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

24 Dec 2024 07:53

🏵The Reserve Bank of India (RBI) uses the monetary policy to manage liquidity or money supply in a manner that balances inflation and at the same time aids growth. The tools it uses are:

🛡Repo and Reverse Repo rate

🛡Cash Reserve Ratio

🛡Statutory liquidity ratio

🛡Open Market operations

🛡Bank Rate

UPSC Economics Quiz Notes PDF

15 Dec 2024 10:46

💠Updated GDP List

ADB – 6.5% (FY24), 7%(FY25)
S&P – 6.8% (FY25), 6.9% (FY26)
RBI –6.6% (FY24)
Morgan Stanley – 6.3% (FY25)
Moody Ratings – 2% (CY24)
IMF – 7% (FY25), 6.5% (FY26)
World Bank – 7% (FY25)

UPSC Economics Quiz Notes PDF

01 Dec 2024 07:47

FAQ on new PAN card

The Income Tax Department will send a new one for free
PAN card with QR code until then your old PAN card will work.

Question- How different will the new PAN card be?

Answer- According to Union Minister Ashwini Vaishnav This new version of PAN Card (PAN Card 2.0) will only have new features. There will be no change in people's PAN number. Your number will remain the same. A QR code will be given on this card. It will contain all the information of taxpayers. With the new PAN card with qR code, things like paying tax, registering a company, opening a bank account will become easier.

Question- Will my existing PAN card be closed?
Answer- No, upgrading old PAN card or issuing new PAN card will not change the number i.e. your PAN number will remain the same. If the PAN number is to remain the same, it is clear that there is no question of the old card becoming useless. Ashwini Vaishnav also clearly said that old PAN card will not be considered invalid. You will continue to do all your work with old PAN card till the new card reaches your hands.

Q- Will we get new PAN card free?
Answer- Yes you will get a new PAN card free of charge, existing PAN card holders need not to apply anywhere or fill any form for new card. New PAN Card will be sent to your home by Income Tax Department.

Question- What new features will be available in the new PAN card?
Answer- The new card will have QR code facility. In the new PAN card, the technology of the card will be completely upgraded, so as to make its use easy and secure. An integrated platform will be created for all services related to the PAN card. Security features will also be installed in the new PAN card to prevent fraud and provide financial security to the cardholder.

Question- Why is a new PAN card required?
Answer- According to Ashwini Vaishnav Currently the software that operates the PAN card is 15 to 20 years old. These softwares often cause problems. Hence, the system will be prepared digitally in the new PAN card. so that things like complaints, transactions, tax filing can be processed quickly. Apart from this, the new PAN card system will also prevent fake PAN cards and fraud. The new system is needed because PAN card will act as universal ID in future.

UPSC Economics Quiz Notes PDF

29 Nov 2024 08:05

📍 INTERNATIONAL MONETARY FUND (IMF)

💡 The IMF has 189 members. India is a founding member.

💡 It is headquartered in Washington.

💡 The current Managing Director (MD) of the International Monetary Fund is Bulgarian Economist Kristalina Georgieva, who has held the post since 1 October 2019.

💡 Gita Gopi- nath was appointed as Chief Economist of IMF in 2018. Christine Lagarde was the MD before Kristalina Georgieva.

IMF Objectives

💡 To promote international monetary cooperation.

💡 To facilitate balanced growth of international trade for the economic growth of all member countries.

💡 To promote exchange rate stability, maintain orderly exchange rate arrangements; and advise against competitive exchange rate revaluation. To help members in times of BoP crisis.



📍 FUNCTIONS OF IMF

IMF monitors the world's economies, lends to members in economic difficulty on the external account and provides technical assistance.

To elaborate, the work of the IMF is of three main types:

💡 Lending to countries with BoP difficulties. For example, India needed forex resources in 1991 to meet its import and debt servicing needs. India's credit rating in the global markets was not high. IMF gave India credit.

💡 Surveillance which involves the monitoring of economic and financial developments of every member country and the provision of policy advice, aimed especially at crisis- prevention and resolution.

💡 Appraisal of the exchange rate policies of member countries.

💡 Provides countries with technical assistance and training in its areas of expertise.

