Recap / overview

•major concepts of economy req. for

understanding budget

Budget-2023 announcements
1) MBFI 2) Budget 3) Intl. Trade

•EXCEPT taxation

detailed lectures

•budget, economic survey, annual eco

4) Sectors of
Economy 5) Infrastructure 6) HRD current
•FREE Win23 Series classes
•TODAY's just recap before it.
 ✅Class11 India’s ✋NCERT Class12 Macro ✋NCERT Class12 Micro
Economic Dev = Yes. To Economics Economics
develop vocabulary

✋NCERT Class10 ✋NCERT Class9 ✋ Tamilnadu 11-12

Their important topics covered within handout

✅Newspaper: Read ✅Economic Survey ONLY ✅Yojana Kurukshetra: ONLY ✋NITI Aayog Report
but DONOT MAKE INTRODUCTION- Conclusion of Preface of last two years. AFTER India@75 because
NOTES for Economy Vol1. AFTER course is OVER course is OVER Topper said so.Its
already in HDT

✋India Yearbook ✋Government ✋Economy books by ✋Dutt Sundram,

2022- Economy Schemes- covered SriramIAS, Ramesh Singh, Mishra Puri, Uma
covered within within Handout Nitin Singhaniya, etc Kapila, Bharti Pathak
Handout except Environment
अगर आपको
िसफर् कु छ
ं ा कोसर्
चु िन द
खरीदने हो
 अगर आपको बड़े टीचरो ं के सारे कोसर्
अनलॉक करने हो

अगर आपको िसफर् कु छ चु िन ंदा कोसर् खरीदने

 Barter System
limitations money born

Commodity Metallic Paper /Fiat Bank Money, Crypto

Money Money Money / legal deposit money Currency
tender
digital blockchain
payment

Cheque NPCi:
Types CTS, CBS NEFT RTGS IMPS UPI-BHIM

Card NCMC &

Card Types Tokenization FastTag ATM Types MDR
 Payment System

RBI’s
Centralized NPCi’s IMPS
Payment System

NEFT RTGS IMPS

Small value
large value Small value
e.g. max 10 lakh
30-30 minutes Max. 2000 cr Instant transfer
 धमर्शाला नही ं चल रही है हमको भी नेटवकर्
चलाने के िलए खचार् लगता है

Point of Sale This affects my

(PoS) device profitability. I shd insist
on cash payment
=scope for black
money/ tax evasion
Rs. 10,000/- paid 😰Rs. 10,000-Rs.200
 Cryptocurrency: 3 ways to
obtain?

Cryptocurrency is dangerous
Commodity Metallic Paper Bank Crypto •RBI & India Govt’s stand?
Money Money Money Money, Currency
digital blockchain Blockchain Technology
payment •Useful
3 Ways to Obtain BITCOIN (िबटकोइन हाँसील करने के तीन तरीके ) Global initiatives: world
Bank, Marshal Island
Venezuela, El-Salvador

China’s CBDC, India Budget

✅1) Mining 2) Sell goods / 3) Exchange with

services to miner legal tender. NFT
 HOME Property ownership
Bunglow Property ownership
Documents ki PDF
Property Documents

NFT of this Digital

Document
 • Money: barter to Bitcoin
A-1

• RBI’s monetary policy

A-2 • CRR, SLR, Repo etc
1) MBFI 2) Budget 3) Intl. Trade

• Classification of Banks-NBFC
B-1

• Burning issues in Banking sector

B-2 • NPA, IBC, BASEL…
4) Sectors of
Economy 5) Infrastructure 6) HRD
• SEBI Sharemarket
C

D
• Insurance, Pension, Fin. Inclusion Handout#2 uploaded
Liquidity preference theory

Deposit Types

Measures of Money Supply

M1-M4

M0 & Money Multiplier

CRR, Repo, …..

brief overview
1 kg = Rs.100
 1 kg = Rs.100

• What if Government launches

• PM Suitcase LELO Yojana
• Every poor man will be given a suitcase
containing ₹ 1 lakh rupees.
• Poverty is removed!
 I can’t buy more
Quantity of Onions yet.
1 kg = Rs.100 में तो गरीब का गरीब ही हु.😰
Inflation. ज्यादा प्याज नही ं खरीद पा रहा
मैं तो 😰😰
1 kg = Rs.1500
 2) RBI must control
demand by
1 kg = Rs.100 controlling money
supply.

