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The term “Bitcoin” has been in the news lately; and its value is rising with volatility.  Bitcoin is the digital currency that thrills nerds, inspires libertarians and incites the passions of economists who debate the value of money made from nothing but ones and zeros. Devotees watch the fluctuations of bitcoin’s price with a fanaticism typically reserved for college football scores while visionaries gush about the world changing  possibilities of money free from government control.

Bitcoin was first mentioned in 2008  in a paper published under the pseudonym “Satoshi Nakamoto “. Bitcoin is a  cryptocurrency, so called because it uses public key cryptography to process and  verify payments.

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Why the Economic Survey is important before presenting budget?

An economic survey is one of the flagship annual documents of the ministry of finance. It reviews the developments in the economic structure of India over the past 12 months. It encapsulates the performance of major development programs and also highlights the policy initiatives of the Indian government along with the growth of the economy in the short to medium-term perspective.

The first Economic Survey of India was presented in the year 1950-51. It was presented along with the union budget till 1964 after which it was segregated from the union budget. Read More…

Mobile Payment Mechanism in India

India is the second-largest communication market which means mobile is very common even in the remote villages or areas. But traditional banking industry cannot fulfil the needs of the India’s large population through the services like RTGS (Real Time Gross Settlement), ECS (Electronic Clearing Services) for Credit or Debit, NEFT (National Electronic Fund Transfer) System, IMPS (Immediate Payment Services).

Hence, India has move to the mobile payment mechanism to access the basic financial services from trusted source at fingertip such as UPI i.e. Unified Payment Interface which can transfer money instantly through mobile. This mechanism is a flagship programme of the Government of India with a vision to transform India into a digitally empowered society and knowledge economy. “Faceless, Paperless, Cashless” is one of professed role of Digital India.

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What is NPAs and the reasons for the rise in NPA in recent years?


A Non-Performing Asset refers to a classification for loans on the books of financial institutions that are in default or are in arrears on scheduled payments of principal or interest. The assets of the banks which don’t perform (that is – don’t bring any return) are called Non Performing Assets (NPA) or bad loans.

In most cases, debt is classified as non-performing when loan payments have not been made for a period of 90 days. According to RBI, terms loans on which interest or instalment of principal remain overdue for a period of more than 90 days from the end of a particular quarter is called a Non-performing Asset. However, in terms of Agriculture / Farm Loans, the NPA is defined as under-For short duration crop agriculture loans such as paddy, Jowar, Bajra etc. if the loan (instalment / interest) is not paid for 2 crop seasons, it would be termed as a NPA. For Long Duration Crops, the above would be 1 Crop season from the due date. Non-Performing Assets which are called as NPA’s by the banking sector have become a pain for both public and private sector banks in India.

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budget tan

1947: Independent India’s First Budget

  • Finance Minister: R.K. Shanmukham Chetty.
  • India’s first finance minister Presented: November 26, 1947
  • The Budget Decision: Well, the decision to present a budget itself, since it covered just 7-1/2 months, from August 15, 1947, to March 31, 1948

1951: The first Budget of the Republic of India

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Impact of 25 Years of Indian Economic Reforms

The prime objective of the 1991 economic reform was to accelerate the pace of economic growth and eradication of poverty. The sweeping reforms initiated since 1991 led to profound economic consequences.

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The economic policy that India followed after independence was built on five pillars—comprehensive planning, heavy industry strategy, priority to the public sector, import substitution and government intervention. This policy was the product of those times. The Great Depression of the 1930s, the ascendency of the Soviet Union and the decolonisation following the world war II created a political and economic environment that favoured such a policy. Leaders like Jawaharlal Nehru were impressed by the initial success of the socialist experiment in the Soviet Union. Thus, the Soviet model five-year plans and the public sector-led industrialisation drive became strong pillars of India’s economic policy.

This policy did prod use some beneficial impact on the Indian economy. It gave India a well-diversified industrial system; the Green Revolution made India self-sufficient in food and the government’s focus on centres of excellence like the IITs and IIMs gave India a strong base in excellent human resources. But this policy, which was government-led, also created a ‘Permit License Quota raj, which stifled initiative and enterprise and fostered corruption. Well-meaning government intervention led to over-regulation of industry and suppression of private enterprise. The success of the Asian Tigers—Hong Kong, Singapore, South Korea and Taiwan—which followed a different economic model led to reconsideration in economic policy in developing economies. The collapse of the Soviet Union in the late eighties and the change of direction in China following the ascendency of Deng Xiao Peng created an environment of change in economic policy. The Balance of Payments crisis of 1991 forced the change in economic policy and the initiation of economic reforms in India. Read More…

Make in India and Digital India: Policy to improve farm productivity and income

Make in India and Digital India both are Incumbent government’s flagship programs. The concept of Make in India initiative was launched to boost the domestic industry and to attract foreign investors to invest the Indian economy. The prime objective of the initiatives is to revive the manufacturing industries and create congeal environment to the entrepreneurs in way of the ease of business whereas Digital India was launched to transform India into a digitally empowered society and knowledge economy. It provides the intensified impetus for further momentum and progress for e-Governance and would promote inclusive growth that covers electronic services, products, devices, manufacturing and job opportunities. Both the policies complement each other and have potential to transform the Indian society.


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Demonetisation of Indian Currency Notes: Implications and Effects

What demonetisation is….

The act of banning a currency of being a legal tender is termed as demonetisation. Whenever a country changes its national currency in order to curb counterfeiting and money-laundering, it issues a notice of demonetisation of its older currency of particular denomination and the particular currency is retired and replaced with the new currency. A recent example of demonetisation is that of 500 and 1000 denomination currency units of India.

Demonetisation of 500 and 1000 denomination currency in India


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India’s fiscal policy architecture | Implications & Trends

The comprehensive framework of India’s fiscal policy has been provided in the constitution of India. The powers to levy taxes and spending responsibilities of India has been divided between the central and the state government due to its federal form of government. Since, it is not mandatory that the taxing capabilities of the states are adequate as per their spending responsibilities, it is due to this reason that some of the revenue of the central government needs to be assigned to the state government. The Indian constitution therefore, provides for the formation of a Finance Commission every five years so as to provide the basis for this assignment and give medium term guidance on financial matters. On the basis of the report of the Finance Commission, the central taxes are transferred to the state governments.


For every financial year, both the governments, i.e.centre and state has to place a statement of its future taxing and spending provisions before the legislature for legislative debate and approval which is known as budget as per the Indian constitution.

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