Economy This Week | Period: 12th Nov to 18th Nov | UPSC CSE 2022 | Summary and Q&A

18.3K views
November 21, 2022
by
BYJU'S IAS
YouTube video player
Economy This Week | Period: 12th Nov to 18th Nov | UPSC CSE 2022

TL;DR

Hong Kong funds may flow into India via Mauritius due to a double taxation agreement, SEBI to regulate financial influencers, increased levies on airlines, government to continue capital investment support, India removed from currency manipulator list, lower inflation rates, concerns over declining exports.

Install to Summarize YouTube Videos and Get Transcripts

Key Insights

  • 🇭🇰 The double taxation avoidance agreement between Mauritius and Hong Kong could attract significant investments from Hong Kong into India.
  • 🛄 SEBI's move to regulate financial influencers aims to protect investors from misleading advice in the market.
  • 🥺 Increased levies on airlines may lead to higher ticket prices and impact the aviation industry.
  • 🔠 The government's support for capital investment is expected to continue, facilitating infrastructure development and economic growth.
  • 😫 India's removal from the currency manipulator list reflects compliance with certain parameters set by the USA.
  • 😘 Lower inflation rates provide relief and stability to the economy, benefiting both the government and consumers.
  • 😨 Concerns arise over declining exports, influenced by recessionary fears in major trading partners and government policies.

Transcript

hello and welcome to baiju's exam prep IAS welcome to another session of economy this week wherein we are going to take up all the important economic related articles which have appeared in various business and related newspapers from 12th to 18th November 2022 and have a detailed discussion on these articles let's begin the discussion for this wee... Read More

Questions & Answers

Q: How does Mauritius signing a double taxation avoidance agreement with Hong Kong impact India's economy?

The agreement opens the possibility of Hong Kong funds flowing into India via Mauritius due to the existing double taxation avoidance agreement between India and Mauritius. This could result in increased investments and economic growth in India.

Q: Why is SEBI planning to regulate financial influencers on social media?

SEBI aims to regulate financial influencers to prevent misleading advice and ensure investor protection. By implementing regulations, SEBI can ensure that investors receive accurate and trustworthy information, promoting transparency and confidence in the market.

Q: What is the impact of increased levies on airlines?

Increased levies on airlines, such as the Udan levy, may lead to higher ticket prices for consumers. This may affect the demand for air travel and potentially impact the aviation industry.

Q: How will the government's capital investment support continue to benefit states?

The government's capital investment support aims to promote infrastructure development and economic growth in states. By allocating funds and providing viability gap funding, the government encourages investment and development in various sectors.

Q: Why was India removed from the currency manipulator list?

India was removed from the currency manipulator list as it satisfied only one of the three required parameters. These parameters include having a trade surplus with the USA of at least 15 billion dollars and a current account surplus or central bank intervention exceeding certain thresholds.

Q: What are the implications of lower inflation rates?

Lower inflation rates provide relief to both the government and the Reserve Bank of India. This allows for better management of the economy and stability in prices. It also eases concerns over rising costs for consumers.

Q: Why is there concern over declining exports?

Declining exports pose a challenge for India's trade balance and economic growth. Factors such as recessionary fears in major trading partners and government policies, including tariffs and regulations, contribute to the contraction in exports.

Q: How does Mauritius signing a double taxation avoidance agreement with Hong Kong impact India's economy?

The agreement opens the possibility of Hong Kong funds flowing into India via Mauritius due to the existing double taxation avoidance agreement between India and Mauritius. This could result in increased investments and economic growth in India.

More Insights

  • The double taxation avoidance agreement between Mauritius and Hong Kong could attract significant investments from Hong Kong into India.

  • SEBI's move to regulate financial influencers aims to protect investors from misleading advice in the market.

  • Increased levies on airlines may lead to higher ticket prices and impact the aviation industry.

  • The government's support for capital investment is expected to continue, facilitating infrastructure development and economic growth.

  • India's removal from the currency manipulator list reflects compliance with certain parameters set by the USA.

  • Lower inflation rates provide relief and stability to the economy, benefiting both the government and consumers.

  • Concerns arise over declining exports, influenced by recessionary fears in major trading partners and government policies.

  • The need for India to focus on promoting exports and addressing trade deficits for sustainable economic growth.

Summary & Key Takeaways

  • Hong Kong funds are expected to come into India through Mauritius due to a double taxation avoidance agreement.

  • SEBI plans to regulate financial influencers on social media to prevent misleading advice to investors.

  • Airlines will face increased levies, leading to potential higher ticket prices in the future.

  • The government intends to continue providing capital investment support to states, potentially allocating one lakh crore rupees for the next financial year.

  • India has been removed from the currency manipulator list due to satisfying only one of the three required parameters.

  • Retail inflation has reached a three-month low of 6.7%, and wholesale price index has dropped to a 19-month low of 8.3%.

  • Concerns over declining exports as India's export market contracts by 16.6% in October, while imports decrease by 5.7%.

Share This Summary 📚

Summarize YouTube Videos and Get Video Transcripts with 1-Click

Download browser extensions on:

Explore More Summaries from BYJU'S IAS 📚

Summarize YouTube Videos and Get Video Transcripts with 1-Click

Download browser extensions on: