Economy

The tax-to-GDP ratio is the ratio of tax collected compared to national gross domestic product (GDP). In a simpler language, it would be Tax contribution towards GDP.Some countries aim to increase the tax-to-GDP ratio by a certain percentage to address deficiencies in their budgets. In states where tax revenue has gone up significantly in comparison … Read more

India’s export performance is poor. Over the years, since Independence, India’s share of the world export trade has been very low. The share of export of other developing countries of Asia, namely China, South Korea, Malaysia, Singapore and Thailand is much more than of India. There are several reasons for poor performance of India’s export … Read more

On the occasion of world food day (October 16), three districts in India have initiated India’s ‘Zero Hunger’ programme through interventions in farm sector. Those districts are Gorakhpur in Uttar Pradesh, Koraput in Odisha and Thane in Maharashtra. It will be initiated by the Indian Council of Agricultural Research (ICAR) in association with the Indian … Read more

Repo rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) lends money to commercial banks in the event of any shortfall of funds. It is used for controlling inflation of a country. High Repo rate: Taking loan from RBI will be costlier. Effect of … Read more

Headline inflation is a measure of the total inflation within an economy, including commodities  such as food and energy prices (e.g., oil and gas), which tend to be much more volatile and prone to inflationary spikes .On the other hand, “core inflation ” (also non-food-manufacturing or underlying inflation) is calculated from a price index minus the … Read more

The primary market is concerned with the floatation of new issues of shares or bonds. The firmsfloating new issues to raise funds may be new companies or existing companies planning expansions.The primary market is where securities are created. It’s in this market that firms sell (float) newstocks and bonds to the public for the first … Read more

  MONETARY POLICY TOOL:   There are several direct and indirect instruments that are used for implementing monetary policy. Repo Rate: The (fixed) interest rate at which the Reserve Bank provides overnight liquidity to banks against the collateral of government and other approved securities under the liquidity adjustment facility (LAF). Reverse Repo Rate: The (fixed) … Read more

Pradhan Mantri Ujjwala Yojana (PMUY) aims to safeguard the health of women & children by providing them with a clean cooking fuel – LPG, so that they don’t have to compromise their health in smoky kitchens or wander in unsafe areas collecting firewood. Pradhan Mantri Ujjwala Yojana was launched by Hon’ble Prime Minister Shri Narendra … Read more

The Monetary Policy Committee (MPC) constituted by the Central Government under Section 45ZB determines the policy interest rate required to achieve the inflation target. The Reserve Bank of India Act, 1934 (RBI Act) has been amended by the Finance Act, 2016,  to provide for a statutory and institutionalised framework for a Monetary Policy Committee, for … Read more

Digital Advancement of Rural Post Office for A New India (DARPAN) is aimed at realizing financial inclusion of un-banked rural population. The Project shall increase the rural reach of the Department of Posts and enable Branch Post Offices to increase traffic of all financial remittances, savings accounts, Rural Postal Life Insurance, and Cash Certificates etc.  … Read more