March 25, 2023

Indian Economy

General Studies Paper 3 Context – Japan PM is visiting India for the second time. What is the importance of the bilateral relationship between India and Japan? Close coordination between India and Japan as leading democracies of Asia are the cornerstones of peace and prosperity in the region. The bilateral relationship between our two countries is multi-layered. It is based on shared values and principles of freedom, democracy, human rights and the rule of law. Both have shared vision of Free and Open Indo-pacific. Today, the international community is at a historic turning point.Its impact, such as the food crisis and soaring fertiliser prices, are also....Read More

General Studies Paper 3 Context: Banks have been traditionally known for accepting deposits and giving loans. However, the definition of a bank has expanded beyond just a physical building. Today, the banking system has evolved into a secure and robust medium that offers innovative deposit schemes, secure money storage, and quick loan transactions. Banks are no longer just a conglomerate of traditional banks but have also incorporated new forms of banks such as payment banks, small finance banks, and even the general banking system of post offices and non-banking financial companies. Banking provisions in the budget Discussions about the banking provisions in budgets have broadened to include topics like tax concessions, capital provisions, and the role of these new forms of banks in the financial system. The General Budget 2023-24 for the banking sector can be analysed by dividing it into five parts: New savings schemes and changes in existing savings schemes Sources of Government Borrowing Campaign to promote digital transactions Loan for a specific sector Reforms in banking governance Banking provisions in the budget: Deposit Schemes The Budget 2023-24 includes measures to promote savings among women and secure the future of the elderly through savings. Mahila Samman Savings Certificate: It is a new small savings scheme, which will be available until March 2025. This scheme will offer a deposit facility of up to Rs 2 lakh for women or girls for two years at a fixed interest rate of 7.5 percent with a partial withdrawal option. This is....Read More

General Studies Paper 3 Context:  India has become the world’s largest producer and consumer of sugar. About Sugarcane is a tall, perennial grass used to make sugar, ethanol and paper. Sugar industry impacts the livelihood of about50 million sugarcane farmers and around 5 lakh workers directly employed in sugar mills. Crop Conditions:  Temperature:Between 21-27°C with hot and humid climate. Rainfall: Around 75-100 cm. Soil Type: Deep rich loamy soil.It can be grown on all varieties of soils ranging from sandy loam to clay loam given these soils should be well drained. Top Sugarcane Producing States: Uttar Pradesh, Maharashtra, Karnataka, Tamil Nadu, Bihar. Distribution Of Industry : ....Read More

General Studies Paper 2 Context: The Department of Commerce, Government of India, has implemented the Trade Infrastructure for Export Scheme (TIES)  to facilitate the growth of exports by creating appropriate infrastructure. What are the Major Government Initiatives to Promote Export Growth? TIES Scheme: The TIES scheme provides grants-in-aid to central/state government-owned agencies or their joint ventures for infrastructure projects with significant export linkages. The infrastructure includes Border Haats, Land customs stations, quality testing and certification labs, cold chains, trade promotion centres, export warehousing and packaging, Special Economic Zones, and ports/airports cargo terminuses. PM Gati Shakti National Master Plan (NMP): The PM Gati Shakti NMP is a....Read More

General Studies Paper 3 Context: Recently, the California-based Silicon Valley Bank (SVB), a cornerstone of the US technology and startup industries, has failed. This marks the biggest bank failure since the 2008 financial crisis. The Silicon Valley Bank crisis has resulted in the subsequent seizure of SVB assets by regulators has generated a global wave of risk aversion, particularly among start-ups, including Indian startups. About the Silicon Valley Bank Crisis After a period of record low-interest rates during the pandemic, central banks around the world, led by the US Federal Reserve, started raising key rates aggressively to tackle inflation. This....Read More

General Studies Paper 3 Context: In 2016, India’s Prime Minister shared his dream of doubling farmers’ incomes in the year when India completes 75 years of Independence and enters Amrit Kaal. Now that we have entered Amrit Kaal, it is a good time to revisit that dream and see if it has been fulfilled, and if not, how best it can be done. Unless the incomes of farmers go up, we cannot have sustained high growth of overall This is because the manufacturing sector starts facing a demand constraint soon after meeting the demand of well-off urban consumers. Agriculture engages the largest share....Read More

General Studies Paper 3 Context: According to the latest Findex Report – 2021 by the World Bank, around one-third of adults still lack access to formal financial services. About financial inclusion: Financial inclusion means that individuals and businesses have access to useful and affordable financial products and services that meet their needs– transactions, payments, savings, credit, and insurance – delivered in a responsible and sustainable way. Importance of financial inclusion: Financial inclusion has been identified as an enabler for 7 of the 17 Sustainable Development Goals.   The G20 committed to advancing financial inclusion worldwide and reaffirmed its commitment to implement the G20 High-Level Principles for Digital Financial Inclusion. ....Read More

General Studies Paper 3 Context: Recently, the return to the Old Pension System has been proposed by sections. What are some facts about OPS and NPS? OPS is a “pay-as-you-go” scheme. The contributions of current government employees are used to fund the pension liabilities of past government employees. In OPS, the employees are guaranteed an amount equivalent to 50% of their last salary in perpetuity. NPS was established by the NDA government in 2003. It is a defined contribution scheme. The employees invest a certain fraction of their salary that is complemented by a contribution from the government. What are the arguments against....Read More

General Studies Paper 3 Context: India’s robust export performance has made a critical contribution to its economic growth in recent times. Despite global economic woes, India’s overall exports grew at 17.33% to $641 billion during April-January 2022-23 compared to $547 billion during the same period last year.   How has India improved its export performance in recent years? The country’s exports performance was the result of well-crafted trade policy interventions, their efficacious implementation and a host of other initiatives. Export facilitation– It ensured the effective conceptualisation and implementation of export promotion schemes. These schemes are Market Access Initiative (MAI), Remission of Duties and Tax on....Read More

General Studies Paper 3 Context: Recently, India ranks 42ndamong 55 leading global economies on the International Intellectual Property (IP) Index 2023 released by the S. Chambers of Commerce, according to which India is ripe to become a leader for emerging markets seeking to transform their economy through IP-driven innovation. US topped the International IP Index followed by United Kingdom and France. What is International IP Index? The Index evaluates the IP framework in each economy across 50 unique indicators which industry believes represent economies with the most effective IP systems. The indicators create a snapshot of an economy overall IP ecosystem and span nine categories....Read More

© 2023 Civilstap Himachal Design & Development