Table of Content: Indian Economy (Srirams IAS)

www.XamTalk.in

ECONOMICS: AN INTRODUCTION Definition economic growth measuring growth national income accounting market price and factor cost relationship between market price and factor cost factor cost transfer payments estimating GDP/GNP three approaches GDP and GNP GNP AND NNP Base year GDP deflator the need to measure economic growth problems in calculating NI black money non-monetization household services social services environmental cost business cycles economic growth -its benefits and side effects reliability of GDP as a measure of progress alternatives to GDP HDI HPI GPI GNH natural resources accounting green GDP GREEN GDP India and green accounting Sarkozy's for an alternative metric more recent developments moral economy Laissez-faire social market market economy and poverty market and government failure Page 1 of 22

1 4 5 5

8 9 10 11 12 13

14 15 16 17

18

19

20 21

Table of Content: Indian Economy (Srirams IAS)

www.XamTalk.in

structural composition of the economy vital statistics growth and the value of the output domestic product SOCIO ECONOMIC PLANNING History of economic planning in India: the beginnings planning goals history planning FYP 1-12 PLANNING commission relevance of planning changing role planning commission from planning commission to systems reforms commission national development council mixed economy financial resources for the FYP A note on gross budgetary support achievements of planning the failures of planning are equally clear indicative planning rolling plan financial planning physical planning Nehru-Mahalanobis model of economic growth Rao-Man Mohan singh Model of growth economic reforms misgiving about economic reforms second generation reforms recession and depression recession depression great recession 2008 HUNGaMA report 2012 excerpts from PM's speech on Child Nutrition FISCAL SYSTEM (FISCAL POLICY) DEFINITIONS definition of deficits revenue deficit Page 2 of 22

25 26

28 29 29-35 35 38 39

41 42

43 44

45 46 47 48 49

50 52 54 55

Table of Content: Indian Economy (Srirams IAS)

www.XamTalk.in 56

fiscal deficit budget deficit monetized deficit primary deficit deficit financing Ways and Means Advances (WMA) Ad-hoc treasury bills and WMA how much of fiscal deficit is right? reducing FD global crisis and the FD in India the fiscal stimulus packages the second stimulus package the third stimulus package financing the FD FRBM Act 2003 Fiscal Consolidation 13th finance commission and Fiscal consolidation plan and non-plan expenditure classification and its unsustainability Rangarajan panel on public expenditure 2012 public debt external debt internal debt zero base budgeting (ZBB) FRINGE benefit tax (FBT) perquisites fiscal drag fiscal neutrality crowding out pump-priming small savings public goods, merit goods and demerit goods giffen goods MONETARY AND CREDIT POLICY definitions monetary policy bank rate ready forward contracts (repo) marginal standing facility (MSF) Page 3 of 22

58

60 61

62 63 64 65 66 67 68

69

70

71 72 73

Table of Content: Indian Economy (Srirams IAS)

www.XamTalk.in

liquidity adjustment facility (LAF) reserve requirements statutory liquidity ratio (SLR) CRR open market operations (OMO) of RBI selective credit controls moral suasion the growing importance of monetary policy market stabilization bonds scheme (MSS) developing countries and monetary policy interest rates and their significance deregulation of interest rates floating and flexible rates of interest inflation targeting RBI RBI functions RBI as agent and adviser of the government RBI as national clearing house RBI act amended 2006 autonomy for RBI money supply monetary and fiscal policy quantitative easing credit crunch / liquidity crunch / liquidity crisis monetary expansion / easing / stimulus TAXATION IN INDIA: CONCEPTS AND POLICIES taxation system in India measures for broadening tax base, strengthening compliance and simplification tax-GDP ratio tax collections 2012-13 direct and indirect taxes in India: the changing scenario cost of direct tax collection income-tax slabs and rates service tax service tax and Indian constitution goods and services tax (GST) need for GST GST: questions and answers Page 4 of 22

