India at a glance

A blend of the traditional and the modern, India is one of the oldest civilizations and the world's largest democracy. It is home to 1 billion-plus people professing various faiths and speaking in different tongues. But what binds them together is a sense of 'Indianness' which is hard to define, but could be sensed instinctively amid all this mind-boggling diversity. A vibrant multi-lingual, multi-cultural and multi-faith society, India is seen by many as a model pluralistic society based on its twin ethos of tolerance and mutual respect. Comprising twenty-eight states and seven union territories, India is home to all major religions of the world. But the state makes no distinction between them, allowing each Indian citizen constitutional guarantees to pursue freedom in the broadest sense - freedom of expression and freedom to pursue the religion of one's choice.

This dazzling diversity has spawned a unique composite culture and created an unmatched reservoir of talent and enterprise in the country. People are India's greatest resource and strength. And it can be seen in all-encompassing socio-economic progress this nation has made during the last 61 years of its independence. The world has taken note and has been generous with its praise of the India Growth Story. Small wonder, India is now seen as an emerging Asian power and an important participant in the ongoing search for global solutions to global problems ranging from terrorism and poverty eradication to climate change and energy security.

India has become self-sufficient in agricultural production and is now the tenth industrialised country in the world. It is the sixth nation to have gone into outer space, not to militarise it, but to create a better life for its people. Anybody coming to India for the first time or wishing to know it better will be struck by its sheer size and diversity. The country is spread over an area of 32,87,2631 square km, extending from the snow-covered Himalayan heights to the tropical rain forests of the south. As the 7th largest country in the world, India stands apart from the rest of Asia, marked off as it is by mountains and the sea, which give the country a distinct geographical entity. Bound by the Great Himalayas in the north, it stretches southwards and at the Tropic of Cancer, tapers off into the Indian Ocean between the Bay of Bengal on the east and the Arabian Sea on the west.

GEOGRAPHY:
Location: India, with an area of 3.3 million sq. km, is a subcontinent. The peninsula is separated from mainland Asia by the Himalayas. The country lies between 8° 4' and 37° 6' north of the Equator and is surrounded by the Bay of Bengal in the east, the Arabian Sea in the west and the Indian Ocean to the south.

The mainland comprises four regions, namely the great mountain zone, plains of the Ganga and the Indus, the desert region, and the southern peninsula.

The Himalayas form the highest mountain range in the world, extending 2,500 km over northern India. Bound by the Indus river in the west and the Brahmaputra in the east, the three parallel ranges, the Himadri, Himachal and Shivaliks have deep canyons gorged by the rivers flowing into the Gangetic plain.

Indian Standard Time GMT + 05:30

Area 3.3 Million sq. km

Telephone Country Code +91

Border: Countries Afghanistan and Pakistan to the north-west; China, Bhutan and Nepal to the north; Myanmar to the east; and Bangladesh to the east of West Bengal. Sri Lanka is separated from India by a narrow channel of sea, formed by the Palk Strait and the Gulf of Mannar.

Coastline: 7,516.6 km encompassing the mainland, Lakshadweep Islands, and the Andaman & Nicobar Islands.

Climate: The climate of India can broadly be classified as a tropical one. But, in spite of much of the northern part of India lying beyond the tropical zone, the entire country has a tropical climate marked by relatively high temperatures and dry winters. There are four seasons:
Winter (December-February)
Summer (March-June)
South-west monsoon season (June-September)
Post monsoon season (October-November)

River Systems


The rivers may be classified as follows: (a) the Himalayan, (b) the Deccan, (c) the coastal and (d) the rivers of the inland drainage basin. The Himalayan rivers are generally snow-fed and flow throughout the year. During the monsoon months (June to September), the Himalayas receive very heavy rainfall and the rivers carry the maximum amount of water, causing frequent floods. The Deccan rivers are generally rain-fed and, therefore, fluctuate greatly in volume. A very large number of them are non-perennial. The coastal rivers, specially on the west coast, are short and have limited catchment areas. Most of these are non-perennial as well. The rivers on the inland drainage basin are few and ephemeral. They drain towards individual basins or salt lakes like the Sambhar or are lost in the sands, having no outlet to the sea.

Natural Resources: Coal, iron ore, manganese ore, mica, bauxite, petroleum, titanium ore, chromite, natural gas, magnesite, limestone, arable land, dolomite, barytes, kaolin, gypsum, apatite, phosphorite, steatite, fluorite, etc.

Natural Hazards: Monsoon floods, flash floods, earthquakes, droughts, and landslides.

