1. Oman Investment Fund (OIF), the Sultanate of Oman’s sovereign wealth fund, filed application with the government to buy a stake in which of the software solutions company, IT People promoted exchange?
a. Universal Commodity Exchange
b. Agri bourse NCDEX
c. Intercontinental Exchange
d. National Spot Exchange Limited
Answer: (a)
2. Which company on 27 Deember 2011 mentioned that it would acquire the remaining 51 per cent stake from BP Alternative Energy Holdings in the joint venture that it formed with BP?
a. Reliance Power
b. Tata Power
c. Adani Power Limited
d. ABB Ltd
Answer: (b)
3. Which paharmaceutical company announced in December 2011 the launch of Supamovecream used for treating pain and inflammation in India?
a. Cipla
b. Ranbaxy
c. Dr. Reddy’s
d. Sun Pharmaceuticals
Answer: (c)
4. Name the state-run Mumbai-headquartered bank which on 29 December 2011 surprised the market by cutting its base rate, the minimum lending rate, by 10 basis points, thereby becoming the first banker this year to do so when others are waiting for a signal from the central bank.
a. State Bank of India
b. Union Bank
c. United Bank of India
d. Allahabad Bank
Answer: (b)
5. The $35-billion Aditya Birla group plans to set up a viscose staple fibre (VSF) plant in the Adana Organised Industrial Zone in which of the following countries?
a. Tunisia
b. Tanzania
c. Turkey
d. Tibet
Answer: (c)
6. Reserve Bank of India deregulated non-resident external (NRE) deposits on 16 December 2011 allowing banks to offer higher interest rates to dollar-denominated accounts. Which of the following facts related to the above statement is/are not true?
2. Reserve Bank freed the rates on non-resident external accounts, offering interest as high as 9.6% per annum
3. Following RBI’s deregulation five Indian banks, including HDFC Bank and Yes Bank on 23 December 2011 raised their interest rates on such deposits in order to lure foreign money
4. Private lender Yes Bank increased the interest rates on fixed deposits held by non-resident Indians (NRIs) to 8.4 per cent from 3.82 per cent
5. The new rates are effective from 24 December for fresh deposits as well as those being renewed on maturity.
a. 1 & 2
b. Only4
c. Only 3
d. 1 & 4
Answer: (c)
7. According to the RBI data, India's foreign exchange reserves fell by what amount to $302.1 billion during the week ended 16 December 2011 on account of a fall in foreign currency assets?
a. $4.67 billion
b. $3.33 billion
c. $5 billion
d. $5.75 billion
Answer: (a)
8. According to the Tea Board data released in December 2011, tea imports declined by what per cent to 9.91 million kg in the April-October period of 2011?
a. 10%
b. 12.5%
c. 14%
d. 15.3%
Answer: (c)
9. Infrastructure sector recorded a growth of what per cent in Novemberr 2011 after touching five-year low of 0.3% in October 2011 due to an impressive growth in cement, electricity and refinery products?
a. 2.3%
b. 3.9%
c. 4.6%
d. 6.8%
Answer: (d)
10. Telecom Commission, the decision-making body of the Department of Telecommunications recommended a uniform licence fee of what per cent of adjusted gross revenues (AGR) as against the prevalent rate of 6-8 per cent?
a. 10%
b. 8%
c. 5.2%
d. 9.3%
Answer: (b)
11. Theatre director, screenplay writer and actor Satyadev Dubey, credited with introducing existential and absurd theatre, passed away on 25 December 2011. Which facts about the concerned person is/are not true?
2. he got attracted to the post-1947 theatre and joined Theatre Unit, the theatre group-cum-school founded by Ebrahim Alkazi
3. Dubey came into prominence with Dharamvir Bharati’s radio-play Andha Yug that brought to the fore the pervasive criminal and homicidal tendencies during the times of war.
4. He penned screenplays/dialogue of some acclaimed films in the 1970s, including Shyam Benegal's Nishant, Ankur, Kalyug and Bhumika
5. He won the Filmfare Award for Best Dialogue in 1980 for the film Ankur
a. Only 1
b. Only4
c. 2 & 3
d. Only 2
Answer: (b)
12. Identify the veteran politician and former Chief Minister of Karnataka with the help of the following clues.
1. He was the Chief Minister of Karnataka from 1990-92 and died on 26 December 2011
2. The three time Lok Sabha member represented Bellary constituency
3. He was on the national political stage as a Lok Sabha member for three terms in 1996, 1999 and 2003.
4. He was instrumental in holding the first Indian international film festival in Bengaluru in 1993
a. H. D. Kumaraswamy
b. J. H. Patel
c. S. M. Krishna
d. S.Bangarappa
Answer: (d)
13. India’s infant mortality rate (IMR) showed a 3 point decline, dropping to what number per 1,000 live births, as per government data released on 28 December 2011?
a. 43
b. 55
c. 47
d. 50
Answer: (c)
14. Maharashtra government planned to provide free medicare for poor families. Consider the following statements:
i) The plan will benefit 50 lakh families.
ii) The plan will cover eight districts in state.
Choose the right option:
a) Both i and ii are correct.
b) Only i is correct.
c) Only ii is correct.
d) Neither i nor ii is correct.
Answer: (a) Both i and ii are correct
15. Lok Sabha on 27 December 2011 passed the Lokpal and Lokayukta bill, 2011. Consider the following statements:
i) The setting up of Lokayuktas by the states would not be mandatory.
ii) The constitutional amendment bill fell through.
Choose the right option:
a) Both i and ii are correct.
b) Only i is correct.
c) Only ii is correct.
d) Neither i nor ii is correct.
Answer: (a) Both i and ii are correct
16. Name the Mumbai skipper who on 22 December 2011 overtook former teammate as the highest run-getter in Ranji Trophy by scoring a total of 8242 runs.
a. Wasim Jaffer
b. Amol Muzumdar
c. Amarjeet Kaypee
d. Pankaj Dharmani
Answer: (a)
17. Who won his first Men’s Singles title of 2011 at the 2011 $120,000 Syed Modi India Open Grand Prix Gold badminton championship?
a. Sourabh Verma
b. Taufik Hidayat
c. Anup Sridhar
d. Hendra Setiawan
Answer: (b)
18. Which team won both the men's & women’s title in the 10th All-India Invitational volleyball tournament for the Vajpayee Cup?
a. Andhra Pradesh
b. Punjab
c. Kerala
d. Southern Railway
Answer: (c)
19. Identify the Indian footballer with the help of the following clues.
1. This Indian football team defender announced his retirement from international football on 26 December 2011
2. He captained the Indian team in one match (against Malaysia) in November 2011
3. He had scored one goal against Bhutan in SAFF Cup in 2005
4. He was part of the Indian teams which won SAFF Cup (2005), Nehru Cup (2007 and 2009), AFC Challenge Cup (2008) apart from the recent SAFF championship
a. Arnab Mondal
b. Gurwinder Singh
c. Anas Edathodika
d. Mahesh Gawli
Answer: (d)
20. The Indian team finished at the fourth position in the World Women's Team Chess Championship at Mardin,Turkey on 27 December 2011. Which team won gold and emerged at the top in the competition?
a. Ukraine
b. Russia
c. China
d. Greece
Answer: (c)
21. Name the Cyclone, which hit the coast of Chennai and south-eastern coastal areas.
a) Thane
b) Nargis
c) Rita
d) Katrina
Answer: (a) Thane
22. Name the gene, which controls memory in human brain.
a) Npas4
b) Npas3
c) Mpas4
d) Npas2
Answer: (a) Npas4
23. WGEEP designated entire Western Ghats as an ecologically sensitive area. What is the full form of WGEEP?
a) Western Ghats expert panel
b) Western Ghats environmental panel
c) Western Ghats environmental expert panel
d) Western Ghats ecology expert panel
Answer: (d) Western Ghats ecology expert panel
24. China launched a High-Speed Bullet Train in Quingdao, Shandong. Consider the following statements:
i) Its speed can reach up to 500 kilometres per hour.
ii) The train was launched by China’s largest rail vehicle maker, CSR Corp. Ltd.
Choose the right option:
a) Both i and ii are correct.
b) Only i is correct.
c) Only ii is correct.
d) Neither i nor ii is correct.
Answer: (a) Both i and ii are correct
25. Scientists discovered a Way to Transform Ordinary Tissue into Heart Muscle Cells. Consider the following statements:
i) It could pave the way for new therapeutic approaches for making a damaged heart to repair itself.
ii) Scientists used a zebrafish system to develop a small and robust molecule, which can transform stem cells into beating heart muscle cells.
Choose the right option:
a) Both i and ii are correct.
b) Only i is correct.
c) Only ii is correct.
d) Neither i nor ii is correct.
Answer: (a) Both i and ii are correct
26. People’s national party recently won Parliamentary elections in Jamaica. What is the capital of Jamaica?
a) New Delhi
b) Kingston
c) Paris
d) London
Answer: (b) Kingston
27. India and Pakistan concluded their sixth round of talks in__ on 27 December 2011.
a) Islamabad
b) New Delhi
c) London
d) Paris
Answer: (a) Islamabad
28. USA and Saudi Arabia inked an agreement worth__ US dollars.
a) 29.4 billion
b) 20 billion
c) 25 billion
d) 23 billion
Answer: (a) 29.4 billion US dollars
29. India approved the acquisition of French advanced missile systems to arm the Mirage-2000 fighter jets. Consider the following statements:
i) The cabinet committee on Security cleared the contract for the fire and forget MICA with French company MBDA.
ii) MICA are interception and aerial combat missiles.
Choose the right option:
a) Both i and ii are correct.
b) Only i is correct.
c) Only ii is correct.
d) Neither i nor ii is correct.
