ECONOMY

GS 3 – Economy Context: The Indian government has set up an 18-member expert panel, headed by NITI Aayog member Ramesh Chand, tasked with revising the Wholesale Price Index (WPI) and exploring a shift towards the Producer Price Index (PPI). Wholesale Price Index (WPI) The WPI measures the changes in …

GS 3 – Economy The WPI measures the average change in the price of goods at the wholesale level, i.e., before they reach the retail market. Scope: It tracks changes in the prices of goods traded in bulk, typically between businesses rather than between consumers.   Components of WPI Categories: …

GS3 – ECONOMICS The Indian rupee has experienced its sharpest depreciation in the past two years, with its exchange rate against the US dollar crossing the 85 mark. Exchange Rate: The exchange rate refers to the value of one currency relative to another, effectively representing the price of one currency …

GS3 – ECONOMICS  The PM CARES (Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund) received Rs 912 crore in 2022-23, according to the latest audited accounts. About PM CARES Fund: It is a public charitable trust registered under the Registration Act, 1908. The fund does not receive any …

GS3 – ECONOMICS  Treasury Bills (T-Bills) are short-term government securities issued by the Reserve Bank of India (RBI) on behalf of the Indian government. They are used as a tool for managing the country’s short-term liquidity and are typically issued at a discount, with the government repaying the face value …

GS3 ECONOMICS The Reserve Bank of India (RBI) has published its annual report for 2023-24 under the Banking Regulation Act, 1949, providing insights into the performance of the banking sector. Scheduled Commercial Banks (SCBs) Credit Growth and Profitability: SCBs reported enhanced profitability for the sixth consecutive year. Asset Quality: Gross …

GS 3 – Economy   Small Finance Banks (SFBs) are special banks approved by the Reserve Bank of India (RBI) to offer banking services to low-income individuals and underserved communities. They provide services like microfinance, small loans, savings, and insurance. After starting operations, SFBs are recognized as scheduled banks under the …

GS 3 – Economy  The RBI (Reserve Bank of India) Monetary Policy is a key tool used by the RBI to control inflation, maintain price stability, and promote economic growth in India. It helps manage money supply, interest rates, and overall economic stability. Understanding its basics is crucial for the …

GS3 – ECONOMICS  The WORLD TRADE ORGANIZATION (WTO) is a global international organization established to regulate international trade. It provides a framework for negotiating trade agreements, resolving trade disputes, and promoting trade liberalization while ensuring fairness and adherence to agreed-upon rules. Key Features of WTO: Establishment and Headquarters Founded: January …

GS 3 – Economy  It’s a trade agreement that aims to reduce trade barriers and promote economic cooperation among 11 countries. It was signed in 2018 after the U.S. withdrew from the earlier TPP (Trans-Pacific Partnership). Member Countries The 11 countries are: Australia Brunei Canada Chile Japan Malaysia Mexico New …

GS 3 – Economy  The GST Council has introduced a new system called the Track and Trace Mechanism to improve tax compliance and reduce tax evasion. Here’s a simpler breakdown: 1. Track and Trace Mechanism What It Is: A system where products will have unique identification marks on their packaging, …

GS-3-Economy  What is JAM Trinity? JAM Trinity is a framework that integrates Jan Dhan accounts, mobile numbers, and Aadhaar cards to facilitate the direct transfer of subsidies to beneficiaries. This eliminates intermediaries, reducing inefficiencies and leakages. Origin: First proposed in the Economic Survey 2014-15. Implementation Year: 2016. Key Components of …

GS 3 – Economy   Goods and Services Tax (GST) is a comprehensive, multi-stage, destination-based indirect tax levied on the supply of goods and services across India. It was introduced through the 101st Constitutional Amendment Act, 2016, and came into effect on July 1, 2017. Key Features of GST One Nation, …

GS 3 – Economy  The Mineral Security Partnership (MSP) is an initiative launched to strengthen critical mineral supply chains and reduce dependency on a single source or country for essential minerals. It addresses the increasing demand for critical minerals used in clean energy technologies, electric vehicles, electronics, and defense industries. …

GS 3: Economy The Most-Favoured-Nation (MFN) principle under the World Trade Organization (WTO) promotes fairness in international trade. It means that if a country offers a favourable trade benefit, like lower taxes or tariffs, to one country, it must offer the same deal to all other WTO members. This helps …

GS 3: Economy  Definition: FTAs reduce trade barriers (tariffs, quotas) to promote economic cooperation between nations. Key Features: Reduction in Barriers: Encourages trade with fewer restrictions. Formal Agreements: Bilateral or multilateral pacts. Types of Agreements: Preferential Trade Agreement (PTA): Tariff reductions (e.g., India-MERCOSUR). FTA: Eliminates most tariffs (e.g., India-Sri Lanka …

GS 3 Economy Context: The Reserve Bank of India (RBI) has introduced an AI-powered solution, MuleHunter.AI, to address digital fraud involving mule bank accounts. Developed by the Reserve Bank Innovation Hub (RBIH) in Bengaluru, this AI/ML-based tool is designed to be more precise than traditional rule-based systems, which often generate …

Gs3 – Indian Economy – Taxes Context: The Indian government has decided to end the windfall gains tax on crude oil production within the country and exports of diesel, petrol, and aviation fuel (ATF). This tax was introduced 30 months ago in response to a surge in global fuel prices …

GS3 – Indian Economy – Industry Context: India’s manufacturing sector has shown robust growth, largely driven by the Production Linked Incentive (PLI) scheme, positioning the country as a global manufacturing hub. Significance of the Manufacturing Sector Economic Contribution: Contributes 17% of Gross Value Added (GVA), with the potential to rise …