IndiaFirst, with a share capital of Rs. 475 crore, is India’s youngest life insurance firm and is promoted by two of India’s largest State-owned banks— Bank of Baroda and Andhra Bank, along with Britain’s leading risk, wealth and investment company Legal & General.

The ISBN (International Standard Book Number) is a 10-digit number used for identification. An ISBN is unique to every book, so it is the best way to find the exact edition of the book you’re looking for.

Where is the ISBN?

The ISBN is always found on the back cover, near the bar code. It will also be listed inside the book, on the same page as the copyright and publisher information. It is always labeled ISBN (e.g. ISBN 0-00-470779-6).

To search by ISBN, simply type the 10 digits into the search box (do not include the dashes.)

TIP: If your ISBN has 13 digits, you must remove the first 3 digits of the ISBN in order to locate it through our Search function.

As per the data released by the Planning Commission of India, Bihar became the fastest growing state in India at 10.9 per cent between 2006 and 2010 while Gujarat’s growth rate declined to 9.3 per cent and it lagged behind Bihar and other four states- Orissa, Maharashtra, Haryana, Chhattisgarh in terms of growth rate. Bihar was the slowest growing state during 2001-05 period with GDP figure of 2.9 percent whereas Gujarat was the fastest growing state between 2001 and 2005 with figure of 11 percent.

Chhattisgarh grew from 7.7 per cent in 2001-05 to 10 per cent growth between 2006 and 2010  while Haryana grew from 8.4 per cent to 9.7 per cent, Maharashtra from 8.2 per cent to 9.6 per cent and Orissa from 7.8 per cent to 9.4 per cent between 2006 and 2010.

The period between 2004-05 and 2011-12 registered an average increase of 300 per cent in consumption in rural areas, minimizing the gap between rural and urban area thus highlighting the inclusive growth.

Eight Indian CEOs have made it to Harvard Business Review’s (HBR) list of 100 best performing global chief executives headed for the last 17 years by the late Steve Jobs of Apple. ITC chairman Y C Deveshwar, ranked seventh overall (Rank 7), was first among the Indian CEOs. Under his leadership, ITC saw its value increase by $45 billion.  He was followed by former ONGC’s late chairman and managing director Subir Raha (Rank 13). During Raha’s May 2001-2006 tenure, ONGC’s market capitalisation increased more than 10 times.

Reliance Industries chairman Mukesh Albany (Rank 28), was ranked third among Indians. Under his leadership, Reliance Industries has grown to become India’s second-largest Indian company by turnover.  Larsen & Toubro chairman and managing Director A M Naik (Rank 32), came next. Under Naik’s leadership, the company has expanded its horizons beyond domestic frontiers, positioning itself to become a true international player. Former Bharat Heavy Electricals CMD A K Puri (Rank 38) is ranked fifth among the Indians. He is followed by Bharti Airtel chairman, Sunil Bharti Mittal (Rank 65).  Jindal Steel & Power CEO Naveen Jindal (Rank 87) is ranked seventh among Indians. He is followed by Former SAIL chairman, V S Jain (Rank 89).

Jobs of Apple, who has been the best-performing CEO over the past 17 years was number 1 on HBR 2010 list as well. From 1997 to 2011, Apple’s market value increased by $359 billion, and its shareholder return experienced average compound annual growth of 35 percent. Jeff Bezos of Amazon.com has now climbed to the number 2 spot, up from number 7 in HBR 2010 list. Under his leadership, the company delivered industry-adjusted shareholder returns of 12,266 percent and saw its value increase by $111 billion. The highest-ranked woman on the list is Meg Whitman, currently the CEO of beleaguered HP, whose performance as the CEO of eBay from 1998 to 2008 earned her the number 9 spot.

IDBI Bank has cleared a proposal to merge Stock Holding Corporation of India (SHICL) with the bank.

Indian Oil Corporation (IOC) has become first Indian company to raise debt in Singapore dollar. It has raised $326
million through issue of bonds denominated in Singapore dollar.

Mahindra & Mahindra has launched Rexton SUV, its first product from its SsangYong stable. SsangYong is a South Korean car manufacturer which has been purchased by M&M.