PEOPLE:

India is a country with probably the largest and most diverse mixture of races. All five major racial types - Australoid, Mongoloid, Europoid, Caucasian and Negroid - find representation among the people of India, who are mainly a mixed race.

The people of India belong to diverse ethnic groups. At various periods of India's long history, successive waves of settlers and invaders, including the Aryans, Parthians, Greeks and Central Asians, came into the country and merged with the local population. This explains the variety of racial types, cultures and languages in India.

Nationality: Indian

POPULATION
India’s population as on 1 March 2001 stood at 1,028 million (532.1 million males and 496.4 million females). India accounts for a meagre 2.4 per cent of the world surface area of 135.79 million sq km. Yet, it supports and sustains a whopping 16.7 per cent of the world population.

The population of India, which at the turn of the twentieth century was around 238.4 million, increased to 1,028 million at the dawn of the twenty-first century.

The population of India as recorded at each decennial census from 1901 has grown steadily except for a decrease during 1911-21.


POPULATION DENSITY
One of the important indices of population concentration is the density of population. It is defined as the number of persons per sq km. The population density of India in
2001 was 324 per sq km. The density of population increased in all States and Union Territories between 1991 and 2001. Among major states, West Bengal is still the most thickly populated state with a population density of 903 in 2001. Bihar is now the second highest densely populated state pushing Kerala to the third place. Ranking of the
States and Union Territories by density is shown in table 1.3.

LITERACY
For the purpose of the Census 2001, a person aged seven and above, who can both read and write in any language, is treated as literate. A person, who can only read but cannot write, is not literate. In the censuses prior to 1991, children below five years of age were necessarily treated as illiterates.

The results of 2001 census reveal that there has been an increase in literacy in the country. The literacy rate in the country is 64.84 per cent, 75.26 for males and
53.67 for females.

Population Growth Rate: The average annual exponential growth rate stands at 1.93 per cent during 1991-2001.

Birth Rate: The Crude Birth Rate according to the 2001 census is 24.8

Death Rate: The Crude Death Rate according to the 2001 census is 8.9

Life Expectancy Rate: 63.9 years (Males); 66.9 years (Females) (As of Sep 2005)

Languages
India has about 15 major languages and 844 different dialects. Hindi, spoken by about 45 per cent of the population, is the national language. English has also been retained as a language for official communication.


GOVERNMENT


Country Name: Republic of India; Bharat Ganrajya

Government Type: Sovereign Socialist Democratic Republic with a parliamentary system of Government.

Capital: New Delhi

Administrative Divisions: 28 States and 7 Union Territories.

Independence: August 15, 1947 (From British Colonial Rule)

Constitution: The Constitution of India came into force on 26th January 1950.

Legal System: The Constitution of India is the source of the legal system in the Country.

Executive Branch: The President of India is the head of the state, while the Prime Minister is the head of the government, and runs it with the support of the council of ministers, who form the cabinet.

Legislative Branch: The Indian legislature is a bi-cameral one, comprising the Lok Sabha (House of the People) and the Rajya Sabha (Council of States).

Judicial Branch: The Supreme Court of India is the apex body of the Indian legal system, followed by other High Courts and subordinate courts.

National Flag : The National Flag is a horizontal tricolour of deep saffron at the top, white in the middle, and dark green at the bottom in equal proportion. At the centre of the white band is a navy blue wheel, which is a representation of the Ashoka Chakra at Sarnath.

National Days: 26th January (Republic Day)
15th August (Independence Day)
2nd October (Gandhi Jayanti; Mahatma Gandhi's Birthday)

Religions: According to the 2001 census, out of the total population of 1.028 million in the country, Hindus constituted the majority with 80.5%, Muslims came second at 13.4%, followed by Christians, Sikhs, Buddhists, Jains, and others.

Hinduism: The Hindu religion had its origin in the concepts of the early Aryans who came to India more than 4,000 years ago. It is not merely a religion but also a philosophy and a way of life. It does not originate in the teachings of any one prophet or holy book. It respects other religions, and does not attempt to seek converts. It teaches the immortality of the human soul, and three principal paths to ultimate union of the individual soul with the all pervasive spirit.

The essence of the Hindu faith is embodied in the Bhagavad Gita, a philosophical poem that never ceases to surprise readers with new insights into life and man's fate in the world. "He who considers this(self) as a slayer or he who thinks that this(self) is slain, neither knows the Truth. For it does not slay, nor is it slain. This (self) is unborn, eternal, changeless, ancient, it is never destroyed even when the body is destroyed," says a verse in the Gita.

Jainism and Buddhism: In the sixth century before Christ, Mahavira propagated Jainism. His message was asceticism, austerity and non-violence.

