Economy

. India has a large pool of English-speaking workforce, cheap labour, natural resources,  a growing economy, second largest market and a government-favouring FDI. Despite the considerable easing of restrictions there are number of factors which are haltering FDI boost: First and the foremost, a foreign investor draws a global comparison before taking a decision on … Read more

Along with bringing transparency and accountability in enforcement of Labour Laws, the Government has taken various initiatives to realize and establish the dignity of every worker through provision of social security, enhancing the avenues and quality of employment along with industrial development. Recent major reforms are: Introduction of Labour Codes In line with recommendations of … Read more

An external commercial borrowing (ECB) is an instrument used in India to facilitate Indian companies to raise money outside the country in foreign currency. The government of India permits Indian corporates to raise money via ECB for expansion of existing capacity as well as for fresh investments. Other such external sources of finance/capital include FCCBs … Read more

The government of India has taken a series of following measures to improve ‘Ease of  Doing Business’ in the country. Existing rules have been simplified and information tech­ nology is introduced to make governance more efficient and effective: The process of applying for Industrial License (IL) and Industrial Entrepreneur Memorandum (IEM) has been made online … Read more

Liberal entry of private sector and foreign banks. It is as a part of the reforms that today there are big private banks such as ICICI, HDFC, Axis and foreign banks such  as the Citi group, HSBC, Barclays operating along with the public sector banks. Public sector were provided greater autonomy to function in a … Read more

Under the Monetary Policy Framework Agreement, the RBI will be responsible for containing inflation targets at 4% (with a standard deviation of 2%) in the medium term. Under Section 45ZA(1) of the RBI Act, 1934, the Central Government determines the inflation target in terms of the Consumer Price Index, once in every five years in … Read more

While globalization does provide for means of betterment for economies, it has some  inherent challenges which will have to be addressed: While decisive thrust on exports is required, there would be pressures for liberal imports which could create issues in the domestic sector by making imported goods  cheaper threatening domestic goods. Already, the Indian market … Read more

Financial inclusion involves the availability of sustainable, useful financial products and services for all business and individuals, regardless of company size or individual net worth. It makes financial services such as banking, insurance, equity, etc. available equally to all, without discrimination. Universal access to banking facilities for all households across the country through a bank … Read more

End of license raj On 24 July 1991, Prime Minister Narasimha Rao announced the end of the license-permit Raj and Finance Minister Manmohan Singh presented a historic budget that rolled out economic liberalisation in India. It proposed getting rid of the Monopolies and Restrictive Trade Practices asset limit totally. Industrial licensing would be abolished for … Read more

. As of now Japan-India trade is a mere 5% of Japan-China trade. Today, India-Japan trade languishes at around $15 billion, a quarter of trade with China while Japan-China trade is around $300 billion. India is the largest recipient of Japanese foreign aid. Japanese have also made record investment in private equity and venture capital … Read more