1 kg = Rs.1500
Inflation.
1) I can’t directly ⬆ the supply of
onions.
2) But if I ⏬ the supply of money. I
can fight this.
Loanable
Funds⏫
Loan
Interest
Rates⏬

CRR
SLR
 To combat inflation (महंगाई
Loanable मुद्रास्फीित से लड़ना हो तो )
Funds⏫ •⏬loanable funds
Loan •⏫loan interest rates (लोन महंगा कर दो)
Interest
To combat deflation
Rates⏬
(सस्ताई/अपस्फीित से लड़ना हो तो )
•⏫loanable funds
CRR
•⏬loan interest rates (लोन सस्ता कर दो )
SLR
 ✅CRR: b Outgoing(100) Incoming (100)
a nk Ca n’ t
loan/inve
st anywhe
re CRR: 4.5
Deposits
/ G - SLR: 18
sh / gold NDTL: 100
t i n c a
In v e s o t her Loanable: 77.5
SLR : B i l l & R B I
c -T - d b y
Se p p ro ve
r i t i e sa
secu No change in SLR=18%
EVEN In Corona

कोरोना में भी यहाँ कोई बदलाव नही ं

हुआ
 RBI “window operations” through E-kuber platform • Reverse Repo rate
not discontinued.
Liquidity Adjustment Facility (LAF) • It’s kept separate.
MSF Repo Rate = Policy Rate SDF

5.15% +0.25 4.90%. -0.25 4.65%.

Clients Clients park NO
borrow for short G-Sec
@short term term
: Corridor width: 0.25+0.25= 0.50% = 50 bps collateral
 Continued..

✅CRR, SLR Bank Rate MSF

✅LAF-Repo ✅LAF-RR SDF

OMO, GSAP Op Twist MSS

SLR ⏬ → liquidity ⏫
 2% से कम भी 4% CPI 6% से ज्यादा Rs. 150 a kilo
नही (All India) भी नही

Fight
Who will deflation
do this? Fight inflation
Ans. RBI’s monetary policy
Encourage consumption, ⏬ consumption, Make the loans
Committee
Make(MPC)
loans cheaper expensive

How frequently?
Increase Money supply ⏬ Money supply
Ans. Bi-monthly (Every 2-2
Expansionary, Easy, Cheap, Contractionary, Tight, Dear,
month)Dovish
update the policy
monetary policy Hawkish monetary Policy
 ह ी ह ै
7.5 ो बढ़ र
6% से ज्यादा महंग ा ई त
नही ं होनी चािहए
महंगाई
6.5

5.5
 t o f i gh t
⏫
i nf l ati on
⬇ t o re
vive eco
post Co nomy
r ona
6.00 5.90
5.40 5.15 5.15
4.40 4.90
4.00

1st 19 (Apr) 3rd 19 (Aug) 4th 19(Oct) 6th 20 (Feb)Mar20 Oct21 2022-May 2022-June 2022-Sept
Quantitative, Gen., Indirect
Reserve Ratios (CRR, SLR)
Rates: Bank, MSF, LAF [Repo, RR]
OMO & MSS, SDF lo a ns
me o f
Volu

Qualitative: Selective, Direct

•Moral Suasion, Direct Action
• Margin req / LTV Distribution of
• Selective Credit Control: loans
• Credit Rationing, Consumer Credit
control / EMI, PSL
 Cat Min.PSL-
Quota Asset (100) Liability (100)
Weaker sections 12% CRR+SLR: __
(SC,ST,Women, PH….) Time, Demand
Deposits
Agriculture: all farmers 8% Loanable funds _

Total
Agriculture: *Marginal Farmer (upto 10 %
1ht); *Small farmer (>1 upto 2ht)
Micro Enterprises, Khadi-Village 7.50%
industries
Above cat. + other categories like 2.50%
Small & Medium ent, Startup, Remaining 60% of the loans
40% of the loans can goto anyone (including
Affordable Housing, Education Loans,
Social Infra, Renewable Energy,…
should go here. these PSL-walla)
 NABARD