Answer: (a) Both i and ii are correct
30. The Union government approved Katra-Quazigund Railway line project. The project is located in__.
a) Jammu and Kashmir
b) Bihar
c) Punjab
d) Haryana
Answer: (a) Jammu and Kashmir
31. India became free from bird flu,__.
a) H5N1
b) H4N1
c) H5N2
d) H3N3
Answer: (a) H5N1
32. Which PSU announced on 2 January 2012 that its board approved in a meeting held on 30 December 2011 the switching over to internationally-accepted Gross Caloric Value-based pricing mechanism?
a. BHEL
b. ISPAT
c. CIL
d. IOC
Answer: (c)
33. Mukesh Ambani’s Reliance Industries Ltd (RIL) entered the media and entertainment sector by making a major investment in one of India’s largest broadcast companies. Name the broadcast company.
a. Network18 Group
b. Adlabs Films
c. Balaji Telefilms
d. Bag Films
Answer: (a)
34. Credit Suisse upgraded which company to neutral from underperform, citing valuation comfort at current?
a. Essar Energy
b. Reliance Power
c. Bajaj Auto
d. Tata Steel
Answer: (d)
35. Which PSU lender called off its plans to set up a joint venture with Visa Inc and Elavon Inc to enter the merchant acquiring business over differences on sharing technology?
a. Union Bank
b. State Bank of India
c. Syndicate Bank
d. Corp Bank
Answer: (b)
36. This company acquired Star more than 500 films like blockbusters like Salman Khan's Dabangg, Ready, Golmaal 3, Tees Maar Khan, Thank You, No One Killed Jessica, Guzaarish, Kites and Raavan from a general entertainment channel owned by the Viacom 18 Group?
a. Sony
b. UTV movies
c. Colors
d. Sab TV
Answer: (c)
37. Union government raised the ad valorem duty (export duty) on iron ore exports to what per cent from 20 per cent?
a. 30%
b. 33%
c. 41%
d. 43%
Answer: (a)
38. As per the to Commerce Ministry data released on 2 January 2012, India’s exports recorded their slowest pace of growth in two years in November 2011. What was the per centage of growth recorded?
a. 4.2%
b. 3.8%
c. 2.2%
d. 0.94%
Answer: (b)
39. Union government on 3 January 2012 approved Reliance Industries' (RIL) investment plan for developing four satellite fields in the flagging KG-D6 block. What was the proposed sum to be invested for developing the satellites?
a. $1.500 billion
b. $1.692 billion
c. $1.529 billion
d. $1.375 billion
Answer: (c)
40. The capital market regulator SEBI on 3 January 2012 allowed auctioning of securities through stock exchanges and introduced a new method for institutional placement of stocks. Which of the following facts related to the above statement is/are not true?
1. Under the institutional placement programme (IPP), shares can be sold only to qualified institutional buyers.
2. There shall be at least 25 allottees in every IPP issuance. No single investor shall receive allotment for more than 25% of the offer size
3. The IPP method can be used to increase public holding by 10% and could be offered to only qualified institutional buyers with 25% being reserved for mutual funds and insurance companies
4. Under the IPP, companies will have to announce the ratio of buy-back, as is done in the case of rights issues and fix a record date for determination of entitlements as per shareholding on record date
a. Only 1
b. Only 3
c. Only 2
d. Only 4
Answer: (c)
41. What is the Finace Ministry’s decision on the rates applicable on small savings instruments schemes that would be announced on April 1 each year?
a. rate would remain valid till the maturity of the scheme
b. rate would change in the first qurter of that respective year
c. rates would change depending on different maturity period
d. rates would remainvalid for six months post the maturity
Answer: (a)
42. Scientists for the first time produced mixed embryo monkeys. Consider the following statements:
i) Scientists produced monkeys composed of cells taken from separate embryos.
ii) The cells stay together and work together to form tissues and organs.
Choose the right option:
a) Both i and ii are correct.
b) Only i is correct.
c) Only ii is correct.
d) Neither i nor ii is correct.
Answer: (a) Both i and ii are correct
43. Scientists discovered unknown species off the coast of Antarctica. Consider the following statements: i) The temperature in this region rises to 380 degree Celsius. Ii) There is plenty of light in this region.
Which of the above statements is/ are correct?
a) Only i
b) Only ii
c) Both i and ii
d) Neither i nor ii
Answer: (a) Only i; There is complete absence of light in this region
44. The world’s first hybrid sharks was discovered by the researchers in Australian waters. The hybrid shark is the result of cross-breeding between which one of the following set of shark species?
a) Common black tip Shark and Australian black-tip shark
b) Indian black-tip Shark and Australian black-tip Shark
c) Blue Whale and Common black-tip Shark
d) Blue Whale and Australian black-tip Shark
Answer: (a) Common black-tip Shark and Australian black-tip Shark
45. Scientists produced artificial human semen to help infertile men. Consider the following statements: i) The scientists grew the sperm by enveloping the germ cells in a special compound called agar jelly. ii) The artificial human semen could help infertile men father their own children.
Choose the right option:
a) Both i and ii are correct.
b) Only i is correct.
c) Only ii is correct.
d) Neither i nor ii is correct.
Answer: (a) Both i and ii are correct
46. Health Authorities in Australia recently detected Deadly Disease, Murray Valley Encephalitis. The disease is caused by the__.
a) Flies
b) Mosquitoes
c) Birds
d) Dogs
Answer: (a) Mosquitoes
47. Kiro Gligorov, the former president of Macedonia died in Skopje on 1 January 2012. Which facts about Gligorov given below are not true?
2. Gligorov was the first democratically elected president of Macedonia.
3. He joined the partisan movement fighting against the Nazi occupation and was one of the organizers of the Anti-Fascist Assembly for the People’s Liberation of Macedonia, or ASNOM in 1945
4. Gligorov served four consecutive presidential terms, leading the nation from January 1991 to November 2009
5. The early days his presidency were overshadowed by a bitter dispute with Greece over the newly independent nation’s name , the dispute that continues till date
a. Only 1
b. 1 & 2
c. Only 3
d. 2 & 4
Answer: (c)
48. Who was presented the Mahatma Gandhi International Award for Peace and Reconciliation on 4 January 2011, the fourth day of the ten-day Kalachakra initiations?
a. Tibetan spiritual leader, the Dalai Lama
b. South African leader Nelson Mandela
c. Tanzania’s Julius Nyerere
d. Burmese pro-democracy leader Aung San Suu Kyi
Answer: (c)
49. European Union agreed in principle to ban import of Iranian Crude oil. Consider the following statements:
i) The European Union( EU) is one of Iran’s biggest markets for oil.
ii) The EU is a political and economical union of 27 member states.
Choose the right option:
a) Both i and ii are correct.
b) Only i is correct.
c) Only ii is correct.
d) Neither i nor ii is correct.
Answer: (a) Both i and ii are correct
50. The Israel-Palestine talks, in the first week of January 2012 was held in Amman. Amman is the capital of__
a) Jordan
b) Syria
c) Iraq
d) Iran
Answer: (a) Jordan
51. Maldives on 4 January 2012 lifted ban on Spas in the upmarket tourist destination. Consider the following statements:
i) The tourism industry is an important foreign exchange earner in the Maldives.
ii) Maldives in 2011 received more than 850000 tourists.
Choose the right option:
a) Both i and ii are correct.
b) Only i is correct.
c) Only ii is correct.
d) Neither i nor ii is correct.
Answer: (a) Both i and ii are correct
56. India signed MoU( Memorandum of Understanding) on tourism with ASEAN on 12 January 2012. The agreement took place in__.
a) Manado
b) Jakarta
c) Malaysia
d) Manila
Answer: (a) Manado
57. Pravasi Bhartiya Divas-2012 was held in Jaipur. Jaipur is the capital of which one of the following states?
a) Rajasthan
b) Bihar
c) UP
d) Bihar
Answer: (a) Rajasthan
58. India and Japan on 12 January 2012 agreed to enhance their cooperation in the ___sector.
a) Infrastructure
b) Tourism
c) Road and Transport
d) Coal and Mining
Answer: (a) Infrastructure
59. Newly crowned Miss Belgium 2012, Laura Beyne mentioned that she mostly supports gay marriages. In which year did Belgium become the second country after the Netherlands to legalize gay marriage?
a. 2000
b. 2003
c. 2005
d. 2009
Answer: (b)
60. TiE Chennai (The Indus Entrepreneurs), dedicated to promote entrepreneurship in January 2012 launched a book Dream to destiny — the driving spirit of Chennai's entrepreneurs in January 2012. TiE Chennai is a _.
a. Non-profit organisation
b. Committee of Entrepreneurs
c. Multinational organisation
d. Entrepreneur arm of the Commerce Ministry
Answer: (a)
61. State-run Northern Coalfields (NCL) agreed to surrender land required to mine two blocks attached to the Sasan ultra mega power plant to which of the following companies giving the comapany the benefit of over Rs 6000 crore over the life of the venture?
a. Reliance Power
b. Adani Power
c. Birla Power Solutions
d. DLF Power
Answer: (a)
62. Which car took home the crown of Indian Car Of The Year 2012 in January 2012?
a. Toyota Etios Liva
b. Maruti Suzuki Swift
c. Hyundai Verna
d. Hyundai Eon
Answer: (b)
63. B. D. Park was appointed the President and CEO of this electronic major’s South West Asia Operations and Managing Director of its India operations. Which electronic major is in question here?
a. Phillips
b. Videocon
c. Samsung
d. LG
Answer: (c)
64. Maldives authorities allowed Male International Airport operator to collect airport development and insurance charges from passengers, nearly a month after a local court barred the Bangalore-based company from doing so. Name the operator.