💡 Plays an important role in the fight against money-laundering and terrorism.



📍 BENEFITS TO MEMBER COUNTRIES OF THE IMF

💡 Member get BoP assistance as IMF is like a last resort lender.

💡 Member have the opportunity to influence other members' economic policies.

💡 Member get technical assistance in banking, fiscal affairs, and exchange matters.

💡 Member have increased opportunities for trade and investment.

UPSC Economics Quiz Notes PDF

21 Nov 2024 07:33

📍 INTERNATIONAL MONETARY FUND (IMF)

💡 The IMF has 189 members. India is a founding member.

💡 It is headquartered in Washington.

💡 The current Managing Director (MD) of the International Monetary Fund is Bulgarian Economist Kristalina Georgieva, who has held the post since 1 October 2019.

💡 Gita Gopi- nath was appointed as Chief Economist of IMF in 2018. Christine Lagarde was the MD before Kristalina Georgieva.

IMF Objectives

💡 To promote international monetary cooperation.

💡 To facilitate balanced growth of international trade for the economic growth of all member countries.

💡 To promote exchange rate stability, maintain orderly exchange rate arrangements; and advise against competitive exchange rate revaluation. To help members in times of BoP crisis.



📍 FUNCTIONS OF IMF

IMF monitors the world's economies, lends to members in economic difficulty on the external account and provides technical assistance.

To elaborate, the work of the IMF is of three main types:

💡 Lending to countries with BoP difficulties. For example, India needed forex resources in 1991 to meet its import and debt servicing needs. India's credit rating in the global markets was not high. IMF gave India credit.

💡 Surveillance which involves the monitoring of economic and financial developments of every member country and the provision of policy advice, aimed especially at crisis- prevention and resolution.

💡 Appraisal of the exchange rate policies of member countries.

💡 Provides countries with technical assistance and training in its areas of expertise.

💡 Plays an important role in the fight against money-laundering and terrorism.



📍 BENEFITS TO MEMBER COUNTRIES OF THE IMF

💡 Member get BoP assistance as IMF is like a last resort lender.

💡 Member have the opportunity to influence other members' economic policies.

💡 Member get technical assistance in banking, fiscal affairs, and exchange matters.

💡 Member have increased opportunities for trade and investment.

UPSC Economics Quiz Notes PDF

18 Nov 2024 08:08

🔘Jivhala Scheme

In News

Jivhala scheme offers loans to Yerwada jail inmates in Maharashtra.

About

◾️Jivhala scheme is a loan scheme named Jivhala launched by the Maharashtra Department of Prisons.

◾️It is for the inmates who are serving sentences in various jails across Maharashtra.

◾️The scheme, was implemented by the Department of Prisons and Maharashtra State Cooperative Bank.

◾️It has been started in Pune’s Yerawada Central Jail.

◾️The credit scheme, named Jivhala, means affection in Marathi.

◾️It is primarily for inmates who are undergoing a prison sentence of more than three years.

◾️In the initial phase of this scheme, a Rs 50,000 loan will be given.

◾️The interest rate that will be applicable is 7%.

◾️Out of the interest that will be earned by the bank, 1 per cent will be contributed by the bank to the prisoners’ welfare fund.

◾️For issuing this loan no guarantor or mortgage is required

UPSC Economics Quiz Notes PDF

15 Nov 2024 07:23

🔥📣 RBI Policy Rates

➡️ Policy Rates

📌 Repo rate: It is rate at which RBI lends to its clients generally against government securities.

📌 Reverse Repo Rate: It is rate at which banks lend funds to RBI.

📌 Marginal Standing Facility (MSF) Rate: It is rate at which scheduled banks can borrow funds overnight from RBI against government securities. It is very short term borrowing scheme for scheduled banks.

📌 Bank Rate: It is rate charged by central bank for lending funds to commercial banks. It influences lending rates of commercial banks. Higher bank rate will translate to higher lending rates by banks.

📌 Cash Reserve Ratio (CRR): It is amount of funds that banks have to keep with RBI. The RBI uses CRR to drain out excessive money from system.