Robert Iger-led Walt Disney has agreed to buy Lucasfilm and its “Star Wars” series in a $4 billion deal.

According to a new Forbes ranking on Wednesday that found heads of state occupying six of the top 10 spots among the world’s most powerful people, led by President Barack Obama.The list’s highest-ranked businessman was Microsoft co-founder Bill Gates at No. 4. U.S. Federal Reserve Chairman Ben Bernanke and European Central Bank President Mario Draghi, both public officials, also made in the the top 10.

Which Bank serves as the Banker’s Bank in India?

(A) Reserve Bank of India
(B) State Bank of India
(C) Central Bank of India
(D) Bank of India

Answer is (A) Reserve Bank of India

Which of the following is a public sector unit ?

(A) TCS
(B) ICICI Bank
(C) TESCO
(D) BHEL
(E) All of these

Answer is (D) BHEL

The ‘Orange Coalition Govt.’ was formed once again in which of the following countries ?

(A) Russia
(B) Ukraine
(C) France
(D) Germany
(E) None of these

Answer is (B) Ukraine

Which of the following countries in the world is the biggest consumer of gold ?

(A) USA
(B) Bangladesh
(C) Russia
(D) India
(E) None of these

Answer is (D) India

The financial markets of which of the follow-ing countries were badly affected by sub-prime crisis ?

(A) Russia
(B) Brazil
(C) UK
(D) USA
(E) None of these

Answer is (C) USA

Benazir Bhutto is associated with which of the following political parties ?

(A) Muslim League
(B) Pakistan Peoples Party
(C) Pakistan National Congress
(D) Islamic Movement of Pakistan
(E) None of these

Answer is (B) Pakistan Peoples Party

Many times we read in financial newspapers about ‘FII’. What is the full form of FII ?

(A) Final Investment in India
(B) Foreign Investment in India
(C) Formal Investment in India
(D) Fair Institutional Investment
(E) Foreign Institutional Investment

Answer is (E) Foreign Institutional Investment

Which of the following countries does not play International cricket ?

(A) Russia
(B) England
(C) South africa
(D) Pakistan
(E) India

Answer is (A) Russia

Which of the following types of Banks are allowed to operate foreign currency accounts ?

(1) Foreign Banks
(2) Regional Rural Banks
(3) Nationalized Banks

(A) Only 1
(B) Only 2
(C) Only 3
(D) All 1, 2 and 3
(E) None of these

Answer is (C) Only 3

India has different categories of Commercial Banks. Which of the following is NOT one such category ?

(A) Private Banks
(B) Commodity Banks
(C) Nationalized Banks
(D) Co-operative Banks
(E) Foreign Banks

Answer is (B) Commodity Banks

Majority of Rural people still prefer to go to which of the following for their credit needs ?

(A) Money Lenders
(B) Foreign Banks
(C) NABARD
(D) RBI
(E) All of these

Answer is (A) Money Lenders

Which of the following organization/agencies has established a fund known as ‘Investor protection fund’ ?

(A) SEBI
(B) NABARD
(C) Bombay Stock Exchange
(D) AMFI
(E) None of these

Answer is (C) Bombay Stock Exchange

Which of the following Departments of the Govt. of India is helping banks in disbursement of rural credit by the banks ?

(A) Railways
(B) State Road Transports
(C) Post and Telegraph
(D) Ministry of Health
(E) None of these

Answer is (E) None of these

Which of the following countries has offered knighthood to Salman Rushdie?

(A) France
(B) Italy
(C) Germany
(D) U.K.
(E) None of these

Answer is (D) U.K.

Who amongst the following is the author of the famous classical book “A Passage to India”?

(A) Mark Twain
(B) Nayantara Sehgal
(C) Nirad C. Choudhuri
(D) E. M. Foster
(E) None of these

Answer is (D) E. M. Foster

At events across the country, the long awaited iPhone 5 has been launched in India. Featuring a larger 4″ screen and a much more powerful A6 processor, the iPhone 5 is a major step up from the iPhone 4S. The phone is now incredibly slim with a thickness of just 7.6mm. The svelte smartphone is also remarkably light weighing just 112gms.

