ECONOMICS GS3

Question 1

Limits on Multi-Cap Fund Investment

Answer 1

• A multi cap fund will be required to invest a minimum of 75% of its total assets in equities and equity-related instruments.
  
  • At present, the rule is to invest a minimum of 65% in equities.
  • Minimum investment of 75% has to be allocated in between large cap companies, mid cap companies and small cap companies, with a minimum share of 25% in each.

Question 2

Index of Industrial Production (IIP)

Answer 2

• It is an indicator that measures the changes in the volume of production of industrial products during a given period.
  
  • It is compiled and published monthly by the National Statistical Office (NSO).
  • Ministry: Ministry of Statistics and Programme Implementation.
  • Base Year for IIP is 2011-2012.
  • Core Sector Industries comprise 40.27% of the weight of items included in IIP.

Question 3

Non-utilisation of Cesses & Levies

Answer 3

Recently, the Comptroller and Auditor General of India (CAG) told Parliament that the Centre has only transferred 60% of the proceeds from cess/levies in Fiscal Year 2018-19 to the relevant Reserve Funds and retained the balance in the Consolidated Fund of India (CFI).

Question 4

World Bank’s Human Capital Index 2020

Answer 4

• Recently, the World Bank released the Human Capital Index (HCI) report for 2020.
  
  • India has been ranked at the 116th position in the HCI 2020.
  • Last year India was ranked 115 out of 157 countries.
  • India’s score increased to 0.49 in 2020 from 0.44 in 2018

Question 5

Pan India Time Use Survey released

Answer 5

• India’s first Pan India time use survey was released.
  
  • Released by: Ministry of Statistics and Programme Implementation.

Question 6

Contraction in GDP of India in 2020-21: World Bank

Answer 6

Recently, the World Bank has released its South Asia Economic Focus report which estimated that India’s Gross Domestic Product (GDP) can contract by 9.6% for the year 2020-21.

Question 7

World Economic Outlook report released

Answer 7

• World Economic Outlook October 2020 report titled, “A Long and Difficult Ascent” was recently released.
  
  • Released by: international Monetary Fund
  • According to the report, Global output is projected to shrink 4.4% in 2020.
  • After 2021, global growth is expected to be moderate at 3.5% in the medium term

Question 8

Base year for CPI-Industrial Workers (CPI-IW) revised

Answer 8

• The labour ministry has revised the base year of the Consumer Price Index-Industrial Workers (CPI-IW) from 2001 to 2016.
  
  • It has given more weight to spending on housing, education and health in inflation index calculation.