PSL short fall

EXIM
SIDBI
1) PSL quota shortfall: ₹10 → RBI will order bank to give it to NHB
2) They’ll return it after may be 10 years. Interest 4.25% MUDRA
Years, interest % are hypothetical. आँकड़े काल्पिनक है।
3) If “Directly” given • banks’ money will get LOCKED in for long time @ low interest
Suppose in some other institute. पैसा लं बे टाइम पर कही ं पर लॉक हो जाएगा और
Interest 7% अच्छा ब्याज भी नही ं कमा पाएगा
• So, in a way, this is the ‘hidden-penalty’ for not full-filling PSL
Tenure 3 years loans. सीधा-सीधा िकसान को लोन दे देता बैंकर तो ये मगजमारी नही ं होती उसे
 • ✅Money: barter to Bitcoin
A-1

• ✅RBI’s monetary policy

A-2 • CRR, SLR, Repo etc

• Classification of Banks-NBFC
B-1

• Burning issues in Banking sector

B-2 • NPA, IBC, BASEL…

• SEBI Sharemarket
C

• Insurance, Pension, Fin.

D Inclusion
 Asset Liabilities

Loans given to Loans taken

infra projects from..

National Infrastructure
Pipeline (NIP) Project
Example, World Bank
(📑Pillar#5:
BRICS Bank, AIIB, ADB etc
infrastructure) More in 📑Pillar#3B
Loan Types NPA/TBS SARFAESI/I&B PCR/LEI/Fugitive
Resolution Eco. Offender

FRDI/Bad PNB/IL&FS/PMC BASEL-III/EASE RBI

Bank/PCA Dividend/Sec7
 Fall in Demand
•Till mid-2000s •IC1 cos= can’t My corporate
•During Boom even repay company
•GFC, Scams,
interest balance sheet
Loan Le lo Bhai Policy Paralysis-
Loan..Cheap environment is stressed L
loans, Teaser clearance
Loans Surge in 😰Debt Servicing
Borrowing Problem
My Public Sector
Bank balance
USA & EU economy down. sheet is also
So tourism, airtravel, hotel, stressed L
IT-exports… ⬇L
 How to find early symptoms of disease?
Before std. asset turns into NPA?
Ans. “Special Mention Accounts” (SMA)

Std. Asset NPA Substd. Doubtful Loss

• >90 Days: • NPA+12 months/> • Substandard+12 • When RBI or

Principal / Interest months/> Bank’s Auditor
overdue says “Little /No
If principal / interest not paid
• Agri: crop season salvage value”
SMA-0: 1-30 days from due date
SMA-1: 31-60 days
SMA-2: 61-90 days
2) Banks may sell to me, when they
can’t find buyers directly in auctions ₹ 100 cr
बैंक ने सं पित्तयों को जप्त िकया नीलाम करने की
कोिशश करते हैं लेिकन अच्छे दाम िमल नही ं रहे
तो वह चीजें मुझे कबाड़ी में बेच सकते हैं

1) Banks can even sell such assets to

Asset Reconstruction Companies (NBFC).
individual / partnership Insolvency Professional (IP)
firm / company not able to
repay business loan of
Len
de
₹”X” / > rs (
ba
nks
,N
BF
Cs
1) IP makes resolution plan )
in “Y” days.

• Lenders forgive a part of loan / haircut

• ⬇ interest rate: 12% → 10%
• ⬆ repayment tenure: 8 years → 10 years.
• Get New Investor → partial change of ownership company etc…
Duplication of efforts!😥😥
एक ही डेटा दो दो जगह क्यो ं अपलोड करवाना है?
 मैं ख़रीदँ ू गा मैं उस सं पतीमें से
थोड़ा रोकड़ा और पैसा िनकालने की
थोड़ा रसीद देके कोिशश करूँगा

सुरक्षा रसीद भुगतान का वचन!