The latest version of Apple Inc.’s iconic iPhone is expected to do swifter sales in India than previous incarnations, analysts say.

The iPhone 5 will be available on retail shelves in India starting Friday, but Apple fans have already started pre-ordering the smartphone from Apple’s local telecom carrier partners Bharti Airtel ltd. 532454.BY -0.75% and Aircel Ltd.

Information on Bharti Airtel’s website showed that the iPhone 5 is priced at 45,500 rupees ($847) for the basic 16 gigabytes version. The 32 GB variant is priced at 52,500 rupees and the 64 GB version at 59,500 rupees.

To meet demand for the iPhone 5, specialized distribution companies and mobile phone companies have together placed orders with Apple to ship 100,000 iPhone 5s to India to meet demand, says G. Rajeev, a senior market analyst with research firm IDC Inc, who closely tracks the smartphone market in India. This compares with 25,000 units ordered prior to the launch of the iPhone 4S, he adds.

Muthoot Finance won ‘Asian Sustainability Leadership Award for Best Rural Outreach’

Muthoot Finance Ltd has received the Golden Peacock Award for ‘Excellence in Corporate Governance’ for the year 2012 in London.

The award ceremony hosted by Institute of Directors (IOD) at the London Global Convention 2012 was given on the basis of recommendations of the jury headed by Justice P.N. Bhagawati, former Chief Justice of India and member of the UN Human Rights Commission.

INDEX -2012; the largest International Design Exhibition in the Gulf region    as held at World Trade Center in Dubai. The exhibition witnessed participation of over 900 leading brands and companies from 45 countries including India exhibiting their innovative products and creative designs . Coir board of India         as among the participants at the show  with a range of products catering to the gulf market. The Coir Board and the Coir Federation of Kerala sees a big opportunity in the gulf region  w ith a large Indian Diaspora around. The theme of exhibition   as “Where Inspiration thrives”. The focus this year  as on educational and health care interior fittings  ith the estimated market   worth $900 billion in the Gulf countries .

Tata Motors on Tuesday appointed Karl Slym as Managing Director to succeed P.M. Telang who superannuated from the company in June this year.

In a statement here, the company said Slym will lead all operations of Tata Motors in India and international markets including South Korea, Thailand, Spain, Indonesia and South Africa.

Jaguar Land Rover would continue to be managed independently. Slym has been the Executive Vice-President & Board Member, SGMW Motors, China (a General Motors’ joint venture). Prior to this, he was President, Managing Director and board Member of GM in India.

He has had a 17-year career in General Motors in various positions in different geographies. He is expected to take over his responsibilities on October 1, 2012.

Slym is an alumnus of Standford University and a Sloan Fellow.

1 : Name the largest call-centre services company in the world

The answer is :Convergys Corp

2 : Which was first dividend-yield focussed fund launched in India?

The answer is :Birla Dividend Yield Plus.

3 : Mr Pawan Sachdeva was involved in a major capital market scandal in the mid-1990s.

With which company was he associated?

The answer is :M.S.Shoes East

4 : Which was the first bank in India?

The answer is :General Bank of India

5 : First Indian bank to open a branch outside India?

The answer is :Bank of India

6 : Who is the first Indian woman to graduate from the Harvard Business School?

The answer is :Naina Lal Kidwai

7 : Name the 1st woman director on the board of Larsen & Toubro.

The answer is :Rajashree Birla

8 : The first commercial cardboard box was produced in…

The answer is :England

9 : Which Indian software company is associated with the design of A380?

The answer is :Infosys

10 : Which company manufactured the Ambassador?

The answer is :Hindustan Motors

Tip of the Tale:

Amazon.com has made a wild card entry into India by using one of its tributaries, Junglee.com, that it had bought 14 years ago. Amazon is waiting for the government’s multi-brand retail FDI policy before it directly starts its operations in India. Junglee.com is being positioned as an online shopping service that will help customers discover products from other websites, including Amazon.com.

CHINEESE CURRENCY YUAN GOES GLOBAL

As Dollar and Euro falls in World Currency Market Yuan is emerging  as the  new world currency .

