Economics

Foreign Trade Policy 2015-2020
The Government of India has announced a new Foreign Trade Policy for the period 2015-2020 on 1st April, 2015. The important measures have been taken by the Government in the Foreign Trade Policy 2015-2020 to include ‘Make in India’ and ‘Digital India’ programmes and to ease the trade
NITI Aayog (National Institution for Transforming India)
The Government has replaced Planning Commission with a new institution named NITI Aayog (National Institution for Transforming India). The institution will serve as ‘Think Tank’ of the Government-a directional and policy dynamo.

Foreign Investment Promotion Board (FIPB)
The Foreign Investment Promotion Board (FIPB) is a government body that offers a single window clearance for proposals on Foreign Direct Investment (FDI) in India that are not allowed access through the automatic route.
Contingent Reserve Arrangement
During sixth BRICS summit held in Fortaleza, Brazil, on 15 July 2014 the participating nations announced signing of the Treaty for the establishment of the BRICS Contingent Reserve Arrangement (CRA) with an initial size of US$ 100 billion.

National Development Bank (NDB)
During sixth BRICS summit held in Fortaleza, Brazil, on 15 July 2014 the participating nations announced signing of the Agreement establishing the New Development Bank (NDB), with the purpose of mobilizing resources for infrastructure and sustainable development projects in BRICS and other emerging and developing economies.

Pradhan Mantri Jan Dhan Yojana
The PMJDY has been conceived as a national mission on financial inclusion with the objective of covering all households in the country with banking facilities and having a bank account for each household. Financial inclusion or inclusive financing is the delivery of financial services at affordable costs to sections of disadvantaged and low-income segments of society, in contrast to financial exclusion where those services are not available or affordable.

Countervailing Duty
Countervailing duties (CVDs), also known as anti-subsidy duties, are trade import duties imposed under World Trade Organization(WTO) rules to neutralize the negative effects of subsidies. They are imposed after an investigation finds that a foreign country subsidizes its exports, injuring domestic producers in the importing country.

Highlights of Budget 2014-15
Budget has raised the personal income-tax exemption limit by Rs. 50,000/- that is, from Rs. 2 lakh to Rs. 2.5 lakh in the case of individual taxpayers, below the age of 60 years. Exemption limit raised from Rs. 2.5 lakh to Rs. 3 lakh in the case of senior citizens. However there is no change in the rate of surcharge either for the corporates or the individuals, HUFs, firms etc. The budget proposes to continue education cess at 3 percent.

Highlights of Economic Survey 2013-14

The Economic Survey 2013-14 mentions that the next wave of reforms will be through strengthening the institutional foundation – both laws and organizations – improving and polishing the financial processes; and by taking well-designed policy decisions that will enhance clarity, consistency, and transparency for a globalized India.

An Overview of Tax System
Taxes are financial charges imposed on individual or company by central or state government which the taxpayer is bound to pay by law. Failure to pay , evasion or resistance to collection is generally punishable by the law.Taxes collected by nation is used by government for various purpose including development of nation, welfare measures for the society, enforcement of law and order, maintaining defense system etc.

Essential Commodities Act, 1955
The Essential Commodities Act, 1955 was enacted to ensure the easy availability of essential commodities to consumers and to protect them from exploitation by unscrupulous traders. The Act provides for the regulation and control of production, distribution and pricing of commodities, which are declared as essential for maintaining or increasing supplies or for securing their equitable distribution and availability at fair prices.

Concept of Crowdsourcing
Crowdsourcing is the process of getting work or funding, usually online, from a crowd of people. The word is a combination of the words 'crowd' and 'outsourcing'. The idea is to take work and outsource it to a crowd of workers. it is distinguished from outsourcing in that the work comes from an undefined public rather than being commissioned from a specific, named group.

Infrastructure Debt Funds
Infrastructure Debt Funds are investment vehicles which can be sponsored by commercial banks and NBFCs in India in which domestic/offshore institutional investors, specially insurance and pension funds can invest through units and bonds issued by the IDFs. IDFs would essentially act as vehicles for refinancing existing debt of infrastructure companies, thereby creating fresh headroom for banks to lend to fresh infrastructure projects.

An overview of Banking Terms
Repo rate (repurchase rate) is the rate at which our banks borrow rupees from the Central Bank(RBI). Reduction in the repo rate help banks to get money at a cheaper rate and thereby increasing liquidity in market. When the repo rate increases, borrowing from the Central Bank(RBI) becomes more expensive. Repo rate is used by monetary authorities to control inflation.

Financial Stability and Development Council
The Council is chaired by the Union Finance Minister and its members are Governor, Reserve Bank of India; Finance Secretary and/or Secretary, Department of Economic Affairs; Secretary, Department of Financial Services; Chief Economic Adviser, Ministry of Finance; Chairman, Securities and Exchange Board of India; Chairman, Insurance Regulatory and Development Authority and Chairman, Pension Fund Regulatory and Development Authority.

All About CAG
The Comptroller and Auditor General is a 150-year-old institution with a mission to “promote accountability, transparency and good governance through auditing and accounting” of public funds. Its role is to ensure public funds are being used “efficiently and for the intended purposes”.

Main Functions of RBI

Main functions of RBI has been listed under this article comprehensively.

Cash based and Accrual based accounting system
The difference between the two types of accounting is when revenues and expenses are recorded. In cash basis accounting, revenues are recorded when cash is actually received and expenses are recorded when they are actually paid (no matter when they were actually invoiced).

SEBI - A brief introduction

Securities and Exchange Board of India (SEBI) was established by the Government of India in 1988 through an executive resolution, and later upgraded as a fully autonomous body (a statutory Board) in the year 1992 with the passing of the Securities and Exchange Board of India Act (SEBI Act) on 30th January 1992.

Functions of Enforcement Directorate

The main functions of the Directorate are as under
1	To enforce Foreign Exchange Management Act 1999 and Prevention of money Laundering Act 2002.

Optional Fully Convertible Debenture (OFCD)

OFCD is a type of debt security where the option is given to the holder if he wants to convert his debenture into equity share after stipulated time.

Serious Fraud Investigation Office (SFIO)
The SFIO is a multi-disciplinary organization under Ministry of Corporate Affairs, consisting of experts in the field of accountancy, forensic auditing, law, information technology, investigation, company law, capital market and taxation for detecting and prosecuting or recommending for prosecution white-collar crimes/frauds.