📌 Statutory Liquidity Ratio (SLR): It is amount that banks have to maintain a stipulated proportion of their net demand and time liabilities (NDTL) in form of liquid assets like cash, gold and unencumbered securities, treasury bills, dated securities etc.

UPSC Economics Quiz Notes PDF

17 Feb 2025 16:31

📚 Get Free Books and Paid Batches

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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.

UPSC Economics Quiz Notes PDF

24 Dec 2024 07:53

💎 History of Economic Planning in India

➖ The concept of economic planning was not completely new in India. In 1934, Sir Visvesvaraya published a book entitled “Planned Economy For India.” He was the first person in the country to advocate economic planning for India.

➖ Towards the end of 1938, the National Planning Committee, under the chairmanship of Pandit Jawaharlal Nehru, was established by then President of INC, Netaji Subhash Chandra Bose. The main objective of the Congress to set up the committee was to provide ways and means for the establishment of new industries and also for the development of the existing ones.

➖ Following this, few historically significant economic plans were made, most of which remained only in the papers.

✅ Concept of Five Year Plans
Five year plans are documents that the Government of India prepares. This shows the income and expenses of the government for the next five years.
➖ The budget of the central government and all the state governments is divided into two parts:
       1) non-plan budget, spent on routine items every year
       2) plan budget, spent on a five-year basis according to the priorities fixed by the plan
➖ The Indian economy was based on the concept of planning based on five year plans from 1951 to 2017.
➖ The Five Year Plans were formulated, implemented, and regulated by a body known as the Planning Commission.
➖ The Planning Commission was replaced by a think tank called NITI AAYOG in 2015. The NITI Aayog has come out with three documents:
       1) 3-year action agenda
       2) 7-year medium-term strategy paper
       3) 15-year vision document

✅ List of Five Year Plans in India

👉🏻 First Five Year Plan
1951-1956
Actual Growth: 3.6% against Targeted Growth: 2.1%
Salient Features
➖ Based on the Harrod-Domar model
➖ Focused on increasing agricultural production, full employment, and removal of economic inequalities
➖ Achieved objectives like food self-sufficiency and establishment of Indian Institutes of Technology (IITs)

👉🏻 Second Five Year Plan
1956-1961
Actual Growth: 4.3% against Targeted Growth: 4.5%
Salient Features
➖ Developed based on the Harrod-Domar model
➖ Authored by P C Mahalanobis
➖ Emphasized rapid industrialization, but was not fully implemented due to foreign exchange shortages
➖ Introduced the Industrial Policy 1956 for a socialist society

👉🏻 Third Five Year Plan
1961-1966
Actual Growth: 2.8% against Targeted Growth: 5.6%
Salient Features
➖ Initially aimed at self-reliance, shifted focus to defense
➖ Promoted medium and small-scale industries
➖ Borrowed from IMF for the first time
➖ Affected by events like the 1962 Chinese aggression and Indo-Pak war

👉🏻 Plan Holidays (Annual Plans)
1966-1969
Salient Features
➖ Declared due to the failure of the Third Plan
➖ Three yearly plans from 1966 to 1969

👉🏻 Fourth Five Year Plan
1969-1974
Actual Growth: 3.3% against Targeted Growth: 5.6%
Salient Features
➖ Aimed for growth with stability and self-reliance, especially in defense
➖ Introduced family planning programs
➖ Faced challenges due to the influx of Bangladeshi refugees
➖ Nationalized 14 major Indian banks and Green Revolution

👉🏻 Fifth Five-Year Plan
1974-1979
Actual Growth: 4.8% against Targeted Growth: 4.4%
Salient Features
➖ Focused on poverty removal and self-reliance
➖ Introduced the Electricity Supply Act
➖ The first plan with poverty removal as a prime objective

👉🏻 Rolling Plan (1979-1980)
Salient Features
➖ Proposed by the Janata government, removed by the Congress government in 1980

👉🏻 Sixth Five Year Plan
1980-1985
Actual Growth: 5.7% against Targeted Growth: 5.2%
Salient Features
➖ Aimed at poverty removal, higher growth, and modernization
➖ Successfully achieved most targets
➖ Emphasized family planning