All signs point to the Chinese yuan emerging as a second world currency after the US dollar. A key step in this development was taken in late December when China and Japan agreed to conduct future bilateral trade directly in the Chinese currency.

 Major milestones

• Reforms began in 2004 when Hong Kong residents were allowed to open renminbi bank and credit card accounts
• In 2009, China launched a pilot scheme allowing yuan to be used to pay for imports and exports
• In 2010, more restrictions were lifted, allowing any company in any country to settle trade transactions with Chinese firms in renminbi
• Another key step has been the development of the offshore yuan debt market or dim sum bond market in Hong Kong
• Multinationals like McDonalds, Tesco and HSBC have issued yuan debt

State Bank of India:
(SBI) is owned by the Government of India and is the largest bank in the Indian subcontinent. If one measures by the number of branch offices (10,000 + as on March, 2008), SBI is the second largest bank in the world. SBI, the oldest commercial bank in the Indian subcontinent, is also present in 32 countries, where it has 84 offices serving the international needs of the bank’s foreign and Indian customers. In recent years, the bank has sought to expand its overseas operations by buying foreign banks. It is the only Indian bank to feature in the top 100 world banks in the Fortune Global 500 rating and various other rankings. According to the Forbes 2000 listing it tops all Indian companies. With an asset base of $126 billion and its reach, it is a regional banking behemoth.

