RBI Grade B 2019 Preparation

Revival of economy from slowdown...IMPORTANT For Rbi Gr B Exam 2019 As per the estimates available from Central Statistics Office, Growth of Gross Domestic Product (GDP) at constant prices was 6.8 per cent in 2018-19, lower as compared to 7.2 per cent in 2017-18. However, the growth of investment picked up along with higher capacity utilization in manufacturing sector and higher growth of private consumption in 2018-19. The growth in fixed investment picked up from 9.3 per cent in 2017-18 to 10.0 per cent in 2018-19. The 44th round of the Order Books, Inventories and Capacity Utilisation Survey conducted by Reserve Bank of India, shows a gradual improvement with higher capacity utilization in the manufacturing sector in first three quarters of 2018-19 (the latest data available), as compared to corresponding quarters of previous year. The growth of private final consumption expenditure was 8.1 per cent in 2018-19, as compared to 7.4 per cent in 2017-18. The production growth in manufacturing sector as measured by growth of index of industrial production (IIP) - manufacturing, however, slowed down to 3.5 per cent in 2018-19 from 4.6 per cent in 2017-18. Data from Employee Provident Fund Organization indicates increase in the net employment generation in the formal sector from 4.86 lakh in February 2018 to 10.43 lakh in April 2019. The Periodic Labour Force Survey (PLFS) report estimates the unemployment rate in India at 6.1 per cent as per usual status basis and 8.9 per cent as per current weekly status basis in 2017-18. However, PLFS unemployment rates cannot be compared to the unemployment rates estimated in reports of previous years, as such reports are not comparable to PLFS report in terms of the methodology used in estimating the unemployment rates. Various Proposals/ representations/ suggestions relating to the amendments in tax laws are examined at the time of the preparation of the Finance Bill and the outcome of the same is reflected in the Finance Bill tabled before the Parliament. Economic growth is high on the agenda of the Government. Various reforms are being undertaken by the Government in many spheres to improve GDP growth. The key reforms in Government’s new term include expansion to all farmers the cash transfer scheme “PM-Kisan” providing an income support of Rs.6000/- per year, which was earlier limited to farmers with a land holding of less than 2 hectares. Along with this, Government has also launched voluntary pension scheme for small and marginal farmers and small shopkeepers or retail traders. Further to give focused attention to issues of growth, the Government has constituted a five-member cabinet committee on investment and growth chaired by Hon’ble Prime Minister. Earlier measures taken by the Government for growth promotion, inter-alia, include historic support and outreach programme for the Micro, Small and Medium Enterprises (MSME) sector, expansion and facilitation of MSMEs across the country, liberalization of FDI policy and introduction of the Goods and Services Tax. The Government aims at creating a conducive environment for manufacturing sector by streamlining the existing regulations and processes. ‘Make in India’ programme has been launched which aims at making India a global hub for manufacturing, research & innovation and an integral part of the global supply chain. Several steps to boost domestic manufacturing are being taken as part of schemes such as ‘Startup India’, ‘Ease of Doing Business’, Business Reform Action Plan, Intellectual Property Rights (IPR) policy etc. MORE FREE UPDATES AT https://www.facebook.com/rbigradebcoachingbydassir/

