keywords - gs3 Flashcards
Keyword
Content
From Atmanirbhar Bharat to Viksit Bharat
Transition from Atmanirbharta (self-sufficiency) to Vikshit Bharat (developed nation).
Sweet Spot
It showcases the current and future potential for growth.
Virtuous Cycle Approach
Describes a chain of positive events that reinforces itself. A positive result leads to another positive result, strengthening circumstances as a whole. For example, India’s high economic growth period from 2003 to 2008.
Hard to Beat Size Advantage
The benefit of being bigger in size.
Neoteric (Modern) Innovators
Atal Tinkering Labs aim to cultivate 1 million children of India as Neoteric Innovators.
Economies of Scale to Economies of Scope
Economies of scale refer to cost advantages and efficiencies with increased production of a particular product.
Man-Making
Coined by Swami Vivekananda, referring to imparting resilience and personal responsibility among the people. For example, Atmanirbhar Bharat.
Vocal for Local
Emphasizes the importance of local manufacturing and supply chains, especially during the COVID-19 crisis. It asserts the need to support local businesses and products.
Information Asymmetry
A situation where there is imperfect knowledge, often occurring when one party has different information than another. For example, government structures may have weak mechanisms to collect ground-level information about farmers, leading to issues with the supply of credit.
One-Size Fits All Approach to Tailor-Made Approach
Tailor-made approach refers to catering to the specific needs of regions and people, as opposed to a one-size-fits-all strategy.
Departmentalism
When departments work in isolation, leading to unhealthy competition and narrow goals at the cost of organizational objectives. Unification of services aims to address this issue.
Siloed to Cross-Functional Approach
Moving from departments working in isolation to collaborative efforts where different departments share resources to achieve common goals.
Technological Upgradation and Diversification
Upgradation refers to advancements like from magnetic chip cards to encrypted chip cards, while diversification involves allowing card-less payments for low-value transactions.
Trade-Tech with Fin-Tech
The intersection of technology, finance, and trade to increase efficiency.
Technological Unemployment
Unemployment resulting from the introduction of new technology into the economy.
Technological Diffusion
The transfer of new technologies from their point of origin to new users in different countries.
Focused Diversification
Diversification within a specific, focused area, such as the recommendations of the Baba Kalyani committee on SEZ reforms in areas like engineering and design, biotech, and healthcare services.
SENSE for Startups
Acronym for Share, Explore, Nature, Serve, and Empower, relating to startup ecosystem development.
Single Window Clearance Mechanism
A system like PARIVESH for faster clearance of environmental, forest, wildlife, and CRZ proposals. For example, the civil aviation ministry’s Investment Clearance Cell.
One District, One Product
Promoting and manufacturing one product from each district, often focusing on GI-tagged products.
Missing Middle
Refers to the low concentration of medium-scale industries.
Ceteris Paribus
A Latin phrase meaning “all other things being equal,” used to isolate the effects of one variable while ignoring others. For example, examining the effect of supply chain changes on inflation while keeping other factors constant.
Absolute Poverty
Scarcity of basic necessities such as food, clean water, health, shelter, education, and information. It is marked by severe struggles for survival and high child mortality from preventable diseases.
Relative Poverty
Defined from a social perspective, comparing living standards to the economic standards of others in the surroundings. For example, a family may be considered poor if they cannot afford vacations or higher education for their children.
Multidimensional Poverty
Poverty defined by multiple indicators beyond income, such as poor health, poor quality of work, and the threat of violence.
Plug and Play Approach
Ready facilities with necessary infrastructure and clearances for starting an industry.
Process Education
Ensuring that knowledge translates into practical behavior, such as using an ATM card or performing a UPI transaction.
Demand Constrained Economy
An economy where the level of economic activity is limited by the demand for goods and services.
5C Approach
For Financial Literacy: Content, Capacity, Community, Communication, and Collaboration.
Shift from Information-Based Syllabus to Skill-Based Curriculum
NEP 2020 emphasizes vocational education from Class 6, including internships.
Sahakar se Samriddhi
Prosperity through cooperation.
Follower Mentality
How people are influenced by peers to adopt behaviors based on emotions rather than rationality.
Culture of Innovation
A corporate culture designed to promote the development of innovations within a company.
Jai Anusandhan
A push for innovation and research.