• Ad Valorem : Value added. An example of an ad valorem tax would be VAT.
• Advances: Loans given by financial institutions
• Appreciation: An increase in the value of an asset.
• Arbitrage: Movements of funds to take advantage of differences in exchange or interest rates,and this quickly eliminates any such differences.
• Average cost pricing : Setting price equal to average cost.
• Average propensity to consume: The proportion of disposable income spent: apc = C/Y
• Amortization: Writing down the value of an asset in a company’s books to reflect its loss of value through age and use. Called depreciation in the UK. Amortization is also an accounting term to pay off a loan in gradual increments.
• Barter: The direct exchange of goods and services without the use of money
• Birth rate: The number of live births per thousand of the population in a year
• Black economy: Unrecorded production
• Backward integration: Occurs when a company joins with a firm that is involved at an earlier stage of the production chain
• Balance of payments: Statement of a country’s net financial transactions with other countries. Current account measures balance of imports and exports and payments and receipts for services such as shipping, banking and tourism. Capital account measures movements of capital (bank deposits, securities, shares, property).
• Balance of trade: The difference between the value of visible exports and visible imports.
• Black markets: Created when buyers and sellers meet to negotiate the exchange of a prohibited or illegal good. More generally any unofficial market in which prices are inordinately high.
• Bull market: Period of rising share prices; an optimistic state of affairs; the opposite of a bear market.
• Buyer`s market: The quantity of goods for sale exceeds the amount consumers are willing and able to buy at the current market price. Characterised by low prices
• Bonds: Certificate of debt issued to raise funds. It normally has a fixed rate of interest and is repayable at a fixed date. See also convertible bonds, mortgage-backed securities.
• Break-even: When a firm`s short run total revenue equals its short run total cost
• Bretton Woods system: An arrangement of fixed exchange rates which operated between 1945 and 1971.
• Capital gains: The difference between the sale and purchase price of an asset.
• Ceteris paribus: All other influencing factors are held constant
• Call option: The right but not the obligation to buy a security at a specified price at a specified date in the future.
• Call rates: The interest rate on money loaned overnight. Also known as the overnight rate. Widely used measure of money market rates.
• Consumer surplus: This occurs when people are able to buy a good for less than they would be willing to pay. They enjoy more utility than they had to pay for.
• Closed economy: An economy which does not engage in international trade.
• Collusion: Agreements between firms to restrict competition.
• Complementary goods: Two goods consumed at the same time eg cars and petrol
• Corporation tax: A tax on firms` profits.
• Consumer’s Price Index: Measure of the change in the cost of consumer goods and services. It is used as an indicator of a nation’s inflation rate.
• Cost benefit analysis: A method of assessing investment projects which takes into account social costs and benefits.
• Cost of living: The general level of prices in the economy usually measured by the retail price index.
• Cost plus pricing: Setting prices by adding a profit margin to average cost
• Cost push inflation: When a cost of production (e.g. wages) increases and firms put up prices to maintain profits.
• Credit creation: The ability of the banking sector to create money by giving advances.
• Crowding out: A decline in private sector spending resulting from a rise in public sector expenditure.
• Current account: Usually taken to mean the current account of the balance of payments.
• Current account balance: A record of a country`s earnings from the sale of visible and invisible items minus its expenditure on visible and invisible items from aborad.
• Current account deficit: When a country spends more on visible and invisible items from aborad than it earns from the sale of visible and invisible items.
• Death rate: The number of deaths per thousand of the population in a year
• Debentures: Long term fixed interest loans to companies.
• Demand pull inflation: Occurs when aggregate demand exceeds aggregate supply
• Depreciation of sterling: When market forces lower the value of the £ from one fixed rate to another.
• De-merging: One company splits up to form two new firms. These new firms are frequently companies which used to be separate prior to the initial merger.
• Demand curve: A graph which shows the amount of a good consumers are willing and able to buy at various prices
• Demand-pull inflation: This occurs when the excess of aggregate demand over aggregate supply causes an increase in the general level of prices.
• Deregulation: The removal of controls on a particular market eg abandonment of a licensing system for taxis
• Devaluation of sterling: Occurs when the UK government lowers the value of the £ from one fixed rate to another
• Developed countries: Countries with high levels of real national income per head and relatively large tertiary sectors.
• Developing countries: Countries with low levels of real national income per head and relatively large primary sectors.
• Direct taxation: Taxes on income and wealth
• Discounting: Future costs and benefits are difficult to measure. The present value (P) of future benefits less costs is found by discounting
• Disequilibrium: A state of imbalance in which there is tendency for change.