 Types of loans and NPA/TBS Resolution SARFAESI/I&B PCR/PSBN/LEI/Fugitive
borrowers Eco. Offender
What if loan not repaid? How to
moniter

✅FRDI/ BASEL-III/EASE PNB/IL&FS/PMC RBI Dividend/Sec7

✅BadBank/
✅PCA AT1 BONDS
 G-Sec Bond / debenture

✅Money Market Govt Pvt parties FI (Bank/NBFC)

<1 year

World Bank‘s (Aus.$)

Bond-iBond using
Capital Market Urban Local BRICS Bond($) by Ethereum Blockchain
1/> year Bodies: New Dev Bank for tech (1A-1)
municipal Bonds Infra loans (Pill#3)
 Inflation Indexed Sovereign Gold Panda & other Elephant Bond
Bond Animals

✅Money Market
<1 year

Consol Bonds Surety Bond Social Impact Green/Blue/ESG

Bond Bond

Capital Market
1/> year Catastrophe Electoral Bond
Bond
 p ar ty
v orit e
ur fa
v e t o
Gi
2)
3) Deposits in SBI
Electoral

4) SBI transfer ₹₹
1) B u
y from
मैं राजनीितक पक्ष को चं दा
SB I
देना चाहता हूं
More in Pillar2A
More in
Pillar2A

More in
Pillar2A
 c h p r o fit to
d e s h o w mu u c h t o give
ci m
BoD de biz. and how o ld er s ?
s t in r e h
reinve id e n d t o sh a
div
away as
Chairman Managing
Director & CEO

v i c es
Company ds/ Ser
l l go o
Se
Board of
Directors
Shareholder P r of it
nd fr om
Divide
 SANOFI Share's Market Price Profit pe DIVIDEND
6500 7500
4700 5000
70 80 350 330
𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑 2018 2019 2020 2021
𝑌𝑖𝑒𝑙𝑑
Formula NOT
IMPORTANT 1.4% 1.5% 5.4% 4.4%
𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑 350
𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑 𝑌𝑖𝑒𝑙𝑑 = = ∗ 100 = 5.4% (2020)
𝑆ℎ𝑎𝑟𝑒 𝑝𝑟𝑖𝑐𝑒 (𝑖𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡) 6500

SBI Bank Savings Account = 2.75%😰 here I’m getting 4-5%🤩

 Corona = pharma Corona decreased⏬= Corona OVER= pharma
companies superhigh companies normal
pharma companies high
profit: 5.4% Dividend profit : 1.5% Dividend
profit : 4.4% Dividend

NOT Corona =
pharma companies normal 2022😰
profit: 1.5% Dividend 2021🤩🤩
2020🤩
2019
2022😰
2021🤩🤩
2020🤩
Corona OVER= Cinema, Airline,
2019
Hotels may resume good profit.
LET ME SHIFT from Pharma to Hotels
 SENSEX – when does it go up⏫ Goes down⏬😰
RBI’s soft /easy monetary policy Tight monetary policy
→ cheap loan & credit cards → When be
consumers to spend m o r
moree → ar s mor
n bu l l s
e to company→ more active e
Whprofit
more भालू डरता है िक
active thinks “better
dividend –investor
I buy more shares to get more
उसके पास जो शेयसर् है
Bull Bear
dividend”: Bullish उसका दाम और िगर
•Hopes prices •Fears prices जाएगा ⏬
will ⏫, so will ⏬ so, he
purchases SELLS his तो मेरा नुकसान और
even @higher share ज्यादा हो जाए😰
price •₹10 → ₹1
•₹10 → ₹2k (e.g. YES उसे पहले मैं बेच दूं
(e.g. Infosys) bank)
 Financial
Instruments

✅Debt Equity

✅(Short/Long)

Share Types & DEMAT, ASBA IPO-FPO, ADR-

Basics GDR

✅Govt, pvt,
Intl. insti.

