American dominance, neo-imperialism and new economic policy - class-XI

Following the 1991 economic reforms, India significantly reduced the scope of industrial licensing. Today, it is only required for a very small number of industries related to security, strategic, or environmental concerns.

At present there are five industries that require compulsory licensing. They are:
(i)   Distillation and brewing of alcoholic drinks
(ii)  Cigar, cigarettes and other substitutes of prepared tobacco
(iii) Electronic, Aerospace and all types of defence equipment
(iv) Industrial Explosive including match boxes
(v) Hazardous Chemicals

The world Bank is also referred to as IBRD.

Reaganomics is a popular term referring to the economic policies of Ronald Reagan, the 40th U.S. president (1981–1989). His policies called for widespread tax cuts, decreased social spending, increased military spending, and the deregulation of domestic markets. 

At present the number of industries kept reserved for government sector are three. They are:
(i)  Atomic energy,
(ii) Railway transport, and
(iii) The substances specified in the schedule to the notification of the Government of India in the Department of Atomic Energy dated 15th March, 1995.

On July 24, 1991, Government of India announced its new industrial policy with an aim to correct the distortion and weakness of the Industrial Structure of the country that had developed in 4 decades; raise industrial efficiency to the international level; and accelerate industrial growth. The NIP does away with licensing for all major industries, irrespective of the investment level, proposes liberal foreign investment, dispenses with the Monopolies and Restrictive Trade Practices (MRTP)  clearances but curbs unfair trade practices and emphasis technological up-gradation.

The World Bank is a vital source of financial and technical assistance to developing countries around the world. The bank predominantly acts as an organization that attempts to fight poverty by offering developmental assistance to middle and low-income countries.

The International Monetary Fund (IMF) is an international organization.  It has its headquarters in Washington, D.C., USA.  IMF consisting of 189 countries working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world. 

The Government announced a new industrial policy on July 24, 1991. The basic philosophy of the new policy has been summed up as 'continuity with change'. The main objective was to plunge the Indian economy into the field of 'Globalization and to give it a new drive on market orientation. The new economic policy intended to reduce the rate of inflation and to remove imbalances in payment.

The International Finance Corporation (IFC) is part of the World Bank Group. It is the largest global development institution focused on private sector development in low income and other emerging markets helping to generate productive jobs and deliver essential services to the undeserved.

The Maastricht Treaty is officially the Treaty on European Union, it was signed on 7 February 1992 by the members of the European Communities in Maastricht, Netherlands, to further European integration. It established the European Union.
European citizenship was created, allowing citizens to reside in and move freely between the Member States. a common foreign and security policy was established. closer cooperation between police and the judiciary in criminal matters was agreed.

The International Monetary Fund (IMF) was established in 1945 as an international fund for economic cooperation which was a result of the Bretton Woods Conference held in the year 1944.

The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) has its Headquarters in Bangkok, Thailand .The Commission maintains five subregional offices in order to better target and deliver programs.

IMF loans are meant to help member countries tackle balance of payments problems, stabilize their economies, and restore sustainable economic growth. The IMF is not a development bank and, unlike the World Bank and other development agencies, it does not finance projects.

India was facing major BOP deficit issues since $1985$ and had borrowed from international bodies heavily to solve to BOP problem. However, it kept on rising and by the end of 1990 it turned in to serious crisis like situation. The foreign exchange reserves were at an all time low and the IMF refused to provide further assistance.

World Bank is the world's foremost inter-governmental organisation. It was set up in July $1944$ at the Bretton-Woods Conference. The Board of Governors is the supreme body of the World Bank, wherein each Governor is a representative of one of the member countries. The voting power of the Governor is based on the financial contribution of the country they represent.
It provides long-term loan to its member countries for economic development programmes and structural changes.

In the post-liberalisation period, the share of direct taxes in gross tax revenue in India has increased.

The factors, which are responsible for industrial sickness in India, are
mismanagement, inadequate equity capital and outdated technology.