• Double counting: Including transfer payments, intermediate expenditures or outputs and stock appreciation in national accounts
• Dumping: The sale of goods in a foreign country at a price below what costed in the Home market.
• Engel curve: A curve showing the relationship between income and consumption
• Economies of scale: A reduction in long run unit costs which arise form an increase in production
• Elasticity of demand: The responsiveness of demand to a given change in price or income.
• Elasticity of supply: The responsiveness of supply to a given change in price
• Earnings per share: Net income of a company net of preferred dividends divided by a weighted average of total shares outstanding for the period. One of the most widely watched indicators of the profitability of a company.
• Exchange rate: The price of one currency in terms of another currency. More generally,the price at which any good is being traded for another good.
• Exchange rate mechanism (ERM): Exchange rate mechanism (ERM): A system operated by some members of the European Union where the Central Banks of members intervene to stabilise the exchange rate of currencies within agreed limits
• Factor cost: The value of output measured in terms of the cost of the factors of production used to produce it
• Factor incomes: Rewards to the factors of production eg labour receives wages.
• Fisher`s Quantity Theory of Money: The view that changes in the money supply have a direct and proportionate effect on the price level
• Forward market: A market in forward contracts of a commodity or currency, which are agreements to buy or sell the commodity or currency at a future date. The contracts are not negotiable.
• Free goods: A good in unlimited supply at zero price,eg air
• Free trade area: A group of countries which removes tariff barriers between member countries but allows each member to decide on its own tariff policy towards non-members
• GDP: The total value of all goods and services produced domestically each year by a country. It equals gross national product minus income from abroad. Most countries use this definition; US official statistics use gross national product.
• GNP: The total value of goods and services produced each year by a country. Real growth in GNP measures the increase in output after subtracting the effect of inflation.
• Giffen good: An increase in income results in a fall in demand for the good
• Gross domestic fixed capital formation: Total spending on fixed investment eg machines,factories,offices.
• Horizontal integration: Two companies merge in the same industry and at the same stage of production;
• Human Development Index: An index devised by the UN to assess comparative levels of development in countries. Its three main metrix are literacy, life expectancy and purchasing power parity (PPP)-adjusted income.
• Income tax: Tax levied by the government on wages,rent,interest and dividends
• Indifference curves: Curves which show the different combinations of two goods which give equal satisfaction
• Index: A benchmark against which financial or economic performance is measured, such as the FTSE 100 or a consumer price index. Created by statistical sampling of broad set of data. To reflect the importance of the biggest companies, stock market indices tended to be weighted either by price, eg, the Dow Jones Industrial Average, or market capitalisation, eg, the S&P500 and most European stock indices.
• Index funds: Mutual fund that aims to track the performance of a specific stock market index. Such funds are passively managed and thus tend to have lower charges than actively managed funds.
• Indirect taxation: A surcharge on price imposed on the sale of goods and services by the government
• International Monetary Fund (IMF): An organisation established to encourage international co-operation in the monetary field, the stabilisation of exchange rates and the removal of foreign exchange restrictions.
• International Bank for Reconstruction and Development: More commonly known as the World Bank.It gives long term loans to member countries for high priority infrastructure,agricultural,industrial and educational projects
• IS-LM: A model of income determination that integrates the goods market (represented by investment and saving) and the money market (demand and supply of money)
• J effect: The tendency for a fall in the value of the currency to worsen the balance of trade before it improves the position
• Keynes: UK economist who urged state intervention to achieve full employment
• Liabilities: Money owed
• Limited companies: Companies which have limited liability
• Liquidity ratio: The proportion of a commercial bank`s assets which can be converted into cash quickly.
• Liquidity trap: When the rate of interest is so low (and the price of bonds is so high) that everyone anticipates a future fall in the price of bonds
• Long run: Period of time when all factor inputs,including capital,can be changed
• Lorenz curve: A curve showing the proportion of income earned by a comulative percentage of the population
• Macroeconomic policies: Policies designed to influence the level of employment,the price level,economic growth and the balance of payments
• Marginal cost curve: A curve showing the addition to total cost resulting from producing one more unit
• Most Favoured Nation (MFN): US trade policy that gives to a trading partner the same customs and tariff treatment as the most-favored nation.
• Multi Fibre Agreement(MFA): Provision of GATT governing international trade in textiles that lets a country apply numerical restrictions on textile imports when it considers them necessary to prevent market disruption. MFA provides a framework for regulating international trade in textiles and apparel. It covers wool, man-made (synthetic) fibers, silk blends and other vegetable fiber textiles and apparel.
