The Monetary Policy Committee (MPC) is a committee of the Central Bank in India (Reserve Bank of India), headed by its Governor, which is entrusted with the task of fixing the benchmark policy interest rate (repo rate) to contain inflation within the specified target level i.e. inflation targeting. The Reserve Bank of India Act, 1934… Continue reading What is Monetary Policy Committee (MPC) and inflation targeting?
Author: ForumIAS
Qatar Issue and India
Current Issue Four Arab countries out of which three are also the members of Gulf Cooperation Council – Saudi Arabia, the United Arab Emirates and Bahrain along with Egypt severed diplomatic ties with Qatar as well as suspended land, sea, air travel routes to and from the country. The Persian Gulf and its coastal areas… Continue reading Qatar Issue and India
Amendment of Banking Regulation Act, 1949
President Pranab Mukherjee approved an ordinance to amend the Banking Regulation Act, 1949 to give more powers to the Reserve Bank of India to take action against defaulters to solve the NPA crisis. The ordinance gives the RBI powers to issue directions to any bank to initiate insolvency resolution process in case of default, issue… Continue reading Amendment of Banking Regulation Act, 1949
India – Europe: Trade and Ties
Context: Prime Minister Narendra Modi was in Europe last week to galvanise India’s ties with key European powers as well as to keep the momentum of his past visit to Europe 23 Background The Republic of India maintains an ongoing dialogue with the supranational Institutions of the European Union which is separate from the… Continue reading India – Europe: Trade and Ties
India Africa relations
BRIDGING THE GAP: India and Africa in association with African Development Bank Context The recent annual meeting of African Development Bank (AfDB) from May 22nd to 26th, 2017, at Gandhinagar, Gujarat, witnessed a powerful Indo-African political and business relation. The gathering confirmed Africa’s growing interest in connecting more extensively with India Inc. The President’s, the… Continue reading India Africa relations
India EU – Free Trade Agreement Talks
Why most of the countries are signing FTAs? Countries sign and negotiate ion FTAs for many reasons. By eliminating tariffs and some non-tariff barriers FTA partners get easier market access into one another’s markets. Exporters prefer FTAs to multilateral trade liberalization because they get preferential treatment over non-FTA member country competitors. FTA: India – EU India and the EU first started negotiations in… Continue reading India EU – Free Trade Agreement Talks
Aadhaar Project
What is Aadhaar? The Aadhaar is the brand name of the Unique Identification Number that the Unique Identification Authority of India (UIDAI) issues to every resident of India. It is a twelve digit number which is linked the resident’s demographic and biometric information Each number relates to a set of information stored in a centralized… Continue reading Aadhaar Project
Privatization of Air India
Privatization of Air India In 2000–01, attempts were made to re-privatize Air India. In 2007, Air India and Indian Airlines were merged under Air India Limited The combined losses for Air India and Indian Airlines in 2006–07 were 7.7 billion and after the merger, it went up to 72 billion by March 2009. By March… Continue reading Privatization of Air India
Monetary Policy Committee (MPC) and inflation targeting
What is the Need for Inflation Targeting? Inflation targeting advocates the objective of price stability in actual monetary policy arrangement. Adopting price stability as a primary objective creates a stable non-inflationary environment for resource allocation. Inflation targeting will stabilize price expectations which are an essential requirement to keep in control the volatility of price changes.… Continue reading Monetary Policy Committee (MPC) and inflation targeting
How bad are India’s Bad Loans: NPA Crisis?
Context: The Prime Minister’s Office has called a meeting of senior officials of the ministries of finance and corporate affairs recently to review the progress in resolution of non-performing assets (NPAs) in the light of recent action taken by the Reserve Bank on stressed assets. Background: India’s public sector banks and leading corporate have too… Continue reading How bad are India’s Bad Loans: NPA Crisis?