At about the same time, Buddhism came into being. Gautama Buddha, a prince, renounced the world and gained enlightenment. He preached that "nirvana" was to be attained through the conquest of self. Buddha's teachings in time spread to China and some other countries of South-East Asia.

Islam: Arab traders brought Islam to South India in the seventh century. After them came the Afghans and the Mughals. Akbar, seen as the most enlightened Mughal emperor, almost succeeded in founding a new religion Din-e-Elahi, based on a blend of different religions including Hinduism and Islam, but it failed to find many adherents.

Islam has flourished in India through the centuries. Muslim citizens have occupied some of the highest positions in the country since independence in 1947. India today is the second largest Muslim country in the world, next only to Indonesia.

Sikhism: Guru Nanak, the founder of Sikhism in the 15th century, stressed the unity of God and the brotherhood of man. Sikhism, with its affirmation of God as the one supreme truth and its ideals of discipline and spiritual striving, soon won many followers. It was perhaps possible only in this hospitable land that two religions as diverse as Hinduism and Islam could come together in a third, namely Sikhism.

Christianity: Christianity reached India not long after Christ's own lifetime, with the arrival of St. Thomas, the Apostle. The Syrian Christian Church in southern India traces its roots to the visit of St. Thomas. With the arrival of St. Francis Xavier in 1542, the Roman Catholic faith was established in India. Today, Christians of several denominations practice their faith freely.

Zoroastrianism: In the days of the old Persian empire, Zoroastrianism was the dominant religion in West Asia. In the form of Mithraism, it spread over vast areas of the Roman Empire, as far as Britain.

After the Islamic conquest of Iran, a few intrepid Zoroastrians left their homeland and sought refuge in India. The first group is said to have reached Diu in about 766 A.D.

Their total world population probably does not exceed 130,000. With the exception of some 10,000 in Iran, almost all of them live in India. The vast majority of Parsis are concentrated in Mumbai. The Parsis excel in industry and commerce, and contribute richly to the intellectual and artistic life of the nation.

Judaism: The Jewish contact with the Malabar coast in Kerala, dates back to 973 BC when King Solomon's merchant fleet began trading for spices and other fabled treasures. Scholars say that the Jews first settled in Cranganore, soon after the Babylonian conquest of Judea in 586 BC. The immigrants were well received and a Hindu king granted to Joseph Rabban, a Jewish leader, a title and a principality.


National Symbols


STATE EMBLEM
The state emblem is an adaptation from the Sarnath Lion Capital of Ashoka. In the original, there are four lions, standing back to back, mounted on an abacus with a frieze carrying sculptures in high relief of an elephant, a galloping horse, a bull and a lion separated by intervening wheels over a bell-shaped lotus. Carved out of a single block of polished sandstone, the Capital is crowned by the Wheel of the Law (Dharma Chakra).
In the state emblem, adopted by the Government of India on 26 January 1950, only three lions are visible, the fourth being hidden from view. The wheel appears in relief in the centre of the abacus with a bull on right and a horse on left and the outlines of other wheels on extreme right and left. The bell-shaped lotus has been omitted. The words Satyameva Jayate from Mundaka Upanishad, meaning 'Truth Alone Triumphs', are inscribed below the abacus in Devanagari script.


NATIONAL ANTHEM
The song Jana-gana-mana, composed originally in Bengali by Rabindranath Tagore, was adopted in its Hindi version by the Constituent Assembly as the National Anthem of India on 24 January 1950. It was first sung on 27 December 1911 at the Kolkata Session of the Indian National Congress. The complete song consists of five stanzas.

(As published in Volume Eight of Sri Aurobindo Birth Centenary Library, Popular Edition 1972)
Jana-gana-mana-adhinayaka, jaya he
Bharata-bhagya-vidhata.
Punjab-Sindh-Gujarat-Maratha
Dravida-Utkala-Banga
Vindhya-Himachala-Yamuna-Ganga
Uchchala-Jaladhi-taranga.
Tava shubha name jage,
Tava shubha asisa mange,
Gahe tava jaya gatha,
Jana-gana-mangala-dayaka jaya he
Bharata-bhagya-vidhata.
Jaya he, jaya he, jaya he,
Jaya jaya jaya, jaya he!

Playing time of the full version of the national anthem is approximately 52
seconds.
A short version consisting of the first and last lines of the stanza (playing time approximately 20 seconds) is also played on certain occasions.

