INDIAN ECONOMY

SELECT SLIDES OF CLASSES 8 &9

ECO (SV) PART IV (18 slides)

(Slides to read along with class notes)

Clarifications at sanjiv.verma@ymail.com

DISTRIBUTION OF SEZs IN INDIA

TRADE REFORMS
FERA(73)

Negative Intention
Resident (IT/FERA)
Authorized Person()
RBI approval
Restrictive /Prohibitive
Complex/Controls
Minimize / Conserve
Transfer
Criminal Offense

FEMA(99)

Trusted Intention
Resident (IT & FEMA)
Authorized Person( )
Current Account
Capital Account
Facilitative/ Easing
Convertible
Overseas Borrowings
EEFC Accounts
Enforcement Directorate

RATING AGENCIES-INDIA
CREDIT INFORMATION SYSTEM OF INDIA LIMITED (

CRISIL)
INVESTMENT INFORMATION & CREDIT RATING

AGENCY LTD (ICRA)

CREDIT & RESEARCH LTD (CARE)

SME RATING AGENCY (SMERA)

BRICKWORK RATINGS

RATING SCALE

EURO ZONE CRISIS

EURO ZONE CRISIS

INR /USD
60
FIXED EXCHANGE RATE

50

MKT EXCHANGE RATE

(Depreciation)

(Devaluation)

40
30

INR/USD

20
10
0

1947

1970

1980

1990

1993
2000

2010

2011

2012

Official Gold Holding of Countries

9000

8100

8000
7000
6000
5000
4000

3400

3000

Tonnes

2000

1000
0

560

765

935

1040

1050

BIMSTEC

CECA

CEPA

QUOTA AND VOTING RIGHTS AT IMF

(Members :188 Countries)
Brazil
(Quota SDR 4 billion)
(Voting 1.72%)

Russia
(Quota SDR 6 billion)
(Voting 2.39%)

India
(Quota SDR 6 billion)
(Voting 2.34%)

China
(quota 10 billion)
(Voting 3.81%)

US
(Quota SDR 42 billion)
(Voting 16.75%)
QUOTA BASED ON GDP(50%), OPENNESS(30%), ECONOMIC CONDITION (15%)
FOREX RESERVES (5%). TOTAL QUOTA INCREASED FROM SDR 238 to 477 BILLION

Global Financial Cooperation?

EMEs

DMEs

Persistent high inflation

Low inflation

High nominalYield

Low nominalYield

FPI outflow

FPI inflows

Currency depreciation

Currency appreciation

High Fiscal deficit, CAD

High Fiscal deficit, CAD

Reversal of growth

Revival of growth

Challenges of fostering global consensus

Crypto digital currency, mined

through computer generated
complex algorithms, with a
maximum of 21 million coins
upto 8 decimals. Central server
in Iceland

Can be used for transactions on a

peer-to-peer platform, on line,
without any payment gateways
also exchangeable .

Satoshi Nakamato
Un-regulated by any
Country or Central Bank
in public domain, completely
computer driven, bought
and sold with any currency, market
driven exchage rate,
can be stored in digital wallets.

Operated through public and

private key, confidentiality of
identity, no transaction cost, but
high degree of risk. Already
pony botnet virus stealing
digital wallets