a. GMR Infrastructure
b. International Air Transport Association (IATA)
c. Fraport AG
d. DIAL
Answer: (a)
65. Which French construction major entered the Indian market by buying out 100 per cent stake in NAPC, a Chennai-based construction company?
a. Sinopec Engineering
b. Uhde
c. Vinci
d. Snamprogetti
Answer: (c)
66. According to the draft sports policy of this state Government released on 11 January 2012, a special life-time achievement award, in memory of G.V. Raja, the founder-president of the State Sports Council is to be instituted. Which State is being referred to?
a. Karnataka
b. Kerala
c. Tamil Nadu
d. Andhra Pradesh
Answer: (b)
67. Which team defeated Uttarakhand 25-22, 25-22, 25-13 in the men’s category to win the National title for the fourth time, in the 60th senior National volleyball championship, at the Balbir Juneja Indoor Stadium, Raipur on 11 January 2012?
a. Kerala
b. Andhra Pradesh
c. West Bengal
d. Tamil nadu
Answer: (a)
68. Which team extended their hegemony by defeating Kerala 25-12, 25-14, 25-16 in a one-sided final in the women’s category at the 60th senior National volleyball championship?
a. Punjab
b. Services
c. Railways
d. Delhi
Answer: (c)
69. This footballer was awarded the 2011 FIFA Ballon d'Or on 9 january 2012 in Zurich. He won the award for the third consecutive year for the world's outstanding footballer. Identify the footballer.
a. Cristiano Ronaldo
b. Xavi
c. Sergio Ramos
d. Lionel Messi
Answer: (d)
70. Foreign direct investment (FDI) into India went up by what per cent to $2.53 billion in November 2011, indicating an improvement in investor sentiment?
a. 56%
b. 49%
c. 33%
d. 26%
Answer: (a)
71. As per the Forward Markets Commission data released on 9 January 2012 that the turnover of the 21 commodity exchanges in India increased by 66% to what amount till December 2011?
a. Rs 123 lakh crore
b. Rs 137.22 lakh crore
c. Rs 100.57 lakh crore
d. Rs 93 lakh crore
Answer: (b)
72. Indirect tax collections increased by what per cent to Rs 285787 crore during April-December 2011 driven by an increase in service tax mop-up?
a. 15%
b. 14.56%
c. 16.1%
d. 16.33%
Answer: (c)
73. The Directorate General of Foreign Trade (DGFT) notified that the Commerce Ministry on on 11 January 2012 lowered the minimum export price of onions by $100 a tonne to boost exports. What is the changed minimum export price of onion?
a. $200 a tonne
b. $250 a tonne
c. $300 a tonne
d. $150 a tonne
Answer: (d)
74. Prime Minister's Office on 11 January 2012 directed cash-rich public sector undertakings (PSUs) to invest around Rs.1.76 lakh crore to act as a stimulus in the next fiscal 2012-13. What is the amount to be invested domestically?
a. Rs.1.41 lakh crore
b. Rs 1.57 lakh crore
c. Rs 2.50 lakh crore
d. Rs 3.19 lakh crore
Answer: (a)
75. He was conferred with the first S K Singh Award for excellence in the Indian Foreign Service on 6 January 2012. Identify the diplomat.
a. Ranjan Mathai
b. Shivshankar Menon
c. D Bala Venkatesh Verma
d. K. Raghunath
Answer: (c)
76. Which Ministry prepared draft policy seeking to increase private participation and opens the doors for foreign direct investors for expanding its network?
a. Railways Ministry
b. Ministry of Rural Development
c. Ministry of Commerce and Industry
d. Defence Ministry
Answer: (a)
77. Six researchers from five science streams were honoured with this prize by the former President, A.P.J. Abdul Kalam in Bangalore on 9 January 2012. Name the prize in question.
a. Infosys Prize
b. India Science Prize
c. Rolls-Royce Science Prize
d. Young Scientist Award
Answer: (a)
78. Which one of the following state governments launched Panch Parmeshwar scheme?
a) Madhya Pradesh
b) Bihar
c) UP
d) Kerala
Answer: (a) Madhya Pradesh
79. The Cabinet Committee on Security approved the setting up of NCTC. What is the full form of NCTC?
a) National Counter Terrorism Centre
b) National Trade Cooperation
c) National Central Terrorism Centre
d) National Council for Trade Cooperation
Answer: (a) National Counter Terrorism Centre
80. Which of the following companies infused Rs 520 crore equity into BSES Delhi distribution companies as part of Rs 5,100 crore financial package being worked by IDBI
a. NTPC
b. RIL
c. Adani Power Ltd
d. Birla Group
Answer: (b)
81. Suzlon Energy signed a memorandum of understanding with this State Government as a part of the CII's Partnership Summit that concluded on 13 January 2012. As per the MoU, Suzlon Energy will develop wind power projects totalling 3,000 MW in Andhra Pradesh over the next four years, involving potential investment of up to Rs.18,000 crore. Name the state government with which the MoU was signed.
a. Andhra Pradesh government
b. Gujarat governemnt
c. Orissa government
d. Arunachal Pradesh government
Answer: (a)
82. Name the auto making company which launched three new variants of the Eon-D — Lite plus, Era plus and Magna plus in the Indian market in January 2012.
a. Tata Motors
b. Hyundai Motor India
c. Volkswagen
d. Maruti Suzuki
Answer: (b)
83. The Government of which of the following countries acquired 1.09 per cent stake, currently worth about Rs.2500 crore, in Mukesh Ambani-led Reliance Industries Ltd. (RIL), the company's latest shareholding data show?
a. Malaysia
b. Japan
c. Phillipines
d. Singapore
Answer: (d)
84. Which Photography Pioneer filed for Chapter 11 bankruptcy protection on 19 January 2012 making it likely for the 132-year-old trailblazer to become the most storied casualty of a digital age?
a. Eastman Kodak Company
b. Fuji
c. Nikon
d. Canon
Answer: (a)
85. Which company retained its top position in Interbrand's list of the top 100 global brands in 2011?
a. Apple
b. Coca cola
c. Microsoft
d. Google
Answer: (b)
86. As per the Index of Industrial Production (IIP) data, industrial production bounced back with a growth of what per cent in November 2011, marking a five-month high in a reversal from the negative trend witnessed in October 2011?
a. 5.9%
b. 6.5%
c. 7%
d. 8.2%
Answer: (a)
87. India on 13 January 2012 extended for how many years an anti-dumping duty on import of four Chinese products like nylon filament yarn, Saccharin, cellophane transparent film etc?
a. 3 years
b. 5 years
c. 10 years
d. 12 years
Answer: (b)
88. Reserve Bank of India (RBI) on 13 January 2012 issued guidelines on compensation of wholetime directors, chief executive officers and other risk takers in private and foreign banks. Which of the following facts regarding the above statement is/are not true.
1. The central bank’s directions are aimed at preventing greed from destabilising the institution.
2. The guiderlines include provisions to clawback pay if transactions fail years after origination
3. The norms provided also include capping the variable component of the compensation at 48% of the fixed pay in a year
4. As per the guidelines issued, banks are permitted to exclude the Employees Stock Option Plan from variable pay
a. Only 2
b. Only 4
c. Only 3
d. 2 & 4
Answer: (c)
89. Which of the following bodies unveiled rules for direct investment in stocks by foreign investors, including individuals to put curbs on opaque structures to prevent routing of funds by resident Indians?
a. IRDA
b. FICCI
c. CCI
d. SEBI
Answer: (d)
90. As per the Wholesale Price Index, published by the government on 16 January 2012, Reduced food prices caused the inflation to dip to a year low at what per cent in December 2011?
a. 7.47%
b. 7.65%
c. 6.33%
d. 5.41%
Answer: (a)
91. Scientists identified a new gene in maize plants called__.
a) Meg1
b) Meg2
c) Meg3
d) Meg4
Answer: (a) Meg1
92. Researchers discovered new earthworm species in Port Blair. What is the name of the new species?
a) Moniligaster ivaniosi
b) Annelida
c) Nematoda
d) Onychophora
Answer: (a): Moniligaster ivaniosi
93. Scientists recently developed a new wireless device to detect the presence of termites. Consider the following statements: i) when the new device detects the presence of termites, it sends an SMS or email to a pest control firm. ii) The device is made of a tiny sensor, even smaller than a fingernail.
Choose the right option:
a) Both i and ii are correct.
b) Only i is correct.
c) Only ii is correct.
d) Neither i nor ii is correct.
Answer: (a): Both i and ii are correct
94. The scientists claimed that the Meteorite, which fell in Morocco in July 2011, was from Mars. The event happened for the first time in__ years.
a) 50
b) 100
c) 200
d) 150
Answer: (a) 50
95. Scientists found the Extinct Monkey, the Miller’s Grizzled Langur in the forests of___.
a) Indonesia
b) Malaysia
c) India
d) Africa
Answer: (a) Indonesia
96. 10th PBD( Pravasi Bhartiya Divas) was held at which one of the following Indian cities?
a) Jaipur
b) Patna
c) New Delhi
d) Chennai
Answer: (a) Chennai
97. Planning Commission of India on 18 January 2012 approved Rudrasagar development scheme. The scheme is related__.
a) Tripura
b) Assam
c) Manipur
d) Sikkim
Answer: (a) Tripura
98. Writer/diplomat Pavan K. Varma's new book set in contemporary India and in the Himalayan kingdom of Bhutan, was launched in the New Delhi by Ashi Dorji Wangmo Wangchuck, the Queen Mother of Bhutan in January 2012. The protagonist Anand is wrongly diagnosed with cancer. He quits his high-power job and loses himself in a Bhutanese retreat.
