UPSC Economy GS 3
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📍 THE CONGRESS PLAN
#Planninginindia
💡 It was on the initiative of the INC president Subhash C. Bose that the National Planning Committee (NPC) was set up in October 1938 under the chairmanship of J. L. Nehru to work out concrete programmes for development encompassing all major areas of the economy.
💡 The NPC was set up in a conference of the Ministers of Industries of the Congress-ruled States (though other states were also invited to participate) where M. Visvesvaraya, J.R.D. Tata, G.D. Birla and Lala Sri Ram and many others including academicians, technocrats, provincial civil servants, trade unionists, socialists and communists, etc., were also invited.
💡 Work of the committee was interrupted when the Second World War broke out and in the wake of the Quit India Movement .
💡 Final report of the NPC could only be published in 1949, many developments related to planning took place during the Interim Government upto 1946.
▪️@upsc_economy_notes
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📍 THE FICCI PROPOSAL
#Planninginindia
💡 In 1934, a serious need of national planning was recommended by the Federation of Indian Chambers of Commerce and Industry (FICCI), the leading organisation of Indian capitalists.
💡 Its President N.R. Sarkar proclaimed that the days of undiluted laissez-faire were gone forever and for a backward country like India, a comprehensive plan for economic development covering the whole gamut of economic activities was a necessity.
💡 Voicing the views of the capitalist class, he further called for a high powered ‘National Planning Commission’ to coordinate the whole process of planning so that the country could make a structural break with the past and achieve
its full growth potential.
💡 By the late nineteenth century, the economic thinking of the nationalists (such as M.G. Ranade and Dadabhai Naroji) was in favour of a dominant role of the state in the economy and doubted the prudence of the ‘market mechanism’.
▪️@upsc_economy_notes
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📍THE VISVESVARAYA PLAN
#Planninginindia
💡The credit of proposing the first blueprint of Indian planning is given to the popular civil engineer and the ex-Dewan of the Mysore state, M. Visvesvaraya.
💡In his book - The planned Economy of India, published in 1934, he outlined the broad contours of his plan proposal.
💡His ideas of state planning were an exercise in democratic capitalism (similar to the USA) with emphasis on industrialisation—a shift of labour from agricultural to industries, targeting to double the national income in one decade.
▪️@upsc_economy_notes
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📍 NON - BANKING FINANCIAL COMPANY.
💡 Bank is a financial institution engaged primarily in mobilising deposits and forwarding loans.
💡 Banks are regulated by the Central bank of the country—in case of India, the RBI (Reserve Bank.
💡 Another category of financial institution—the non-bank—is almost similar in its functions but main difference (though, highly simplified) being that it does not allow its depositors to withdraw money from their accounts.
💡 NBFCs (Non-Banking Financial is an heterogeneous group of institutions (other than commercial and co-operative banks) performing financialintermediation in a variety of ways, like accepting deposits, making loans and advances, leasing, hire purchase, etc.
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📍 MUTUAL FUND [PART 1]
#Indianfinancialmarket
💡 Of all investment options, mutual funds are touted to be the best tool for wealth creation over the long term.
💡 They are of several types, and the
risk varies with the kind of asset classes these funds invest in.
💡 As the name suggests, a mutual fund is a fund that is created when a large number of investors put in their money, and is managed by professionally qualifed persons with experience in investing in diferent asset classes—shares, bonds, money market instruments like call money, and other assets such as gold and property.
Their names usually give a good idea about what type of asset class a fund,
also called a scheme, will invest in.
For example, a diversifed equity fund will invest in a large number of stocks, while a gilt fund will invest in government securities, while a pharma fund will mainly invest in stocks of companies from the pharmaceutical and related industries.
◾SOURCE - Indian economy by Ramesh singh.
◾@upsc_economy_notes
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📍 CASH MANAGEMENT BILL
💡 The Government of India, in consultation with the RBI, decided to issue a new short-term instrument, known as Cash Management Bills, since August 2009 to meet the temporary cash fow mismatches of the government.
💡 The Cash Management Bills are non-standard and discounted instruments issued for maturities less than 91 days.
▪︎SOURCE - Indian economy by Ramesh singh.
▪︎@upsc_economy_notes