Walmartisation
The impact of a large chain store entering a region and negatively affecting local businesses, often pushing displaced workers into low-paying jobs.
McDonaldization
The increasing global spread of a standardized, fast-food culture.
Integrity Pact
A multi-party agreement involving a public body, interested companies, and a third-party organization to monitor compliance with the agreement.
Society of Abundance
A system where resources are distributed in a way that allows everyone access without limiting others.
Leaky Bucket Phenomenon
A situation where resources are lost due to poor management and allocation.
Atithi Devo Bhava
A social awareness campaign aimed at providing inbound tourists with a sense of being welcomed.
Trapped at Low End of Global Value Chain
Despite improvements in the ease of doing business, India remains at the low end of the global value chain, deterring international firms and affecting business rankings.
Job Seekers to Job Creators
Transitioning from job seekers to job creators, focusing on vocational training and entrepreneurship to address unemployment.
Regulatory Cholesterol
Excessive regulation that is detrimental to the economy, similar to how too much cholesterol is harmful to the human body. For example, EPF and IDA are termed as regulatory cholesterol.
4S Framework
Sampannata (enrichment through inflation control and loans), Surakshit Bhavishya (securing a healthy future with affordable healthcare and education), Shreshta Jeevan (better life with quality infrastructure), Saralta (hassle-free existence through Digital India).
Good Jobs
Characteristics of good jobs include being formal and productive, providing value for money, contributing to social transformation, and supporting export and growth.
Cross-Fertilization
Importing and mixing ideas from different sources to produce better products and services. For example, adopting technology from another industry.
Bang for the Buck
Refers to the worth of one’s money or effort.
Cross-Subsidization
Charging higher prices to one group of consumers to lower prices for another group.
CASA - IDS
SDG11: Connectivity, Affordable, Safe, Amenities, Inclusive, Disaster Resilient, related to housing.
PURA
Providing Urban Amenities in Rural Areas by developing urban infrastructure and services in rural hubs to create economic opportunities outside cities.
Manufacturing Consent
Manipulating public opinion to support desired outcomes, often through selective information. For example, presenting partial data to influence decision-making.
Big Ticket Reforms
Expensive and significant reforms.
Gig Workers
Workers outside traditional employer-employee relationships, such as freelancers.
Job Seekers into Job Creators
Encouraging individuals to create their own job opportunities through entrepreneurship.
Platform Workers
Workers who provide services through online platforms, earning money by offering specific services.
Crop Diversification and Sustainable Farming
Adding new crops or systems to agricultural production to reduce risk and ensure sustainability, addressing climate change challenges.
Milletpreneurs
Entrepreneurs focusing on building businesses around millets, with efforts to market and make them
Agri-Technology Innovations
Innovations to improve agricultural productivity and sustainability.
Inclusive Growth
Economic growth that benefits all sections of society, focusing on reducing inequalities.
Enhancing Productivity
Improving the efficiency and output of various sectors, particularly agriculture.
Atmanirbhar Bharat
India’s initiative towards self-reliance and reducing dependence on imports.
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Gross Fixed Capital Formation (GFCF)
Refers to the net increase in physical assets (investment minus disposals). It does not account for depreciation. GFCF declined from 34.3% in 2011 to 28.8% in 2018.
Long Term Financing Landscape
Involves financial resources advanced for more than a year, using mechanisms like loan securitization and Infrastructure Development Funds (IDFs). Rising NPAs affect long-term lending.
Account Aggregators (AA)
Approved by RBI in 2016, these NBFCs facilitate the transfer of user financial data with explicit consent, providing a consolidated view of accounts for better decision-making.
Fiscal Room to Banks
Non-maintenance of CRR on loans to auto, housing, and MSME sectors encourages banks to lend more and generate economic multiplier effects.
Monetary Policy Transmission
The effect of changes in RBI rates on the lending rates of scheduled banks, impacting monetary policy outcomes.
Revitalizing Asset Monetization
Example: Government approved monetization of POWERGRID assets using InvIT model to fund new and ongoing capital projects.
Debt to GDP Ratio
Ratio of a country’s public debt to GDP, indicating the ability to repay debts. E.g., IMF projected India’s ratio at 89.3% in 2020.
Structured Early Intervention Mechanism
Prompt Corrective Action Framework by RBI (2002) for banks with poor asset quality or rising NPAs.
Differential Licensing System
Licensing system that provides different licenses, e.g., Small Finance Banks and Payments Banks under differential licensing.