Name the book.
a. When Loss is Gain
b. Ghalib: The Man
c. The Great Indian Middle Class
d. The Times
Answer: (a)
99. Identify the photographer with the help of the following clues.
1. She was India’s first woman photo-journalist and was the only professional woman photojournalist between 1939 and 1970
2. She was commonly known by her pseudonym Dalda 13
3. She also captured the first flag-hoisting ceremony at the Red Fort on August 16 1947, the departure of Lord Mountbatten from India and the funerals of Mahatma Gandhi, Jawaharlal Nehru and Lal Bahadur Shastri.
4. The Padma Bhushan Awardee breathed her last on 15 January 2012.
a. Ronika Kandhari
b. Asha Kochar
c. Prabuddha Dasgupta
d. Homai Vyarawala
Answer: (d)
100. Union Finance Minister Pranab Mukherjee on 11 January 2012 launched the signature tune of the Indian Customs Pragati ki Dhadkan in New Delhi. The signature tune was composed by which of the noted music directors?
a. A. R. Rahman
b. Aadesh Shrivastava
c. Adnan Sami
d. Shankar-Ehsaan-Loy
Answer: (b)
101. Prime Minister of Trinidad & Tobago visited India from 5 January 2012 to 14 January 2012. Who among the following is the Prime Minister of Trinidad & Tobago?
a) Kamla Persad Bissessar
b) Hosni Mubarak
c) Manmohan Singh
d) Naresh Goyal
Answer: (a) Kamla Persad Bissessar
102. The fifth edition of the World Future Energy summit began in__.
a) Abu Dhabi
b) New Delhi
c) Tehran
d) Dhaka
Answer: (a) Abu Dhabi
103. Memogate scandal is related to which one of the following countries?
a) Pakistan
b) Sri Lanka
c) China
d) India
Answer: (a) Pakistan
104. Rashtriya Sanskrit Sansthan and International Asociation of Sanskrit Studies jointly organised the 15th World Sanskrit conference from 5 to 10 January 2012 at Vigyan Bhavan in New Delhi. Where was the 14th World Sanskrit conference held?
a. Kyoto, Japan
b. Beijing, China
c. Colombo, Sri Lanka
d. Kuala Lumpur, Malaysia
Answer: (a)
105. Identify this politicial with the help of the following clues.
1. Leader of the Sandinista movement which overthrew the US-backed Somoza dictatorship in 1979
2. After the Nicaraguan Revolution resulted in the overthrow and exile of the Somoza's government in 1979, he became a member of the ruling multipartisan Junta of National Reconstruction.
3. He was elected as the 83rd Nicaraguan president in 2006. He had previously served as the 79th President, between 1985 and 1990.
4. He made alliances with fellow Latin American socialists and signed Nicaragua up to the Bolivarian Alliance for the Americas.
a. Enrique Bolaños
b. Arnoldo Alemán
c. Daniel Ortega
d. Hugo Chávez
Answer: (c)
106. The Bangalore-based pharmaceutical major, Strides Arcolab, sold its 94 per cent stake in Ascent Pharmahealth, a subsidiary with operations in Australia and Southeast Asia, to which of the following U.S.-based pharma companies?
a. Watson Pharmaceuticals
b. Abbott Laboratories
c. Pfizer
d. Derma Sciences
Answer: (a)
107. The Board of Approval (BoA) under the Commerce Ministry on 24 January 2012 approved the proposal of this company to set up a special economic zone (SEZ) at Indore in Madhya Pradesh. Identify the company.
a. Reliance Industries
b. Tata Consultancy Services (TCS)
c. Hero Motors
d. Infosys
Answer: (b)
108. Which private life insurance company from India on 25 January 2012 launched its first international operations with the opening of its representative office in Dubai?
a. Kotak Insurance
b. New India Insurance
c. HDFC Life
d. Religare Insurnce
Answer: (c)
109. Name the world’s largest biotechnology company, agreed to buy Micromet in a $1.16 billion deal to gain an experimental leukemia drug.
a. Celgene Drug
b. B B Biotech
c. Dechert
d. Amgen
Answer: (d)
110. Which channel developed a 52-week special India: Wild Encounters to focuss on India's enchanting wildlife s well as take viewers on an exploration spree ?
a. Discovery India
b. Animal Planet
c. Sony
d. National Gepgraphy
Answer: (b)
111. Centre for Monitoring Indian Economy (CMIE) estimated Corporate India’s sales to grow by what per cent in 2011-12?
a. 21.6%
b. 20.8%
c. 22
d. 23.7%
Answer: (a)
112. According to the report by Gems and Jewellery Export Promotion Council (GJEPC) released in January 2012, gems and jewellery exports fell into the negative zone to $3 billion in December 2011. What per cent fall did it register in the month in question?
a. 10.33%
b. 12.17%
c. 13.33%
d. 15%
Answer: (d)
113. Reserve Bank of India (RBI) on 24 January 2012 cut the cash reserve ratio (CRR) by 50 basis point. The current CRR stands at what percent?
a. 5%
b. 5.5%
c. 6%
d. 6.5%
Answer: (b)
114. The Reserve Bank of India on 24 January 2012 also kept the repo rate unchanged for the second consecutive time after raising it 13 times between March 2010 and October 2011. What is the present repo rate?
a. 8%
b. 7.5%
c. 8.5%
d. 9%
Answer: (c)
115. The poor performance of National Pension System, or NPS led the Pension Fund Regulatory and Development Authority (PFRDA) to change the incentive structure for the distributors. Which of the following statements in this regard is/are not true?
1. The pension regulator on the basis of the recommendation of the G.N. Bajpai committee constituted by PFRDA to review NPS, fixed the incentive at 0.25% of the subscription amount
2. As per PFRDA’s measures announceds, a distributor will get a flat Rs 50 on initial subscription and 0.05% of the initial subscription amount
3. Every year on subsequent investments, the point of presence will be entitled to 0.25% of that amount.
4. The minimum that a point of presence can charge is Rs 20 and the maximum Rs 25000.
a. Only 1
b. Only 2
c. Only 3
d. Only 4
Answer: (b)
116. FIPB headed by Economic Affairs Secretary R Gopalan had in a meeting held on 5 August 2011 cleared how many FDI proposals of a total worth of Rs 3844.7 crore?
a. 31
b. 12
c. 18
d. 23
Answer: (a)
117. According to the public debt management report released by the finance ministry on 17 August 2011, by what percentage did the Centre's debt rise in the first quarter (April to June) of the current fiscal 2011-12?
a. 5.5%
b. 6%
c. 6.7%
d. 8.1%
Answer: (b)
118. According to a report from CRISIL Research, how many additional jobs does India need to create by 2015 to maintain the current ratio of employed people to total population at 39 per cent?
a. 40 million
b. 47 million
c. 55 million
d. 57 million
Answer: (c)
119. Headline inflation eased to its eight-month low to what percentage in July from 9.44 per cent in the previous month?
a. 8.20%
b. 9.22%
c. 7.36%
d. 8 %
Answer: (b)
120. Which regulatory body on 16 August 2011 suggested that the Centre and the State governments should come out with a regulatory framework for the realty sector to protect consumers from unfair trade practices?
a. IRDA
b. SEBI
c. FICCI
d. CCI
Answer: (d)
Saturday, February 4, 2012
Thursday, February 2, 2012
PMEAC member says fiscal deficit may be about 5.6% in FY’12
Fiscal deficit during the current financial year could overshoot the target by 1 per cent to around 5.6 per cent of the GDP, said Prime Minister’s Economic Advisory panel member Mr M Govinda Rao.
“Around that it could be,” Mr Rao said when asked if he expects fiscal deficit to be around 5.6 per cent.
“They (government) have a huge problem. If fiscal deficit slippage is one per cent, next year if you want to bring it down to 4.1 per cent. There is going to be a huge problem,” he said.
Last month, Chief Economic Advisor Mr Kaushik Basu had said that he expects fiscal deficit as a percentage of GDP to overshoot the target.
Prime Minister’s Economic Advisory Council Chairman had said that the fiscal deficit is likely to one per cent higher than the target of 4.6 per cent.
The government’s fiscal situation has shown deterioration at the end of the first nine months of the current financial year, mainly due to poor realisation of non-tax revenues and also the government has so far managed to raise Rs 1,145 crore this fiscal from disinvestment against a target of Rs 40,000 crore.
According to the Controller General of Accounts (CGA) data, the government’s fiscal deficit went up to Rs 3.81 lakh crore, or 92.3 per cent of the Budget estimates at the end of December.
For the current fiscal (2011-12), the government has estimated a deficit of Rs 4.12 lakh crore, or 4.6 per cent of the GDP.
The Centre’s fiscal deficit - gap between overall expenditure and receipts - was 45 per cent of the estimates in the same period last year.
Rubber-mixed bitumen for roads PTI
The Centre has formulated a plan to use natural rubber in roads, as recommended by experts. The use of natural rubber-modified bitumen has been specified by the Ministry of Road Transport & Highways for binder courses and wearing courses laid on National Highways, an official statement said..
The Central Road Research Institute (CRRI) has tested the use of modified bitumen, including natural rubber—modified bitumen, in construction and maintenance of roads under the ministry's sponsored research scheme.
According to the findings of the study, natural rubber—modified bitumen improves the durability of roads by reducing susceptibility toward temperature variations and improving the desirable properties of bitumen, thereby improving overall performance. As per the decision of the Ministry of Road Transport & Highways, modified bitumen may be used for the surfacing of entire National Highways.
Tuesday, January 31, 2012
GDP growth pegged at 8.4 per cent
The Central Statistical Organisation (CSO) on revised the GDP (gross domestic product) growth estimates for 2010-11 slightly lower to 8.4 per cent from 8.5 per cent projected earlier.
