiz Notes PDF

14 Mar 2025 18:02

📍 POTENTIAL GDP

#Nationalincome

💡 Potential output is what the economy can produce without destabilizing the macroeconomic fundamentals like inflation, interest rates, fiscal deficit and so on.

💡 It is the optimum production that can be achieved over the long term.

💡 The actual GDP is what is produced, and the difference between potential output and actual output is referred to as output gap or GDP gap. It indicates the policies that need to be followed, either to accelerate or decelerate the growth rate.

💡 Sustainability is crucial in deciding on potential output. Sustainability is in terms of prices, fiscal deficit, current account deficit (exports cannot be boosted by devaluing the exchange rate as it can be dysfunctional), financial sector not accumulating Non- Performing Assets (NPAs), etc.

UPSC Economics Quiz Notes PDF

19 Feb 2025 08:41

Economic development


🌳Economic development is the quantitative and qualitative change in an economy.

🌳Economic development refers to the reduction and elimination of poverty, unemployment and inequality with the context of growing economy.

🌳Economic development means an improvement in the quality of life and living standards, e.g. measures of literacy, life-expectancy and health care.

🌳Economic development includes process and policies by which a country improves the social, economic and political well-being of its people.

🌳Economic development is multi-dimensional in nature as it focuses on both income and improvement of living standards of the people.

🌳Economic development is concerned with the happiness of public life.

🌳Economic development comes after economic growth. It is a positive impact of economic growth.

🌳Economic development also refers to:

🌱provision of sufficient and effective physical and social infrastructures

🌱equal access to resources

🌱participation of all in economic activities

🌱equitable distribution of dividends of economy.

🌱Economic development= Economic growth + standard of living

🌱It refers to increase in productivity.

🌱Indicators of economic development are:

Human Development Index (HDI)

Human Poverty Index (HPI)

Gini Coefficient

Gender Development Index (GDI)

Balance of trade

Physical Quality of Life Index (PQLI)

🌱Economic development is the ends of development.

🌱Achieving economic development is linked with end of poverty and inequality.

🌱It is more abstract concept.

🌱Economic development focuses on distribution of resources.

