What is it? Inverted duty structure is a situation where import duty on finished goods is low compared to the import duty on raw materials that are used in the production of such finished goods. For example, suppose the tariff …
About CPI It is an index which measures the weighted average of prices of a basket of consumer goods and services such as transportation, food and medical care. It is calculated by measuring price changes for each item in the …
Context: The states are urging the centre to work in the spirit of cooperative federalism. Why so? There is a huge gap between what the 14th Finance Commission promised to the States and what they have received. According to a …
What is a Fiscal council? Fiscal councils are independent public institutions aimed at strengthening commitments to sustainable public finances through various functions, including public assessments of fiscal plans and performance, and the evaluation or provision of macroeconomic and budgetary forecasts. …
About AIIB The Asian Infrastructure Investment Bank (AIIB) is an international development bank that provides financing for infrastructure projects in Asia. Headquartered in Beijing, it began operations in 2016. It includes 102 members worldwide (India is a founder member of …
About ECA The Essential Commodities Act (ECA) was enacted by the Central Government in 1955 to control and regulate trade and prices of commodities declared essential under the Act. The Act empowers the Central and state governments concurrently to control …
What is it? Operation Twist is an initiative of the RBI that aims to control long-term bond yields and bring down interest rates on long-term borrowing. It is a monetary policy intervention by the central bank, conducted through Open Market …
What’s in the news? According to the latest government data, India’s trade deficit with China fell to $48.66 billion in 2019-20 on account of the decline in imports from the neighbouring country. Exports to China in the last financial year …
Context: The United Nations Conference on Trade and Development has released its latest World Investment Report and projected that FDI to developing Asian economies could drop by as much as 45%. However, even in the midst of the COVID-19 pandemic, …
About FRBM Act Fiscal Responsibility and Budget Management (FRBM) Act was enacted in 2003 which set targets for the government to reduce fiscal deficits. It was mandated that both states and centre would cut the fiscal deficit to 3% by …