Economy

Medium of Exchange The only alter­native to using money is to go back to the barter system. However, as a system of ex­change the barter system would be highly impracticable today.  For example, if the baker who supplied the green-grocer with bread had to take payment in onions and carrots, he may either not like … Read more DMPQ- What are the Functions of money in an Economy?

Demand-Pull Effect The demand-pull effect states that as wages increase within an economic system (often the case in a growing economy with low unemployment), people will have more money to spend on consumer goods. This increase in liquidity and demand for consumer goods results in an increase in demand for products. As a result of … Read more DMPQ- Explain the Non-monetary theories of inflation

The Indian textile industry has a significant presence in the economic life of our country. It is the second largest textile industry in the world after China. The textile industry contributes about 14% to the country’s industrial output and about 17% to export earnings. After agriculture, this industry is the second largest employer in India … Read more DMPQ- Explain the Importance of textile industry in Indian economy

A Development Financial institution (DFI) is defined as “an institution endorsed or supported by Government of india primarily to provide development/Project finance to one or more sectors or sub-sectors of the economy. the institution differentiates itself by a thoughtful balance between commercial norms of operation, as adopted by any financial institution like commercial bank and … Read more DMPQ- Explain the Development Financial institution (DFI)

Industry is not the substitute of agriculture, rather they are complementary to one another. Both these sectors are so attached with each other that it is not possible to increase the growth of one sector sector without the improvement of the other sector. If agriculture is considered as the ‘heart’ of the country, then obviously … Read more DMPQ- Explain the Interrelationship between agriculture and industry

Financial problems The paucity of adequate and timely finance and credit is the main setback in the development of SSI units. It is even worse in case of cottage and village industries. The capital base of the small industrial units is usually very weak since they generally have partnership or sole proprietorship form of organization. … Read more DMPQ- What are the Challenges in front of Small scale and cottage industries

Indian economy has some inherent vulnerabilities and that is becoming hurdle in holistic development of the economy. These areas are as follows: Investment rate is on decline. It is near about 29%. It has to be 36-38% for sustaining high growth rate as per economic survey. Investment is way better than savings as engine of … Read more DMPQ:There are some inherent vulnerabilities in the Indian economy. Without addressing them sustaining high growth will be a daunting task. What are these inherent vulnerabilities?

SHAKTI stands for Scheme for Harnessing and allocating Koyala Transparency in India. It is a  transformational policy for auction and allotment of coal linkages. This policy will award fuel supply agreements to coal plants already holding letter of assurance. Coal linkage would be allocated to state owned power distribution companies. The major objective to bring … Read more DMPQ- Write down a short note on the initiative Shakti.

Financial inclusion has been recognised as a key building block which will form the foundation for achieving several of UN’s Sustainable Development Goals.  As a construct, it provides much more than access to financial services.  In a country like India, till a few years ago, a bank account was a source of pride.  If properly … Read more DMPQ:Financial inclusion is a significant aspect with respect to our economy. What is the significance of Financial Inclusion? What are the measures taken for Financial Inclusion?

Open market operations is the sale and purchase of securities, bills and bonds of government as well as private financial institutions by the Central Bank. This is one of the qualitative too available with the central bank to deal with inflation and money supply in the economy. Functioning:  If the central bank sells these instruments, … Read more DMPQ:Explain the open market operations of RBI.