UPSC Economics Quiz Notes PDF

17 Feb 2025 16:07

Banking Abbreviations

• FEDAI- Foreign Exchange Dealers Association of India
• ALCO- Asset Liability Committee
• ALM- Asset Liability Management
• KVIC- Khadi and Village Industries Corporation
• KYC- Know Your Customer
• EXIM bank- Export and Import Bank of India
• NABARD- National Bank for Agriculture and Rural Development
• SIDBI- Small Industries Development Bank of India
• EDP- Entrepreneurship Development Programme
• LAMPS- Large Sized Adivasi Multipurpose Societies
• LERMS- Liberalized Exchange Rate Management System
• NABARD- National Bank for Agriculture and Rural Development
• NBFC- Non Banking Finance Companies
• QIB- Qualified Institutional Bankers
• RBI- Reserve Bank of India
• RDBMS- Relational Database Management System
• REC- Rural Electrification Corporation
• RFC- Resident Foreign Currency
• RIDF- Rural Infrastructure Development Fund
• RRB- Regional Rural Bank
• RTGS- Real Time Gross Settlement
• RWA- Risk Weighted Assets
• SBI- State Bank of India
• SCB- Scheduled Commercial Bank
• NRE- Non Resident External Account
• NRI- Non Resident Indian
• SDR- Special Drawing Rights
• YTM-Yield to Maturity
• LAB- Local Area Banks
• ALM- Asset Liability Management
• ANBC- Adjusted Net Bank Credit
• ASBA- Applications Supported Bank Accounts
• DPG- Deferred Payment Guarantee
• DRI- Differential Rate Of Interest
• DSCR- Debt Service Coverage Ratio
• FEDAI- Foreign Exchange Dealers Association Of India
• FOB- Free On Board
• NPV- Net Present Value
• DPN- Demand Promissory Note
• DRAT- Debt Recovery Appellate Tribunal
• OCB- Overseas Corporate Bodies
• POA- Power of Attorney
• OLTAS- Online Tax Accounting System
• OMO- Open Market Operations
• PACS- Primary Agricultural Credit Societies
• LIC- Life Insurance Corporation of India
• IEPF- Investors Education and Protection Fund
• IRDA- Insurance Regulatory and Development Authority
• CCIL- Clearing Corporation of India Limited
• OTCEI- Over the Counter Exchange Of India
• ISCI- International Standard Industrial Classification
• KCC- Kisan Credit Card
• BCSBI- Banking Codes and Standards Board of India
• SEBI- Securities and Exchange Board of India
• SFMS- Structured Financial Messaging Services
• SHG- Self Help Group
• CAR- Capital Adequacy Ratio
• SEBI- Securities and Exchange Board of India
• MICR- Magnetic Ink Character Recognition
• NSE- National Stock Exchange
• FCNR- Foreign Currency Non Resident Deposit Accounts
• CDRS- Corporate Debt Restructuring
• IDRBT- Institute for Development and Research Of Banking Technology
• YTM- Yield To Maturity
• MCA- Ministry Of Company Affairs
• MIS- Management Information System
• CRISIL- Credit Rating Information Services Of India
• ICRA- Investment Information and Credit Rating Agency of India Limited
• CARE- Credit Analysis and Research Limited
• IRDA- Insurance Regulatory and Development Authority of India
• CASA- Current and Savings Accounts
• CBLO- Collateralized Bank Lending Obligations
• CIBIL- Credit Information Bureau of India Limited
• CRR- Cash Reserve Ratio
• KYC- Know Your Customer Guidelines
• IPO- Initial Public Offer
• SLR- Statutory Liquidity Ratio
• SLRS- Scheme for Liberation and Rehabilitation of Scavengers
• EMI- Equated Monthly Instalments
• SSI- Small Scale Industries
• SME- Small and Medium Industries
• UTI- Unit Trust of India
• WPI- Wholesale Price Index
• EDI- Electronic Data Interchange
• EPS- Earning per Share
• ESOP- Employee Stock Options
• PDO- Public Debt Office
• PIN- Personal Identification Number
• NBFC- Non Banking Finance Companies
• NEFT- National Electronic Fund Transfer
• RTGS- Real Time Gross Settlement
• NPA- Non Performing Assets
• QIB- Qualified Institutional Buyers
• BOE- Bill of Exchange
• SMERA- SME Rating Agency of India Limited
• SLR- Statutory Reserve Ratio
• SIDBI- Small Industries Development Bank of India
• SIDC- State Industrial Development Corporation
• SJSRY- Swarna Jayanthi Shahari Rozgar Yojana
• SSSBE- Small Scale Service and Business Enterprises

UPSC Economics Quiz Notes PDF

17 Feb 2025 16:07

📍 HEDGE FUND

#Capitalmarket  #Moneymarket

A hedge fund is like a Mutual Fund (MFs)-both are investment vehicles which pool investors' money and invest as per the fund's mandate and returns are distributed among unit holders for a commission.

💡 However, hedge funds use strategies far more complex than MFs. Hedge funds are less transparent. SEBI. regulates them under Alternative Investment Fund (AIF).


📍 VENTURE CAPITAL

#Capitalmarket  #Moneymarket

💡 Venture capital is money provided by financial institutions who invest in startups generally that have the potential to develop into significant economic contributors.

💡 The name comes from the fact that the enterprise has certain risk built into it.


📍 ANGEL INVESTORS

#Capitalmarket  #Moneymarket

💡 An angel investor or angel is a wealthy individual or firm that provides capital for a business start-up, usually in exchange for convertible debt or ownership equity.

💡 They invest their own money unlike a venture capitalist who invests public money.

💡 They became popular after the web-based enterprises came up in the 1990's. With an aim to encourage entrepreneurship in the country by financing small start-ups, SEBI in 2013 notified norms for angel investors who are allowed to be registered as Alternative Investment Funds (AIFs).