Revival of economy from slowdown...IMPORTANT For Rbi Gr B Exam 2019 As per the estimates available from Central Statistics Office, Growth of Gross Domestic Product (GDP) at constant prices was 6.8 per cent in 2018-19, lower as compared to 7.2 per cent in 2017-18. However, the growth of investment picked up along with higher capacity utilization in manufacturing sector and higher growth of private consumption in 2018-19. The growth in fixed investment picked up from 9.3 per cent in 2017-18 to 10.0 per cent in 2018-19. The 44th round of the Order Books, Inventories and Capacity Utilisation Survey conducted by Reserve Bank of India, shows a gradual improvement with higher capacity utilization in the manufacturing sector in first three quarters of 2018-19 (the latest data available), as compared to corresponding quarters of previous year. The growth of private final consumption expenditure was 8.1 per cent in 2018-19, as compared to 7.4 per cent in 2017-18. The production growth in manufacturing sector as measured by growth of index of industrial production (IIP) - manufacturing, however, slowed down to 3.5 per cent in 2018-19 from 4.6 per cent in 2017-18. Data from Employee Provident Fund Organization indicates increase in the net employment generation in the formal sector from 4.86 lakh in February 2018 to 10.43 lakh in April 2019. The Periodic Labour Force Survey (PLFS) report estimates the unemployment rate in India at 6.1 per cent as per usual status basis and 8.9 per cent as per current weekly status basis in 2017-18. However, PLFS unemployment rates cannot be compared to the unemployment rates estimated in reports of previous years, as such reports are not comparable to PLFS report in terms of the methodology used in estimating the unemployment rates. Various Proposals/ representations/ suggestions relating to the amendments in tax laws are examined at the time of the preparation of the Finance Bill and the outcome of the same is reflected in the Finance Bill tabled before the Parliament. Economic growth is high on the agenda of the Government. Various reforms are being undertaken by the Government in many spheres to improve GDP growth. The key reforms in Government’s new term include expansion to all farmers the cash transfer scheme “PM-Kisan” providing an income support of Rs.6000/- per year, which was earlier limited to farmers with a land holding of less than 2 hectares. Along with this, Government has also launched voluntary pension scheme for small and marginal farmers and small shopkeepers or retail traders. Further to give focused attention to issues of growth, the Government has constituted a five-member cabinet committee on investment and growth chaired by Hon’ble Prime Minister. Earlier measures taken by the Government for growth promotion, inter-alia, include historic support and outreach programme for the Micro, Small and Medium Enterprises (MSME) sector, expansion and facilitation of MSMEs across the country, liberalization of FDI policy and introduction of the Goods and Services Tax. The Government aims at creating a conducive environment for manufacturing sector by streamlining the existing regulations and processes. ‘Make in India’ programme has been launched which aims at making India a global hub for manufacturing, research & innovation and an integral part of the global supply chain. Several steps to boost domestic manufacturing are being taken as part of schemes such as ‘Startup India’, ‘Ease of Doing Business’, Business Reform Action Plan, Intellectual Property Rights (IPR) policy etc. MORE FREE UPDATES AT https://www.facebook.com/rbigradebcoachingbydassir/

 Highlights of economic survey 2018-19

*Survey sees FY20 GDP growth at 7%, higher growth on stables macros.
* India needs to grow at 8% per year to be $5 trillion economy by FY25.
* Survey suggests diplomatic type privileges, naming roads for top taxpayers
* It recommends a renewed focus on pushing up exports.
*Govt should foster the growth of large firms instead of focusing on smaller firms.
* Use public data to revolutionise development in the country.
*Looking beyond the economics of equilibrium, survey makes case for investment-driven “virtuous cycle” to sustain growth at 8%.
* Investment the "key driver" of simultaneous growth in demand, jobs, exports & productivity
* Green shoots in investment activity seems to taking hold.
* Rural wage growth started increasing since mid-2018.
* Political stability should push the animal spirits of economy.
* Poor enforcement of contracts and dispute resolution is a big hurdle. Faster legal process should be top priority.
* Savings & growth are positively co-related. Savings must increase more than investment.
* Constant recalibration based on real time data. Data must be created as a public good “of the people, by the people, for the people.
* Survey argues that nudging behaviour change is simplest way to solve many social issues.
* Top policymakers must ensure actions are predictable. Policymaking needs: 1. Clear Vision 2. Strategic blueprint 3. Tactical tools for constant recalibration
* Success of MGNREGS shows govt schemes can make a difference on the ground with skilful use of technology
* A minimum wage policy for bottom rung of wage earners to drive up demand and strengthening the middle class.
* Indian MSMEs need to be freed from shackles that convert them into dwarfs. MSMEs need to be seen as a source of innovation, growth and job creation.
* Policy should enable MSMEs to grow, create greater profits for their owners and contribute to job creation and productivity in the economy .
* India needs to increase per capita energy consumption to raise real per capita GDP by US$ 5000 and improve its HDI ranking.
* The Survey is inspired by Gandhiji's Talisman: “…Recall the face of the poorest man [woman], and ask yourself, if the step you contemplate is going to be of any use to him [her].
* India will enjoy the “demographic dividend” phase in the next two decades but some states will start transitioning to an ageing society by the 2030s.
* India moving forward from Swachch Bharat to Swasth and Sundar Bharat.
* The Survey visualises creating a Detroit for Electric Vehicles in India.
*Ease labour laws to spur job growth.
* The Survey seeks reform in lower judiciary
* Govt stands by the fiscal consolidation path.
* Jan-March economic slowdown due to poll related related activity.
* Greenshoots in investment seems to be taking hold.
* NBFC stress reason for FY19 slowdown.
* Decline in NPAs should push up CAPEX cycle.
* General fiscal deficit seen at 5.8% in FY19 VS 6.4% in FY18.
* Investment rate seen higher in FY20 on improved demand.
* Oil prices seen declining in FY20.
*Accomodative MPC policy to help cut real lending rates.
www.facebook.com/groups/rbi.grade.b.prelim.main