Q1 Write a short note on the different characteristics of Indian Economy?

Ans-

Low Per Capita Real Income:

Real income refers to the country’s overall purchasing power in a given financial year. Per
capita real income, on the other hand, denotes the average individual’s purchasing power.
Developing nations often have a low per capita real income.

Rapid Population Growth:

A high population requires a robust infrastructure, including adequate educational and

The Vicious Circle of Poverty:

The vicious circle of poverty affects both the supply and demand side. On the supply side,
the lack of capital leads to low rates on investments, resulting in a low level of per capita
real income. On the demand side, when the country’s real income is low, goods and
services become expensive, leading to a vicious circle of poverty – a common phenomenon
in developing economies.

Q2. Discuss briefly about the policy of LPG in India ?

Ans – LPG Reforms, or Liberalization, Privatization, and Globalization reforms, refer to a set
of economic reforms introduced by the Indian government in 1991. These reforms were a
part of India’s New Economic Policy, which aimed to uplift the country economically. The
LPG Reforms contributed greatly to making India a globally integrated economy.

The LPG Reforms were introduced at a time when the Indian economy was facing a balance
of payment crisis. These reforms were introduced to promote economic growth and
improve India’s foreign exchange situation. The LPG Policy of 1991 provided a three-fold
structure of reforms, which comprised the following

Liberalization: The process of reducing state control over economic activity and reducing
restrictions such as tariffs.

Privatization: This part of the LPG Reforms required the transfer of ownership of
government businesses to private companies.
Globalization: The expansion of economic activities across the national border was also an
agenda of the LPG Policy. This move targeted an increase in trade with other countries and
integration with the global economy.

The pre-LPG Reform era in India had an obsolete, colonial economic policy that involved
high state interference in the market. India was a closed economy with little to no foreign
trade and very little private ownership. The LPG Policy aimed to place India in the global
economy by aligning its economic goals with global economic goals.

Q Write briefly the different stages of presentation and passing of the budget in India?

The budget in India is a financial statement that outlines the government’s revenue and
expenditure for the upcoming fiscal year. It is presented by the Finance Minister in the Lok
Sabha (lower house of the Parliament) on the first day of February every year. The budget is
then discussed and debated in both the Lok Sabha and the Rajya Sabha (upper house of
the Parliament). After the budget is passed by both houses of the Parliament, it becomes
law.

The different stages of presentation and passing of the budget in India are as follows:

1. Preparation of the budget:

The budget is prepared by the Ministry of Finance in consultation with various other
ministries and departments. The process of preparation of the budget begins in August-
September, about six months before the budget is presented.

2. Presentation of the budget:

The budget is presented by the Finance Minister in the Lok Sabha on the first day of
February every year. The Finance Minister makes a speech in which he outlines the
government’s revenue and expenditure for the upcoming fiscal year.

3. Discussion and debate on the budget:

After the budget is presented, it is discussed and debated in both the Lok Sabha and the
Rajya Sabha. Members of Parliament (MPs) can raise questions about the budget and
suggest changes.

4. Passing of the budget:

After the budget is discussed and debated, it is put to vote in both the Lok Sabha and the
Rajya Sabha. If the budget is passed by both houses of the Parliament, it becomes law.
The budget is a very important document as it outlines the government’s plans for the
upcoming fiscal year. It is also a tool that the government uses to implement its policies
and programs.

Q. Write a note on business journalism and the requirements of a business reporter?

Business journalism is a branch of journalism that covers the business world. It includes
news about companies, industries, and the economy. Business reporters track, analyze,
and interpret the business, economic and financial activities and changes that take place
in societies. They may also write about corporate procedures, ethics, or the leadership of a
company.

Business reporters need to have a strong understanding of business concepts and the
ability to think critically about the news. They should also be able to write clearly and
concisely, and they should be comfortable with deadlines.

Here are some of the requirements of a business reporter:

A bachelor’s degree in business, journalism, or a related field.

At least two years of experience reporting on business news.

Strong writing and communication skills.

The ability to understand and analyze complex financial data.

The ability to meet deadlines and work independently.

A strong knowledge of the business world and the industries they cover.

The ability to develop and maintain relationships with sources.

Business reporters play an important role in society by informing the public about the
business world. They help people to understand the economy, the financial markets, and
the companies that operate in them. Business reporters also hold businesses accountable
for their actions and help to ensure that they are operating in a fair and ethical manner.

Q. What is FDI ? Advantages and Disadvantage of FDI

Foreign direct investment (FDI) is a cross-border investment where a company or individual

Advantages of foreign direct investment:

Economic growth
The creation of jobs is the most obvious advantage of FDI, one of the most important
reasons why a nation (especially a developing one) will look to attract foreign direct
investment. FDI boosts the manufacturing and services sector which results in the creation
of jobs and helps to reduce unemployment rates in the country. Increased employment
translates to higher incomes and equips the population with more buying powers, boosting
the overall economy of a country.

Human capital development

Human capital involved the knowledge and competence of a workforce. Skills that
employees gain through training and experience can boost the education and human
capital of a specific country. Through a ripple effect, it can train human resources in other
sectors and companies.

Technology

Targeted countries and businesses receive access to the latest financing tools,
technologies, and operational practices from all across the world. The introduction of
newer and enhanced technologies results in company’s distribution into the local
economy, resulting in enhanced efficiency and effectiveness of the industry.

Increase in exports

Many goods produced by FDI have global markets, not solely domestic consumption. The
creation of 100% export oriented units help to assist FDI investors in boosting exports from
other countries.

