Economy

Crowding out is an economic concept that describes a situation where government spending and borrowing reduces overall private sector consumption and investment. Crowding out can be caused by an expansionary fiscal policy financed by increased taxes, borrowing or both. Crowding out can refer to when government borrowing absorbs all the available lending capacity in the … Read more

The Act is expected to re-establish the rule of law with respect to the fugitive economic offenders as they would be forced to return to India to face trial for scheduled offences. This would also help the banks and other financial institutions to achieve higher recovery from financial defaults committed by such fugitive economic offenders, … Read more

Minimum support price is the government scheme to safeguard the interest of the farmers. GOI declares the MSP of various agricultural produce and assures the farmers that their agriculture produce will be purchased at the MSP. The Food Corporation of India acts as the Nodal agency of the GoI. MSP scheme is implemented through state … Read more

The government does not perform any business so it cannot earn money to spend. Hence,  the government has to raise the money from the economy to enable it to spend that  money in terms of requirements and national priorities. The government raises money  primarily through ‘taxes’ and the spending known as ‘public expenditure’. A policy … Read more

Sunrise Industry: Sunrise industry is a colloquial term for a burgeoning sector or business that is just in its infancy but shows promise of a rapid boom. A sunrise industry is typically characterized by high growth rates, numerous start-ups and an abundance of venture capital funding. Sunrise industries generally have plenty of “buzz” surrounding them as public … Read more

Differentiated banks are banking institutions licensed by the RBI to provide specific banking services and products.It is a system refers to the system of different licenses for different sub components of the banking sector such as Limited Banking License, Commercial Banking License etc. A differentiated license will allow a bank to offer products only in … Read more

The Fund was established with a corpus of 500 crore which aims to establish price stability through Promotion of direct purchase from farmers /farmers’ associations at farm gate/Mandi. Maintaining a strategic buffer stock that would discourage hoarding and unscrupulousspeculation. Protecting consumers by supplying such commodities at reasonable prices throughcalibrated release of stock. It is a … Read more

On May 12 GOI, announced a special economic package of Rs 20 lakh crore (equivalent to 10% of India’s GDP) with the aim of making the country independent against the tough competition in the global supply chain and to help in empowering the poor, labourers, migrants who have been adversely affected by COVID. Collateral free … Read more

The food processing sector comprises of three segments based on the levels of processing Primary processing of food Primary processing of food comprises of sorting, grading and packaging of fruits and vegetables, milk, rice, spices, etc. Secondary Processing of Food Secondary processing of food comprises of re-shaping of food for ease of consumption. It includes … Read more

The term refers to the practice of banking like activities performed by non-banking finance companies, which are not subject to strict regulation. However, these institutions function as intermediaries between the investors and the borrowers, providing credit and generating liquidity in the system. Although these entities do not accept traditional demand deposits offered by banks, they … Read more