Earlier Bihar was the largest coal producer in India, but now after the
division of Bihar the first position in production of coal is achieved
by Jharkhand.

The IMF and the IBRD (the primary institution of the World Bank Group) were both established at the 1944 Bretton Woods Conference. They are collectively referred to as the Bretton Woods Twins.

NABARD (National Bank for Agriculture and Rural Development) is an Indian apex development bank, not an agency of the World Bank. MIGA, IDA, and ADB (though ADB is a regional bank, it is often grouped in international finance discussions) are distinct from the World Bank's internal structure, but NABARD is clearly domestic.

In microeconomics, economics of scale are the cost advantages that an enterprise obtains due to expansion. There are factors that cause a producer's average cost per unit to fall as the scale of output is increased. "Economics of scale" is a long run concept and refers to reductions in unit cost as the size of a facility and the usage levels of other inputs increase.

In production theory, the stage of diminishing returns is where the marginal product begins to decline. This is the rational stage for a producer to determine the optimal output level to maximize efficiency.

Liberalisation refers to the removal of government controls, such as licenses and quotas, to allow the market to function more freely. Privatisation involves transferring ownership, while globalisation involves integrating with the world economy.

In 1991, India met with an economic crisis relating to its external debt. India approached the International Bank for Reconstruction and Development (IBRD), popularly known as World Bank and the International Monetary Fund (IMF), and received $7 billion as loan to manage the crisis.

In 1991, facing a balance of payments crisis, India sought assistance from the IMF and World Bank. The conditionalities imposed led to the adoption of the New Economic Policy, which introduced liberalisation, privatisation, and globalisation.

India agreed to the conditionalities of World Bank and IMF and announced the New Economic Policy (NEP). The NEP consisted of wide ranging economic reforms. This set of policies can broadly be classified into two groups: the  stabilisation measures and the structural reform measures. Stabilisation measures are short term measures, on the other hand, structural reform policies are long-term measures.

India agreed to the conditionalities of World Bank and IMF and announced the New Economic Policy (NEP). The NEP consisted of wide ranging economic reforms. This set of policies can broadly be classified into two groups: the  stabilisation measures and the structural reform measures. Stabilisation measures are short term measures, intended to correct some of the weaknesses that have developed in the balance of payments and to bring inflation under control. In simple words, this means that there was a need to maintain sufficient foreign exchange reserves and keep the rising prices under control.

The reform policies abolished almost all industrial licensing. The industries which are now reserved for the public sector are defence equipments, atomic energy generation and railway transport.

No Frill Account is a basic banking account that requires either nil minimum balance or very low minimum balance. Charge applicable to such accounts are low. Services available to such accounts are limited. 

Small Industries Development Bank of India (SIDBI): Established as wholly owned subsidiary of IDBI and SIDBI Act 1989. Its headquarters is in Lucknow. It has 5 regional and 21 branch offices across the country. It is the principal financial institution for, promotion, financing and development of industries in the small scale sectors. It also co-ordinates the agencies which provides finance to small enterprises.

Capital Adequacy Ratio (CAR), also called Capital to Risk (Weighted) Asset Ratio (CRAR) is a ratio of Bank's capital to its risk. Capital Adequacy Ratios are a measure of the amount of Bank's core capital expressed as a percentage of its risk-weighted asset.

The services sector has consistently been the largest contributor to India's GDP for several decades, significantly outpacing both agriculture and industry in terms of value added.

Board for Industrial and Financial Reconstruction (BIFR): BIFR was established under the Sick Industrial Companies (Special Pro-visions) Act 1985 (SICA). It is an agency of Government of India, part of the Department of Financial services of the Ministry of Finance. Its objective is to determine sickness of industrial companies and to assist in reviewing those that may be viable and shutting down the others.

The Union Budget is formally referred to as the Annual Financial Statement under Article 112 of the Indian Constitution, but it is commonly called the General Budget.

First Quarter $(Q _1)$ : April-June
Second Quarter $(Q _2)$ : July-September
Third Quarter $(Q _3)$ : October-December
Fourth Quarter $(Q _4)$ : January-March

POSCO (formerly Pohang Iron and Steel Company) is a multinational steel-making company headquartered in Pohang, South Korea. 