The following is Rabindranath Tagore’s English rendering of the anthem :
Thou art the ruler of the minds of all people,
Dispenser of India’s destiny.
Thy name rouses the hearts of Punjab, Sind,
Gujarat and Maratha,
Of the Dravida and Orissa and Bengal;
It echoes in the hills of the Vindhyas and Himalayas,
mingles in the music of Jamuna and Ganges and is
chanted by the waves of the Indian Sea.
They pray for thy blessings and sing thy praise.
The saving of all people waits in thy hand,
Thou dispenser of India’s destiny.
Victory, victory, victory to thee.

NATIONAL SONG
The song Vande Mataram, composed in Sanskrit by Bankimchandra Chatterji, was a source of inspiration to the people in their struggle for freedom. It has an equal status with Jana-gana-mana. The first political occasion when it was sung was the 1896 session of the Indian National Congress.

The following is the text of its first stanza :Vande Mataram!
Sujalam, suphalam, malayaja shitalam,
Shasyashyamalam, Mataram!
Shubhrajyotsna pulakitayaminim,
Phullakusumita drumadala shobhinim,
Suhasinim sumadhura bhashinim,
Sukhadam varadam, Mataram!

The English translation of the stanza rendered by Sri Aurobindo in prose is :
I bow to thee, Mother,
richly-watered, richly-fruited,
cool with the winds of the south,
dark with the crops of the harvests,
The Mother!
Her nights rejoicing in the glory of the moonlight,
her lands clothed beautifully with her trees in flowering bloom,
sweet of laughter, sweet of speech,
The Mother, giver of boons, giver of bliss.

NATIONAL CALENDAR

The national calendar based on the Saka Era, with Chaitra as its first month and a normal year of 365 days, was adopted from 22 March 1957 along with the Gregorian calendar for the following official purposes: (i) Gazette of India, (ii) news broadcast by All India Radio, (iii) calendars issued by the Government of India and (iv) Government communications addressed to members of the public.
Dates of the national calendar have a permanent correspondence with dates of the Gregorian calendar, 1 Chaitra falling on 22 March normally and on 21 March in
leap year.

NATIONAL ANIMAL
The magnificent tiger, Panthera tigris, a striped animal is the national animal of India. It has a thick yellow coat of fur with dark stripes. The combination of grace, strength,
ability and enormous power has earned the tiger its pride of place as the national animal of India. Out of eight races of the species known, the Indian race, the Royal Bengal Tiger, is found throughout the country except in the north-western region, and also in neighbouring countries, Nepal, Bhutan and Bangladesh.


NATIONAL BIRD
The Indian peacock, Pavo cristatus, the national bird of India, is a colourful, swansized bird, with a fan-shaped crest of feathers, a white patch under the eye and a long, slender neck. The male of the species is more colourful than the female, with a glistening blue breast and neck and a spectacular bronze-green tail of around 200 elongated feathers. The female is brownish, slightly smaller than the male and lacks the tail.


NATIONAL FLOWER
Lotus (Nelumbo Nucipera Gaertn) is the National Flower of India. It is a sacred flower and occupies a unique position in the art and mythology of ancient India, and has been an auspicious symbol of Indian culture since time immemorial.


NATIONAL TREE
The Banyan Tree (Ficus benghalensis) is the National Tree of India. This huge tree towers over its neighbours and has the widest reaching roots of all known trees, easily covering several acres.


NATIONAL FRUIT
Mango (Manigifera indica) is the National fruit of India. Mango is one of the most widely grown fruits of the tropical countries. In India, mango is cultivated almost in
all parts, with the exception of hilly areas. Mango is a rich source of Vitamins A, C and D. In India, we have hundreds of varieties of mangoes. They are of different
sizes, shapes and colours.


FLORA
With a wide range of climatic conditions from the torrid to the arctic, India has a rich and varied vegetation, which only a few countries of comparable size possess. India can be divided into eight distinct-floristic-regions, namely, the western Himalayas, the eastern Himalayas, Assam, the Indus plain, the Ganga plain, the Deccan, Malabar and the Andamans.
The Western Himalayan region extends from Kashmir to Kumaon. Its temperate zone is rich in forests of chir, pine, other conifers and broad-leaved temperate trees.
Higher up, forests of deodar, blue pine, spruce and silver fir occur. The alpine zone extends from the upper limit of the temperate zone of about 4,750 metres or even higher. The characteristic trees of this zone are high-level silver fir, silver birch and junipers. The eastern Himalayan region extends from Sikkim eastwards and embraces Darjeeling, Kurseong and the adjacent tract. The temperate zone has forests of oaks, laurels, maples, rhododendrons, alder and birch. Many conifers, junipers and dwarf willows also occur here. The Assam region comprises the Brahamaputra and the Surma valleys with evergreen forests, occasional thick clumps of bamboos and tall grasses. The Indus plain region comprises the plains of Punjab, western Rajasthan and northern Gujarat. It is dry and hot and supports natural vegetation. The Ganga plain region covers the area which is alluvial plain and is under cultivation for wheat, sugarcane and rice. Only small areas support forests of widely differing types.

