What is ESG investing? It is synonymous with sustainable and socially responsible investing. While selecting a stock for investment, an ESG fund shortlists companies that score high on environment, social responsibility, and corporate governance, and then looks at financial factors. The asset size of ESG funds has increased nearly five times to Rs 12,300 crore …
Context: The Comptroller and Auditor General (CAG) of India has questioned the purchase of Kamarajar Port Trust by Chennai Port Trust. PSU purchasing PSU: The government is forcing one PSU to buy another to achieve its disinvestment target. For instance: ONGC took over HPCL. Chennai Port Trust (ChPT) was forced to buy the government’s two-thirds …
Fiscal Deficit Fiscal Deficit is the difference between total revenue and total expenditure of the government. The borrowings are not included while calculating the total revenue. Fiscal Deficit gives an indication about the total borrowings required. What were the revised fiscal deficit targets for the centre and state? Centre: Need to reach a fiscal deficit …
Characteristics of Reserve currency A reserve currency has to serve as a medium of exchange, a store of value, and a unit of account. The main properties of a country having a reserve currency are : trust and lower real interest rates. A real interest rate is one that has been adjusted for inflation, reflecting the real cost of …
Can Rupee be a Global Reserve Currency? – UPSC GS3 Read More »
Why government intervention is needed for Economic recovery? Lack of Demand: In the case of the Great Depression, demand was created by the Second World War effort. In the current scenario, there is no war to create demand. Further, the COVID-19 pandemic has resulted in demand destruction as confirmed in the Centre for Monitoring Indian Economy and …
Utility: Direct question can be asked. Content can be used in questions related to status of economy, Covid impact, FRBM Act, Food Subsidy etc. Recent Rise in Fiscal Deficit & Debt-to-GDP ratio Fiscal Deficit = 9.3% of GDP from 4.6% (2020) Debt-to-GDP ratio = Risen to 58.73% from 51.6% Why Fiscal Deficit (FD) is high? Shortfall in …
High Debt-to-GDP ratio and Fiscal Deficit – UPSC GS3 Read More »
Context: The decision of U.S federal reserve to increase interest rates by 2023 will have a significant impact on India. It may depreciate the Indian rupee and increase the inflation levels in the country thereby demanding robust reforms. Why is Fed Policy important? Any interest rate change in the U.S influences exchange rates, international money …
Impact of Fed’s Policy Changes on India – UPSC GS3 Read More »
Factors leading to demand shock in Indian economy Pre-pandemic economic slowdown: Growth rate of the economy has been on a decline since Q1 2018-19, and 2020-21 ended with negative growth of (–)7.3%. Stagnant private consumption: Private consumption contributes a major chunk of GDP, and stagnant private consumption during recession indicating people are consuming less. A fall in per-capita …
Evolution of Industrial Policy Nehruvian socialism: In 1954, Parliament adopted resolution to establish ‘Socialistic Pattern of Society’ where a larger share of production activity is brought under the public sector. Hard socialism of Indira Gandhi: Went on to nationalise all major banks, entire insurance sector, all coal mines, and some of the larger enterprises in oil refining, …
Strategic Disinvestment Policy (SDP) 2021 – UPSC GS3 Read More »
Context: The pandemic time demands enhanced government expenditure to support the vulnerable masses and ensuring their survival. Considering this, the government should enhance the spending on physical and human capital formation without worrying about a rising fiscal deficit. Fiscal Deficit: A fiscal deficit (FD) situation occurs when the government’s expenditure exceeds its income. It is …
Rising Fiscal Deficit during Pandemic – UPSC GS3 Read More »