• Marginal propensity to consume: The proportion of each extra pound of disposable income spent by households
• Marginal propensity to save: The proportion of each extra pound of disposable income not spent by households
• Monopolistic competition: An industry made up of a large number of small firms who produce goods which are only slightly different from that of all other sellers
• Monopsony: A market where there is only a single buyer of a good.
• Marginal revenue: The income received from the sale of one extra unit
• Microeconomics: The behaviour of an individual consumer,firm and industry
• Monetarists: A group of economists who believe that changes in the money supply have a significant impact on the economy.
• Money illusion: May occur where people confuse changes in nominal balances with changes in real balances.
• Mutual Fund: US name for an open-ended managed fund not quoted on a stock exchange, equivalent to a unit trust in the UK. Mutual funds are a popular way for individuals to spread the risk of investing in bonds and equities and are much used for retirement savings.
• NASDAQ: Started in the US 1971 as an automated over-the-counter securities quotes system – the acronym stands for National Association of Securities Dealers’ Automated Quotation. Nasdaq evolved into the world’s first electronic stock market,
• Neo-classical Theory: The view that markets operate efficiently and that the way to increase output and employment is to raise aggregate supply.
• Net Asset Value(NAV): The market value of a fund share, usually calculated daily after the close of trading.
• North American Foreign trade agreement (NAFTA): Free trade agreement involving Canada, the US and Mexico entered into in January 1994. It progressively eliminates almost all bilateral trade barriers between the three countries.
• Offer curve of labour: The number of hours labour is prepared to work at different levels of income.
• Oligopolies: Markets dominated by a few sellers who account for a large proportion of output
• Open market operations: Where the Bank of England sells short term government securities and bills,thereby reducing retail banks` liquid assets and raising interest rates
• OECD: The Organisation for Economic Co-operation and Development
• Oligopoly: A market dominated by a very few sellers who account for a large proportion of output
• Opportunity cost: The decision to produce or consume a product involves giving up another product. The real cost of an action is the next best alternative forgone.
• OTC (over the counter): Trading in shares away from organised exchanges; it is usually carried out over the telephone or via a computer network.
• Pareto criteria: A reallocation of resources is desirable only if someone gains and no one loses
• Perfect competition: An industry made up of a large number of small firms,each selling homogeneous (identical) products to a large number of buyers.
• Phillips curve: Shows the relationship between the rate of unemploymnent and the rate of inflation
• Price discrimination: When the same product is sold in different markets for different prices
• Price elasticity of demand: Measures the responsiveness of demand to a given change in price
• Price elasticity of supply: Measures the responsiveness of supply to a given change in price:
• Primary sector: That part of the economy concerned with agriculture and the extraction of raw materials
• Primary Markets: The placing of new stocks, shares, bonds, etc. Existing securities are traded in the secondary market.
• Producer surpluses: The difference between the minimum price a producer would accept to supply a given quantity of a good and the price actually received.
• Progressive income tax: A tax which takes a higher percentage of the income of the rich than the poor
• Purchasing Power Parity Theory: Suggests that the prices of goods in countries will tend to equate under floating exchange rates so that people would be able to purchase the same quantity of goods in any country for a given sum of money
• Quantity Theory of Money: The view that changes in the money supply have a direct and proportionate effect on the price level.
• Repo rate: The interest rate at which a central bank will lend against the security of its government’s paper.
• SDRs: Special drawing rights- a form of international money created by the IMF which is acceptable in settlement of debts between countries.
• Secondary sector: That part of the economy concerned with the manufacture of goods.
• Shadow prices: estimated prices in situations where market prices do not exist.
• Shares: Securities issued by companies as a way of raising long term capital. Holders are owners of the company
• Spot market: That part of the foreign exchange market concerned with the buying and selling of currencies for immediate use.
• Subsidies: Payments to producers or consumers designed to encourage an increase in output.
• Subsistence: The minimum income needed to survive
• Supply side economics: The branch of economies concerned with the productive potential of the economy and how to increase it
• Tertiary sector: That part of the economy concerned with the provision of services
• Trade-off: What has to be sacrificed in order to obtain a good,it is equivalent to opportunity cost.
• Transfer pricing: Setting internal prices to charge other branches of the same company.
• VAT: value added tax
• Zero based budgeting: Setting a budget in which all spending must be justified each year, not just amounts in excess of the previous year.