As per the quick estimates of national income released by the CSO here, the country's GDP in 2010-11 at factor cost at constant prices (2004-05) grew by 8.4 per cent over the previous year. The services sector expanded by 9.3 per cent. The agriculture sector grew by 7 per cent as against 1 per cent in 2009-10. The rate of growth of industry was 7.2 per cent as against 8.4 per a year ago.
The savings rate is placed slightly lower at 32.3 per cent in 2010-11 as against 33.8 per cent in 2009-10, the fall was mainly due to a decrease in financial savings of the household sector. The gross domestic capital formation or the rate of investment is placed at 35.1 per cent in 2010-11 as against a level of 36.6 per cent in the previous fiscal.
The growth numbers for 2010-11 seem robust when compared to the Finance Ministry's estimates for the current fiscal and the next (2012-13). With hopes of improvement in governance and speedier reforms, the Ministry expressed confidence that economic growth in 2012-13 would edge up from a tad over 7 per cent during the current fiscal.
Addressing a press conference here, Chief Economic Advisor Kaushik Basu said, “We expect the growth next year to be higher than the growth this year, not higher by a large measure ... but we should see an improvement in 2012-13.”
Pointing out that “while there are reasons to believe that the Indian economy is on a path of cyclical upswing”, he noted that speeding up policy reforms and good governance were paramount for high growth.
Dr. Basu went on to concede that in the current global economic scenario and attendant domestic factors, the GDP growth this fiscal would be lower than 7.5 per cent (+,- 0.25 per cent) projected earlier. “We had said it will be 7.5 per cent with a small band around it. I am afraid we will be at the bottom end of the band...the growth rate will be less than 7.5 per cent for sure, may be just a little above seven per cent," he said.
The Finance Ministry, he said, would have a reasonably fair idea about the way the economy is going to perform in the current year, when the CSO is going to release the Advance Estimates for 2011-12.
Outlook for the Indian Economy
The Central Statistical Office released the quick estimates of national income, consumption expenditure, saving and capital formation for 2010-11 today. Savings and investment data for 2010-11 are new and all other data are revisions to earlier releases. GDP at factor cost at constant (2004-05) prices (real GDP) grew by 8.4 per cent in 2010-11. This growth was at the same level of 8.4 per cent in 2009-10. (As per earlier data real GDP growth was 8.5 per cent and 8.0 per cent in 2010-11 and 2009-10). Demand side GDP at constant market prices grew by 9.6 per cent in 2010-11 over a level of growth of 8.2 per cent in 2009-10.
Agriculture and Allied sector registered a growth of 7.0 per cent in 2010-11 as against 1.0 per cent in 2009-10. The rate of growth of industry and services sector was 7.2 per cent and 9.3 per cent respectively for 2010-11. The growth rate for these sectors was 8.4 per cent and 10.5 per cent respectively in the year 2009-10.
• Savings rate is placed at 32.3 per cent in 2010-11 and 33.8 per cent in 2009-10 (33.7 per cent earlier reported). The decrease mainly owes to decrease in financial savings of household sector.
• Gross Domestic Capital formation (rate of investment) is placed at 35.1 per cent in 2010-11 as against a level of 36.6 per cent in 2009-10.
Outlook The Ministry of Finance will have a reasonably fair idea about the way the economy is going to perform in the current year, when the CSO is going to release the Advance Estimates for 2011-12. The growth achieved during the first half of the current year was 7.3 per cent and in the Mid-Year Analysis, we had stated that the economy is going to grow at 7.5 +/- 0.25 per cent in the full year.
Regarding the outlook for 2012-13, the Ministry expects the economy to grow faster than the current year but not substantially so. There are reasons to believe that we are on a path of cyclical upswing. Some of these are detailed below.
There was a sharp improvement in industrial performance in November, 2011 and overall growth bounced back to 5.9% compared to a contraction of 4.7% growth in October, 2011. The reversal of the growth from negative to positive was largely on account of the rebound in the growth of manufacturing sector which increased to 6.6% in November, 2011 compared to a contraction of 5.7 in October, 2011.
While overall, growth may continue to remain lower than the growth achieved in the previous year, there are certain positive signs which indicate a continuing momentum in the industrial sector particularly the manufacturing sector.
The sectoral deployment of bank credit indicates that credit growth to manufacturing at 21.8% year on year in November, 2011 is higher than the rate of growth of credit in November, 2010. In the financial year (April-November), so far the credit growth to manufacturing sector has been 9.1% compared to a credit growth of 5.9% in 2010, 4.8% in 2009. Credit growth has been fairly robust in sectors like mining & quarrying, paper and paper products, petroleum products, glass and glassware, basic metals, transport equipments & parts and Gems and jewellery.
HSBC seasonally adjusted Purchasing Managers’ Index also had an upward movement in manufacturing sector during December 2011 and indicated the strongest business conditions in December, 2011 since June 2011. HSBC PMI also indicates higher demand from domestic and foreign clients in December, 2011 and suggests that the momentum, in manufacturing sector is not quite weak as suggested by other indicators.
UBS Lead Economic Index (LEI), a proxy lead indicator of Industrial Production (IP) bounced in December 2011 after moving downhill for well over a year, driven by rise in real M1.
Eight core industries, the earliest indicator of industrial performance, have recorded a growth of 3.8% in December, 2011 with a growth during the current financial year so far at 4.4%. There has been a rebound in the coal production. Production of coal in December, 2011 at 52.8 million tons is close to 80% higher compared to production of 29.7 million tons in September, 2011. There has also been upsurge in cement production with a growth 16.6% in November 2011 and 13.3% in December, 2011. Electricity sector has also continued to do very well in the current year with a growth of 9.2% in April-December 2011 compared to a growth of 4.7% in April-December, 2010.
Another factor that could lead to resurgence is the outlook for inflation. With the recent moderation in the WPI and expected decline in the months to come with attendant implications for monetary policy, the investment could pick up momentum.
Agriculture and Allied sector registered a growth of 7.0 per cent in 2010-11 as against 1.0 per cent in 2009-10. The rate of growth of industry and services sector was 7.2 per cent and 9.3 per cent respectively for 2010-11. The growth rate for these sectors was 8.4 per cent and 10.5 per cent respectively in the year 2009-10.
• Savings rate is placed at 32.3 per cent in 2010-11 and 33.8 per cent in 2009-10 (33.7 per cent earlier reported). The decrease mainly owes to decrease in financial savings of household sector.
• Gross Domestic Capital formation (rate of investment) is placed at 35.1 per cent in 2010-11 as against a level of 36.6 per cent in 2009-10.
Outlook The Ministry of Finance will have a reasonably fair idea about the way the economy is going to perform in the current year, when the CSO is going to release the Advance Estimates for 2011-12. The growth achieved during the first half of the current year was 7.3 per cent and in the Mid-Year Analysis, we had stated that the economy is going to grow at 7.5 +/- 0.25 per cent in the full year.
Regarding the outlook for 2012-13, the Ministry expects the economy to grow faster than the current year but not substantially so. There are reasons to believe that we are on a path of cyclical upswing. Some of these are detailed below.
There was a sharp improvement in industrial performance in November, 2011 and overall growth bounced back to 5.9% compared to a contraction of 4.7% growth in October, 2011. The reversal of the growth from negative to positive was largely on account of the rebound in the growth of manufacturing sector which increased to 6.6% in November, 2011 compared to a contraction of 5.7 in October, 2011.
While overall, growth may continue to remain lower than the growth achieved in the previous year, there are certain positive signs which indicate a continuing momentum in the industrial sector particularly the manufacturing sector.
The sectoral deployment of bank credit indicates that credit growth to manufacturing at 21.8% year on year in November, 2011 is higher than the rate of growth of credit in November, 2010. In the financial year (April-November), so far the credit growth to manufacturing sector has been 9.1% compared to a credit growth of 5.9% in 2010, 4.8% in 2009. Credit growth has been fairly robust in sectors like mining & quarrying, paper and paper products, petroleum products, glass and glassware, basic metals, transport equipments & parts and Gems and jewellery.
HSBC seasonally adjusted Purchasing Managers’ Index also had an upward movement in manufacturing sector during December 2011 and indicated the strongest business conditions in December, 2011 since June 2011. HSBC PMI also indicates higher demand from domestic and foreign clients in December, 2011 and suggests that the momentum, in manufacturing sector is not quite weak as suggested by other indicators.
UBS Lead Economic Index (LEI), a proxy lead indicator of Industrial Production (IP) bounced in December 2011 after moving downhill for well over a year, driven by rise in real M1.
Eight core industries, the earliest indicator of industrial performance, have recorded a growth of 3.8% in December, 2011 with a growth during the current financial year so far at 4.4%. There has been a rebound in the coal production. Production of coal in December, 2011 at 52.8 million tons is close to 80% higher compared to production of 29.7 million tons in September, 2011. There has also been upsurge in cement production with a growth 16.6% in November 2011 and 13.3% in December, 2011. Electricity sector has also continued to do very well in the current year with a growth of 9.2% in April-December 2011 compared to a growth of 4.7% in April-December, 2010.
Another factor that could lead to resurgence is the outlook for inflation. With the recent moderation in the WPI and expected decline in the months to come with attendant implications for monetary policy, the investment could pick up momentum.
Quick Estimates of National Income, Consumption Expenditure, Saving and Capital Formation, 2010-11
The Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation has released the Quick estimates of national income, consumption expenditure, saving and capital formation for the financial year 2010-11. The estimates of GDP and other aggregates for the previous years have been revised on account of using the new series of the Index of industrial production (IIP) with base 2004-05 and also subsequent revision in Wholesale price Index (WPI). The revision in estimates is also on account of use of latest available data on agricultural production, industrial production, government expenditure and also detailed and more comprehensive data available from various source agencies.
