Highlight on Economics Contemporary - Expected Questions 2017 Part-1 (Download PDF)

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We will be covering the important questions and topics for competitive examinations for 2017 related to Economics Contemporary and related policies. As per video tutorials and lectures at YouTube@Examrace

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Expected Questions on Economics: UPSC IAS Prelims & Mains 2017

Dr. Manishika Jain in this video covers a variety of topics which are important for 2017. These include the expected questions on economics and banking.

SEBI initiatives

  • SEBI – regulator of securities market
  • Option Trading in Commodity Futures - Only top 5 in total trading turnover value of last 12 months (minimum Rs200 crore for agricultural and agri-processed commodities, and Rs1, 000 crore for other commodities)
  • Set up Investor Protection (5 trustees and all penalty levied by commodity exchange) & Service Fund (provide minimum facilities)
  • Establish Committee on Corporate Governance – under Uday Kotak
  • Approves merger of Telenor & Airtel – will boom airtel in Andhra Pradesh, Bihar, Maharashtra, Gujarat, UP (East), UP (West) and Assam
  • Tight algorithm to minimize instance of flash crash (rapid decline in price) – in NSE algorithm account for 16 % trade

New Currency

  • New Rs. 500 notes:

    • Old notes after demonetization would remain legal tender
    • New notes will have letter A
    • Year – 2017 with Governor – Urjit Patel
    • With Swachh Bharat Logo
  • New Re. 1 Note

    • Blue-green in color
    • Discontinued in 1994
    • Ashokan Pillar
    • Sagar Samrat Oil exploration
    • Issued by Ministry of Finance
    • Signatures of Finance Secretary
    • Other notes bear the signature of Governor RBI
  • New Rs. 200 Notes

    • Printing after June 2017 & formal approval

India’s Forex - $381.167 billion

  • Highest lifetime in June
  • Increased due to foreign currency asset (FCA)
  • Foreign Exchange Reserves include
  • Foreign currency assets (FCAs)
  • Gold, Special Drawing Rights (SDRs)
  • RBI’s Reserve position with International Monetary Fund (IMF)
  • Largest component of FCA is forex

Startups – New Definition

  • Turnover less than Rs. 25 crore
  • Not completed 7 seven years from incorporation
  • Process by online application
  • For biotechnology – will be 10 years

FDI Destinations

  • Top Destinations – USA, China & India
  • BRICS (Brazil, Russia, India, China and South Africa) - 22 % of the global GDP has received only 11 % of the global FDI inflows
  • World Investment Report by United Nations Conference on Trade and Development (UNCTAD) annually since 1991

Decide FDI proposals in 60 Days

  • Abolished Foreign Investment and Promotion Board (FIPB) - authority for clearing FDI proposals for a period of 25 years
  • 4 weeks timeline to transfer pending cases with FIPB
  • Decided by Finance Ministry

Global Retail Development Index

  • India at first position
  • 2017- title: ‘Age of Focus’
  • Ease of doing business in retail in top 30 developing nations
  • 2nd rank – China
  • India’ retail to double by 2020 (reach $48 billion)
  • Analyze 25 macro-economic and retail variables

Payment Banks

  • Airtel
  • India Post
  • Paytm – 1st bank in India to offer cashback on deposits – allow upto 1 lakh in wallet & not allow loans

Reconstitute Oversight Committee

  • RBI will reconstitute to tackle bad loans
  • Operationalize banking ordinance
  • Facilitate decision making

Brand Finance List

  • Brand Finance – Global brand valuation & strategy consultancy firm
  • Tata – Most valuable brand
  • 2nd – Airtel
  • 3rd – LIC
  • 4th – Infosys
  • 5th – SBI
  • ITC: Most powerful brand - it is the country’s only AAA rated brand with a Brand Strength Index score of 86

MoU – Amul & ISRO

  • Gujarat Cooperative Milk Marketing Federation (GCMMF) which markets under brand name ’Amul’
  • Signed MoU with ISRO for fodder acreage assessment using satellite observation and space technology.
  • Amul procures 150 lakh litres of milk every day from 35 lakh milk producers in 18, 500 villages.
  • GCMMF – largest milk cooperative in the world under Kurien in 1973 – jointly owned by 3.6 million milk producers.

MoU – BSNL with Facebook & Mobikwik

  • Facebook’s ’Express Wi-Fi Program’: Via 700 hotspots across four states of Uttarakhand, Gujarat, Rajasthan and Meghalaya to expand internet connectivity. Complement mobile data offerings by providing a low-cost, high bandwidth service allowing users to get online for accessing apps.
  • Express Wi-Fi active in Indonesia, Kenya, Nigeria & Tanzania. Partner with Airtel for additional 20, 000 hotspots
  • MobiKwik will also facilitate digital sale of BSNL SIM cards through its app and website.

GFI data

  • US-based think tank Global Financial Integrity (GFI)
  • Title: ’Illicit Financial Flows to and from Developing Countries: 2005 - 2014’
  • $770 billion black money entered India during 2005 - 2014
  • Nonprofit Washington based research founded by Raymond Baker in 2006

India rated BBB-

  • Sovereign ratings – lowest investment grade rating
  • Explained by Fitch

New Coal Linkage Policy

  • By Cabinet Committee on Economic Affairs (CCEA)
  • Adequate supply of the fuel to power plants through reverse auction

ARC to have Minimum Corpus of Rs. 100 crore in 2019

  • ARC is registered under Section 3 of Securitization and reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002
  • Regulated by RBI – resolve stressed assets issue - buy bad loans from Indian banks to turn them around
  • Also in Malaysia, Korea
  • Narsimham Committee – II (1998) - proposed to set up ARCs on lines with that of asset management companies present globally

Rules for JLF

  • RBI tightened rules for JLF (Joint Lender Forum)
  • Aim to revitalize stressed asset – place them in CAP – Corrective Action Plan

DIPAM

  • Department of Disinvestment set up as a separate Department on 10th December 1999
  • Functions as one of the Departments under the Ministry of Finance since 2004
  • 2016: Department of Disinvestment was renamed as Department of Investment and Public Asset Management (DIPAM)
  • DIPAM advises Union Government in financial restructuring of PSUs and in attracting investment through capital markets
  • Talks on NALCO disinvestment (Navratna) – disinvested 9.2 % paid up capital for Rs. 1200 crore

New IIP, WPI series

  • Greater accuracy & synchronization
  • Instead of the earlier 2004 - 05, base year for the IIP and the WPI will be 2011 - 12
  • Consumer Price Index (CPI), Gross Domestic Product (GDP) and gross value addition etc. , have 2011 - 12 as the base year
  • Common base year of 2011 - 12 will reduce discrepancies
  • Index of industrial production (IIP) – 809 manufacturing & 55 mining – regrouped in 521 items – include technology item - smart phone, tablets and LED – revised after 13 years
  • Wholesale price index (WPI) – have increased from 676 to 697

Committee on Virtual Currency

  • Focus on cryptocurrency
  • 9 member committee – headed by Dinesh Sharma
  • RBI committee on cyber security – 11 members headed by Meena Hemachandra

- Published/Last Modified on: June 21, 2017

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Monthy-updated, fully-solved, large current affairs-2018 question bank(more than 2000 problems): Quickly cover most-important current-affairs questions with pointwise explanations especially designed for IAS, CBSE-NET, Bank-PO and other competetive exams.