✅Objective /
Methods SENSEX & Stock SEBI & deepening FMC, FSDC etc
Exchange of Capital Market
D1: Insurance
•Types, Org, Schemes
1) MBFI 2) Budget 3) Intl. Trade

D2: pension
•Org, Schemes

D3: Financial Inclusion 4) Sectors of

Economy 5) Infrastructure 6) HRD

•Schemes
 1) Socio-Economic Caste Census (SECC-2011).
More in 📑Pillar#6 Poverty

8cr 2cr 10cr ü No age limit

Rural Urban families ü No limit on
family size
(dozen children)
सामािजक-आिर्थक जाित जनगणना ü 5 lakh cover per
के िहसाब से अगर आपका पिरवार family
गरीब होगा तो आपको लाभ िमलेगा
 How to check balance? What if we shift job?
UAN: Universal Account Number
Similarly, I’ve
LIN: Labour
Identification
Salary is 15k/< Number
Employee: 12% Employer (Boss) co-contribute (12%)
12% into EPF 3.67% EPF 8.33% EPS
(Provident Fund) (Provident Fund) (Pension)
अगर बैंक में आपका बैंक अकाउं ट नं बर होता है
तो EPFO में क्या होता है? कोई खाता नं बर होता है िक नही?ं
Middle Class: Senior Citizen (60/>) Page 206-246
• PM Vay Vandana: Need to pay ₹₹

Middle Class: Young Person:

• NPS: need to pay ₹₹ for subscription

Lower middle class & Poor:

•EPFO, Atal Pension, Sharm Yogi (unorganized workers),
•Karam Yogi (Kiranastore walla)
•Kisan Maan Dhan (Farmers)

Poor with no capacity to pay ₹ :

• NSoAP-मैं बहुत गरीब हूं , मुझे सीधा ही पेंशन दीिजए
Banking Page 233 onwards
• PM Jan Dhan
• PSL(1A2)

Investment
• Small Savings
• Chit funds

Credit (Loans)
• MSME → MUDRA pending
• Startup, SHG, Farmers,

Pension, Insurance
 अगर उसका पुराना
लोन खाता NPA नही ं Emergency Credit Line Guarantee
है .
Scheme (ECLGC) = extra loans
 or tf all
😰 Mudra challenge: B : PSL-s
I
h
1. R
bad loans are rising. (और वो SI D BI
2. t B ud get
भी कोरोना से पहेले से) . G ov
3

d i rect e
2) In ng r th
ve
lendi l c
il ses
o
W
4) los
L oan
3)
t e d L ी
f a u l ा न क
D e ु
क स
4) If हुआ तो न ा
य ा पन क रेग
दवा िल ई क ौ न
ि भ रप ा 5) A company under
Dept of Financial Service
Micro Enterprises
 Recap / overview

•major concepts of economy req. for

understanding budget

Budget-2023 announcements
1) MBFI 2) Budget 3) Intl. Trade

•EXCEPT taxation

detailed lectures

•budget, economic survey, annual eco

4) Sectors of
Economy 5) Infrastructure 6) HRD current
•FREE Win23 Series classes
•TODAY's just recap before it.
 In Prelims out of (100 MCQs)

3 3 4 3
1 1 1
18
16

21
19
17

20

22
1) MBFI 2) Budget 3) Intl. Trade
20
20

20
20

20
20

20 What we’ll study

Mains GSM1-2-3 (Outfor
of UPSC
750 m) What we’ll not study for UPSC
(list not exhaustive) (list not exhaustive)
30
25
•Theory: budgeting, taxation, subsidies. •✋CA like interpretation of tax laws- how
12.5Finance, FRBM, PSU-Disinvestment.
•Deficit much IT on EPF withdrawals.
•Latest Budget & Economic Survey 2019, •✋Trivial GK like which FM presented max.
2020, 2021. 2022 Atmanirbhar 4) Sectors of
2016 2017 2018 Economy number of 5)budgets…how
Infrastructure much fridge &
6) HRD
•GST, 15th FC, Black Money- Demonetization washing machine got expensive or cheap?
2A) Handout#1 : Budget
Handout#1
Introduction, Direct Taxes Tomorrow
2A) Handout #2: Indirect Taxes
& GST Handout#2 by 7PM
2B) Black Money, 15th Finance
commission
Handout#3
2C) Subsidies, Pay Commission,
Revenue Expenditure

