Economy

In recent times, there has been an increased preference of mutual fund companies as well  as insurance companies to combine the investments in stock markets with life insurance  plans, known as ULIPs. This need has arisen as there is very low penetration of life  insurance in India or lack of awareness of the need for … Read more

All such issuances in terms of quantum to be raised, pricing is left to the company,  however, regulated by the Securities Exchange Board of India (SEBI) which has the  following objectives: To ensure that all companies accessing the primary market are making complete disclosures about their company and their functioning. Pricing has been determined through … Read more

The Gold Monetization Scheme is a welcome step initiated by the Government of India to  unlock the unused and idle gold lying in households and institutions and bring them into  mainstream and release the capital locked in for use in the economy for its development.  The key objectives of this scheme are stated as under: … Read more

RBI thus has certain quantitative and qualitative tools through which it manages  liquidity and they are as follows: Cash Reserve Ratio (CRR) Every bank has to retain a certain percentage of its  demands and time liabilities in cash with the RBI which can be raised by the RBI to  drain out excess liquidity or reduced … Read more

Zero-Based Budgeting – ZBB This is a method of budgeting in which all expenses must be justified for each financial  year. The process of this budgeting starts from a “zero base,” on every financial year. Every  function within the ministry or department is analyzed for its needs and costs. Budget  allocations are then made according … Read more

The government does not perform any business so it cannot earn money to spend. Hence,  the government has to raise the money from the economy to enable it to spend that  money in terms of requirements and national priorities. The government raises money  primarily through ‘taxes’ and the spending known as ‘public expenditure’. A policy … Read more

. Besides the huge resources required there are structural issues like, one of the highest  Aggregate Transmission and Distribution (AT&D) losses of 25 per cent the highest in the  world. There are other issues like power thefts which along with distribution losses result  in losses to the State Electricity Boards (SEBs), under pricing, mounting losses … Read more

Various investment models which have emerged in recent times especially  in post-reforms and also from experiences of emerging marker economies (EMEs). These  models are not alternates to each other but are only variants of investment models. The policy support will require well-drafted ‘futuristic policies’ in different areas  especially in the areas of ‘pricing and tax … Read more

The Japan International Cooperation Agency (JICA) which undertook the study on  the feasibility of this prestigious project, submitted its report in July 2015. The project  was approved by the Cabinet Committee on Economic Affairs, in December 2015, to  be implemented with Japanese technical and financial assistance. The memorandum of  understanding for cooperation between India and … Read more

. First and the foremost reason for this is the high cost of rail movement arising out of policy  of cross subsidization by IR. Passenger fares especially sleeper class are underpriced and  made up through increased freight fares. In India, passenger rail fares are highly politically  sensitive. However, this is also because of the social … Read more