Secured Creditors
Lenders with credit backed by security/mortgage, such as loans against property.
Fiscal Repression of Commercial Banks
When government borrowing forces Public Sector Banks to purchase more Government Securities, reducing capital availability for private sector and affecting profitability.
Crowding Out Effect
Increased government borrowing crowds out funds available for private borrowing/investment.
Roll Over Risk
Risk associated with refinancing debt, where new loans may have higher interest rates than the old ones.
Correlated Asset Risk
Risk faced by Urban Co-operative Banks where a significant local problem can lead to failures in single branch banks.
Eroding Credit Culture
Decline in the values, beliefs, and behaviors related to credit within a lending institution.
Hair Cut Losses
Refers to the lower-than-market value placed on an asset used as collateral for a loan.
Digital Finance Infrastructure
Examples include UPI and AePS transactions, showcasing the role of digital finance in making direct transfers and financial assistance available.
Deepening of Financial Markets/Financial Inclusion
NSFI aims to provide affordable access to formal financial services, broadening financial inclusion and promoting literacy and consumer protection.
Decentralized Localism
Creating systems that emphasize local brands, capacity-building, and indigenization.
Convergence of Action
National Strategy of Financial Inclusion focuses on broadening reach and sustaining efforts through coordinated actions among all stakeholders.
Digital Divide
The gap between demographics or regions with access to modern information and communication technology and those without.
Surveillance Capitalism
Economic system focused on commodifying personal data for profit-making purposes.
Digitalization
Process of using digital technologies to transform business models and create new revenue and value opportunities.
Deluge of Data/Colossal Quantity of Data
Overwhelming amount of new data being generated, surpassing institutions’ capacity to manage it.
Eco Chambers (Social Media)
Situations where beliefs are amplified and reinforced within closed systems, insulated from rebuttal.
Digital Footprints
Data trail created while using the internet, including websites visited, emails sent, and information submitted to online services.
Data as Public Good
Concept from Economic Survey 2018-2019 describing data as “Of the People, By the People, For the People.”
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Data Democratization
Ensures that everyone has access to data without gatekeepers creating bottlenecks at the gateway to data.
3Ss: Speed, Simplicity, and Service
Modi’s concept that technology empowers the less empowered by combining speed, simplicity, and service.
Coherent Data Ecosystem
Data is published using shared standards for common indicators. For example, Indian ITeS companies process health data from various countries.
Debt-Creating Financial Instruments
Assets used to raise capital or generate investment income, such as bonds and government securities (G-Sec).
Held to Maturity (HTM)
Securities purchased to be held until maturity. Different accounting treatments apply compared to securities intended for short-term liquidation.
Short-Term Debt
Debt maturing within the next 12 months, including 14-day treasury bills, regular treasury bills, dated securities, and external debt with less than one year remaining maturity.
Treasury Bills
Discounted instruments issued by the government to manage short-term cash flow mismatches, with tenors of 91, 182, and 364 days.
Floating Rate Bonds (FRBs)
Securities with variable coupon rates. For example, the Floating Rate Saving Bond 2020 scheme.
Yield Differential
Differences in yields between different securities. For instance, 10-year Government of India bonds yielding 5.8% versus 1-year bonds yielding 3.8%.
Securitization
Process of converting assets into securities that can be bought and sold in financial markets.
Liquidity Crunch
Shortage of money supply in the market affecting businesses and industries.
De minimis Level
Agreements on Agriculture set subsidies at 10% for developing countries.
Due Restraint/Peace Clause
Article 13 of Agreements on Agriculture temporarily shields countries providing domestic support measures from WTO challenges.
Currency or Foreign Exchange Risk
Vulnerability of the debt portfolio to depreciation of the domestic currency relative to the currency of external loans, increasing debt servicing costs.
Exchange Rate Risk
Reduced demand for domestic securities relative to foreign securities due to poor credit rating may weaken the domestic currency.
Voluntary Retention Route
Allows investors easier rules in exchange for a commitment to remain invested for a longer period, encouraging long-term investments in Indian debt markets.
Certificate of Origin
Instrument that establishes the origin of goods imported into a country, essential for exporters to prove where their goods come from.
Multi-Layered Transactions
Guidelines to check the transfer of ownership through multi-layered transactions of FDIs in India to restricted parties.