UPSC Economics Quiz Notes PDF

30 Jan 2025 07:32

✅ Useful Commerce Abbreviations

ASSOCHAM: Associated Chambers of Commerce and Industry of India
VAT: Value Added Tax
UNCTAD: United Nations Conference on Trade and Development
TDS: Tax Deduction at Source
TIN: Tax Information Network
TAN: Tax Deduction and Collection Account Number
STT: Securities Transaction Tax
SDR: Special Drawing Rights
RTP: Reverse Tranche Position
PAN: Permanent Account Number
OLTAS: Online Tax Accounting System
NYSE: New York Stock Exchange
NSDL: National Securities Depository Limited
NAV: Net Asset Value
NASDAQ: National Association of Securities Dealers Automated Quotation
IPO: Initial Public Offering
IMF: International Monetary Fund
GDR: Global Depositary Receipt
GATT: General Agreement for Trade and Tariff
FPO: Follow-on Public Offer
FII: Foreign Institutional Investors
FICCI: Federation of Indian Chambers of Commerce and Industry
FDI: Foreign Direct Investment
FCCB: Foreign Currency Convertible Bond
ECB: External Commercial Borrowing
DICGC: Deposit Insurance and Credit Guarantee Corporation of India
CPI: Consumer Price Index
CII: Confederation of Indian Industries
BIS: Bureau of Indian Standards
BSR: Basic Statistical Return
ASBA: Application Supported by Blocked Amount
INC.: Incorporated
GP: Gross Profit
FOC: Free of Cost
DISC: Discount
CSR: Corporate Social Responsibility
CPU: Cost Per Unit
CIF: Cost Insurance and Freight
C&F: Cost and Freight
ADR: American Depository Receipt
BEP: Break Even Point
CPA: Certified Public Accountant
COGS: Cost of Goods Sold
CCS: Cash Compensatory Scheme
FOB: Freight on Board
IFCI: Industrial Finance Corporation of India
LLP: Limited Liability Partnership
MRTP: Monopoly and Restrictive Trade Practices
NOI: Net Operating Income
PSU: Public Sector Undertakings

UPSC Economics Quiz Notes PDF

30 Jan 2025 07:32

✍️Major areas of priority
🔺पंचवर्षीय योजनाओं मॆ प्राथमिकता के प्रमुख क्षेत्र

▪️ पहली पंचवर्षीय योजना (1951-56)
– कृषि की प्राथमिकता।  
▪️1st Five Year Plan (1951-56)
– Priority of Agriculture.

▪️दूसरी पंचवर्षीय योजना (1956-61)
– उद्योग क्षेत्र की प्राथमिकता।
▪️2nd Five Year Plan (1956-61)
– Priority of Industry Sector.

▪️तीसरी पंचवर्षीय योजना (1961-66)
– कृषि और उद्योग।
▪️3rd Five Year Plan (1961–66)
– Agriculture and Industry.

▪️चौथी पंचवर्षीय योजना (1969-74)
– न्याय के साथ गरीबी के विकास को हटाया।
▪️4th Five Year Plan (1969-74)
– Removed the development of poverty with justice.

▪️5 वीं पंचवर्षीय योजना (1974-79)
– गरीबी और आत्म निर्भरता को हटाया।
▪️5th Five Year Plan (1974-79)
– Removed poverty and self-reliance.

▪️6ठी पंचवर्षीय योजना (1980-85)
– पाँचवीं योजना के रूप में ही जोर दिया।
▪️6th Five Year Plan (1980-85)
– Emphasized only as the Fifth Plan.

▪️7 वीं पंचवर्षीय योजना (1985-90)
– फूड प्रोडक्शन, रोजगार, उत्पादकता
▪️7th Five-Year Plan (1985–90)
– Food production, employment, productivity

▪️8 वीं पंचवर्षीय योजना (1992-97)
– रोजगार सृजन, जनसंख्या का नियंत्रण।
▪️8th Five Year Plan (1992-97)
– Job creation, control of population.

▪️9 वीं पंचवर्षीय योजना (1997-02)
-7 प्रतिशत की विकास दर.
▪️9th Five Year Plan (1997-02)
– 7 percent growth rate.

▪️10 वीं पंचवर्षीय योजना (2002-07)
– स्व रोजगार और संसाधनों का विकास।
▪️10th Five Year Plan (2002-07)
– Self employment and development of resources.

▪️11 वीं पंचवर्षीय योजना (2007-12)
– व्यापक और तेजी से विकास।
▪️11th Five Year Plan (2007-12)
– Comprehensive and rapid development.

▪️12.वीं पंचवर्षीय योजना (2012-17)
-स्वास्थ्य, शिक्षा और स्वच्छता (समग्र विकास) का सुधार।
▪️12th Five Year Plan (2012-17)
– Reform of health, education and sanitation (overall development).

UPSC Economics Quiz Notes PDF

13 Jan 2025 15:21

💰IGST
🧰The full form of IGST is Integrated Goods and Services Tax. Under GST, IGST is a tax levied on all interstate supplies of goods and/or services or across two or more states/Union Territories.

💰CGST
🧰The full form of CGST is Central Goods and Services Tax. Under GST, CGST is a tax levied on intrastate supplies of both goods and services by the Central Government and collected by it for its coffers.