74

75

76 77 78 79

80 81 83 84 85 86

88 90 90 91

92 93 94 95 96

Table of Content: Indian Economy (Srirams IAS)

www.XamTalk.in

how will the the GST work? what's the rationale for the GST? what are the proposed GST rates? are there exemptions proposed? will the states lose out? what happens next? what is the revenue impact? what about the economic impact? constitutional amendment for GST constitution (115th Amendment) Bill, 2011 (GST bill) definition of goods and services - article 366 article 249 article 250 GST council - article 279A membership of the GST council functions of the GST council GST dispute settlement authority - article 279B fiscal autonomy issues contentious federal issues on GST GST: challenges for implementation challenges to address GST and fiscal federalism technology advisory group for unique projects (TAGUP) GST and tax efficiency tax reforms in India tax expenditure tax havens and G20 tax-incidence tax burden tax base tax rate tax shelters difference between tax avoidance and tax evasion hidden taxes proportional, progressive and regressive tax specific duty ad-valorem Page 5 of 22

97

98

99

100

101

102 103 104

105

Table of Content: Indian Economy (Srirams IAS)

www.XamTalk.in

compound duty excise duty customs duty negative income tax pigovian tax octroi tax buoyancy tax elasticity tax stability Tobin tax or financial transaction tax (FTT) or Robin Hood tax India and FTT minimum alternative tax (MAT) presumptive tax laffer curve inverted duty structure dividend and distribution tax withholding tax capital gains tax wealth tax securities transaction tax (STT) transfer pricing rupee is raised and spent like this cess direct tax code (DTC) DTC and General Anti Avoidance Rules (GAAR) DTC as it is found in union budget 2012 changes in tax slabs age for senior citizens wealth tax GST and CST TAXATION GAAR FAQ on GAAR what is GAAR? How does it operate? what were the key concerns? how did the finance minister amend it during the budget session 2012? why was Parthasarathy Shome panel set up? Page 6 of 22

106

107 108 109 110

111 112 113

114

115

116

Table of Content: Indian Economy (Srirams IAS)

www.XamTalk.in 117

advance ruling double taxation avoidance agreements (DTAA) Limitations-of-Benefits and DTAAs Vodafone verdict: the gist holding company indirect transfer of Indian asset treaty shopping and round tripping distinction between tax planning tax avoidance and evasion INFLATION: CONCEPTS, FACTS AND POLICY creeping inflation trotting inflation runaway inflation measures of inflation GDP deflator cost of living index producer price index (PPI) wholesale price index (WPI) consumer price index (CPI) types of inflation based on causes demand-pull inflation cost-push inflation structural inflation speculation cartelization hoarding high inflation hurts ! small amount of inflation can be good to control inflation indices of inflation WPI limitations on WPI WPI: new reporting method comparative statement of commodities and price quotations CPI difference between WPI and CPI divergence between WPI and CPI new series of CPI for urban areas new series of CPI for rural areas Page 7 of 22

118 119 120

122

123

124

124 125

126 127 128

130 131

Table of Content: Indian Economy (Srirams IAS)

www.XamTalk.in

national CPI weighting diagrams release of indices revision of indices which index should one use? services and price index producer price index (PPI) Core' or 'Underlying Inflation' inflation targeting ideal level of inflation collection of statistics Act, 2008 Phillips curve deflation remedy India and deflation growth-inflation trade off inflation in India reasons for the current inflation government steps to control inflation fiscal measures administrative measures monetary measures open inflation repressed inflation inflation tax BANKING SYSTEM IN INDIA public sector banks development banks bank nationalization commercial banks cooperative banks prakash bakshi committee commercial banks and their weakness by 1991 the reforms to set the above problems right were Narasimham committee Non-Performing Assets (NPA) SARFAESI Act 2002 asset reconstruction company prudential norms Page 8 of 22

132 133 134

135

136 137

138 139

140 141

142 143 144 146

147 149

Table of Content: Indian Economy (Srirams IAS)

www.XamTalk.in 150 151

Basel norms Basel III credit risk market risk operational risk capital - tier 1 and tier 2 Basel III Norms: RBI guidelines bank for international settlements (BIS) shadow banks universal banking in India financial inclusion bank consolidation financial stability RBI and financial stability traditional role post-Lehman banking stability index toxicity index etc. : RBI prime lending rate (PLR) basis point weak bank-Narasimham committee-II narrow banking bank run subordinated debt core banking world bank recapitalization bank stress tests financial sector reforms how Indian banks survived the global crisis? financial inclusion important additional data for financial inclusion RBI as a regulator basics of base rate what is base rate? how is the base rate calculated? when did the base rate come into force? how is it different from bank PLR? how often can a bank change its BR? what are its benefits? what are the exceptions? Page 9 of 22

