Tax is a mandatory liability for every citizen of the country. There are two types of tax in india i.e. direct and indirect. Taxation in India is rooted from the period of Manu Smriti and Arthasastra. Present Indian tax system is based on this ancient tax system which was based on the theory of maximum social welfare.
Different ministries of the government of India formulate various development schemes not to raise the profit but to maximise the welfare of the people. Some schemes like National Rural Livelihood Mission, MGNREGA, Bharat Nirman etc. are made by the government for rural development of India.
Devaluation of Indian Rupee taken place 3 times since 1947. At the time of independence, one can buy a dollar with one Indian rupee but today you have to spend 66 rupees to buy a dollar. Devaluation means reduction in the external value of the domestic currency.
PAN Card is a Permanent Account Number consisting of 10-digit alphanumeric number, which is used as an identity proof and issued under the Indian Income Tax Act, 1961. PAN Card is issued by the Indian Income Tax Department under the supervision of the Central Board for Direct Taxes (CBDT). The PAN number is important for major financial transactions like opening a bank account, receiving taxable salary, sale or purchase of assets etc.
Under Article 112 of the constitution, a statement of estimated receipts and expenditure, called the 'Annual Financial Statement'. The finance minister of India presents the annual budget every year in the parliament. There are so many terms used during the full budget presentation which are not known to many peoples. So we are explaining a bit about these terms for the convenience of general public and students.
Trade Unions in India are registered and file annual returns under the Trade Union Act (1926). Statistics on Trade Unions are collected annually by the Labour Bureau of the Ministry of Labour, Government of India. Congress associated, the Indian National Trade Union Congress (INTUC) is assumed as the biggest of the seven central trade unions, with a membership of 33.3 million.
A country found itself in debt trap when the expenditure of a country exceeds the revenue of that country year by year. After factual analysis we found that Japan is the most debt ridden country in the world followed by the Greece and Lebanon. Japan has debt of 229% of its GDP.
Every government launches various programmes to provide various kinds of facilities to its citizens. These programmes may be related to the field of education, health, electricity, employment and social upliftment of all the citizens. Examples of some programmes are: Pradhan Mantri Ujjwala Yojana, Pradhan Mantri Awas Yojana (PMAY) and Digital India Programme etc.
The Minister of Finance (or simply, finance minister) is the head of the Ministry of Finance of the Government of India. The finance minister is responsible for the fiscal policy of the government. The Finance Minister presents the annual Union Budget (article 112) in Parliament. The first finance minister of independent India was R. K. Shanmukham Chetty, who also presented its first Budget.
The 20th century has established so many institutions/organisations in the area of economics, social and politics. Some institutions like World Bank, International Monetary Fund is made to deal with monetary issues, United Nations is made to deal with political issues and European Union is made to deal with social and commercial issues.
In banking sector, there are 3 types of banks i.e. Public sector Banks, Private sector Banks and Foreign sector banks. In private sector Banks; the Banks are owned through either an individual or with limited partners and these types of banks are not incorporated. HDFC (Housing and Development Finance Corporation) is the biggest bank of India in terms of market capitalization followed by axis bank and ICICI Bank.
The origin of the word “Rupee” is from Sanskrit word Rupya which means shaped, stamped, impressed, coin and also from the Sanskrit word “raupya” which means silver. There was a long history of struggle, exploration and wealth which can be traced back to the ancient India of the 6th Century BC regarding rupee. The Paper Currency Act of 1861 gave the Government the monopoly of note issued throughout the vast expanse of British India.
An economy is made from the composition of many different industries like agriculture, service, engineering, manufacturing etc. These industries provide so many benefits to the economy i.e. employment generation, production of goods and services, equal income distribution in the whole economy. Service sector contributes 60% of the Indian GDP while agriculture gives around 14% of GDP.
A commodities exchange is an exchange where various commodities and derivatives products are traded. Most commodity markets across the world trade in agricultural products and contracts based on them. These contracts can include spot prices, forwards, futures and options on futures.
It is known to everyone that agriculture is the backbone of Indian economy. It provides direct employment to 53% population of the country. Currently it is contributing 14% of Indian GDP. In this article we provided the status of Indian states in terms of different crops produced by them.
The latest report on the state per capita income released by the Ministry of Statistics and Programme Implementation on 20 Aug 2015, says that Goa has highest state per capita income followed by Delhi and Sikkim respectively. While Bihar, Uttar Pradesh, Manipur, Assam, and Jharkhand are top 5 poorest states in terms of NSDP per capita.