👉🏻 Seventh Five Year Plan
1985-1990
Actual Growth: 6% against Targeted Growth: 5%
Salient Features
➖ Focused on food grain production and employment
➖ Recorded high agricultural and overall growth
➖ Followed by planned holidays from 1990 to 1992

UPSC Economics Quiz Notes PDF

11 Dec 2024 22:19

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UPSC Economics Quiz Notes PDF

29 Nov 2024 08:05

भू-राजस्व व्यवस्थायें –

✍️ रैयतवारी व्यवस्था – थामस मुनरो और कैप्टन रीड के द्वारा शुरु की गई इस व्यवस्था को प्रायोगिक तौर पर सर्वप्रथम मद्रास प्रेसीडेंसी (तमिलनाडु) के बारामहल (1792) में लागू किया गया। तमिलनाडु, मद्रास, बंबई प्रेसीडेंसी के कुछ हिस्सों, असम तथा कुर्ग के कुछ हिस्सों सहित यह व्यवस्था ब्रिटिश भारत के लगभग 51% भू-भाग पर लागू की गयी। इसके अंतर्गत किसानों को भू-स्वामी मानकर लगान का निर्धारण किया गया। इसमें 20-30 वर्षों पर लगान का पुनर्निर्धारण किया जाता था।

✍️ महालवाड़ी बंदोबस्त – इस व्यवस्था के तहत गांव की बिरादरी अपने प्रतिनिधियों (मुखिया या लम्बरदार आदि) के माध्यम से रकम चुकाने का भार अपने ऊपर लेती थी। यह व्यवस्था उत्तर प्रदेश, मध्यप्रांत, पंजाब में अर्थात भारत के कुल 30% भूमि पर लागू थी।

✍️ माटिन बर्ड – को उत्तरी भारत में भूमि का व्यवस्था का प्रवर्तक के नाम से स्मरण किया जाता है।

✍ नील दर्पण – यह दीनबंधु मित्र द्वारा 1860 में लिखित नाटक था, जिसमें नील की खेती करने वाले कृषकों की दयनीय दशा का वर्णन था। नील के रंग बनाने का उद्योग भारत में 18वीं सदी के अंत में शुरु किया गया था।

✍️ स्थायी बंदोबस्त – यह व्यवस्था लॉर्ड कार्नवालिस ने सर जॉन शोर के सुझावों पर 1793 में लागू की थी। इसके तहत लगान की एक निश्चित मात्रा, जो जमींदारों द्वारा देय थी, हमेशा के लिए निर्धारित कर दी गई। जमींदार अपनी सेवाओं के लिए एक हिस्सा (1/11) अपने पास रखता था। यह व्यवस्था बंगाल, बिहार, उड़ीसा तथा बनारस के क्षेत्रों एवं कर्नाटक (19%) पर लागू थी।

Land Revenue Systems –

✍️ Ryotwari System – This system was started by Thomas Munro and Captain Reed and was the first to implement it on a pilot basis in Baramahal (1792) of Tamil Nadu. This system was implemented on about 51% of the land area of British India, including parts of Tamil Nadu, Madras, Bombay Presidency, parts of Assam and Coorg. Under this, the rent was fixed by considering the farmers as the owners of the land. In this, the rent was re-fixed every 20-30 years.

✍️ Mahalwari Settlement – Under this system, the village fraternity used to take the burden of paying the amount through its representatives (chieftains etc.). This system was applicable in Uttar Pradesh, Madhya Pradesh, Punjab i.e. on total 30% land of India.

✍️ Martin Bird is remembered as the originator of the land system in northern India.

✍️ Neel Darpan – This was a play written by Dinabandhu Mitra in 1860, in which the pathetic condition of the farmers cultivating indigo was described. The industry of making indigo dyes was started in India in the late 18th century.

✍️ Permanent Settlement – This system was implemented by Lord Cornwallis in 1793 on the suggestions of Sir John Shore. Under this a fixed amount of rent, which was payable by the zamindars, was fixed forever. The zamindar kept a share (1/11) with himself for his services. This system was applicable to the areas of Bengal, Bihar, Orissa and Banaras and Karnataka (19%).