💰SGST
🧰SGST means State Goods and Services Tax. Under GST, an equivalent amount of SGST is a tax levied on intrastate supplies of both goods and services by the particular state government where the product sold is consumed.

UPSC Economics Quiz Notes PDF

13 Jan 2025 15:21

📍BENEFITS OF FDI

#FDI

💡 Foreign direct investment can stimulate the host country's economic development.

💡 Ancillarization, that is, local input/component industries come up.

💡 Having FDIs make in India is better than importing goods and services. Defence manufacturing in India is an example.

💡 Can help export globally competitive goods and services. Creates employment

💡 Human capital with world-class education, training and skills

💡 Greater productivity

💡Tax collections from economic activity

💡 Technology development occurs when FDIs comes into the R&D sector

UPSC Economics Quiz Notes PDF

24 Dec 2024 07:53

🗄 TYPES OF ATM ( Automated Teller Machine )

🖨 White Label ATMs (WLAs): ATMs set up, owned and operated by non-banks (i.e NBFCs) are WLAs. Non-bank ATM operators are authorised under the Payment & Settlement Systems Act, 2007 by RBI.

🖨 Green Label ATMs – ATMs for agricultural transactions.

🖨 Orange label ATMs – ATMs used for share transactions.

🖨 Pink Label ATMs – ATMs that are meant only for women (ease their banking).

🖨 Yellow Label ATMs – ATMs meant for E-commerce facility.

🖨 Brown Label ATMs – ATMs that are outsourced by a bank to a third party (based on the concept of sharing the cost).

🖨 Biometric ATMs – These are ATMs that use security features like fingerprint scanner and eye scanner of the customer to access the bank details.

🖨 Onsite ATMs – ATMs that are located inside the bank’s premises.

🖨 Offsite ATMs- ATMs that are located in various places except inside the bank’s premises.

UPSC Economics Quiz Notes PDF

30 Mar 2025 14:31

⭐ The Reserve Bank of India has raised the maximum ATM withdrawal fee banks from 21 to Rs 23, starting May 1, 2025.

~ ATM Withdrawals to Get Costlier from May 1 as RBI Approves Fee Hike Changes ATM Withdrawal ₹19 per transaction (up from ₹17) & Fee for Cash New Fee for Balance Inquiry ₹7 per transaction (up from ₹6)

UPSC Economics Quiz Notes PDF

30 Mar 2025 07:57

✅ India BioEconomy Report

The India BioEconomy Report was released recently by the Department of Biotechnology. It revealed that, in 2024, bioeconomy was valued at over $165 billion, contributing more than 4.2% to the national GDP. The Department of Biotechnology anticipates growth to $300 billion by 2030 and $1 trillion by 2047.

What is Bioeconomy?
Bioeconomy refers to the economic activities that utilise biological resources. This includes plants, animals, and microorganisms. It also encompasses the replication of natural processes for producing goods and services. The focus is on sustainability and renewable resources.

Current State of the Bioeconomy
India’s bioeconomy has nearly doubled in five years. It grew from approximately $86 billion in 2020 to $165 billion in 2024. The number of bioeconomy companies surged by 90%, reaching over 10,000. By 2030, this number is expected to double, potentially creating 35 million jobs.

Sector Contributions
The industrial sector is the largest contributor, generating about $78 billion. This includes biofuels and bioplastics. The pharmaceutical sector follows, contributing 35% of the total value, with vaccines being factor. Research and IT are the fastest-growing segments, focusing on biotech software and clinical trials.

Regional Disparities
Five states dominate the bioeconomy – Maharashtra, Karnataka, Telangana, Gujarat, and Andhra Pradesh. Together, they account for over two-thirds of the sector’s value. In contrast, the eastern and northeastern regions contribute less than 6%. Addressing these regional imbalances is vital for sustained growth.

Challenges Ahead
Maintaining high growth rates will be challenging. Innovation and scaling-up bio-based solutions are essential. The removal of policy and infrastructure barriers is necessary. Furthermore, regulatory uncertainties, particularly regarding genetically modified crops, need to be addressed.

BioE3 Policy Introduction
In 2024, the Government of India launched the BioE3 policy. This initiative aims to position India as a global hub for bio-manufacturing. It focuses on establishing networks of universities, research institutions, and industries. Key areas include bio-based chemicals, precision biotherapeutics, and climate-resilient agriculture.