Exchange rate stability

The flow of FDI into a country translates into a continuous flow of foreign exchange, helping
a country’s Central Bank maintain a prosperous reserve of foreign exchange which results
in stable exchange rates.

Improved Capital Flow

Inflow of capital is particularly beneficial for countries with limited domestic resources, as
well as for nations with restricted opportunities to raise funds in global capital markets.
Disadvantages of foreign direct investment:

Hindrance of domestic investment

Sometimes FDI can hinder domestic investment. Because of FDI, countries’ local
companies start losing interest to invest in their domestic products.

The risk from political changes

Other countries’ political movements can be changed constantly which could hamper the
investors.

Negative exchange rates

Foreign direct investments can sometimes affect exchange rates to the advantage of one
country and the detriment of another.

Higher costs

When investors invest in foreign counties, they might notice that it is more expensive than
when goods are exported. Often times, more money is invested into machinery and
intellectual property than in wages for local employees.

Economic non-viability

Considering that foreign direct investments may be capital-intensive from the point of view
of the investor, it can sometimes be very risky or economically non-viable.

Expropriation

Constant political changes can lead to expropriation. In this case, those countries’
governments will have control over investors’ property and assets.

Modern-day economic colonialism

Many third-world countries, or at least those with history of colonialism, worry that foreign
direct investment would result in some kind of modern-day economic colonialism, which
exposes host countries and leave them vulnerable to foreign companies’ exploitation.

Poor performance

Multinationals have been criticized for poor working conditions in foreign factories.
Q. Discuss briefly the different proverty eradication programmes in India ?

Ans – Poverty alleviation programmes in India

Poverty alleviation is described as the set of ways framed by the government to deal with
the issue of poverty. The main intention is to hoist people out of the grasps of poverty.
Various schemes have been undertaken by the government to eliminate this evil of poverty
from our country. Moreover, due to the lack of infrastructure and other basic facilities in the
rural areas, the extent of poverty in rural households is more than the metropolitan ones.
Some of the poverty alleviation programmes launched by the Indian government are:

1. Integrated Rural Development Programme(IRDP)

IRDP is one of the driving schemes of poverty alleviation programmes that has bestowed a
lot in ridding the evil of deprivation to some extent. Introduced in 1978-79, the major
objective of the scheme stands as providing self-employment to the target audience that
exists below the poverty line. This target group includes agricultural labourers, small and
marginal farmers and rural artisans. In addition, inclusions are compelled where 50% is
allotted to the scheduled castes and tribes.

2. Jawahar Gram Samridhi Yojana

The above scheme is the reformation of the Jawahar Rozgar Yojana. Currently, this
programme is known by the name of Sampoorna Grameen Rozgar Yojana. Under this, the
matter-of-fact is generating demand-driven communities in the rural areas with the
rationale of employing the people. Employment is provided to those living below the
poverty line defined by the government. Furthermore, 3% has been allocated to providing
barrier-free infrastructure to those people who are disabled.

3. Pradhan Mantri Grameen Awaas Yojana

Launched in the year 2015, the above programme is one of the most flourishing schemes
under the poverty alleviation programmes initiated by the government. The main aim is to
provide free houses for the people living in the rural areas that are considered BPL. Here,
the advancement is made through the subsidy process, involvement of the private sector
and reasonable housing to the people at subsidized rates.

4. National Social Assistance Programme (NSAP)

The programme was launched in the year 1995, with its main objective of giving social
security to the neglected categories of the society i.e., widows, disabled persons, aged
persons belonging to the BPL section of the society. There are three schemes under this
particular programme:
National Old Age Pension Scheme

This provides pensions to the people who are contemplated as destitute. The main purpose
of this scheme is to bestow social security to the eligible beneficiaries. In this, the
beneficiaries don’t have to contribute at the first phase to receive this pension under the
National Old Age Pension Scheme.

National Maternity Benefit Scheme

The government provides funds under this scheme to the women for their prenatal and
postnatal sustenance. This financial grant is given to those women belonging to families
that aren’t well financially. The person gets cash-based aid directly from the government.

National Family Benefit Scheme

The funds are provided to those families whose main wage earner dies due to any reason.
Under this, a sum of 10,000 is provided to the household.

5. Annapurna

The scheme had its initial enactment in 1999-2000 where its main aim has always been to
provide a nutritional diet to the senior citizens who are unable to do that for themselves.
This scheme under the poverty alleviation programme provides 10 kg of free nutritional diet
every month for the aged citizens of the above classification.

Q. Define Inflation?

Inflation is a general increase in the prices of goods and services in an economy. It’s usually
measured using the consumer price index.Inflation causes the purchasing power of a
currency to decline, making a representative basket of goods and services increasingly
more expensive.

Q. What is IMR and MMR ?

IMR stands for Infant Mortality Rate, and MMR stands for Maternal Mortality What

IMR is the number of deaths per 1,000 live births that occur before the age of one. MMR is
the number of maternal deaths per 100,000 live births.

The Ministry of Health and Family Welfare (MoHFW) is working to reduce IMR and MMR by
supporting states and union territories in implementing the Reproductive, Maternal, New-
born, Child, Adolescent health and Nutrition (RMNCAH+N) strategy.
Q. What is Sensex ?

It stands for Stock Exchange Sensitive Index. It is a stock market index that is made up of
the 30 biggest and most actively traded stocks on the Bombay Stock Exchange (BSE). It is
often considered the benchmark index for the Indian equity market

The term “Sensex” is a combination of the words “Sensitive” and “Index” and was coined by
stock market expert Deepak Mohini. It was launched on January 1, 1986.

Sensex is calculated using the free-float market capitalization method and is used as a
benchmark to gauge the overall health of the Indian stock market.