Economy

The fund was established with to mitigate volatility in the prices of agriculture produce. It was established with a corpus of 500 Crore which aims at price stability.  The fund will be utilised for  following purpose:   Direct purchase from farmers at farm gate Maintaining a strategic buffer stock that would discouraged hoarding and unscrupulous … Read more DMPQ: Price stabilisation fund. ( schemes)

Bank rate:  Bank rate is the rate at which RBI lends long term to commercial banks. Bank rate is a tool which RBI uses for managing money supply.   Merchant discount rate: It is a charge to a merchant by a bank for accepting payment from their customers in credit and debit cards every time … Read more DMPQ: Explain the following terms: ( Econmomy) a) Bank rate b) Merchant discount rate c) Open Market operations d) Repo rate e) MSF

Fiscal consolidation means providing ways and means to strengthen the government finance and reduction in both deficits and accumulation of debt stock. It is critical as it provide macroeconomic stability.     It can be achieve in simple terms by increasing the revenue and reducing the expenditure. The following are the ways through which FD … Read more DMPQ: What is fiscal consolidation? Provide the ways to achieve it? ( Economy)

The 1991 is a hallmark year as it launched Indian into a new era of economic freedom. It majorly changed our economy from controlled to a free economy. One of the ingredient was tax reforms. The major changes one can observed in the tax system are as follows: Widening of tax bases both by addition … Read more DMPQ: Post 1991 reform era has seen a major changes in the tax system. Discuss the changes( economics)

It was in the wake of the Liberalisation in 1991 that it cecame imperative for the government to reform the financial sector in order to reinvigorate the economy. GOI set up committee under the guidelines of  Narsimha. Recommendation: It advised the RBI not to use CRR as a principal investment of monetary and credit control … Read more DMPQ: Post 1991 Indian economy saw a sudden change in outlook. To bring reforms in the financial sector GOI set up Narsimha committee. Discuss its recommendation.

In India there is large inequality in terms of wealth. To set off this bridge Govt resorts to  subsidies for resource redistribution and to achieve social welfare of the masses. Over the periods of time different political class have used subsidies to garner votes. There are various advantages of subsidies:   Empowerment and security to … Read more DMPQ: Subsidies are always been a major tool for the inclusivity. Comment on its efficacy. (Economy)

The fourth industrial revolution is a technological revolution that will fundamentally alter the way we live, work and relate to one another. The 4threvolution will be characterized by the advent of cyber-physical systems which, while being reliant on the technologies and infrastructure of the third industrial revolution, represent entirely new ways in which technology becomes … Read more DMPQ: What is Industrial revolution 4.0? Major components of IR 4.0? What are the advantages for India?

The fiscal deficit is the difference between the government’s total expenditure and its total receipts excluding borrowing. Current account deficit is when country’s export of goods, services and transfers are lesser than its imports of goods, services and transfers.   Impacts of Fiscal deficit: If unchecked it will lead to crowding out effect, manipulation of … Read more DMPQ: Why twin deficit is a concern for any economy? Outline the methods adopted by Government of India to deal with twin deficit.

Due to globalization, the economies of world are more inter-connected than ever. With increased growth of economic activities around the world, it has impacted India’s GDP in several ways.   How global economic environment affects GDP of India: Global crisis will severely affect certain sector, which will then have spill over effects there by affecting … Read more DMPQ: Although India is one of the fastest growing economy the global environment is not conducive enough. Explain the interdependence of global economy with Indian economy.

Dear below is the list of questions furnished in Economy section of DMPQ