The Advance Pricing Agreement (APA) program is proposed to be introduced from July 1, 2012, as per the Union Budget 2012. An APA is an arrangement between the tax payer and tax authority to resolve potential disputes in relation to determination of Arm’s Length Price (ALP) of an international transaction through an upfront agreement.

The Economy Survey 2011-12 was tabled by the Finance Minister Pranab Mukherjee in the Parliament on March 15, 2012.

Following are the highlights of Survey, a report card of the Indian economic scenario for current fiscal:
—The country’s economic growth estimated at 6.9 per cent in the current fiscal; growth momentum to pick up in next two fiscals to 7.6 per cent 2012-13 and 8.6 per cent in 2013-14.
—RBI expected to lower policy interest rates, as inflationary pressures expected to ease in coming months; A low interest rate regime to encourage investment activity and push forward economic growth.
—Steps required for deepening of domestic financial markets, especially corporate bond market and attracting longer-term inflows from abroad; Efforts at attracting dedicated infrastructure funds have begun.
—The growth rate of investment in the economy is estimated to have declined significantly; borrowing costs up due to a sharp increase in interest rates.
—High borrowing costs and increase in other costs affecting profitability and internal accruals.
—Slowdown in Indian economy largely due to global factors, as also because of domestic factors like tightening of monetary policy, high inflation and slower investment and industrial activities.
—Inflation high, but showing clear signs of slowdown by the year-end; Whole-sale food inflation down to 1.6 per cent in January 2012 from 20.2 per cent in February 2010.
—India remains one of the fastest growing economies of the world; Country’s sovereign credit rating rose by a substantial 2.98 per cent 2007-12.
—Exports grew by 40.5 per cent in the first half of this fiscal and imports grew by 30.4 per cent; Foreign trade performance to remain key driver of growth.
—Forex reserves expanded further, covering almost the entire external debt stock to the country.
—Foodgrains production likely to cross 250.42 million tonnes; largely on back of increase in rice production.
—Agriculture and Services sectors expected to perform well; Industrial growth pegged at 4-5 per cent and expected to improve further as economic recovery resumes.
—Global economy remains fragile and concerted efforts needed to restore stability and renewed growth; Steps needed for sovereign debt crisis, financial regulation, growth and job creation efforts and energy security, globally.
—India much more closely integrated with world economy’ share of trade to GDP of goods and services has tripled in 1990-2010.
—A progressive deregulation of interest rates on savings accounts to help raise financial savings and improve transmission of monetary policy.
—Sustainable development and climate change becoming central areas of global concern and India too is equally concerned and engaged constructively in global negotiations.
—FDI in multi-brand retail can come into effect in a “phased” manner, beginning from metropolitan cities. The survey said that allowing foreign direct investment in multi-brand retail is one of the major issues in the services sector, but the move would address problems relating to food inflation.
—Notwithstanding lower growth of domestic steel consumption during the first three quarters of the current fiscal, the overall performance of the sector is “optimistic”. The survey points out a list of bottlenecks responsible for lower steel consumption, including high inflationary pressure within, deteriorating global economy, multiple hikes in interest rates by the Reserve Bank of India.
—Rate of growth estimated to be 6.9% in FY 12.
—Real GDP growth expected at 7.6% in FY 13.
—GDP pegged at 8.6% in FY 14.
—Agriculture grows at 2.5 % growth in FY 12.
—Services grow at 9.4 %, in FY 12, share in GDP at 59%.
—Industrial growth pegged at 4-5 % in FY 13.
—WPI food inflation dropped from 20.2% in February 2010 to 1.6% in January 2012.
—India’s sovereign credit rating rose by 2.98 percent in 2007-12.
—Central spending on social services up at 18.5% in FY 12 Vs 13.4% FY 07.
—Gross capital formation in Q3 of FY 12 as a ratio of GDP at 30%, down from 32% in FY 11.
—Balance of Payments widens to USD 32.8 bn in H1 of FY 12 Vs USD 29.6 bn FY 11.
—Forex reserves up from USD 279 bn in March ’10 to US USD 305 bn in March 11.
—India’s share of trade to GDP of goods and services in world tripled in 1990-2010.
—FDI in multi-brand retail recommended.
—Agriculture, allied activities account for 13.9 % of GDP in FY 12.
—Foodgrains stocks at 55.2 million tonnes.
—Production of foodgrains in FY 12 estimated at 250.42 million tones.
—Industrial growth pegged at 4-5% in FY 12.
—Employment in Industry increase from 16.2% in 1999-2000 to 21.9% in 2009-10 largely due to construction sector.
—Services grow by 9.4% despite slowing GDP growth.
—Share of services in GDP at increased from 55.1% in FY 11 to 56.3% in FY 12.
—India’s exports grew at 23.5% to reach USD 242.8 bn in April 2011 – Jan 2012.
—Imports up 29.4% during April – Jan 2011-12 at USD 391.5 bn.
—Key import areas: petroleum, oil and lubricant, gold and silver.
—UAE India’s largest trading partner, followed by China.
—Total FDI inflows into major infrastructure sectors during April-December 2011 registered growth of 23.6%.
—Rupee falls by 12.4 % against USD. Rupee’s high volatility impairs investor confidence.
—Public sector banks show 19 % growth in priority sector lending.
—Credit Disbursement to agriculture sector exceeded target by 19 %.
—98 % public sector bank branches fully computerised.
—Number of out-of-school children down from 134.6 lakh in 2005 to 81.5 lakh in 2009.
—Share of women in organized-sector employment at 20.4% in 2010 March end.
—MGNREGA: Coverage increases to 5.49 crore households in 2010-11.