India is a major importer of crude oil. Fluctuations in international petroleum prices have a direct and significant impact on India's inflation, trade deficit, and overall economic stability.

Bancassurance is a partnership between a bank and an insurance company where the bank sells the insurance company's products to its existing customer base.

POSCO stands for Pohang Iron and Steel Company. It is a South Korean steel-making company.

Selling National Savings Certificates (NSCs) is a function of the Post Office, which is a government-run savings organization, not a commercial bank.

Infosys became the first Indian company to be listed on the NASDAQ stock exchange in 1999.

Many
a time we read about Special Drawing Right (SDR) in newspapers. As per
its definition, SDR is a monetary unit of the reserve assets of International Monetary Fund(IMF). Special Drawing Right is a type of foreign-exchange reserve. It is introduced in 1969.

Many
a time we read about Special Drawing Right (SDR) in newspapers. As per
its definition, SDR is a monetary unit of the reserve assets of
International Monetary Fund(IMF). Special Drawing Right is a type of
foreign-exchange reserve. It is introduced in 1969.

IMF stands for International Monetary Fund. It is true that on becoming its member, countries get finance as temporary balance-of-payment needs. IMF works to ensure global market cooperation and financial stability of the global economyy.

Liberalization refers to the relaxation of Government policies and regulations in order to encourage free and fair growth of trade and industry. It is one of the policies under new economic policy which was adopted by Indian economy in 1991. It promoted free and fair trade.

Liberalization refers to the relaxation of Government policies and
regulations in order to encourage free and fair growth of trade and
industry. It is one of the policies under new economic policy which was
adopted by Indian economy in 1991. It promoted free and fair trade.

Privatization includes ownership, organizational and operational
measures. It refers to the process of transferring or sale of the public
ownership to private ownership in part or full. It is a process of reducing government's role in the economy.

As per Patents Amendment Act, 2002, term of a patent right is limited to 20 years from the date of filing. Patent is also known as copyright or license. The Patent Amendment Act provided for filing applications for product patent.

IMF stands for International Monetary Fund. It was established in 1945. Headquarter of IMF  is in Washington DC. It has 189 countries as members as of 2018. It is established to promote
financial stability of the member countries.

IBRD stands for International Bank For Reconstruction and Development. It is set up in 1944. It is one of the members of the World Bank Group and is headquartered in Washington DC. It  offers loans to middle-income developing countries.

IMF stands for International Monetary Fund. It was established in 1945.  Headquater of IMF  is in Washington DC. It's established to promote
financial stability of the member countries.

The World Bank Group consists of the IBRD, IDA, IFC, MIGA, and ICSID. The Reserve Bank of India (RBI) is the central bank of India and is not part of the World Bank Group.

IBRD stands for
International Bank For Reconstruction and Development. It is set up in
1944. It is one of the members of the World Bank Group and is
headquartered in Washington DC. It  offers loans to middle-income
developing countries.

Arbitration on international disputes is not a function of World Bank. It is performed by WTO. World bank serves for the economic development of its member countries.

The IMF's primary functions include monitoring exchange rates and providing short-term financial assistance. The settlement of international trade disputes is the primary function of the World Trade Organization (WTO).

IFC stands for International Finance Corporation. It is a member of World Bank Group. It provides advisory and investment services to its member countries to uplift the private sector involvement in the global economy.

GATT stands for General Agreements on Tariffs and Trade. It was drafted
in 1947 as a provisional agreement to regulate international trade.

International Bank for Reconstruction and Development is one of the member of World Bank Group. It was set up in 1944. It offers loans to middle-income developing countries. The headquarter of IBRD is situated in Washington DC, USA.

India has historically received financial assistance and loans from both the World Bank (IBRD) and its concessional lending arm, the IDA. While the IMF typically provides balance-of-payments support, it is also a source of financial assistance.