UPSC Economics Quiz Notes PDF

21 Nov 2024 07:33

📖 Concept of National Income 📖
==============================

National income estimates are the most reliable macroeconomic indicators of an economy. Therefore, it is essential for students to be aware of National Income Concepts. Changes in national income measure the rate of growth of the economy.

Similarly, changes in the structure of national income of an economy reflect the changing significance of different sectors. In India,
national income, as also per capita income, have been continuously increasing. In more recent years, the rate of growth of national income has
accelerated. It indicates that the economy has been growing at a faster rate in recent years than in the past. Along with this, the structure of national income has also undergone a change, the tertiary sector has emerged as the dominant sector of the economy.

National income accounting comprises of four concepts of calculations- GDP, NDP, GNP, NNP.

1. Factor cost is the input cost that producer has to incur in the process of production. It includes cost of capital – loan inetrest, prices of raw materials, labour, power, rent, etc. Can be termed as Production cost.

2. Market cost is calculated after adding indirect taxes to the factor cost of the product. It is basically the cost at which the goods reach the market. Also termed as EX-FACTORY PRICE. In India we calculate income at factor cost because of non-uniform taxes.

➖National Income:The sum total of factor of incomes accruing to the residents of the country, both from their activities within and outside the economic territory is the national income of the country.

➖National income is calculated for a particular period, normally a financial year (In India, financial year means April 1 to March 31 of next year). Net factor income from abroad is added to the domestic product to get the value of National Income.

➖National Income = C + I + G + (X – M)
Where,C = Total consumption expenditure
I = Total investment expenditure
G = Total government expenditure ; X – M = Export – Import


🔹 Gross Domestic Product (GDP)
Gross domestic product is the value of all final goods and services produced within the boundary of a nation during one year. In India one year means from 1st April to 31st March of the next year.
GDP calculation includes income of foreigners in a Country but excludes income of those people who are living outside of that country.

🔹 Net Domestic Product (NDP)
NDP is calculated by deducting the depreciation of plant and Machinery from GDP.
NDP = Gross Domestic Product – Depreciation

🔹 Gross National Product (GNP)
GNP is the value of all final goods and services produced by the residents of a country in a financial year (i.e., 1st April to 31st March of the next year in India).
While Calculating GNP, income of foreigners in a country is excluded but income of people who are living outside of that country is included. It is the GDP of a country added with its income from abroad.
GNP = GDP + X – M
Where,X = income of the people of a country who are living outside of the Country

and M = income of the foreigners in a country

➖India’s GNP is always lower than its GDP.
➖This is the national income according to which the IMF ranks nations.
➖It allows for knowledge of factors in production behaviour and pattern of an economy’s dependence on outside world, nature of human resources internationally, position in world economics.
➖It indicates both qualitative as well as quantitative aspects of an economy in a more exhaustive fashion than GDP.

Intermediate products = one production unit purchasing from other for resale

Final product = all goods and services purchased for consumption and investment , and not for resale

Value added = Value of output – Intermediate cost

Gross value added = net value added + depreciation

Indirect tax = all taxes levied on production, finally paid by consumer of buyer Ex – sales tax, excise, customs

Subsidies = Financial help given by the government to the production units for selling the product at lower prices.

UPSC Economics Quiz Notes PDF

18 Nov 2024 08:08

PM Vishwakarma Yojana 2023

A scheme to empower India’s traditional artisans and craftsmen 🔨🪚

On India’s 77th Independence Day, PM Modi announced the launch of the Vishwakarma Yojana, a scheme to benefit individuals skilled in traditional craftsmanship, especially from the OBC community🇮🇳

Aim: To preserve and nurture the Guru-Shishya parampara or family-based practice of traditional skills by artisans and craftspeople working with their hands and tools

Key Features and Benefits:

- Introduction on Vishwakarma Diwas (September 17), aligning with Hindu mythology

- Coverage of 18 traditional trades including carpentry, boat making, blacksmithing, locksmithing, pottery, goldsmithing, and more

- Credit support of up to Rs 1 lakh in the first tranche and Rs 2 lakh in the second tranche, with a 5% concessional interest rate

- Skill enhancement opportunities, incentivized toolkits, and promotion of digital transactions

- Issuance of PM Vishwakarma certificate and ID card, enhancing professional identity