2D) Disinvestment, Fiscal

Deficit, FRBM Act etc Handout#4
•CRR SLR •Taxation Budget is the main tool
•Repo Rate •Subsidy of fiscal policy presented
•Open market operations •Public Expenditure annually
•Priority sector lending •Public Private Partnership On the first working day
norms •Disinvestment of February**
•& other Qualitative and •And other tools
quantitative tools
Finance
RBI's monetary Ministry's Fiscal
policy
policy Economic Survey
Data & suggestions
Together they help shaping the Economy…
⏬Unemployment ⏬Inflation Currency
⏫Investment: ⏫GDP (सकल घरेलू Exchange Rate
⏫Savings (बचत)
domestic, foreign उत्पाद) (बेरोजगारी) (महंगाई/मुद्रास्फीित) (मुद्रा िविनमय दर)
Art #265 | Art #117: Finance Bill: कर वसूलने के िलए
• To obtain Parliament’s approval TAX
• to collect taxes.

CFI
Art #114: Appropriation Bill: खचेर् करने के िलए d
s i on t o s p en
• To obtain Parliament’s approval Need permis
• to spend money from Consolidated Fund of India

Art #112: Annual Financial Statement (AFS): िहसाब/िकताब-ब्योरा/िववरण

• Income (Receipt) and Expenditure:
• Data for last year (2020-21) िपछले साल का
• projections / demands for next year (2021-22) अगले िवत्तीय वषर् का
 ये िवभाग आिखरी के दो िवभाग अन्य
ये लोग बजट टैक्स लेता है सरकारी बैंक और बीमा सरकारी कं पिनयों का काम
बनाते हैं कं पिनयों से समन्वय देखते हैं

ये िवभाग
खचेर् करता है

• Each of these dept headed by a ‘Secretary’ (usually an IAS Officer),

• Among them senior most designated as Finance Secretary, who signs one rupee
note. इन पांचों सिचवों में जो सबसे वरीष्ठ होगा उसे मैं िवत्त सिचव का पद, वो ₹1 के नोट पर हस्ताक्षर करेगा
 ₹10 wallet balance 2) Then I’ve to pay Electricity bill ₹100

10 ₹ 90
y only 4) GST input tax credit(ITC)
t o p a
’v e
3) I system is basically like this only.
We’ll see it in detail later on.

1) I did ₹100 mobile recharge →

₹10 cashback🤩🤩
 Present

Crude oil Petrol

CGST
1) Oil drilling / refining:
Union’s Excise

Diesel Aviation Turbine

Fuel SGST
3) Once the GST council
decides the date
2) When selling:
natural gas
State’s VAT
 • State government’s taxation
powers is low.
• so if union doesn’t share of
its revenue with states in
equitable manner
• Then ⬆regional disparities
41% verticle tax • Therefore FC required
devolution
 Report#1:
42% 41% 15 FC: NK Singh
th 1st April 20 to 31st March 2021
30.50% 32%
- 1% less because now
J&K & Ladakh’s
security & other
12th 13th 14th 15th
responsibilities with
(2005-10) (2010-15) (2015-20) (2020-26) Union. क्योंिक कें द्र ने जम्मू
Verticle Tax Devolution 2020
कश्मीर और लद्दाख का भी 2021
14th Y.V.Reddy : 2015-20 ख्याल रखना है इसिलए कें द्र
• 1/4/15 to 31/3/20 Tax=
f ter
_ %? Report#2:
But a 70, Govt me के1stिहस्से ज्यादा
April 21 to 31stदो
March 2026
3 a
J&K- ed timefr - So, better to give only
15th NK Singh: 2020-25 fi
modi
• 1/4/20 to 31/3/25 41% instead of 42%
41%

Verticle Devolution
Horizontal devolution of Union’s Tax
₹41 मे से हर राज्य को िकतना िहस्सा िमलेगा?
क्षेितज कर अंतरण
Income Distance Population (15%) Area (15%)
(45%)

Our public is more poor.

So we should get more ₹ from
Forest & Ecology Demographic Tax Effort (2.5%)
(10) performance (12.5) Union’s tax devolution than
Gujarat
1) Local Bodies Grants 2) Post-Devolution 3) Disaster
Revenue Deficit Grants Management Grants

4) Sector Specific: 5) Special Grants 6) Performance-based

Nutrition incentives
 -57

How to reduce CAD?

