Economy Archives - Orrisa PCS Exam Notes

dmpq-. Explain the reasons for India’s high NPA’s. Also discuss how does it impacts India’s Economy.

Possible reasons for NPAs Diversification of funds to unrelated business/fraud. Lapses due to diligence. Busines losses due to changes in business/regulatory environment. Lack of morale, particularly after government schemes which had written off loans. Global, regional or national financial crisis which results in erosion of margins and profits of companies, therefore, stressing their balance sheet … Read more

dmpq-What are small Finance Banks (SFB’s). What are the Criteria to set up the SFB’s.

The concept of differentiated banks is not entirely new. In fact, and in a sense, the Urban Co Operative Banks (UCBs), the Primary Agricultural Credit Societies (PACS), the Regional Rural Banks (RRBs) and Local Area Banks (LABs) could be considered as differentiated banks as they operate in localized areas. SFB’s are niche banks that focus … Read more

dmpq-. Discuss how rainfed farming is related with Agro-Economy. Also mention the challenges of rainfed Agricuture.

Rain-fed areas produce nearly 90% of millets, 80% of oilseeds and pulses, 60% of cotton and support nearly 40% of our population and 60% of our livestock. These facts present an existing vulnerability to ensuing climate change. The only option we have is being prepared, adapt, and mitigate climate change. Rain-fed areas are ecologically fragile … Read more

dmpq-Explain the Twin Balance Sheet Problem. Discuss the causes of India’s Everlasting Twin Balance Sheet Problem.

Twin Balance Sheet Problem (TBS) deals with two balance sheet problems. One with Indian companies and the other with Indian Banks. Thus, TBS is two two-fold problem for Indian economy which deals with: Overleveraged companies Debt accumulation on companies is very high and thus they are unable to pay interest payments on loans. Note: 40% … Read more

dmpq-Write an essay on Yes bank Crisis.

Yes Bank, started in 2004, is one of the new generation private banks that were allowed to start banking operations by Reserve Bank of India in the post-liberalisation era. The bank engaged in highrisk lending, providing loans to those who could not raise funds elsewhere. Loans not repaid is a major issue of most banks … Read more

dmpq-Throw light on the advantages Universal Basic Income (UBI) presents to Indian Economy.

As a form of social security UBI will help in reducing inequality and eliminating poverty. Thus it ensures security and dignity for all individuals. As human labour is being substituted by technology, there will be reduced wage income and reduced purchasing power. UBI will compensate for reduced purchasing power. Advantages of UBI First, UBI would … Read more

dmpq-. Write a short note the Escape Clause of FRBM Act (Fiscal Responsibility and Budget Management Act) .

The FRBM Act is a law enacted by the Government of India in 2003 to ensure fiscal discipline – by setting targets including reduction of fiscal deficits and elimination of revenue deficit. Escape clause refers to the situation under which the central government can flexibly follow fiscal deficit target during special circumstances. This terminology was … Read more

dmpq-To What extent Crime against women is responsible for keeping them out of India’s Labor force ?

Women’s education has increased over the last two decades and fertility rates have fallen — both have contributed to increasing participation of women in the paid labour force elsewhere in the world. However, this is not the case in India. India’s Female Labour Force Participation Rate (FLFPR) has fallen from 31.2% in 2011-12 to 24.5% … Read more

dmpq-Define the concept of Vote on Account. How is different from Budgeet.

Vote on Account is a grant in advance to enable the government to carry on until the voting of demands for grants and the passing of the Appropriation Bill and Finance Bill. This enables the government to fund its expenses for a short period of time or until a full-budget is passed. As a convention, … Read more

dmpq-Discuss the problems faced by medical education sector in India.

. Medical education in India faces many issues, some of which are as follows: Inter-state and intra-state inequality in the distribution of manpower and resources There is a huge disparity in availability of opportunities for students across states. 2010 report by MHRD had stated that four states – Andhra Pradesh, Karnataka, Maharashtra and Tamil Nadu … Read more