152 153

154 155 156 157

158 159

160

162

163

164

Table of Content: Indian Economy (Srirams IAS)

www.XamTalk.in

securities and insurance laws (amendment) and validation Act, 2010 Swabhimaan 2011 priority sector: Nair committee recommendations RBI acted on these recommendations savings bank rate deregulation PUBLIC SECTOR: EVOLUTION, REFORMS AND PERFORMANCE the objectives of the PSUs Public sector and economic reforms PSEs 2012 performance of CPSEs disinvestment and privatization definitions advantages of disinvestment / privatization criticism of divestment divestment policy valuation of shares government policy on disinvestment / privatization strategic and Non-strategic classification disinvestment 2012 buyback and cross holdings cross holdings exchange traded fund (ETF) board for reconstruction of PSE (BRPSE) navaratna and miniratna companies navaratnas miniratna companies category I Miniratna category II Miniratna maharatna ad-hoc group of experts (AGE) report memorandum of understanding (MOU) some recent initiatives in restructuring the PSEs autonomy for PSEs professionalization of PSU Boards problems and prospects of PSU restructuring tenure of the CEO and board of directors Page 10 of 22 167 168

170 171 172 173 174 175 176 177

178 179

180 182

184 185

186 187

Table of Content: Indian Economy (Srirams IAS)

www.XamTalk.in

multiple audit role of administrative ministry noncommercial activities national investment fund (NIF) objectives of NIF Use of disinvestment proceeds purchase preference policy disinvestment trough public offers - highlights

188

189 191

MONEY MARKET AND CAPITAL MARKET IN INDIA: INSTRUMENTS AND DETAILS (PART 1) call money 192 treasury bills interbank term money 193 certificates of deposit inter corporate deposits market commercial paper ready forward contracts (repo) 194 commercial bills discount and finance house of India (DFHI) MONEY MARKET AND CAPITAL MARKET IN INDIA: INSTRUMENTS AND DETAILS (PART 2) capital market 195 G-secs (Gilt edged securities) dated securities 196 floating rate bonds capital indexed bonds capital index bond (CIB), 2002 2012 reforms in G-secs DFIs or development banks merchant banks / investment banks 197 mutual funds SEBI reforms august, 2012 Hedge fund venture capital 198 angel investors qualified institutional placement (QIP) 198 Non -banking financial company (NBFC) NBFC factor 199 external commercial borrowings (ECB) euro issues 201 Page 11 of 22

Table of Content: Indian Economy (Srirams IAS)

www.XamTalk.in

private equity stock market credit default swap (CDS) what is CDS? what is the economic benefit of CDS? what are the key concerns? what role did CDS play in the financial meltdown? how is RBI safeguarding against CDS ills? corporate debt FCCBs FIIs investment in debt take-out financing infrastructure debt funds (IDFs) STOCK MARKET IN INDIA importance of stock exchanges stock exchanges in India Bombay stock exchanges (BSE) Sensex demutualization national stock exchange of India (NSE) the inter-connected stock exchange of India limited (ISE) indonext over the counter exchange of India (OTCEI) global rankings of BSE and NSE BSE, SME and NSE emerge SEBI SEBI and the reforms SEBI makes new rules, 2009 capital market reforms primary market secondary market types of shares derivatives futures buyback of shares rolling settlement commodity exchanges agricultural products precious metals Page 12 of 22

202

203

204 205 206 207

208

209 210

211

212

213 214

Table of Content: Indian Economy (Srirams IAS)

www.XamTalk.in

base metals ferrous metals energy products polymers carbon credits Forward market commission (FMC) mutual funds open-ended funds closed-ended funds FIIs QFIs financial action task force (FATF) portfolio investment scheme (PIS) international organization of securities commissions (IOSCO) FATF global depository receipts (GDR) American depository receipts (ADR) participatory notes Rajiv Gandhi equity savings scheme hedge fund clearing house equity share bond debenture bear bull bear market gilt blue chip midcap company small investor primary dealers market depth negotiated dealing system (NDS) short selling market capitalization price / earnings (P/E) ratio earnings per share (EPS) insider trading Page 13 of 22

