01.06.2007

• In today’s Discover It blog, I wrote something about preparation for the GS paper in general. Take a look at it here. I will give more specifics about it tomorrow also. Keep watching the DI space.
• Indian Economy is sizzling
• Beating the projections of 9.2%, the Indian Economy actually grew 9.4% in 2006-07.
• Its size has crossed the $1 trillion mark i.e., Rs. 40 lakh crores.
• Savings rate: 32.4% of GDP
• Investment: 33.8% of GDP
• Manufacturing growth: 12.3%
• Services: 11%
• Fiscal Deficit: 3.5% of GDP
• Revenue Deficit: 2%
• Per capita income: Rs. 2448.5 per month
• Gross fixed capital formation for the year is at 27.9%. This lends credence to the belief that the present growth is basically investment-led growth.
• Constitutional provisions on granting reservation status to castes
• Article 342(1) of the Constitution states that “the President may, after consultation with the Governor, by public notification, specify the tribes or tribal communities which shall, for the purposes of this Constitution, be deemed to be STs in relation to the state (or UT, as the case may be).”
• Article 342(2) states that “Parliament may, by law, include in, or exclude from, the list of STs specified in a notification issued under clause (1) any tribe or tribal community or part of or group within any tribe or tribal community, but save as aforesaid a notification issued under the said clause shall not be varied by any subsequent notification.”
• Indo-Sri Lankan defence ties
• These are always dictated to by the opinion in Tamilnadu. This is because the Sri Lankan is fighting the Tamil rebels there. But the Government of India is always conscious of the growing influence of Pakistan and China in Sri Lanka. If we don’t supply them the arms and maintain closer ties with the Sri Lankan government, Pakistan and China will. That will not be in our interest.
• It is in this context that the National Security Advisor MK Narayanan met the Tamilnadu Chief Minister Mr. Karunanidhi and impressed on him the need to not allow China and Pakistan to grow militarily closer to Sri Lanka than India.
• Sri Lanka has already entered into an agreement with China for the development of Hambantota port.
• Indo-US nuclear deal talks
• The four major concerns relate to:
• Reprocessing of spent fuel
• Technology for reprocessing
• Right to continue testing
• Uninterrupted fuel supplies
• On all these four issues there are wide differences. But it has to be seen how the two countries will sort out the differences now, in view of the likelihood of the deal being discussed between our Prime Minister and the US President on the sidelines of the ensuing G8 summit.
• Thai regional airlines Nok air launches India flights
• Bangkok-Bangalore flights launched
• Revenue set up of the country getting new faces
• Revenue Secretary: PV Bhide
• CBDT Chairman: BM Singh
• CBEC Chairman: SK Shingal
• What is mezzo finance in MFI financing?
• Normally MFIs (Microfinance institutions) lend money to small amounts of up to Rs. 10,000 to borrowers in groups. Though an individual may be the ultimate receiver of the money, it is the group which stands as guarantee for the loan amount.
• If they are lending to individuals, then it is referred to by industry as ‘mezzo finance’.
• Mature markets like Bolivia have already started this practice.
• Coal imports
• India’s requirement of thermal coal (for production of electricity) is pegged at 549 mn tonnes through the ongoing 11^th five year plan. Of this about 10% will be met through imports.
• Coking coal (used in the manufacture of steel) requirement is about 25 mn tonnes. About 22 mn tonnes is imported.
• Bank PLR
• Prime Lending Rates are the indicative rates at which all bank loans are priced. But in practice more than 80% of the loans advanced by banks are made at below PLR levels.