|Industrial Policies since independence-|
|Industrial Policy Resolution (IPR) of 1948-||
|Industries (Development & Regulation) Act, 1951-||
|Industrial Policy Resolution (IPR), 1956-||
|Industrial Policy Statement of 1973-||
|Industrial Policy Statement of 1977-||
|Industrial Policy Statement of 1980-||
|Major features of pre-1991 policies-||
|New Industrial Policy, 1991-||
|Government licensing required at present for-||
|Sectors reserved for the Public sector at present-||
|National Investment and Manufacturing Zones (NIMZ)-||
|Make in India-||
Tools to measure the performance of Industries-
|Index of Industrial Production (IIP)-||
|Index of Eight Core Industries-||
|Annual Survey of Industries-||
|Purchasing Managers Index (PMI)-||
|External Sector||It deals with export and import of goods and services, and financial capital between nations.|
|Balance of Payment||A systematic record of all economic transactions with the outside world in a given year.
Current Account– transactions are single time and one way transactions
Capital account– transactions are two way and multiple transactions.
Errors and Omission– the difference between debit and credit entries of all transactions.
Balance of Payment = Current Account Balance + Capital Account Balance + Errors and Omission.
Reserves– It means foreign exchange reserve. It consists of Foreign Currency Assets, Gold Stock of RBI, SDR (Special Drawing Rights), Reserve Trance
Accommodative Transactions– transactions that take place to cover deficit (or surplus) arising from autonomous transactions.
Autonomous Transactions–transactions that take place for economic motives like earning income and profit maximization.
Import cover– reserves is a traditional trade-based indicator of reserve adequacy.
|Foreign Exchange||Exchange Rate– rate at which home currency is exchanged for one unit of foreign currency.
Depreciation–fall in the external value of domestic currency because of additional demand for foreign currency or excess supply of domestic currency
Appreciation–increase in the external value of domestic currency because of additional demand for home currency or excess supply of foreign currency
Devaluation–Reduction in the external value of home currency.
Revaluation–Increase in the external value of home currency.
|Purchasing Power Parity||Refers to the equality of buying capacity. Based on the buying capacity, the exchange rate is determined|
|Convertibility||Facility of exchanging domestic currency for foreign currency at market-determined exchange rate without restriction on either rate or quantum of money exchange
Liberalized Remittance Scheme– facility provided by the RBI for all resident individuals to freely remit up to a certain amount in terms of US Dollar for current and capital account purposes or a combination of both.
|Barriers to Trade||Tariff Barriers–duty on import and export of goods.
Non-Tariff Barriers–instruments and executive operations that obstruct free flow of trade other than tariff. Various forms are Quota, Production Subsidies, Export Subsidies, Health, Sanitary and Safety Regulations, Packaging Requirements
|Economic Integration||Refers to the cooperation that exists between countries in the trade and other economic fronts such as investment, monetary policy etc. Various forms are Preferential Trade Agreement (PTA), Free Trade Agreement/ Area (FTA), Customs Union (CU), Common Market (CM), Economic and Monetary Union (EMU)|
|Related Terms||Comparative Advantage– A country has to produce and export the goods in which it has a comparative advantage.
Rule of Origin–determined by two criteria namely, i) value addition or local content requirement and ii) change of tariff heading at four digit level.
Debt Service Ratio–The amount of a country’s debt service as a ratio of its total export earning.
|WTO||The international organization established to promote multilateral trade. It is the successor to the erstwhile GATT (General Agreement on Tariffs and Trade).|
|From GATT to WTO||Under the aegis of GATT, eight rounds of negotiations were held between 1986 and 1994 among members. The last one was Uruguay round as a result of which WTO has been established.|
|Principles of WTO||Most Favoured Nation and National Treatment|
|Structure of WTO||Ministerial Conference, General Conference, General Council acts as Dispute Settlement Body (DSB) and Trade Policy Review Body, Council for Trade in Goods called Goods Council, Council for Trade in Service called Service Council, TRIPS Council|
|Agreements||WTO Agreement, Agreement on Agriculture, Trade-Related Aspects of Intellectual Property Rights (TRIPS), Trade-Related Aspects of Investment Measures (TRIMS), General on Trade in Services (GATS), Agreement on the Application of Sanitary and Phytosanitary Measures, Trade Facilitation Agreement, Uruguay round|
|WTO Rounds||Uruguay round, Doha Round|
|Related Terms||Peace Clause–clause restraints other countries from taking countermeasures against some of the subsidies given like Green Box Subsidies.
Swiss Formula–calls for higher rate of reduction for countries which have higher initial tariff and lower rate for countries which have lower initial tariff.
|JTax Haven||Offshore country that offers foreign individuals and businesses little or no tax liability.|
|Protectionism||Economic policy of restraining trade between nations through qualitative and quantitative methods.|
|Safeguard duty||Used when imports of a particular product increases unexpectedly to a point that they cause or threaten to cause serious injury to domestic producers|
|Non-violation Complaint||In some situations a government can go to the Dispute Settlement Body even when an agreement has not been violated|
|Sunset clause||measure within a law, regulation or statute that provides that the law shall cease to have effect after a specific date|
|Double Taxation Avoidance Agreement||Tax treaty signed between two or more countries so that tax-payers in these countries can avoid being taxed twice for the same income.|
|Shell company||Companies without active business operations or significant assets.|
|Delisting of Shares||Stock is removed from exchange when it fails to meet the requirements.|
|Inward Remittances, RDA and MTSS||Transfer of money from a foreign worker to their individuals in their home countries.
Channel to receive cross-border remittances from overseas jurisdictions.
|Export Import Bank of India (Exim Bank)||Established in 1982 under an Act of Parliament for financing, facilitating and promoting India’s international trade. Regulated by RBI|
|Export Credit Guarantee Corporation (ECGC)||Company wholly owned by the Government of India that provides export credit insurance support to Indian exporters. Controlled by the Ministry of Commerce.|
|World Customs Organization||Established in 1952 as Customs Co-operation Council (CCC). Independent intergovernmental body to enhance effectiveness and efficiency of Customs administrations.|
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