215

216

217

218 219 220

221

222

223

224

Table of Content: Indian Economy (Srirams IAS)

www.XamTalk.in

depository national securities depository limited (NSDL) national association of securities dealers automated quotation system (NASDAQ) Dow Jones index important indices of the world ethical investing Ponzi scheme or pyramid scheme decoupling clause 49 Indian depository receipts (IDR) shariah index BRICS cooperation among exchanges power exchanges SGX Nifty Dollex INDIAN ECONOMY: BALANCE OF PAYMENTS BOP in 1990 surge in capital flows BOP and invisibles remittances convertibility of rupee capital account convertibility (CAC) benefits of fuller convertibility presented differently are: tarapore committee on CAC CAC relaxations so far tarapore II on fuller rupee convertibility, 2006 current account deficit (CAD) CAD 2012 FAQ on CAD from ET what is CAD? what is Indias current account situation? what are the implications of a large current account GAP? what should the government do? currency mechanism why did the rupee slide to historic lows below 57? is the rupee likely to recover? Page 14 of 22

225 226

227 228

229 230 231 232 233 234 235

236 237

238 239

Table of Content: Indian Economy (Srirams IAS)

www.XamTalk.in

what is the real value of the rupee? how much reserves are enough / necessary? why accumulate forex? sterilization mechanism and MSBs rupee devaluation / depreciation and export performance and promotion the J curve 2012 depreciation rupee appreciation: why and what it does? forex reserves and infrastructure sovereign wealth fund BRETTON WOODS INSTITUTIONS AND OTHERS international monetary fund (IMF) IMF objectives what the IMF does? special drawing rights (SDRs) IMF borrowing arrangements general arrangements to borrow (GAB) new arrangements to borrow (NAB) India and NAB how the IMF lends? IMF facilities IMF and the global financial crisis IMF and BRICS IMF and conditionalities reforming the IMF India and IMF the importance of IMF in the post-Lehman period quotas, GAB and NAB the G20 and the IMF SDRs as an alternative to the US dollar as global reserve currency WORLD BANK GROUP AND WORLD BANK the international bank for reconstruction and development (IBRD) the International development Association (IDA) IDA 16 IFC (international finance corporation) multilateral investment guarantee agency (MIGA) Page 15 of 22

240 241

242 243

244 245 246

247 248 250 251

252 253

254

256 257

258

Table of Content: Indian Economy (Srirams IAS)

www.XamTalk.in

international center for settlement of investment disputes (ICSID) India and the world bank Indias enhanced voice IMF vs. WB financial action task force (FATF) Asian clearing union India-iron oil payments ADB financial stability board G20 mandate origins membership achievements chair meetings and activities interaction with other international organizations how does the G20 differ from the G7? miscellany summits organization for economic cooperation and development (OECD) European central bank (ECB) international financial stability architecture for the 21st century Bretton woods 2.0 WTO AND GATT GATT and WTO structure of WTO dispute settlement WTO members and observers chronology WTO agreements agreement on agriculture (AoA) domestic support export subsidies market access TRIPS

259 260 261 262

263 264

265 266

267

268

271 272 273

274

275

Page 16 of 22

Table of Content: Indian Economy (Srirams IAS)

www.XamTalk.in

agreement on Trade-related aspects of intellectual property rights (TRIPS) TRIPS and patents product and process patents geographical indications registration details of GI application patents amendment act WTO package anti-counterfeiting trade agreement (ACTA) European union (EU) parliament rejects ACTA public health concerns: TRIPS agreements and safeguards Tamiflu glivec naxaver sui generis system GATS (general agreement on trade in services) trade negotiations Doha round developing countries' demands and concerns developed countries demands most favored nation (MFN) what are the benefits? regional trading arrangement (RTA) and multilateralism under WTO regionalism and multilateralism some regional trading arrangements groups (G4 etc.) WTO words G33 and special products (SP) and special safeguard mechanism (SSM) WTO and safeguard duty SP and SSM SP SSM Safeguard duty safeguard duty in India special and differential treatment what has India gained from the WTO? Page 17 of 22

276

278 280 281

282 283 284 285 287

289

290

291 292 293 294 296 297 298 299 300

Table of Content: Indian Economy (Srirams IAS)

www.XamTalk.in

WTO: boon or bane? Technical barriers to trade (TBT) and Sanitary and Phytosanitary measures (SPS) Singapore issues Non-agricultural market access (NAMA) Swiss formula and India H1B visa fee hike and WTO-Compatibility banana wars US cotton subsidies protectionism arguments against protectionism current world trends Bhagvati and protectionism the tragedy of the commons beggar thy neighbor trade facilitation fiscal safety and security environment and health consumer protection trade policy eighth ministerial 301 302 303 304 305 307 308

