Indian Economy Previous Year Questions (PYQ) with Answers – Page 18

Liberalisation means freeing economic activity from government controls: industrial licences, import licences and quantitative restrictions, ceilings on investment and administered interest rates.

He became Prime Minister in June 1991, in the middle of the balance of payments crisis, and his government devalued the rupee, borrowed from the International Monetary Fund and announced the New Economic Policy of liberalisation, privatisation and globalisation, with the Statement on Industrial Policy issued on 24 July 1991.

Under the composite criteria notified in 2020, an enterprise with investment in plant, machinery or equipment up to one crore rupees and turnover up to five crore rupees is a micro enterprise, and the same ceilings apply whether it manufactures goods or renders services.

Parliament passed the Life Insurance Corporation Act in 1956, and the Life Insurance Corporation of India began work on 1 September that year, after the life insurance business of 245 private insurers and provident societies was taken over and merged into it.

Amul grew out of the Kaira District Co-operative Milk Producers' Union, started at Anand in Gujarat in 1946 when the farmers of Kheda district organised against the low prices paid to them by middlemen.

The Mahatma Gandhi National Rural Employment Guarantee Act, 2005 promises every rural household at least 100 days of unskilled manual wage work in a financial year.

The International Bank for Reconstruction and Development (IBRD) is the oldest arm of the World Bank Group and the body people mean when they say 'World Bank'.

The Bombay Stock Exchange is the oldest stock exchange in India and in Asia.

The Bombay Stock Exchange became the first stock exchange in India to enter commodity derivatives when it launched futures contracts in gold and silver on 1 October 2018.

The SENSEX tracks thirty large, well traded companies listed on the BSE. The name is short for Sensitive Index.

SIDBI is the apex institution for micro, small and medium enterprises. It was set up in 1990 under an Act of Parliament, began work on 2 April that year, and has its head office at Lucknow.

It is a private sector joint venture, not a public sector insurer. SBI Life was set up in 2001 as a partnership between the State Bank of India and BNP Paribas Cardif of France.

Gross domestic product, or GDP, is the money value of all final goods and services produced inside the borders of a country in one year.

The Foreign Exchange Management Act was passed in 1999 and came into force on 1 June 2000, replacing the Foreign Exchange Regulation Act of 1973.

Value added tax replaced the old general sales tax from 1 April 2005, when most states adopted it on the recommendation of the empowered committee of state finance ministers.

IBM and Coca-Cola wound up their Indian operations in 1977 rather than dilute their holdings to 40 per cent. The Foreign Exchange Regulation Act, passed in 1973, required foreign companies to cut their equity in Indian subsidiaries to that level and to obtain permission for most dealings in foreign exchange.

Gross Domestic Product counts the value of final goods and services produced inside a country during a year. Only final output is added, because the value of intermediate goods is already inside the price of the finished product, and counting both would be double counting.

Net Domestic Product is what is left of the domestic product after setting aside the wear and tear of capital.

The Index of Industrial Production (IIP) covers only three sectors: mining, manufacturing and electricity.

The Cash Reserve Ratio (CRR) is the share of a bank's deposits that it must keep with the Reserve Bank of India in cash, and the bank earns no interest on this money.