- Financial support of up to ₹15,000 for procuring modern tools, enhancing efficiency

- Focus on improving product quality and expanding global reach

- Urban and rural coverage, generating employment for around 15 lakh citizens annually

- Skill development programs with a stipend of Rs 500 per day during training

Alignment with Government Schemes:

- Comparable to successful schemes like Jan Dhan Yojana, PM SvaNidhi, and Ujjwala

- Empowers artisans, strengthens agri-tech sector, and supports women self-help groups

- Includes provision of 15,000 drones and necessary training

The Vishwakarma Yojana is a groundbreaking initiative that has the potential to uplift rural trades, foster cultural heritage, enhance social inclusion, and boost economic growth.

#gk #gs

UPSC Economics Quiz Notes PDF

15 Nov 2024 07:23

🚩 Difference between banks and NBFCs 🚩

📌 NBFCs business activities are akin to that of banks as they can lend & make investments

📌 NBFCs cannot accept demand deposits

📌 They cannot issue cheques as they do not form part of the payment & settlement system.

📌 Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs, unlike in case of banks

UPSC Economics Quiz Notes PDF

15 Nov 2024 07:23

⭐ Statutory Liquidity Ratio (SLR)

The Statutory Liquidity Ratio (SLR) serves as a monetary tool managed by the central bank, RBI, to regulate liquidity. It represents a portion of the Net Time and Demand Liabilities (NTDL) of commercial banks that they must keep in the form of approved assets like gold, cash, government securities, or other RBI-sanctioned securities. Banks often meet SLR requirements by investing in government securities to generate interest. In contrast to the Cash Reserve Ratio (CRR), each commercial bank retains its SLR in its vault. The Reserve Bank of India determines the specific SLR percentage, and it fluctuates with the prevailing economic conditions. As of June 2021, the RBI has set the SLR at 18%, mandating that all banks under its purview maintain 18% of their Net Time and Demand Liabilities in their possession.

❤️ Why is SLR fixed?
✔️To prevent the commercial banks from over-liquidating.
✔️To control the inflation, i.e., by increasing the SLR percentage, the inflation in the country can be brought under control.
✔️Similarly, during the recession, the SLR percentage can be decreased in order to increase the bank credit.
✔️To ensure the solvency of commercial banks.
✔️Since banks mostly prefer to invest in government securities, the necessity to maintain SLR has created opportunities for the government to sell their debt instruments and securities.


❤️ Which Institutions Maintain SLR?
✔️All the scheduled and non-scheduled commercial banks. However, it is a mandatory requirement for the Scheduled Commercial Banks (SCB), as they are the major players in the financial system.
✔️Urban Cooperative Banks (UCBs)
✔️State and Central Cooperative Banks

❤️ Components of SLR
⏺Liquid Assets: Easily convertible assets like gold, treasury bills, government-approved securities, government bonds, and cash reserves. It also includes securities under Market Stabilisation Schemes and Market Borrowing Programmes.
⏺Net Demand and Time Liabilities (NDTL):
➖ Demand Deposits: Liabilities payable on demand, including current deposits, demand drafts, balances in overdue fixed deposits, and the demand liabilities portion of savings bank deposits.
➖ Time Deposits: Repaid on maturity, requiring waiting until the lock-in tenure is over. Examples include fixed deposits, time liabilities portion of savings bank deposits, and staff security deposits.
⏺SLR Limit: Ranges from an upper limit of 40% to a lower limit of 23%.


❤️ Working of Statutory Liquidity Ratio
✔️Every bank is required to hold a specific portion of their Net Demand and Time Liabilities (NDTL) in the form of cash, gold, or other liquid assets by the day's end.
✔️The ratio of these liquid assets to the demand and time liabilities is known as the Statutory Liquidity Ratio (SLR).
✔️The Reserve Bank of India (RBI) has the authority to increase this ratio, with an upper limit of 40%.
✔️An increase in the SLR restricts the bank's ability to inject money into the economy.
✔️RBI manages the flow of money and price stability to operate the Indian economy, with SLR being one of its monetary policies.
✔️SLR, along with other tools, plays a crucial role in ensuring the solvency of banks and maintaining cash flow in the economy.