309

310

WORLD INTELLECTUAL PROPERTY ORGANIZATION (WIPO) FOREIGN TRADE Indias Exim policy: its evolution and content 312 exports 2010-11 313 Indias merchandise trade performance during 2011-12 highlights exports imports trade deficit global trade south-south trade six fold increase in services sector exports export of engineering goods small and medium enterprise and engineering exports quantitative restrictions (QR) non-tariff barriers 314 315 316 317

318

320 321

Page 18 of 22

Table of Content: Indian Economy (Srirams IAS)

www.XamTalk.in

salient points of strategy for doubling exports in next three years (2011-12 to 2013-14) product strategy market strategy non-traditional export markets focus market scheme (FMS) market linked focus product scheme (MLFPS) board of trade (BOT) interstate trade council export promotion councils commodity boards agricultural and processed food products export development authority marine products export development authority GS1 - (Global Standards) India agri-export zones (AEZ) 100% Export oriented units (EOU) regional trade arrangements and trade (RTA) Indias trade reforms since 1991 exports and employment market access initiative (MAI) marketing development assistance (MDA) towns of export excellence (TEE) export and trading houses vishesh krishi and gram udyog yojana (VKGUY) focus market scheme (FMS) hitech products export promotion scheme (HPEPS) states and export efforts export-import bank annual trade policy review 2010 commerce minister Shri Anand Sharma's speech with details of the annual supplement (June 2012) to five year FTP (2009-14) E-biz forfaiting mercusor deemed exports Page 19 of 22

323

324

325 328 329 330 331

332 332

333

334 339

Table of Content: Indian Economy (Srirams IAS)

www.XamTalk.in 340

free import of inputs advance license duty entitlement pass book (DEPB) Replenishment license duty free replenishment certificate scheme (DFRC) deemed exports free on board (FOB) net foreign exchange (NFE) ad valorem compound duty countervailing duty exchange earner foreign currency account scheme (EEFC) transaction costs barriers to entry Indian trade classification (harmonized system) - ITC (HS) anti-dumping duty safeguard duty target plus export credit guarantee corporation of India ltd. (ECGC) electronic commerce (EC) / electronic data interchange (EDI) for trade EDI Trade finance trade finance in India EEFCA AGRICULTURE food deficit to food surplus accounting for success in agriculture food grain production 2012 crisis and challenge in agriculture causes for low agricultural growth since mid1990s remedies 11th plan and agriculture: some areas accelerating agricultural growth concerns 11th plan strategy 12th FYP and agriculture Page 20 of 22

341

342

343 345 346 348

349

350

351

Table of Content: Indian Economy (Srirams IAS)

www.XamTalk.in 353 354 355 356

capital formation in Indian agriculture bharat nirman stainable agriculture: water management and irrigation warabandi soil health soil reclamation extension services agri-clinic and agri business center small farmers' agribusiness consortium (SFAC) rainfed agriculture national rainfed area authority drought contingency plan 2012 a new calamity National disaster response fund (NDRF) and State disaster response fund (SDRF) UN and drought World meteorological organization (WMO) rural credit NABARD rural credit institutions co-operative credit structure regional rural banks (RRB) local area banks priority sector NBC denotes net bank credit RIDF NABARD and SHGs microfinance types of micro credit providers in India malegam committee national vegetable initiative national mission on food processing (NMFP) kisan credit cards (KCC) agricultural price policy in India commission for agricultural costs and prices (CACP) national food security mission food subsidy Page 21 of 22

357 358

359 360 362

363

364 365

366 367

368 369 370 371

372 373

Table of Content: Indian Economy (Srirams IAS)

www.XamTalk.in

rashtriya krishi vikas yojana (RKVY) second green revolution horticulture national horticulture mission (NHM) vishesh krishi upaj yojana AGRINDIA livestock livestock biodiversity role of livestock animal production practices milk national dairy plan modified crop insurance marketing reforms nutrient based fertilizer subsidy pulses development extending green revolution to eastern India India celebrates declaration of global freedom from rinderpest productivity of foodgrains UP from 1756 kg to 1921 kg per hectare in last 4 years agrinet scheme to provide IT enabled services to farmers kisan call center precision farming or precision agriculture precision farming or precision agriculture using GIS to maximize profits

374 376 377

379 380

381 382 384 385 387 389

390

Page 22 of 22