The salient features of the estimates, which are based on latest available information, are indicated below:
GROSS DOMESTIC PRODUCT AND GROSS NATIONAL INCOME
Gross domestic product (GDP) at factor cost at constant (2004-05) prices in 2010-11 is estimated at Rs. 48,85,954 crore as against Rs. 45,07,637 crore in 2009-10 registering a growth of 8.4 per cent during the year which is same as in the year 2009-10. At current prices, GDP in 2010-11 is estimated at Rs. 71,57,412 crore as against Rs. 60,91,485 crore in 2009-10, showing an increase of 17.5 per cent during the year.
At constant (2004-05) prices the gross national income at factor cost in 2010-11 is estimated at Rs 48,33,178 crore as against Rs. 44,79,973 crore in 2009-10 showing a rise of 7.9 per cent during the year. At current prices, the gross national income in 2010-11 is estimated at Rs. 70,78,512 crore as compared to Rs 60,53,585 crore in 2009-10, showing a rise of 16.9 per cent during the year.
The growth rate of 8.4 per cent in the GDP during 2010-11 has been achieved due to high growth in transport, storage and communication (14.7%), financing, insurance, real estate & business services (10.4%), trade, hotels & restaurants (9.0%), and construction (8.0%). At constant prices, the primary sector i.e. agriculture, forestry & fishing has shown a high growth of 7.0 per cent during 2010-11 as against 1.0 per cent during the year 2009-10. The growth of secondary sector is 7.2 per cent and that of service sector is 9.3 per cent during 2010-11.
PER CAPITA NATIONAL INCOME
The per capita income (per capita net national income at factor cost) in real terms, i.e. at 2004-05 prices, is estimated at Rs. 35,993 for 2010-11 as against Rs. 33,843 in 2009-10, registering an increase of 6.4 per cent during the year. The per capita income at current prices is estimated at Rs. 53,331 in 2010-11 as against Rs. 46,117 for the previous year depicting a growth of 15.6 per cent.
CONSUMPTION EXPENDITURE, SAVING AND CAPITAL FORMATION
In order to derive the GDP at market prices, the GDP at factor cost is adjusted by adding indirect taxes net of subsidies. Estimates of GDP at market prices for the year 2009-10 has been revised on account of receipt of data on actual collection of indirect taxes from central and state Governments as well as rectification of misclassification of revised estimates of central Government, used in QE 2009-10. As various components of expenditure on gross domestic product, namely, consumption expenditure and capital formation, are normally measured at market prices, the discussion in the following paragraphs is in terms of market prices.
PRIVATE FINAL CONSUMPTION EXPENDITURE
Private Final Consumption Expenditure (PFCE) in the domestic market at current prices is estimated at Rs. 43,59,792 crore in 2010-11 as against Rs. 37,22,036 crore in 2009-10. At constant (2004-05) prices, the PFCE is estimated at Rs. 30,87,047 crore in 2010-11 as against Rs. 28,52,301 crore in 2009-10. In terms of GDP at market prices, the rates of PFCE at current and constant (2004-05) prices during 2010-11 are estimated at 56.8 per cent and 58.9 per cent, respectively, as against the corresponding rates of 57.6 per cent and 59.7 per cent, respectively in 2009-10.
The per capita PFCE in the domestic market in 2010-11 is estimated to be Rs. 36,760 at current prices and Rs. 26,029 at constant (2004-05) prices as against Rs. 31,812 and Rs. 24,379 respectively in 2009-10.
DOMESTIC SAVING
Gross domestic saving (GDS) at current prices in 2010-11 is estimated at Rs. 24,81,931 crore as against Rs. 21,82,970 crore in 2009-10, constituting 32.3 per cent of GDP at market prices as against 33.8 per cent in the previous year. The decrease in the rate of GDS has mainly been due to the decrease in the rates of financial savings of household sector from 12.9% to 10.0% and private corporate sector from 8.2 per cent in 2009-10 to 7.9 per cent in 2010-11. However, the rate of savings of public sector increased from 0.2 per cent in 2009-10 to 1.7 per cent in 2010-11. In absolute terms, the saving of the household sector has increased from Rs. 16,39,038 crore in 2009-10 to Rs. 17,49,311 crore in 2010-11, the saving of private corporate sector has gone up from Rs. 5,32,136 crore in 2009-10 to Rs. 6,02,464 crore in 2010-11 and that of public sector has gone up from Rs. 11,796 crore in 2009-10 to Rs. 1,30,155 crore in 2010-11.
CAPITAL FORMATION
Gross Domestic Capital Formation has increased from Rs. 23,63,670 crore in 2009-10 to Rs. 26,92,031 crore in 2010-11 at current prices and it increased from Rs. 18,38,870 crore in 2009-10 to Rs. 19,74,172 crore in 2010-11 at constant (2004-05) prices. The rate of gross capital formation at current prices is 35.1 per cent in 2010-11 as against 36.6 per cent in 2009-10. The rate of gross capital formation at constant (2004-05) prices is 37.7 per cent in 2010-11 as against 38.5 per cent in 2009-10.
Within the gross capital formation at current prices, the gross fixed capital formation amounted to Rs. 23,31,382 crore in 2010-11 as against Rs. 20,41,758 crore in 2009-10. At current prices, the gross fixed capital formation of the public sector has increased from Rs. 5,43,337 crore in 2009-10 to Rs. 6,19,923 crore in 2010-11, that of private corporate sector from Rs.6,97,451 crore in 2009-10 to Rs. 7,61,107 crore in 2010-11, and the household sector from Rs. 8,00,971 crore in 2009-10 to Rs. 9,50,352 crore in 2010-11.
The change in stocks of inventories, measured as additions to stocks increased at current prices, from Rs. 1,74,310 crore in 2009-10 to Rs 2,54,970 crore in 2010-11. The increase is observed due to increase in change in stocks of all the sectors.
The estimates of National Product, Consumption Expenditure, Saving and Capital Formation at aggregate and per capita levels for the years 2004-05 to 2010-11 are presented in Statement 1 and the detailed estimates at industry/item level in Statements 2 to 10.
Game Changers for MSME Sector in the 12th Five Year Plan
The recommendation of the Working Group on MSMEs Growth for 12th Five Year Plan aims at giving a new thrust to the MSME sector. The working Group has identified the following Game Changers, implementation of which will give a boost to the MSME sector in the Global Market.
Finance
• Operationalization of SME exchanges for enabling access to Equity Finance.
Technology
• Scheme for acquisition and up-gradation of technology.
Infrastructure
• Developing clusters of excellence.
• Setting up of 100 Tool Rooms and PPDCs.
Marketing
• Procurement policy for Goods/services from MSEs by the Government Deptts. and Central PSUs.
• B2B International portal.
• Enabling global footprints of MSMEs.
• Leveraging Defence Offset Policies in favour of MSMEs.
Skill Development
• Revamped Skill Development & Capacity Building Programme.
• Encouraging young/ first generation entrepreneurs by upscaling PMEGP and other programmes.
Institutional Structure
• Strengthening of Institutions – MSME-DIs, EDIs and KVI Institutions.
• Application of E-tools in promotional and regulatory matters for facilitating easy entry.
• Real time Statistical & Policy Analysis through strengthening of Database.
The Working Group recommends focused efforts for time-bound implementation of the Game Changers.
Umbrella Schemes
The Working Group recommends 6 umbrella schemes – (i) Credit and Finance, (ii) Technology and Innovation, (iii) Infrastructure, (iv) Marketing, (v) Skill and Entrepreneurship Development, (vi) Institutional Structure. The schemes/proposals mentioned under each would be treated as components of the Umbrella Scheme. The advantages of such an approach are manifold. There would be flexibility of utilization of funds under each Umbrella Scheme. Funds can be transferred to components which are doing well from those experiencing tardy implementation. The implementation of different components would be cost-effective and time saving since the inter-linkages between different components can be addressed simultaneously. For example, the land procurement and construction of building relating to setting up of CFCs, Testing Labs, Flatted Factory Complexes, Modular Industrial Estates, Tool Rooms/TDCs etc. can be addressed simultaneously under the Umbrella Scheme on Infrastructure whenever the land and building under different components are planned in the same place. The greatest advantage of implementation of Umbrella Scheme is the visibility of impact of implementation of such Schemes.
A New Index of Sovereign Credit Rating and an Estimation of CRIS over the Last Five Years
Major credit rating agencies give out the sovereign credit rating of each nation as an absolute grade. How other nations fare does not matter in a particular nation’s rating score. This is very different from a comparative rating. An example of comparative rating is the percentile score—the way GRE results are at times given. If a student is described as belonging to the 99th percentile, it clearly says something about this student’s performance vis-Ã -vis other students.
It is arguable that even for sovereign credit ratings there is a case for providing some kind of a comparative score. When an investor searches across nations for a place to put her money, the relative rating of nations is important. If nation i’s rating remaining the same, other nations’ ratings improve over time, there may well be a case to invest less in nation i.
Over the last five years, the global economy has gone through lots of highs and lows. Nations have moved up and down the ratings ladder. This makes it entirely possible that a particular nation that has had no rating change may now be better off or worse off in comparative terms. Also, a nation that has travelled down the rating ladder in absolute terms may be, in relative terms, better off because others have done even worse. Since, for investors, relative or comparative rating is such an important concept, it was felt that the Ministry of Finance ought to develop a new index which captures precisely this idea. Accordingly, the new index that has been developed is called the “Comparative Rating Index for Sovereigns” (CRIS). The detailed derivation of CRIS is available in the full paper on which this summary is based. The full paper is currently classified.
