UPSC 2011 ECONOMICS ANALYSIS 🌟

keywords- base effect, inflation, economic growth , calculation of inflation - CPI index

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Keywords - demographic dividend, demographic transition, working age population, workforce population

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keywords- VAT, EXCISE DUTY, GST, DESTINATION BASED TAX, consumption tax.

Exemption under GST list

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Keywords - closed and open economy, mixed economy, Money supply, deficit financing, current account convertibility and capital account convertibility

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in case a foreign fund buys below 10% stake in a corporation, such an investment shall be considered as FPI irrespective of the route selected. On the other hand, in case the ownership of an FPI in a corporation crosses 10%, then such an investment shall be considered FDI.

FDI vs FPI vs DII

IPO vs FPO

Primary market vs secondary market

In this question, UPSC interchanged option A,C and D

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Keywords - microfinance, NBFC, microfinance facilities

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Keywords - MGNREGA ACT 2005, RURAL DEVELOPMENT, Below poverty line ( criteria )

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Key concepts -

Interim budget vs vote on account

Finance bill, appropriation bill, demand for the grants,

Until 2016, when the Budget was delivered on the last working day of February, the vote on account was commonly employed. The budget presentation date has been moved up to February 1st since 2017. This allowed the government to enact the complete budget in the same fiscal year in less than two months.
Since 2017, unless there are exceptional circumstances, such as an election year, Vote on Account has not been utilized as a part of the government budgeting process.

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Key concepts - Grants vs loan

Rapid financial instrument

Rapid credit facility

Forex reserves can be maintained in

Gold, Foreign currency, SDR- Special drawing rights(This is basically, the amount to be kept with IMF-International monetary fund

Reserve tranche

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Most important keyword of this year 🌟

Bailout - recently it was in news

Srilanka and Pakistan balance of payment crisis

Adani FPO bailout

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this is the era of globalisation, everything is well connected, war europe me hoga to uska asar pure world me hoga, pandemic kahi aayega to uska asar pure world me hoga, ese time kese GDP growth constantly steadily rise kar sakti hai. it’s impossible.

kabhi 6% hoga kabhi 5.9% phir kabhi 7% hoga….

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Keywords - priority sector lending

Commerical scheduled bank

Cooperative bank

Regional rural bank

Microfinance institutions ( NBFC )

ALLIED SECTOR ACTIVITIES

Scheduled commercial banks contributed the major share (78 – 80 per cent) in agricultural and allied credit.

Of the total adjusted net bank credit (ANBC), 40% of the bank credit must be made towards priority sector.

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From time to time, the Government takes the decision to disinvest the CPSEs but largely it decides to retain the management control on case to case basis. Hence, statement 2 is not correct.

The Government does not necessarily intend to use the revenue earned from the disinvestment mainly to pay back the external debt. Hence, statement 1 is not correct.

Option A - Mainly keyword ( eliminate )

Option B - no longer intends to retain ( not necessary )

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Economic growth means more money in circulation, it means money supply will increase

Logo ke hath me jyada paisa aayega to demand badhegi

Demand badhi to price badhega price badha to inflation aayegi 💯

Keywords - inflation, demand - supply

Deflation, inflation, stagnation, recession, stagflation, purchasing power
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Any reduction in the bank rate and the repo rate will lead to borrowers getting loans at lower interest rates.
The lowering of the Bank Rate makes the domestic banks borrow money at a cheap rate which in turn increased the liquidity in the market.

Yad rakhna, bank rate me koi collateral nahi hota hai 💯

But repo rate me collateral security hoti hai

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