Future Prospects
India has a strong foundation in biotechnology. The government is assessing proposals for new projects under the BioE3 policy. The potential for bioeconomy growth is immense, provided that challenges are effectively managed.

UPSC Economics Quiz Notes PDF

30 Mar 2025 07:41

✅ SMILE Programme

The Strengthening Multimodal and Integrated Logistics Ecosystem (SMILE) Programme is an initiative funded by the Asian Development Bank (ADB). Launched to enhance India’s logistics infrastructure, the programme aims to reduce logistics costs and increase overall efficiency. It is aligned with the National Logistics Policy and the PM Gati Shakti National Master Plan.

Objectives
The SMILE Programme seeks to improve logistics efficiency through various strategic interventions. These include strengthening institutional frameworks for multimodal logistics at multiple governance levels. The programme also focuses on standardising warehousing and logistics assets to boost supply chains.

Enhancing Trade Logistics
Improving efficiencies in external trade logistics is a key goal. The programme promotes digitalisation in trade logistics. This shift aims to streamline processes and reduce delays. The adoption of smart systems is also encouraged to ensure low-emission logistics.

Focus on Gender Inclusion
The SMILE Programme prioritises gender inclusion. It includes measures for conducting gender audits of land ports. This is part of the National Trade Facilitation Action Plan (2020-23). Assessments of integrated check posts will ensure they meet minimum gender-responsive requirements.

Support for Atmanirbhar Bharat
The programme is closely linked to the Atmanirbhar Bharat initiative. It aims to strengthen domestic manufacturing capabilities. By improving logistics efficiency, it facilitates better integration into global trade networks. This synergy enhances the competitiveness of Indian industries.

Impact
The SMILE Programme is designed to boost job opportunities. By enhancing India’s position in the Logistics Performance Index, it aims to create a more competitive environment. The programme encourages private sector investment and encourages digital transformation.

Long-term Economic Resilience
The SMILE Programme contributes to long-term economic growth. By reducing dependencies on inefficient logistics, it supports a resilient economic structure. The focus on smart logistics systems is crucial for sustainable development.

UPSC Economics Quiz Notes PDF

27 Mar 2025 17:41

🕹 Discontinuation of Gold Monetisation Scheme

The Government of India has recently decided to discontinue the medium- and long-term components of the Gold Monetisation Scheme (GMS). This decision, effective from March 26, 2025, comes amid rising gold prices and a comprehensive review of the scheme’s performance. The Ministry of Finance stated that only short-term bank deposits will remain, subject to banks’ discretion.

Gold Monetisation Scheme
The Gold Monetisation Scheme was launched in November 2015. Its primary aim was to mobilise idle gold held by households and institutions. This initiative sought to reduce gold imports and the current account deficit. The scheme allowed individuals to deposit gold with banks, making it productive for the economy.

Components of the Scheme
The GMS consisted of three components – 1. Short-term bank deposits (1-3 years). 2. Medium-term government deposits (5-7 years). 3. Long-term government deposits (12-15 years). The minimum deposit allowed was 10 grams of gold, with no maximum limit.

Interest Rates Under the Scheme
Interest rates for short-term deposits were determined by individual banks based on market conditions. For medium- and long-term deposits, rates were set by the government in consultation with the Reserve Bank of India (RBI). Medium-term bonds offered 2.25%, while long-term bonds offered 2.5%.

Performance and Impact of the Scheme
As of November 2024, approximately 31,164 kg of gold had been mobilised under the GMS. Short-term deposits accounted for 7,509 kg, medium-term for 9,728 kg, and long-term for 13,926 kg. About 5,693 depositors participated in the scheme. The scheme aimed to convert idle gold into productive assets.

Reasons for Discontinuation
The Ministry of Finance cited evolving market conditions and the scheme’s performance as reasons for its discontinuation. The government has noted increase in gold prices, prompting a reassessment of gold-related schemes. The previous issuance of sovereign gold bonds also faced similar scrutiny.

Future of Gold Schemes in India
With the discontinuation of the GMS’s medium- and long-term components, the focus shifts to short-term bank deposits. The RBI is expected to provide detailed guidelines on the future of these deposits. The government aims to refine gold-related policies to adapt to changing economic conditions.

UPSC Economics Quiz Notes PDF

20 Mar 2025 12:42

Money laundering:

"Money laundering is the illegal process of concealing the origins of money obtained illegally by passing it through a complex sequence of banking transfers or commercial transactions."

