Eco Survey 2021-22 Part-2-Economy(6th May)

 

Economy

Eco Survey 2021-22 Part-2

• State of the Economy
• Fiscal Developments
• External Sector
• Monetary Management and Financial Intermediation
• Prices and Inflation
• Sustainable Development and Climate Change
• Agriculture and Food Management
• Industry and Infrastructure
• Services
• Social Infrastructure and Employment

27. Repo And Reverse Repo Rate

28. Monetary Aggregates

• M0 = Currency in Circulation + Bankers’ Deposits with RBI + Other deposits with RBI
• M1 = Currency with public + Demand deposits with the Banking system (current account, saving account) + Other deposits with RBI

29. Money Multiplier

• The multiple in which the banking system can expand deposits received in the form of base money into broad money is called money multiplier.
• The gap between MM and adjusted MM reflects parking of funds by banks under the reverse repo window of the RBI and to some extent a weak credit creation process.

30. Liquidity Conditions

31. GNPA and NNPA

• GNPA=Total value of gross non-performing assets for the bank.
• NNPA subtracts the provisions made by the bank from the gross NPA.

32. National Asset Reconstruction Company Limited

• To consolidate and take over the existing stressed debt and then manage and dispose of the assets to Alternate Investment Funds and other potential investors for eventual value realization.
• NARCL will majorly be owned by Public Sector Banks.
• Canara bank is the Sponsor with shareholding of upto 12 per cent.
• NARCL will acquire assets by making an offer to the lead bank and the lead bank with an offer in hand (of NARCL) will run a ‘Swiss Challenge’ process wherein other interested ARCs / Bidders will be invited to better the anchor offer made by NARCL.

33. Weighted Average Lending Rate (WALR)

34. Bank Credit Growth

35. MSCI Emerging Markets Index

• The MSCI Emerging Markets Index captures large and mid cap representation across 24 Emerging Markets (EM) countries.
• The MSCI EM index covers 1420 listed entities across emerging market economies.
• Many global institutional investors use MSCI’s EM Index and several such indices covering other markets and themes as part of their passive investment strategy allocating capital in line with the benchmark indices.
• India’s weight in the MSCI EM Index plays an important role in attracting FPI investments in its equity market.

 

36. Insurance Penetration And Insurance Density

• Insurance penetration is measured as the percentage of insurance premiums to GDP.
• Insurance density is calculated as the ratio of premiums to population.
• The insurance density in India increased from $11.5 in 2001 to $78 in 2020.
• In 2020, density for Life insurance in India is $59 and Non-Life insurance is $19, much lower than global standards.
• Globally, insurance density was $360 for the life segment and $449 for the non-life segment respectively in 2020.

37. Corporate Insolvency Resolution Process

• The Corporate Insolvency Resolution Process (‘CIRP’) is a recovery mechanism for the creditors of a corporate debtor.
• A corporate debtor means a company or Limited Liability Partnership (‘LLP’) that owes a debt to its creditors.

38. Inflation Trends

• Headline inflation refers to the change in value of all goods in the basket.
• Core inflation excludes food and fuel items from headline inflation.

39. Retail Core and ‘Refined Core’ Inflation

40. CPI (Base 2012)

41. Miscellaneous Group

• During 2021-22 (April-December), the ‘miscellaneous’ group by accounting for around 35 per cent of overall inflation has been important driver of retail inflation.
• Within this group, high inflation in subgroup ‘transport and communication’ driven mainly by inflation in petrol and diesel for vehicle, have been contributing significantly.
• ‘Clothing and footwear’ inflation also saw a rising trend during the current financial year possibly indicating higher production and input costs (including imported inputs) as well as due to revival of consumer demand.