-180
1. Reduce oil import
+82 2. Reduce gold import
3. Increase exports
-28 +70 1. GI, SEZ,
2. Budget-2023
3. Trade Policy
Example data of 2018
 Foreign Portfolio
Foreign Direct Investment (FDI)
Investment (FPI)
0% 5% 10% 11% 25% 51% 74% 100%

• FPI: Upto 10% shareholding

in a company.
• Primary objective: buy / sell
& profit in sharemarket.
• ✋Not interested in sitting
in running company
 ++
Lots of tax
benefits
 When Supply ⏫ Supply ⏬
😰⏫Expensive:
Onion become 🤩⏬Cheap ₹5/kg
₹125/kg

Dollar
प्याज की आपू िर् त बढ़े ग ी तो
Weak प्याज सस्ता हो जाएगा Strong
($1=₹80 → ₹40) ($1=₹40 → ₹80)
प्याज की तं गी शुरू होगी तो प्याज महंगा हो जाएगा
Forex Dealers
who convert Rs
into Dollar for
fees

When Supply Increased Supply Decreased

Onion become Cheap Expensive

Weak Strong
Dollar
($1=₹80 → ₹40) ($1=₹40 → ₹80)
 1 foreign buyers 1 foreign buyers 1 foreign buyers

$1 $1 $1
= 500gm TEA = 500gm TEA = 500gm TEA
 $ to Rs How much tea can American
exchange rate buy using ONE DOLLAR?
As ₹ gets weaker $1=50 → 500 gms (half kilo)
=Dollar$ stronger $1=70 → 700 gms
American importer Suppose
2) YES YES YES, I’m
able to buy more price of
Indian tea using same 1 kg tea =
amount of dollar. ₹100
ज्यादा मात्रा में खरीद सकता है
 Stronger
Dollar
= MORE
foreign
0 foreign buyers 0 foreign buyers CUTOMERS 3 foreign buyers

$1 $1 $1
= 500gm TEA = 500gm TEA = 700gm TEA
 Currency Indian Indian
Exchange Rate Exporter Importer
Weaker ₹
Stronger $ JJJ LLL
($1=40 → 80)
Stronger ₹
JJJ
Weaker $ LLL
($1=80 → 40)
 1) As ₹ gets $ to Rs How much ₹ does Indian importer
weaker =dollar$ exchange rate have to pay?
gets stronger $1=50 ₹25,000= 1 imported Dell laptop
$1=70 ₹35,000= 1 imported Dell laptop
Indian importer 3) Weaker ₹= harmful to
2) NO NO NO….😰😰 importers LL
• I’ve to pay ‘more rupees’ to buy that
laptop. And
• IF I try to re-sell it to India
customers, they may not buy this
laptop, because of high price in
rupee value. LLL
 There is no single point
where both importer
Currency Indian Indian and exporter will be
happy simultenously.
Exchange Rate Exporter Importer ✋दोनो ं एकसाथ खुश नही ं रहे
Weaker ₹ सकते

Stronger $ JJJ LLL

($1=40 → 80)
Stronger ₹
JJJ
Weaker $ LLL
($1=80 → 40)
 3) Importer is unhappy but
2015 2016 2017
he’ll gradually change
-62.16
business model e.g. buying
1) ₹ is
w -64.84 Asus laptops, which are
eaken
in g but i -65.76 relatively than Dell laptop.
n a gra
dual m में धीरे धीरे नुकसान सं भाल लूँगा
anner.
$1 to Rs. Exchange Rate

2) Exporter is happy, he’ll stock

more tea from Assam. He’ll
construct new warehouse etc.
 2) 🥵🥵 Importer is MORE
2015 2016 2017 2018 unhappy…how to
-62.16
-64.84 immediately adjust my
1) ₹ is wea -65.76
kening but
in a
business model?
gradual ma Sud
nner. d भाई ये क्या अिनिश्चतता चल रही है
Sha en &
r p fa -74.39
ll धं धा करू तो कै से?