SDR is the currency of IMF. SDR stands for Special Drawing Rights. This refers to supplementary foreign-exchange reserve. It is also known as paper gold. It is maintained by International Monetary Fund.

India is not a member of APEC (Asia-Pacific Economic Cooperation), ASEAN (Association of Southeast Asian Nations), or NAFTA (North American Free Trade Agreement).

Import growth in pre crisis( 1991 ) period was less than that in post crisis period since New Economic Policy was introduced in India in 1991, which resulted downfall of import growth. Import refers to the goods and services brought in from the abroad.

New Economic Policy 1991 removed all the restrictions of central government from the private sectors. Thus as a consequence, prior approval of central government for establishing new undertakings and expanding existing undertaking is not required. Three main agendas of new economic policy 1991 are- liberalization, privatization and globalization.

The question asks which industry is NOT reserved for the public sector. Since Atomic Energy and Rail Transport are reserved for the public sector, and the options provided are limited, 'None of the above' is the correct choice because all listed industries are indeed reserved.

Prior to New Economic Policy !991, a very high lend-able resources were kept for the priority sector. Administered interest rates structure, quantitative restriction on credit flow and high revenue requirements- are other features prevalent in the Indian economy prior to financial reforms of new economic policy.

Currently, only a very small number of industries are reserved for the public sector in India, primarily related to atomic energy and railway operations.

IMF stands for International Monetary Fund. It was established in 1995.
Headquarter of IMF is in Washington DC. It has 189 countries as members as of 2018. It is established to promote
financial stability of the member countries.

The International Monetary Fund (IMF) was established in July 1944, but it officially commenced its financial operations in December 1945.

World Bank is a financial institution that provide loans to its member countries. It mainly works with primary focus of helping the poorest people and the poorest countries. Encouragement of capital and environmental protection are other two objectives of the World Bank. It comprises two institutions: the International Bank for
Reconstruction and Development, and the International Development
Association.

World Bank is an financial institution which was founded in 1945 at
Bretton Woods. The headquarter of World Bank is in Washington DC. The main
function of World Bank is to provide long term investment loans to its member countries. It comprises of two institutions: the International Bank for
Reconstruction and Development and the International Development
Association.

Economic rankings change frequently. At the time this question was likely drafted, India was often cited as the sixth-largest economy by nominal GDP.

The World Bank (specifically the IBRD) was founded in 1944 at the Bretton Woods Conference, and it officially began operations in 1945.

World Bank is an financial institution which was founded in 1945 at
Bretton Woods. The headquarter of World Bank is in Washington DC. The main
function of World Bank is to provide long term investment loans to its 189 member countries at reasonable terms. It comprises of two institutions: the International Bank for
Reconstruction and Development and the International Development
Association.

IBRD stands for
International Bank For Reconstruction and Development. It is set up in
1944. It is one of the organisations under the World Bank Group and is
headquartered in Washington DC. It offers loans to middle-income
developing countries for development and structural changes.

New Economic Policy was adopted by Indian Government in 1991. Three main agenda of the new economic policy are- liberalization, privatization and globalization. Disinvestment and de-regulation are other sub agendas of NEP.

An oligopoly is a market form in which a market or industry is dominated by a small number of sellers (oligopolists). Because there are few sellers, each oligopolist is likely to be aware of the actions of the others. The decisions of one firm influence, and are influenced by, the decisions of other firms. Business that are part of an oligopoly, share some common characteristics: they are less concentrated than in a monopoly, but more concentrated than in a competitive system. This creates a high amount of interdependence which encourages competition in non-price-related areas, like advertising and packaging. The tobacco companies, soft drink companies, and airlines are examples of an imperfect oligopoly.

Removal of entry barriers , public sector monopoly for power development and liberation of foreign investment policy were the main elements of industrial policy of India since 1991.

IBRD (World Bank) focuses on infrastructure (3). The International Development Association (IDA) is known as the soft loan window (4). The International Finance Corporation (IFC) provides lending to private enterprises (2). The IMF handles balance of payment deficits (1).