The computation of CRIS is based on nothing apart from Moody’s ratings and data on the GDPs of different nations as given by the IMF. In the paper we define CRIS formally and then track how nations have done over time. In order to capture this impact, the Ministry of Finance developed a new system for comparing the relative ratings of sovereign debt based on the historical evolution of their ratings over five years and the volume of their economic activity as measured by their GDP (not adjusted for Purchasing Power Parity (PPP)). The Finance Ministry develops a relative rating index and rank 101 economies according to this for the years 2007 to 2011. The index uses external data on GDP and ratings combined in terms of pure mathematical and statistical methods without interventions or interpretations.
The Moody’s ratings that the Ministry has used for all countries are the long term foreign currency sovereign ratings. To clarify, the Moody’s rating by this measure for India in 2007 and 2011 was the same (Baa 3). The CRIS score for these years for India were 66.47 (2007) and 69.83 (2011).
In other words, in relative terms India has become a better investment destination by 5.06%. In addition, India’s rank in terms of CRIS has moved up from 61st to 55th. If we view the rankings in terms of quintiles (blocks of one-fifth of the distribution) India moves from the fourth quintile to the third, that is, the middle quintile.
As expected the CRIS score for Greece has dropped sharply from 74.24 in 2007 to 13.97 in 2011—a decline of 81%; and that of Ireland and Portugal have dropped by more than 14%. Interestingly, in terms of CRIS, the U.S. has seen its score rise from 78.20 to 81.81. Ironically, this is accompanied by a loss of rank from the top of the chart to the 16th position. This shows that CRIS is distinct from a percentile score which is also a relative measure of status. In 2007 the 1st rank was shared between 20 economies but by 2011 this cohort had shrunk to 15.
The improvement in CRIS scores of nations such as India, China and Indonesia are partly due to the dramatic falls of scores of some European nations leading to a deterioration of the world average by over 4.8%.
This was especially evident in the cases of Greece, Ireland, Italy, Portugal and Spain. Dramatic falls of this type across the 2007 to 2011 period include Portugal’s fall from 23rd to 74th position with an index erosion of almost 15%, Ireland’s descent from the 1st rank club to 70th position with an over 14% fall in its index value and Greece’s precipitous dive from 30th rank to 101st (last) position accompanied by an over 81% fall in index value across the same period. Italy descended from 23rd to 37th rank with an index value loss of around 0.5%.Spain moved down from 1st to 34th rank and its index value lost approximately 1.35%. Iceland also suffered a great fall from 1st rank to 61st with an index fall of about 11.5%.
Other interesting developments include China’s index value increase of about 7.3% across the 2007 to 2011 time span. Brazil’s index value increased by 11.8%, Russia’s by about 7.5% and South Africa’s by about 5.79% in the same period. All the BRICS had improvements in rank as well as index value.
Among other economies, Israel increased in terms of CRIS value from 73.01 in 2007 to 77.58 in 2011 and Saudi Arabia had a CRIS value jump from 74.24 to 78.82 across the same period. Botswana’s CRIS value increased from 73.01 to 76.25 across the 2007 to 2011 interval.
The ten highest increases in the CRIS from 2007 to 2011 were achieved by (1) Paraguay (31.26%), (2) Lebanon (22.71%), (3) Bolivia (21.2%), (4) Uruguay (18.09%), (5) Belize and Nicaragua (both 15.63%), (7) Philippines (14.26%), (8) Indonesia (12.83%), (9) Peru (12.75%) and (10) Ecuador (12.27%). In interpreting these results, it needs to be borne in mind that for countries which began with low CRIS values, the scope for improvement is more. Seventeen economies had negative growth in the CRIS across this period. The ten highest decreases were (1) Greece (-81.19%), (2) Portugal (-14.82%), (3) Ireland (-14.14%), (4) Iceland (-11.52%), (5) Belarus (-10.05%), (6) Jamaica (-7.45%), (7) Egypt (-7.16%), (8) Cyprus (-5.94%), (9) Pakistan (-5.83%) and (10) Hungary (-4.66%).
It is arguable that even for sovereign credit ratings there is a case for providing some kind of a comparative score. When an investor searches across nations for a place to put her money, the relative rating of nations is important. If nation i’s rating remaining the same, other nations’ ratings improve over time, there may well be a case to invest less in nation i.
Over the last five years, the global economy has gone through lots of highs and lows. Nations have moved up and down the ratings ladder. This makes it entirely possible that a particular nation that has had no rating change may now be better off or worse off in comparative terms. Also, a nation that has travelled down the rating ladder in absolute terms may be, in relative terms, better off because others have done even worse. Since, for investors, relative or comparative rating is such an important concept, it was felt that the Ministry of Finance ought to develop a new index which captures precisely this idea. Accordingly, the new index that has been developed is called the “Comparative Rating Index for Sovereigns” (CRIS). The detailed derivation of CRIS is available in the full paper on which this summary is based. The full paper is currently classified.
The computation of CRIS is based on nothing apart from Moody’s ratings and data on the GDPs of different nations as given by the IMF. In the paper we define CRIS formally and then track how nations have done over time. In order to capture this impact, the Ministry of Finance developed a new system for comparing the relative ratings of sovereign debt based on the historical evolution of their ratings over five years and the volume of their economic activity as measured by their GDP (not adjusted for Purchasing Power Parity (PPP)). The Finance Ministry develops a relative rating index and rank 101 economies according to this for the years 2007 to 2011. The index uses external data on GDP and ratings combined in terms of pure mathematical and statistical methods without interventions or interpretations.
The Moody’s ratings that the Ministry has used for all countries are the long term foreign currency sovereign ratings. To clarify, the Moody’s rating by this measure for India in 2007 and 2011 was the same (Baa 3). The CRIS score for these years for India were 66.47 (2007) and 69.83 (2011).
In other words, in relative terms India has become a better investment destination by 5.06%. In addition, India’s rank in terms of CRIS has moved up from 61st to 55th. If we view the rankings in terms of quintiles (blocks of one-fifth of the distribution) India moves from the fourth quintile to the third, that is, the middle quintile.
As expected the CRIS score for Greece has dropped sharply from 74.24 in 2007 to 13.97 in 2011—a decline of 81%; and that of Ireland and Portugal have dropped by more than 14%. Interestingly, in terms of CRIS, the U.S. has seen its score rise from 78.20 to 81.81. Ironically, this is accompanied by a loss of rank from the top of the chart to the 16th position. This shows that CRIS is distinct from a percentile score which is also a relative measure of status. In 2007 the 1st rank was shared between 20 economies but by 2011 this cohort had shrunk to 15.
The improvement in CRIS scores of nations such as India, China and Indonesia are partly due to the dramatic falls of scores of some European nations leading to a deterioration of the world average by over 4.8%.
This was especially evident in the cases of Greece, Ireland, Italy, Portugal and Spain. Dramatic falls of this type across the 2007 to 2011 period include Portugal’s fall from 23rd to 74th position with an index erosion of almost 15%, Ireland’s descent from the 1st rank club to 70th position with an over 14% fall in its index value and Greece’s precipitous dive from 30th rank to 101st (last) position accompanied by an over 81% fall in index value across the same period. Italy descended from 23rd to 37th rank with an index value loss of around 0.5%.Spain moved down from 1st to 34th rank and its index value lost approximately 1.35%. Iceland also suffered a great fall from 1st rank to 61st with an index fall of about 11.5%.
Other interesting developments include China’s index value increase of about 7.3% across the 2007 to 2011 time span. Brazil’s index value increased by 11.8%, Russia’s by about 7.5% and South Africa’s by about 5.79% in the same period. All the BRICS had improvements in rank as well as index value.
Among other economies, Israel increased in terms of CRIS value from 73.01 in 2007 to 77.58 in 2011 and Saudi Arabia had a CRIS value jump from 74.24 to 78.82 across the same period. Botswana’s CRIS value increased from 73.01 to 76.25 across the 2007 to 2011 interval.
The ten highest increases in the CRIS from 2007 to 2011 were achieved by (1) Paraguay (31.26%), (2) Lebanon (22.71%), (3) Bolivia (21.2%), (4) Uruguay (18.09%), (5) Belize and Nicaragua (both 15.63%), (7) Philippines (14.26%), (8) Indonesia (12.83%), (9) Peru (12.75%) and (10) Ecuador (12.27%). In interpreting these results, it needs to be borne in mind that for countries which began with low CRIS values, the scope for improvement is more. Seventeen economies had negative growth in the CRIS across this period. The ten highest decreases were (1) Greece (-81.19%), (2) Portugal (-14.82%), (3) Ireland (-14.14%), (4) Iceland (-11.52%), (5) Belarus (-10.05%), (6) Jamaica (-7.45%), (7) Egypt (-7.16%), (8) Cyprus (-5.94%), (9) Pakistan (-5.83%) and (10) Hungary (-4.66%).
Saturday, January 28, 2012
Inland water transport gets a boost as NTPC, FCI commit cargoes
In order to fast track the development of the inland waterways for transporting bulk cargo, the Prime Minister Office has pushed for private and public sector partnership. To begin with a series of agreements were initiated at a meeting of the inter-ministerial co-ordination committee, according to an official statement issued here on Saturday.
It was agreed that NTPC will provide long-term cargo commitment for three million tonne of coal for Barh power project once all its five units are operational by 2016-17, while the execution of coal handling facility at Jogighopa and rail connectivity will be taken up under the Non-Lapsable Central Pool of Resources scheme.
“The initiative will harness potential of inland waterways in transporting bulk cargo such as coal, foodgrains, fertilisers, project cargo, fly ash, over dimensional cargo and containers at competitive cost for the public and private sector companies.
