II.1.27 The mining sector decelerated largely on account of disruptions caused by extended monsoon. Crude oil and natural gas production declined due to depletion in reserves, flood repairs and industrial strikes, in addition to sluggish demand. There was some recovery in mining activity during H2 as unfavourable weather conditions waned and economic activity picked up in January-February 2020. Electricity generation decelerated due to contraction in thermal power generation, lean industrial demand and the extended monsoon. IIP manufacturing and electricity closely co-moved, indicating that a pick-up in manufacturing activities is essential for electricity demand to improve.

This is accompanied by lower recovery rates in the bank’s non-performing assets. Economies of scale check with the situation wherein, as the quantity of output goes up, the cost per unit goes down. In impact, economies of scale are the fee benefits which are achieved when there is an enlargement of the dimensions of production. Economies of scale occur when a company’s production will increase, leading to lower mounted prices. The theory of aneconomy of scope states the average total value of a company’s production decreases when there’s an increasing number of items produced. Acuité Ratings has conducted an analysis on the current import portfolio from China to understand the scope for import substitution in the near term.

I begin with Private Final Consumption Expenditure and Government Final Consumption Expenditure to arrive at the gross savings for the year. From this we take out government borrowings and non-tax revenues which are largely dividends from PSUs including RBI, and disinvestment proceeded etc. that come from the same savings kitty that we call GDS. The two preempt the GDS, and what is left over is available to the private sector, which is shown in column 7 of the table. GFCF is the key determinant of future growth in any economy, and the Indian case is no different.

Another example, where many firms produce more than one product and the products are closely related to one another — an automobile company produces scooters and cars, and a university produces teaching and research. A firm is likely to enjoy production or cost advantages when it produces two or more products. These advantages could result from the joint use of inputs or production facilities, joint marketing programs, or possibly the cost savings of a common administration. Examples of joint products are mutton and wool, eggs and chicken, fertilizer, etc. Therefore, economies of scope exist when the cost of producing two products jointly is less than the cost of producing a single product. Lack of resources and inefficiency of proper implementation of technology in production can lead to a decline of the economy.

Role of Livestock in Indian Economy

The demonetization effects on banks will be both on the positive side and the negative side. As per directions of Government people have to deposit their money with the banks which will increase the liquidity of the banks for short term. In this article, we walk through a general picture of Indian economic inequality from various data sources and different angles of measurement. Based on the WID data we find an increase in economic inequality in India over the past few decades, and the gap between the rich and the poor is among the largest of several peer and developed economies. However, we find a decrease in economic inequality in more recent years based on our analysis of recent household-level surveys. Popular discussions on inequality in India receive periodic attention with the annual publication of reports by the World Inequalities Database , Oxfam, as well as the global rich lists published by Forbes and Hurun.

• Popular discussions on inequality in India receive periodic attention with the annual publication of reports by the World Inequalities Database , Oxfam, as well as the global rich lists published by Forbes and Hurun.
• Subramanian and his co-author Shoumitro Chatterjee explained with facts and evidence why this was undesirable.
• II.3.18 With the statutory requirements for CRR and statutory liquidity ratio , at 3 per cent and 18 per cent, respectively, around 79 per cent of deposits were available with the banking system as on end-March 2020 for credit expansion.
• This finding has to be placed in the context of concerns that have been raised about CPHS data, including exclusions at the lower end of the consumption distribution.
• The Reserve Bank had also conducted four simultaneous purchase and sales of securities under Special OMOs between December 23, 2019 and January 23, 2020, which augmented net banking system liquidity by ₹11,724 crore.
• A continued boost to public investment through the Gati Shakti is the way forward.

Credit loss will remain high in the fiscal year 2022 at 2.2% of the total loans before it recovers to 1.8% in 2023. India’s strong economic recovery and the steps taken by the central governments and the state government to mitigate the effects of the economic crisis have lessened the burden on the banks. Additionally, banks have raised capitals to strengthen their balance sheets. The weak consumption accompanied by large scale job losses and the salary cuts in the formal sector may hit the banking sector’s loans and ‘credit card’ loans.

How many parts are there in CBSE Class 12 Economics Syllabus?

The motor vehicles segment was the largest negative contributor to https://1investing.in/ IIP, while basic metals, largely comprising mild steel slabs, provided a positive impetus. The Phillips curve was a concept used to guide macroeconomic policy in the 20th century, but was called into question by the stagflation of the 1970’s. Alternatively, the merged businesses may encounter difficulties created by radically different types of leadership and cultures of companies. If it threatens a merger with competitors, it could attract the attention of the Competition Commission of India. In case one company ends up with a dominant market share, it leads to a monopoly. Therefore, the genuineness of horizontal integration is verified under the Indian Competition Act.