Money laundering typically includes three stages: placement, layering and integration stage.

✏️Placement is the first step of money laundering which is the process of moving the money into the legitimate source via financial institutions, casinos, financial instruments etc. and at the same time, hiding its source.

✏️The second stage is “layering”, also referred as “structuring stage”. It breaks the funds into small transactions and makes it difficult to detect and find out about the laundering activity. It usually entails international money movement, so the law enforcement agencies won’t be able to track the financial gains from illegal proceedings so easily.

✏️The third stage is Integration stage, In this stage, money is now returned to the criminals legitimately after it has been placed in the financial system, often breaking it into different multiple smaller financial transactions. Criminals can now retrieve their illicit funds in a legal way after fully integrating them into a legitimate source, and are able to use them for any purpose.

"Anti-money laundering (AML) refers to the laws, regulations and procedures intended to prevent criminals from disguising illegally obtained funds as legitimate income."

⏺Prevention of Money Laundering Act (PMLA), 2002 is an Act of the Parliament of India enacted by the government to prevent money-laundering and to provide for confiscation of property derived from money-laundering. PMLA and the Rules notified there under came into force with effect from July 1, 2005.

UPSC Economics Quiz Notes PDF

14 Mar 2025 18:02

📍MEANS OF DEFICIT FINACING

#Publicfinance

➡️ External Borrowings

💡 are the next best way to manage fiscal deficit with the condition that the external loans are comparatively cheaper and long-term.

💡 though external loans are considered an erosion in the nation’s sovereign decision making process, this has its own benefit and is considered better than the internal borrowings due to two reasons:

○  External borrowing bring in foreign currency/hard currency which gives extra edge to the government spending as by this the government may fulfil its developmental requirements inside the country as well as from outside the country.

○ It is preferred over the internal borrowings due to ‘crowding out effect’. If the government itself goes on borrowing from the banks of the country, from where will others borrow for investment purposes?

UPSC Economics Quiz Notes PDF

14 Mar 2025 18:02

✍️Major areas of priority
🔺पंचवर्षीय योजनाओं मॆ प्राथमिकता के प्रमुख क्षेत्र

▪️ पहली पंचवर्षीय योजना (1951-56)
– कृषि की प्राथमिकता।
▪️1st Five Year Plan (1951-56)
– Priority of Agriculture.

▪️दूसरी पंचवर्षीय योजना (1956-61)
– उद्योग क्षेत्र की प्राथमिकता।
▪️2nd Five Year Plan (1956-61)
– Priority of Industry Sector.

▪️तीसरी पंचवर्षीय योजना (1961-66)
– कृषि और उद्योग।
▪️3rd Five Year Plan (1961–66)
– Agriculture and Industry.

▪️चौथी पंचवर्षीय योजना (1969-74)
– न्याय के साथ गरीबी के विकास को हटाया।
▪️4th Five Year Plan (1969-74)
– Removed the development of poverty with justice.

▪️5 वीं पंचवर्षीय योजना (1974-79)
– गरीबी और आत्म निर्भरता को हटाया।
▪️5th Five Year Plan (1974-79)
– Removed poverty and self-reliance.

▪️6ठी पंचवर्षीय योजना (1980-85)
– पाँचवीं योजना के रूप में ही जोर दिया।
▪️6th Five Year Plan (1980-85)
– Emphasized only as the Fifth Plan.

▪️7 वीं पंचवर्षीय योजना (1985-90)
– फूड प्रोडक्शन, रोजगार, उत्पादकता
▪️7th Five-Year Plan (1985–90)
– Food production, employment, productivity

▪️8 वीं पंचवर्षीय योजना (1992-97)
– रोजगार सृजन, जनसंख्या का नियंत्रण।
▪️8th Five Year Plan (1992-97)
– Job creation, control of population.

▪️9 वीं पंचवर्षीय योजना (1997-02)
-7 प्रतिशत की विकास दर.
▪️9th Five Year Plan (1997-02)
– 7 percent growth rate.

▪️10 वीं पंचवर्षीय योजना (2002-07)
– स्व रोजगार और संसाधनों का विकास।
▪️10th Five Year Plan (2002-07)
– Self employment and development of resources.

▪️11 वीं पंचवर्षीय योजना (2007-12)
– व्यापक और तेजी से विकास।
▪️11th Five Year Plan (2007-12)
– Comprehensive and rapid development.