2015 2016 2017 2018

ü RBI doesn’t fix the exchange rate. िरज़वर् बैंक मुद्रा िविनमय दर तय नही ं करता
ü It’s decided by market forces of supply & demand a currency.बाजार शिक्तयां तय
करती है
ü But RBI has to prevent sudden volatility in the exchange rate. <How? After
some slides> हालांिक अगर बाजार में बहुत ज्यादा अिस्थरता हो तो िरज़वर् बैंक हस्तक्षेप करेगी
और अिस्थरता को कम करवाएगी
 BoP crisis
Forex Reserve Corona-2020-21

Currency Exchange Rates

Theoretical Historical
Indian Experience
Perspective Perspective

Currency Exchange in India

IMF ka SDR Currency
Quota Convertability Fall of ₹

Misc. Concepts
Handout- 447 onwards
QE, Fed Tapering NEER-REER, PPP
 Pillar3B
Bretton Woods (page 481 onwards)
World Bank IMF WTO
1) MBFI 2) Budget 3) Intl. Trade
continued

WTO (subtopics )
Barrier & MFN, Agreements
4) Sectors of Subsidies Disputes & Summits
Economy 5) Infrastructure 6) HRD

Trade Agreement & org, issues

RCEP &
Protectionism Groupings
Others
 Sectors of Economy → 4A: Agri

Input Output animals

1) MBFI 2) Budget 3) Intl. Trade

4B: mfg., Service sector
LPG reforms, EoD, Labour Reform,
Circular Economy,, Minimum wages MSME, Textile etc

4) Sectors of 4C: Macroeconomic indicators

Economy 5) Infrastructure 6) HRD
Unemployment, Inflation, CPI, WPI
NITI, FYP/PC GDP, GNP, IIP etc

4D: microeconomics (Elasticity of supply, demand..)

Ekdum last lectures of the course.
 Intro then
Agri-Input
• Land, Seeds,
Agri-Production &
Water, Processing
• Fertilizer, • RKVY & RAFTAAR
Pesticides • Green Rev. Krishonnati Yojana
• Loans & • Kisan Sampada Yojana
Insurance
• GSM3: Food Processing

Agri-Selling Agro: Allied

• APMC, e-NAM, • Animal
• 2 Ordinances husbandry
• Agro Export • Fisheries
• MSP & PM-AASHA, PM-KISAN • R&D, Extension
• Food Inflation & Deflation
Audio/Video
Problem?
GDP: Expenditure Production
Method Method

Edu Doubt?
Ask through Income Method ⬆ Growth Rate

Atma-Nirbhar GNP, NNP

GDP is the Market value of
बाजार मूल्य है

All final goods & services

सभी अंितम वस्तु और सेवाओ ं का

Produced within domestic territory

of a country (देश के घरेलू इलाके में )

For a given time period, usually 1 year

जो एक वषर् में पैदा की गई
Audio/Video
Problem?
IIP
Causes Remedies Types Effects

8 Core
Edu Doubt?
Measurement CPI WPI Inflation: Misc.
Ask through Indices

Misc.

Page 708 onw

📔ES20 : USA Inflation control Production Indices
Thalinomics? impact on India
Baltic Dry
 • Money: barter to Bitcoin
A-1

• RBI’s monetary policy

A-2 • CRR, SLR, Repo etc

• Classification of Banks-NBFC ✅1) MBFI ✅2) Budget ✅3) Intl. Trade

B-1

• Burning issues in Banking sector

B-2 • NPA, IBC, BASEL…

• SEBI Sharemarket
C

4) Sectors of
• Insurance, Pension, Fin. Inclusion Economy 5) Infrastructure 6) HRD
D
Audio/Video
Problem?
Bijli (Energy)

🌧 Paani (SBM)
Power Ministry Helping Electricity Helping Villagers
Companies
Sadak (Transport)
Edu Doubt?
Ask through Meraa (My) H/U/R

Comm & IT Energy Efficiency Renewable Energy Cooking LPG

SDG Goal7

Investment Model
 Health
Hunger Edu: School Edu: College Edu: Skilling Poverty

Weaker Section HDI NEXT 4Z Micro Economics

अगर आपको
िसफर् कु छ
ं ा कोसर्
चु िन द
खरीदने हो
 अगर आपको बड़े टीचरो ं के सारे कोसर्
अनलॉक करने हो

अगर आपको िसफर् कु छ चु िन ंदा कोसर् खरीदने