There are many causes of demonetization in any economy some are unclosed black money, corruption, fake currency, and currency storage etc. A total of 80 marks in theory, In Part A Introductory Macroeconomics, is 40 marks and Part B Indian Economic Development is 40 marks. Main features, problems, and policies of agriculture , industry (IPR 1956; SSI – role & importance), and foreign trade. Measures of government deficit – revenue deficit, fiscal deficit, primary deficit their meaning. Classification of receipts – revenue receipts and capital receipts; classification of expenditure – revenue expenditure and capital expenditure.

It helps one to put forth the basic economic production and service problem. Applying the production possibility curve in an economy is important as it helps the economy to decide the combination of goods and services to be produced in order to achieve maximum resource efficiency. The LRAC curve assumes that the firm has chosen the optimal issue combine, as described within the earlier section, for producing any level of output. The costs it reveals are therefore the lowest prices attainable for each stage of output. So far we now have already lined how aggressive advantage can emerge both from responsiveness to change and from economies of scale .

Socialist Economics

India has successfully turned into a power surplus nation, with total installed capacity at 3,70,106 GWh. Total installed capacity was at 1,362 GWh at the time country gained its independence. From there it has come a long way to ensure power supply in almost all houses in the country.

This occurs when large organisations employ people with a special skill set that helps to maximize the profits of the organisation like an accountant or manager. Internal Economies are the real economies that arise from the expansion of the organisation. In January 2021, Chief Minister Mr. Prem Singh Golay launched ‘Visit Sikkim 2022’, a declaration on year-long tourism promotion and marketing for Sikkim.

If the third wave is managed with minimum disruption to supply chains, the economy may register double-digit growth this fiscal. This occurs when large organisations take a loan with a low rate of interest. Economies of Scale are of two types, namely Internal and External Economies of Scale. Internal Economies of Scale originate from internal factors within the organisation.

CBSE Class 12 Economics Syllabus 2022 For Term 1 & Term 2 | Download Term Wise Syllabus PDF

SEZs can also provide scale-related advantages via the creation of clusters, reducing manufacturing costs. As observed, similar to economies of scale, economies of scope provide companies with a means to generate operational efficiencies. Thus, economies of scale and scope can help companies gain a significant competitive advantage. Not only do they trim expenses on a per-unit basis and improve profitability, but they can also force less cost-efficient competitors out of the industry or discourage would-be rivals from even entering the market. A number of conglomerates put together in the 1990s relied on cross-selling, thus reaping economies of scope by using the same people and systems to market many different products.

Is India heading into the middle-income trap?

II.2.2 In the event, annual average inflation crossed 4 per cent for the first time since the adoption of flexible inflation targeting framework in 2016, amidst accentuated volatility (Table II.2.1). The intra-year distribution of inflation also had a high positive skew, reflecting the spikes in food inflation during the second half of the year. Furthermore, kurtosis turned slightly less negative than it was a year ago, suggesting a few instances of large deviations from mean inflation, which was also reflected in the wide gap between maximum and minimum inflation during the year.

Depending on the type of plane and the route, the amount of fuel consumed by each plane is a high fixed economies of scope graph. The selection of the aircraft fleet, choosing the routes, and assigning aircraft to routes are some of the most important problems solved by the airline industry. The labour contract specifies the range of salaries paid to each type of worker from pilots to mechanics, and also specifies the workload and restrictions on it.

Production Possibility Curve

He emphasised having tourists in Sikkim for the whole year, instead of otherwise practised season-based tourism endeavour. 13 ‘Moneyness’ refers to the characteristics of an asset to convert readily into liquidity at a low or zero transaction cost. 1 BS VI or Bharat Stage VI, which impacted automobiles and transportation sector, denotes the new emission standard that needs to be complied by all light and heavy vehicles, including two and three wheelers, manufactured on or after April 1, 2020. II.6.15 More than two-thirds of world trade passes through global value chains which straddle at least one border before final assembly.

However, prospects of a stable government and expectations of further monetary easing by the Reserve Bank buoyed market sentiment driving the BSE Sensex to 40,000 levels in June 2019. However, this rally proved transient as bearish sentiment gripped markets after a default by a housing finance company fuelled liquidity concerns in the NBFC sector in June 2019. Reflecting these developments, the credit-deposit (C-D) ratio increased from 75.8 per cent at end-January 2020 to 76.4 per cent at end-March 2020, led by the increased demand for cash for transactions as digital payments declined. Post-March 2020, the easing was primarily due to a sharp rise in deposits, driven by a heightened propensity to save in response to the uncertainty caused by COVID-19 .