Make in India campaign was launched by the Prime Minister of India on September 25, 2014. Objectives To attract foreign investment for new industrialisation and develop the already existing industry base in India to surpass that of China. Target of an increase in manufacturing sector growth to 12-14% per annum over the medium term. To increase the share of manufacturing sector in the… Continue reading Five Years of Make in India
Category: Indian Economy
Privatisation of Indian Railways
After privatisation of the Tejas Express (to be run by the IRCTC), the government is currently in the process of forming a task force to draw a blueprint for handing over operations of as many as 150 trains and a total of 50 railway stations to private operators. The Bibek Debroy committee recommended that the… Continue reading Privatisation of Indian Railways
Consumption Conundrum of Indian Economy
According to NITI Aayog, the current economic slowdown is the worst economic slowdown that India has faced since independence. Moreover, the slowdown has been witnessed in consumption in the Indian economy. From many decades, consumption has been the major driver of growth in the Indian economy. Income stagnation has been the cause of consumption slowdown. Reasons for Income Stagnation Unemployment Crisis… Continue reading Consumption Conundrum of Indian Economy
Punjab and Maharashtra Cooperative Bank Ltd (PMC Bank)
Context The Reserve Bank of India has placed Mumbai-based Punjab and Maharashtra Cooperative Bank (PMC Bank) a Leading Cooperative Bank headquartered in Mumbai under directions and has slapped restrictions on its operations RBI imposed curbs on the activities of PMC for a period of six months. Background Founded in 1984, PMC Bank was the youngest bank to… Continue reading Punjab and Maharashtra Cooperative Bank Ltd (PMC Bank)
The attack on Agroecology
What is Agroecology? It is recognized worldwide as a system that enhances fertile landscapes, increases yields, restores soil health and biodiversity, promotes climate resilience and improves farmers’ well-being. Its practices are supported by many agricultural scientists, the Food and Agriculture Organization, the Intergovernmental Panel on Climate Change, farmers’ groups and several NGOs. It basically makes… Continue reading The attack on Agroecology
GST Council and Corporate Tax
The Goods & Services Tax (GST) Council held a meeting on 20th September 2019 to decide on tax moderation, keeping in mind the revenue position and the need to boost sagging economic growth. The GST Council had its 37th meeting in Goa in the backdrop of economic growth hitting a six-year low of 5% for the first quarter of the current fiscal (April -… Continue reading GST Council and Corporate Tax
Regulatory Roadblock to Ease of Doing Business
Recently, the World Bank’s Ease of Doing Business 2019 report ranked India 77th among 190 countries, apart from it India is counted as one of the world’s most attractive investment destinations. However, in order to become a $5 trillion economy by 2024-25, India certainly needs to improve more on ease of doing the business front. Legislations and Challenges to Ease of… Continue reading Regulatory Roadblock to Ease of Doing Business
Economic Slowdown and its Fix
Recently, India resolved that it would be a $5-trillion economy in 2024. However, GDP growth slowed to a six-year low of 5 % during the first quarter of 2019. According to NITI Aayog, the present economic crisis is the worst crisis India is facing since Independence. Reduction in growth automatically leads to hampering of development goals… Continue reading Economic Slowdown and its Fix
Merger of Banks
Finance Minister Nirmala Sitharaman has announced the merger of 10 public sector banks into four entities as an effort to revive the economy. Current Economic Status of India: India’s Gross Domestic Product (GDP) growth rate dropped to 5% in the April-June quarter due to a sharp deceleration in manufacturing output and farm sector The Gross Value Added (GVA) growth in the manufacturing sector dropped to 6% in the first… Continue reading Merger of Banks
Adequacy of Counter Measures against Economic Slowdown
The counter measures declared by the Union Government against the economic slowdown may not be adequate for a revival of the economy. The Role of Fiscal Policy in Economics: In 2005, a Nobel laureate in economics claimed that the fiscal policy, associated with profligacy, had no role at all and the problem of depression has been… Continue reading Adequacy of Counter Measures against Economic Slowdown
