GS-3, Indian Economy, Uncategorized

Anatomy of revenue deficit

Context: India’s ever growing fiscal deficit and its efforts at fiscal consolidation Fiscal Deficit– when a govt’s total expenditure exceeds its total revenue Fiscal Consolidation – policy aimed at reducing govt deficits and debt accumulation Causes: The “golden rule” of economists suggests one must borrow to invest not to consume. However, India has been borrowing to… Continue reading Anatomy of revenue deficit

Agriculture, GS-3, Uncategorized

Dismal state of agriculture and rural economy

What has happened? Rate of growth in agriculture and allied activities is down from 4% per annum in the 11th plan period to 1.7% per annum in the first three years of 12th Over 3,00,000 lakh farmers have committed suicide in the last decade. Over 2000 such cases have been reported last year in Maharastra… Continue reading Dismal state of agriculture and rural economy

Big Picture, GS-3, Uncategorized

Raghuram Rajan’s red flag on GDP

RBI governor Raghuram Rajan recently said that there are problems with the way we count GDP and that is why we need to be careful while talking about the real growth. Rajan’s remarks indicate the continuing suspicion among key policymakers about the veracity of the new GDP estimates that were launched in February 2015. The… Continue reading Raghuram Rajan’s red flag on GDP

Editorials, Uncategorized

Protecting India’s trade Interests

Article Link Twelve Pacific rim countries, in October 2015, agreed on the Trans-Pacific Partnership (TPP), the largest regional trade agreement ever, which covers countries that account for 40% of the global economy. The aim of TPP is to ease the flow of goods, services and investments among them, and to strengthen the rules on labour… Continue reading Protecting India’s trade Interests