Economy

20th January – One government proposes, other deposes

Since coming to power, Andhra Pradesh State Government has cancelled or put on hold a number of high-profile State contracts and projects, many involving foreign partners who now face huge losses. Arguments in favour – Officials say reviewing commitments made by the previous government will increase accountability and decrease corruption in the State, but outside …

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3rd January – FASTags

In line with the government’s digitisation push, the National Highways Authority of India (NHAI) has made FASTags mandatory from 15 January for vehicles using national highways. What is FASTag? It is an electronic toll collection system in India, operated by the National Highway Authority of India (NHAI). It employs Radio Frequency Identification (RFID) technology for …

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31st December – Indian Banking – Challenges

The Reserve Bank of India (RBI) is planning to conduct the second phase of Operation Twist by simultaneous buying and selling of government securities. What it means? It will buy long tenure bonds and sell short-term ones to bring down the bond yields and flatten the curve, narrowing the term premium. The 10-year bond yield, …

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27th December – Explained – Operation Twist

What is Operation Twist? Operation Twist is the name given to a monetary policy tool that the US Federal Reserve had initiated to influence the prevailing rate of interest in the markets. In India, the RBI put through its version of Operation Twist by buying ₹10,000 crore worth of 10-year government bonds while selling four …

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13th December – The not-so bright idea of selling the family silver

When we examine the proposed stake sale of profit-making public sector undertakings (PSUs), a few strategic issues of national importance need to be considered. The first is an ideological one — that Government must get out of business. The second is the need to bring the fiscal deficit down. The third is a long-term financial …

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10th December – Agri reform : From production to profitability

The idea of doubling farmers’ incomes by 2022, when the country completes 75 years of its independence, was shared by Prime Minister Narendra Modi in February 2016. Despite zealous efforts made by government agencies toward fulfilment of this goal, the state of farmers and agriculture has shown little or no improvement. We must look for …

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9th December – Explained – International Financial Services Centres Authority Bill, 2019

The International Financial Services Centres Authority Bill, 2019 is likely to be taken up by Parliament soon. The Bill provides for the establishment of an Authority to develop and regulate the financial services market in the International Financial Services Centres in India. Ambit of the bill – The Bill will be applicable to all International …

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18th November – Crossed wires – On telecom industry crisis

Two leading and important players in the telecom industry — Bharti Airtel and Vodafone Idea — have reported historic losses in the second quarter of this fiscal. Vodafone Idea has declared a loss of ₹50,922 crore while Bharti Airtel has reported a loss of ₹22,830 crore. Details of the woes – The losses were due …

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6th November – Predatory Pricing

News reports that e-commerce majors such as Amazon and Flipkart have sold goods worth ₹19,000 crore in their festival discount sales seem to be causing some heart-burn in India’s traditional retail industry. The Confederation of All India Traders (CAIT), a trade body representing brick-and-mortar retailers, has been urging the Commerce and Finance Ministers to launch …

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31st October – PM’s Diwali Gift to the Economy

India is slipping pathetically from its high growth trajectory. Exports continue to decline. Major financial institutions and donors have downgraded the country’s growth prospects in the coming year. Good news – The recent World Bank’s Doing Business rankings provided the spark the economy badly needed. India made impressive improvements in the 2019 rankings of Ease …

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