“Adequate use of waterways will also ease the burden on rail and road infrastructure,” the statement said.
Cargo commitment
Among other decisions, it was also concluded that the Food Corporation of India will provide a three-year cargo commitment for transportation of foodgrains to Tripura and Assam from Kolkata and within Assam, while ONGC and Oil India will convey a firm commitment of cargo through waterways in two weeks to the Inland Waterways Authority of India. Concor will also provide a firm commitment for transportation part of their container cargo from Pandu. “The Ministry of Shipping will consider providing additional money, if need be, to ensure night navigation facilities on the Indo-Bangladesh Protocol route. The progress on these decisions will be reviewed in two months time by the Principal Secretary to PM,” the statement said.
The Ministry of External Affairs will try to extend the period of Trade and Transit Protocol beyond March when vessel operators come for renewal. Also, efforts shall be made for early completion of Ashuganj multi-modal port by Bangladesh.
This follows the signing of a tripartite agreement on the Farakka Power Project between NTPC, Inland Waterways Authority of India and a private developer. With a committed investment of Rs 650 crore by the private entity, this deal will lead to competitive transportation rates for NTPC.
Polio eradication, a dubious claim
Health officials seem to be in a self-congratulatory mode, since no case of paralytic polio has been reported during 2011. But that doesn't mean that polio has been eradicated. As has happened in some other countries, polio cases can reappear.
Secondly, different public health experts have pointed out that polio cannot be eradicated through vaccination alone. Poliomyelitis, like many other infectious diseases, is primarily a disease of poverty, leading to insanitation and malnourishment. In developed countries, polio declined along with improvement in living standards, including sanitation. Vaccination played only a supplementary role in the disappearance of polio cases.
However, now an illusion has been created that we can overcome polio through vaccination alone. Polio incidence can be substantially brought down through immunisation. But there are technical reasons why, unlike small pox, polio cannot be eradicated through vaccination.
HIGHER LIMB PARALYSIS
Under the Indian eradication programme, three doses of oral polio vaccine were introduced from 1978–79 into the National Immunisation programme. This reduced paralytic polio cases by 80 per cent — from 24,257 in 1988 to 4,793 in 1994. But in 1995, under the influence of international agencies, the polio eradication strategy was launched, with a manifold increase in expense and human power deployment in polio vaccination.
The Central Government spent Rs 1,747 crore on pulse polio in 2009-10, and a total of more than Rs 12,000 crore during the last 12 years. When, in 2006-07, it spent Rs 1004 crore on Pulse polio, routine immunisation with some other vaccines received only Rs 327 crore, and tuberculosis control Rs 184 crore. And the context is — we have approximately 1.5 crore in tuberculosis cases and four lakh annual tuberculosis deaths compared with the estimated 20,000 cases, and less than 500 deaths annually, when the polio eradication programme was launched.
The justification for the polio eradication programme is that it would substantially reduce the incidence of lameness in children, because polio constitutes the most important cause of preventable lameness in children. But in reality, the incidence of limb-paralysis in children has increased after the Polio Eradication Initiative!
The Web site of the National Polio Surveillance Project (NPSP) reveals that the number of cases of Acute Flaccid Paralysis (AFP) in children increased from 3,047 to 60,466 (20 times) during 1997 to 2011! Officials argue that this rise in figures is because of thorough documentation and increased sensitivity of the surveillance system for recording AFPs, and that most of these children are later found to be normal. However, if the sensitivity of the surveillance system is increased in, say, the year 2000, we would see a steep rise in AFP cases in only 2001, and may be 2002. The continuous steep rise in AFP cases from 1998 till today belies this ‘explanation'.
Dr Jacob Puliyel, invoking the Right to Information, accessed Uttar Pradesh data which revealed that in 2005, of the 10,055 AFP cases, 2,553 cases were followed up for two months, 898 (39 per cent) continued to have paralysis. These were thus not ‘false positive cases' but were cases of paralysis as such. Dr Satyamala confirmed this for 2006, by again invoking the RTI. That most of these cases of ‘residual paralysis' don't have a polio virus in their stools is no consolation for the paralysed children and their parents.
It is possible that massive use of Oral Polio Vaccine (which contains attenuated but live polio virus) has mutated into a new virus which doesn't have identical morphological properties of the polio virus, but which causes paralysis. A rational and humane response to this rise in paralysed children should have been to suspend the additional dosages of the Oral Polio Vaccine and to investigate the matter. If any other scientific explanation is found, this programme can be exonerated. But till then, to continue with these additional dosages of Oral Polio Vaccine is unethical.
It is necessary that all these children who have lost their limbs be fully rehabilitated, and their parents adequately compensated. Criminal liability should be ascertained for those officials who have suppressed this information of breakup of follow-up of AFP cases, and those officials and policymakers who are responsible for continuing this policy of PEI.
VAPP CASES
It is well-known that Oral Polio Vaccine inevitably causes Vaccine Associated Paralytic Polio (VAPP) in a miniscule proportion of Oral Polio Vaccine receivers — an average 1 case of VAPP per 4 million doses of polio. In India, due to Pulse Polio, it is expected that annually there would be approximately 200 cases of VAPP till Pulse Polio continues. These children have to sacrifice their limbs involuntarily on the altar of ‘Public Good', that too, without getting rehabilitated, and without their parents getting compensated! The Jan Swasthya Abhiyan made the demand for rehabilitation and compensation for VAPP cases. The National Human Rights Commission recommended it. But the government ignored it.
Till polio isn't eradicated globally, developed countries will have to continue polio-vaccination even if there have been no cases of polio in these countries. Hence, it is in their interest that Polio Eradication is continued, even if it may not be the priority of the developing countries. One way of doing this is to exaggerate the problem of polio. In 1988, 32,419 cases of paralytic poliomyelitis were reported globally. While estimating the paralytic cases, WHO increased this figure 10-fold, to 3,50,000, with the argument that the actual cases were ten times the reported cases. By a sleight of hand, in subsequent literature, the word “reported” was deleted and it was claimed that annually polio paralyses ‘more than 3,50,000 children'!
It should also be pointed out that polio is only one cause of lameness in children, and the overwhelming majority of AFP cases are due to non-polio viruses. Hence, even if polio is eradicated, it will reduce lameness in children by only approximately 20 per cent. We should certainly try to control polio through vaccination and sanitation. But to create an impression that we are eliminating lameness in children through polio-vaccination is misleading.
Andhra Sugars begins supplying liquid hydrogen to ISRO
Andhra Sugars Ltd has started supply of liquid hydrogen, cryogenic fuel to the Indian Space Research Organisation (ISRO).
Liquid hydrogen is used as a propellant in the Geostationary Satellite Launch Vehicle (GSLV) by the national space agency.
GSLV is used in placing bigger satellites in a stationery orbit. India is testing its capabilities in this area. The liquid hydrogen tanker was flagged off by Mr S. Ramakrishnan (Director – LPSC) and Mr P. Narendranath Chowdary, Joint Managing Director of Andhra Sugars today from the Tanuku plant.
According to Mr Chowdary, the company has set up a facility to liquefy hydrogen gas with the technical guidance from ISRO.
In ISRO's satellite launch vehicle's solid propellant is used in the first stage, liquid propellant in the second stage and cryogenic propellant in the third stage of GSLV. All these propellants are now manufactured by Andhra Sugars.
The Tanuku-headquartered company has been supplying propellant's to the ISRO for some time as part of its national commitment and indigenous technology capability demonstration.
SEBI hikes minimum investment level in portfolio management schemes
The SEBI Board decided to hike the minimum investment level under portfolio management schemes (PMS) to Rs 25 lakh from current level of Rs 5 lakh per client.
This has been done to protect the retail investors, Mr U.K.Sinha, SEBI Chairman said here after the Board meeting. He highlighted that PMS regulations are light touch regulations. Many retail investors are being drawn into PMS when their interests are not as tightly protected or guarded as it is in mutual fund regulations, he pointed out.
Mr Sinha also said that the enhanced minimum investment level of Rs 25 lakh per client will apply on a prospective basis. It’s only for new investors that the enhanced level will apply. The existing accounts will not be affected. However, existing investors in PMS are welcome to increase the investments in PMS if they have the capacity to do so.
Portfolio managers and wealth managers were keen that the existing minimum investment level of Rs 5 lakhs be maintained under the PMS. However, the SEBI Board has not acceded to their demands.
Thursday, January 26, 2012
World Economic Forum at Davos
India will oppose any attempts by developed countries to sign a limited market-opening pact and also call for a check on rising protectionism at the meeting of trade ministers from key WTO member countries at Davos later this week.
Switzerland is hosting a meeting of trade ministers from select countries that include India, China, Brazil, the US and the EU on Saturday on the sidelines of the on-going World Economic Forum at Davos to assess the impact of the economic turmoil on trade and discuss the future of the WTO.
"We have got reports that some developed members are talking about a plurilateral pact in services. We are yet to know the details, but principally we are against plurilateralism within the multilateral framework of the WTO.
A pluriltateral agreement involves a few countries, while a multilateral pact includes all countries that are members of a global organisation, in this case the WTO.
In the absence of a breakthrough in the on-going Doha round of global trade talks that aims to open up markets in both goods and services for all 153 member countries, a number of members, led by the US, have been talking about limited trade opening pacts in select sectors involving just a few important countries.
Last week, Australia hosted a meeting of 16 WTO members that included the EU, the US, Japan, Chile, Honk Kong and even Pakistan, but excluded India, Brazil, China and South Africa, where the US proposed negotiating a plurilateral services agreement.
The Doha talks have reached an impasse as developing countries like India, China and Brazil have refused to give in to the US demand of opening up their markets more than others.
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