▪️12.वीं पंचवर्षीय योजना (2012-17)
-स्वास्थ्य, शिक्षा और स्वच्छता (समग्र विकास) का सुधार।
▪️12th Five Year Plan (2012-17)
– Reform of health, education and sanitation (overall development).

UPSC Economics Quiz Notes PDF

17 Feb 2025 16:31

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UPSC Economics Quiz Notes PDF

17 Feb 2025 16:07

✔️  Key Differences Between FERA and FEMA

❤️ FERA
✔️FERA is an acronym for Foreign Exchange Regulation Act.
✔️It was passed by the Parliament of India in 1973. The act came into force on 1st January 1974.
✔️FERA Act was repealed by the Vajpayee government in 1998.
✔️It was enacted to regulate foreign exchange and payments in India. Its main objective was to conserve forex transactions.
✔️The rules and regulations of FERA on foreign exchange were conservative and restrictive.
✔️This act came into force when the forex position in the country was not good.
✔️Comparatively, FERA Act is lengthier as it has 81 sections.
✔️Under this act, the definition of the term ‘Authorized person’ was narrow.
✔️Under this act, the citizenship of an individual was the basis for determining his/her residential status.
✔️Under FERA, no provisions were made for IT.
✔️Violation of the provisions of FERA has been considered a criminal offence and the punishment for contravention was imprisonment.
✔️Violation of FERA was a non-compoundable offence i.e. the offence cannot be compromised. Moreover, the accused was not allowed any assistance from the lawyer.
✔️The appeals were sent to the Supreme Court.
✔️According to FERA, an individual should obtain permission from the RBI to carry out forex transactions.


❤️ FEMA
✔️FEMA is an acronym for Foreign Exchange Management Act.
✔️FEMA Act was passed by the Parliament of India in 1999 to replace the FERA. It came into force on 1st June 2000.
✔️FEMA is currently active in the country.
✔️It was enacted to remove the stringent regulations on foreign exchange and promote orderly management of foreign exchange and payments. Its main objective was to manage the forex transactions.
✔️The approach of FEMA Act toward foreign exchange is flexible.
✔️This act was introduced when the strict provisions of FERA were hampering the growth of the Indian economy.
✔️FEMA has 49 sections and is shorter than the FERA.
✔️Under this act, the definition of the term ‘Authorized person’ is broad and it has included the banks under it.
✔️Under this act, the basis for determining the residential status was that an individual should be residing in India for the past 6 months.
✔️Provisions on IT were introduced under the FEMA Act.
✔️Violation of the provisions of FEMA has been considered a civil offence and the punishment for contravention was a monetary penalty. If an individual fails to pay the penalty on time, he/she may be imprisoned.
✔️Violation of FEMA is a compoundable offence and the charges can be compromised or removed. FEMA provides the accused the right to obtain legal assistance from a lawyer.
✔️A special director and a special court were introduced under FEMA to address the appeals.
✔️Under FEMA, no such pre-approval or permission of RBI is required to carry out forex transactions.

UPSC Economics Quiz Notes PDF

30 Jan 2025 07:38

UPPSC Exam Calendar 2025

UPSC Economics Quiz Notes PDF

30 Jan 2025 07:32

💠Some Important Facts About Goods and Services Tax (GST) :-
---------------------------------------------------------

🍁It is a comprehensive indirect tax levied on the supply of goods and services in India.

🍁France was the first country to implement GST, In 1954

🍁GST was introduced as the 101 Amendment Act.By a constitutional amendment bill 122nd amendment bill the new taxation regime is to be implemented in India, from April 2016.

🍁The first state in India to pass the GST legislation in the Assembly :- Assam

🍁India's GST is based on the model of which country? Canada

🍁When did GST come into effect in India? 1 July 2017

🍁Which committee suggested to implement GST in India? Vijay Kelkar Committee

🍁Who was the chairman of the committee that first drafted the GST bill - Aseem Dasgupta

🍁How many types of GST rates are there:- 0% 5% 12% 18% 28%

🍁How many digits are there in GST registration number:- 15 digits

🍁Who is the Chairman of GST Council – Finance Minister

🍁National Customs and GST Museum inaugurated – in Panaji, Goa.

