De-dollarization Subject: Economy Section: External Sector Concept: De-dollarization is a process of substituting the US dollar as the currency used for: Trading oil and/ or other commodities Buying US dollars for the forex reserves Bilateral trade agreements Dollar-denominated assets It happens when the leading central banks diversify their reserves away from the USD […]

    Foreign Direct Investment Subject: Economy Section: External Sector Context- 347 FDI proposals received from countries sharing land border with India; 66 approved. Concept- In April 2020, the government had made its prior approval mandatory for foreign investments from countries that share land border with India to curb opportunistic takeovers of domestic firms following […]

    Rupee Sterilization Subject: Economy Section: Context- The rupee is unlikely to be majorly impacted as the recent episodes of rupee volatility has been much less. Also the lower forex volatility in India have diminished the depreciation risks, a research report from State Bank of India (SBI) said. Concept- What Is Sterilization? Sterilization is […]

    Cryptocurrency vs Currency Subject: Economy Section: Monetary policy and banking Context:. The RBI Deputy Governor T Rabi Sankar said recently that banning cryptocurrencies is the most advisable choice for India as they are akin to Ponzi schemes and “may even be worse. Concept: A crypto does not possess the characteristics of a currency […]

    Production linked incentives  Subject: Economy Section: Fiscal policy PLI Schemes launched in March 2020, are a cornerstone of the Government’s push for achieving an AtmaNirbhar Bharat. The idea is to provide support to the sectors, regain dominance in global trade and be more prepared for the volatilities and shocks in global supply chains […]

    Fiscal consolidation Subject :Economy Section: Fiscal policy Fiscal consolidation refers to the ways and means of narrowing the fiscal deficit. The seeds for fiscal consolidation were sown in the Union Budget of 1994 which highlighted the need for fiscal discipline and pronounced a policy to end monetising the deficit. Before 1994 deficit financed […]

    GST Compensation Subject: Economy Section: Fiscal policy The introduction of the Goods & Services Tax (GST) required States and Union Territories (with Legislature) to subsume their sovereignty in a GST Council, raising the issue of loss on account of migration from Value Added Tax/Sales Tax to GST. The GST Compensation Act, 2017 guaranteed […]