To provide better life to rural peoples the Govt. of India launched a programme called "Bharat Nirman" on December 16, 2005. This scheme will focus on six areas i.e. Bijli, Pani Sadak, Irrigation,Telecommunication and housing in rural areas of the country.
Suresh Tendulkar panel (in 2011-12) said that those who spend Rs. 27 in rural areas and Rs. 33 in urban areas are not poor. While an expert panel headed by former RBI governor C. Rangarajan said in a report submitted to the BJP government in July, 2014 that those spending over Rs 32 a day in rural areas and Rs 47 in towns and cities should not be considered poor.
There are so many financial companies established in India to absorb the saving of household sector. Government mobilizes this small saving in the economy through these financial institutions. These major and small institutions play the same role in the economy as the blood in the human body. Some examples of these financial institutions are RBI, SEBI, IDBI, EXIM Bank and Export Credit Guarantee Corporation of India (ECGC).
Speaking at the Indian Banks’ Association’s annual general meeting, Arun Jaitley said that “The government is looking to reduce its stake in State-run banks to 52 per cent to make them more professional and independent.” At present, the government owns over 59 per cent stake in State Bank of India, the country’s largest public sector lender, 81.5 per cent in Central Bank of India, 71.7per cent in IDBI Bank.
Security Printing and Minting Corporation of India Limited (SPMCIL) is a Miniratna Category-I CPSE, and wholly owned Schedule ‘A’ Company of Government of India, is engaged in the manufacturing of security papers, minting of coins, printing of bank notes, non-judicial stamp papers, postage stamps and travel documents, etc.
Small and Medium Enterprises Development Bill 2005 (which was presented in the parliament on May 12, 2005) has been approved by the president and thus become an act. This act is named as ‘The Small And Medium Enterprises Development Act, 2006’. This act became effective from Oct. 2006.
Economic planning is the process in which the limited natural resources are used skillfully so as to achieve the desired goals. The concept of economic planning in India is derived from the Russia (then USSR). India has launched 11 five year plans so far and 12th is in progress. First five year plan was launched in 1951.
The Overall generation in the country has been increased from 1048.673 during 2014-15 to 1107.386 BU* during the year 2015-16. The Category wise generation performance is as follows:- Thermal Increased by 7.45 %, Hydro Reduced by 6.09 %, Nuclear Increased by 3.63 %. Overall leader of electricity generation in India is thermal power (68%) of total power generation in India.
PSUs may be classified as Central Public Sector Enterprises (CPSEs), public sector banks (PSBs) or State Level Public Enterprises (SLPEs). CPSEs are administered by the Ministry of Heavy Industries and Public Enterprises. As on 26 October, 2014, there are 7 Maharatnas and 17 Navratnas in India.
Indian economy is termed as the developing economy of the world. Some features like low per capita income, higher population below poverty line, poor infrastructure, agriculture based economy and lower rate of capital formation, tagged it as a developing economy in the world.
The Complete Study Material of “Indian Economy” is segmented into 5 Sections to streamline the learning process for all students who are at a learning stage with the reference of NCERT economics book and some other academic books.
The finance commission is constituted by the president of India under the provision of article 280 of the Indian constitution for five years. It decides the share of states in the total tax collection of the centre government. The 14th finance commission is headed by the former RBI governor Mr. Y.V. Reddy.
The Group of Eight (G-8) refers to the group of eight highly industrialized nations—France, Germany, Italy, the United Kingdom, Japan, the United States, Canada, and Russia—that hold an annual meeting to foster consensus on global issues like economic growth and crisis management, global security, energy, and terrorism. The G6 was made up of France, Germany, Italy, Japan, the UK and America. It then changed to G7 when Canada joined in 1976 and G8 with Russia in 1998.
South Asian Preferential Trade Agreement (SAPTA- 1993) was envisaged primarily as the first step towards the transition to a South Asian Free Trade Area (SAFTA) leading subsequently towards a Customs Union, Common Market and Economic Union. In 1995, the Sixteenth session of the Council of Ministers (New Delhi, 18-19 December 1995) agreed on the need to strive for the realization of SAFTA. At the12th SAARC Summit (Jan. 4-6, 2004) at Islamabad, the Capital City of Pakistan, SAPTA became SAFTA. ASEAN (1967) is a union of South-East Asian Nations.