42. Inflation in ‘Oils and fats’ subgroup

• India imports around 60 per cent of its consumption of edible oils’, and Palm oils (Crude + Refined) constitutes around 60 per cent of the imports of edible oils (PIB, 2021).
• The rise in oils component of Food and Agriculture Organisation’s (FAO) food price index from May 2020 onwards has been steep, and reached a 10-year high due to robust global import demand amidst the shortages over migrant labour impacting production in Malaysia

43. Import of Edible oils

44. PDS Kerosene Prices

45. Trend in WPI

47. Divergence between inflation in CPI and WPI

• Global crude oil prices reached record lows due to lack of demand
• Economic activity picking up
• High retail inflation due to supply chain disruptions and high food inflation
• Base Effect

48. International Commodity Price Indices

49. National Housing Bank (NHB) RESIDEX HPI

• Base: 2017- 18
• Captures the prices of residential housing properties for the transactions through primary lending institutions.
• Initiative of the National Housing Bank (NHB) undertaken at the behest of the Ministry of Finance.
• It aims to provide guidance to stakeholders, not only in terms of a macroeconomic index, but also in the form of quarterly updated prices at a neighbourhood level.
• Aspires to bring in greater transparency into India’s real estate markets by providing more structure, science, and discipline to property valuation

50. Pharmaceutical Pricing

• Government regulates pricing of drugs to ensure availability and accessibility of medicines at affordable prices.
• National Pharmaceutical Pricing Authority (NPPA), an attached office of the Department of Pharmaceuticals (DoP), is mandated to regulate the prices of drugs.
• Ceiling prices for 355 medicines and 886 formulations were fixed for medicines under National List of Essential Medicines, 2015 (Schedule-I of Drug Price Control Order (DPCO), 2013) until 31 December 2021.

 

51. NITI Aayog SDG India Index Report

 

 

52. Performance of States and UTs on SDG Index, 2021

53. Top Ten Countries by Forest Area

54. Forest Cover of India

55. Plastic Waste Management and Elimination of Identified Single Use Plastics

• Plastic Waste Management Amendment Rules, 2021 prohibiting identified single use plastic items, which have low utility and high littering potential, by 2022.
• The thickness of plastic carry bags has been increased.
• For effective implementation of Extended Producer Responsibility the Guidelines for Extended Producer Responsibility being brought out.
• Swachh Bharat Mission.
• A National Level Taskforce: All States/UTs and concerned central ministries are members of the National Task Force.

57. Minimizing Air Pollution

• BS-IV to BS-VI norms for fuel and vehicles since April, 2020.
• There is ban on use of imported pet coke in the country since July 2018, with exception for permitted processes.
• Six waste management rules covering solid waste, plastic waste, e-waste, bio-medical waste, construction and demolition waste and hazardous waste have been notified.
• Air quality monitoring network of manual as well as continuous monitoring stations expanded.

58. Average Annual Air Quality Index

59. National Missions under NAPCC

• National Solar Mission (NSM)
• National Mission for Enhanced Energy Efficiency (NMEEE)
• National Mission for a Green India (GIM)
• National Mission on Sustainable Habitat (NMSH)
• National Water Mission (NWM)
• National Mission for Sustainable Agriculture
• National Mission for Sustaining Himalayan Ecosystems
• National Mission on Strategic Knowledge for Climate Change (NMSKCC)

 

60. Finance For Sustainable Development

• In May 2021, the Reserve Bank of India (RBI) set up a new unit–‘Sustainable Finance Group’ (SFG) within its Department of Regulation for leading the regulatory initiatives in the areas of sustainable finance and climate risk.
• In January 2021, a Task Force on Sustainable Finance has been set up by the Department of Economic Affairs, Ministry of Finance, Government of India.
• RBI joined the Central Banks and Supervisors Network for Greening the Financial System (NGFS) as a member on April 23rd, 2021 and has begun participating in the work streams of the NGFS.
• RBI is a member of a Task Force on Climate-related Financial Risks set up by the Basel Committee on Banking Supervision, and the International Platform on Sustainable Finance.