Economy

Shell companies are typically corporate entities which do not have any active business operations or significant assets in their possession.  A shell company may be a legal entity or not. Issues associated with shell companies: There is no clear definition of shell companies. Even under the companies act they are not defined. Out of the … Read more

: Brent Crude is a major trading classification of sweet light crude oil that serves as a major benchmark price for purchases of oil worldwide. This grade is described as light because of its relatively low density, and sweet because of its low sulphur content. Brent Crude is extracted from the North Sea and comprises … Read more

Base erosion and profit sharing is a tax avoidance strategy by multinational companies, where in profits are shifted from shifted from jurisdiction that have high taxes to jurisdiction that have low tax. Base erosion and profit shifting project is a joint initiative between G20 countries and the OECD , towards the development of a coherent … Read more

External commercial borrowing (ECB) is basically a loan availed by an Indian entity from a non-resident lender.  They are used widely in India to facilitate access to foreign money by Indian corporations and PSUs (public sector undertakings).  Most of these loans are provided by foreign commercial banks and other institutions.  In the post reform period, … Read more

The New Development Bank (NDB), formerly referred to as the BRICS Development Bank, is a multilateral development bank established by the BRICS states (Brazil, Russia, India, China and South Africa). The Bank supports public or private projects through loans, guarantees, equity participation and other financial instruments. It is headquartered in Shanghai, China. The first regional … Read more

  The stability of FDI even during the crisis period led many developing countries to favour FDI over other forms of Short-term inflows. The Foreign Countries Investors are willing to invest in Developing countries because it allows them to seek highest returns. It also reduces the risk faced by the owner of capital by allowing … Read more

  Foreign Direct Investment Foreign Portfolio Investment FDI is an investment made by a company or individual in the business of another country in the form of either establishing a new business or acquiring the existing business. FPI is an investment made by a company or an individual in the stock markets or debt markets … Read more

:  It is a web-based software application developed and implemented by the Office of Controller General of Accounts (CGA).  Its coverage includes Central Sector and Centrally Sponsored Schemes as well as other expenditures including the Finance Commission Grants. Advantages of PMFS:  Better monitoring of funds and transparency: It establishes a common electronic platform for complete tracking … Read more

A public-private partnership (P3) is a contractual arrangement between a public agency and a private sector entity, typically of a long term nature. Through this agreement, the skills and assets of each sector (public and private) are shared in delivering a service or facility for the use of the general public. In addition to the … Read more

After the recent Assembly elections, the new governments in Rajasthan, Madhya Pradesh and Chhattisgarh announced farm loan waivers. According to SBI Research, around ₹70,000 crore will be spent on farm debt waivers till May 2019.  Rising costs, drop in income and increasing incidence of indebtedness among small and marginal farmers manifested in a spate of suicides over … Read more