UPSC Economics Quiz Notes PDF

13 Jan 2025 15:21

🧰SGST
🔷SGST का फुल फॉर्म होता है- State GST. इसका हिंदी में मतलब होता है-राज्य जीएसटी। यह उस राज्य के हिस्से का GST होता है, जहां पर उस सामान की या सेवा की खपत होनी है। खरीदार और विक्रेता एक ही राज्य के होने पर SGST + CGST जोड़कर वसूले जाते हैं।

हिन्दी में इसका अर्थ होता है- माल एवं सेवा कर। इसे, वस्तुओं (Goods) की खरीदारी करने पर या सेवाओं (Services) का इस्तेमाल करने पर चुकाना पड़ता है। जुलाई 2017 के पहले मौजूद कई तरह के टैक्सों (Excise Duty, VAT, Entry Tax, Service Tax वगैरह) को हटाकर, उनकी जगह पर, सिर्फ एक टैक्स GST के नाम से लागू हो गया है।

🧰CGST क्या है ?
🔷सीजीएसटी अंतरराज्यीय लेनदेन के लिए रिलेवेंट है। यानी की उपभोक्ता एवं विक्रेता जब एक ही राज्य से वस्तुओं को सप्लाई करते है। इसमें केंद्र सरकार के द्वारा कर संग्रह को सक्षम करने के लिए वस्तुओं और सेवाओं पर CGST लागू किया जाता है। CGST SGST के साथ एकत्र किया जाता है। CGST उन सभी वस्तुओं पर लगायी जाती है जो घरेलु आवश्यकताओं से लेकर विलासिता तक और विनिर्माण सेवाओं से लेकर पेशेवर सेवाओं तक होती है।

🧰IGST
🔷IGST का फुल फॉर्म होता है-Integrated GST. इसका हिंदी में मतलब होता है-एकीकृत जीएसटी। जब कोई सौदा, दो अलग-अलग राज्यों के कारोबारियों के बीच हौता है तो उस पर दो टैक्स नहीं लगते। बल्कि, सिर्फ एक ही टैक्स लगता है-एकीकृत जीएसटी (Integrated GST)।

UPSC Economics Quiz Notes PDF

13 Jan 2025 15:21

📍CRITICAL INFRASTRUCTURE

#Infrastructure 

Critical infrastructure consists of those assets on which the rest of the economy depends:

💡 Electricity generation, transmission and distribution

💡 Gas production, transport and distribution

💡 Oil and oil products production, transport and distribution.

💡 Telecommunication

💡 Water supply (drinking water, waste water/sewage, stemming of surface water, such as dikes and sluices)

💡 Agriculture, food production and distribution

💡 Public health (hospitals, ambulances)

💡 Transportation systems (fuel supply, railway network, airports, harbours, inland shipping)

💡 Financial services (banking, clearing)

💡 Security services (police, military)

UPSC Economics Quiz Notes PDF

13 Jan 2025 15:21

📍 BUDGET DEFICIT

💡 A budgetary deficit is referred to as the situation in which the spending is more than the income. Although it is mostly used for governments, this can also be broadly applied to individuals and businesses.

💡 In other words, a budgetary deficit is said to have taken place when the individual, government, or business budgets have more spending than the income that they can generate as revenue.


📍 GENDER BUDGETING

💡 GB is concerned with gender sensitive formulation of legislation, programmes and schemes; allocation of resources; implementation and execution; audit and impact assessment of programmes and schemes; and follow-up corrective action to address gender disparities.

💡 A powerful tool for achieving gender mainstreaming so as to ensure that benefits of development reach women as much as men.

💡 Does not seek to create a separate budget but seeks affirmative action to address specific needs of women.

💡 Monitors expenditure and public service delivery from a gender perspective.

💡 Entails dissection of the Government budgets to establish its gender differential impacts and to ensure that gender commitments are translated in to budgetary commitments.


📍 WHAT IS A FISCAL DEFICIT ?

💡 The fiscal deficit is the difference between the government’s total expenditure and its total receipts (excluding borrowing). A fiscal deficit occurs when this expenditure exceeds the revenue generated.

▪︎ Fiscal deficit is when a government’s total expenditures exceed the revenue that it generates (excluding money from borrowings).

▪︎ The deficit does not mean debt, which is an addition of annual deficits.

UPSC Economics Quiz Notes PDF

24 Dec 2024 07:53

🛡 Increasing order of formation of banking institutions :-

Trick :- Man by doing AGRICULTURE built a HOUSE, then an INDUSTRY and remaining money he invested IN SECURITY MARKET.

NABARD : agriculture 1982.

NHB : house1988.

SIDBI : industry 1990.

SEBI : securities market 1992.