The Deccan region comprises the entire table land of the Indian Peninsula and supports vegetation of various kinds from scrub jungles to mixed deciduous forests.

The Malabar region covers the excessively humid belt of mountain country parallel to the west coast of the Peninsula. Besides being rich in forest vegetation, this region produces important commercial corps, such as coconut, betelnut, pepper, coffee and tea, rubber and cashewnut. The Andaman region abounds in evergreen, mangrove, beach and diluvial forests. The Himalayan region extending from Kashmir to Arunachal Pradesh through Nepal, Sikkim, Bhutan, Meghalaya and Nagaland and the Deccan Peninsula is rich in endemic flora, with a large number of plants which are not found elsewhere.

India is rich in flora. Available data place India in the tenth position in the world and fourth in Asia in plant diversity. From about 70 per cent geographical area surveyed so far, over 46,000 species of plants have been described by the Botanical Survey of India (BSI), Kolkata. The vascular flora, which forms the conspicuous vegetation cover, comprises 15,000 species. The flora of the country is being studied by BSI and its nine circle/field offices located throughout the country along with certain universities and research institutions.

Ethno-botanical study deals with the utilisation of plants and plant products by ethnic races. A scientific study of such plants has been made by BSI. A number of detailed ethno-botanical explorations have been conducted in different tribal areas of the country. More than 800 plant species of ethno-botanical interest have been collected and identified at different centres.

Owing to destruction of forests for agricultural, industrial and urban development, several Indian plants are facing extinction. About 1,336 plant species are considered vulnerable and endangered. About 20 species of higher plants are categorised as possibly extinct as these have not been sighted during the last 6-10 decades. BSI brings out an inventory of endangered plants in the form of a publication titled Red Data Book.

FAUNA
The Zoological Survey of India (ZSI), with its headquarters in Kolkata and 16 regional stations, is responsible for surveying the faunal resources of India. Possessing a tremendous diversity of climate and physical conditions, India has great variety of fauna numbering over 89,000 species. Of these, protista number 2,577, mollusca 5,070, anthropoda 68,389, amphibia 209, mammalia 390, reptilia 456, members of protochordata 119, pisces 2,546, aves 1,232 and other invertebrates 8,329.

The mammals include the majestic elephant, the gaur or Indian bison–the largest of existing bovines, the great Indian rhinoceros, the gigantic wild sheep of the Himalayas, the swamp deer, the thamin spotted deer, nilgai, the four-horned antelope, the Indian antelope or black-buck – the only representatives of these genera. Among the cats, the tiger and lion are the most magnificent of all; other splendid creatures such as the clouded leopard, the snow leopard, the marbled cat, etc., are also found.

Many other species of mammals are remarkable for their beauty, colouring, grace and uniqueness. Several birds, like pheasants, geese, ducks, mynahs, parakeets, pigeons, cranes, hornbills and sunbirds inhabit forests and wetlands.

Rivers and lakes harbour crocodiles and gharials, the latter being the only representative of crocodilian order in the world. The salt water crocodile is found along the eastern coast and in the Andaman and Nicobar Islands. A project for breeding crocodiles which started in 1974, has been instrumental in saving the crocodile from extinction.

The great Himalayan range has a very interesting variety of fauna that includes the wild sheep and goats, markhor, ibex, shrew and tapir. The panda and the snow leopard are found in the upper reaches of the mountains.

The depletion of vegetative cover due to expansion of agriculture, habitat destruction, over-exploitation, pollution, introduction of toxic imbalance in community structure, epidemics, floods, droughts and cyclones, contribute to the loss of flora and fauna. More than 39 species of mammals, 72 species of birds, 17 species of reptiles, three species of amphibians, two species of fish and a large number of butterflies, moth and beetles are considered vulnerable and endangered.

(Source: India 2009, Ministry of Environment, Planning Commission, Ministry of Health, Press Information Bureau, Census of India, Ministry of External Affairs, Union Budget, Reserve Bank of India, India 2005 - A Reference Annual, www.indiainbusiness.nic.in)

Biodiversity hotspots of INDIA

A biodiversity hotspot is a biogeographic region with a significant reservoir of biodiversity that is under threat from humans.

The concept of biodiversity hotspots was originated by Norman Myers in two articles in “The Environmentalist” (1988 & 1990), revised after thorough analysis by Myers and others in “Hotspots: Earth’s Biologically Richest and Most Endangered Terrestrial Ecoregions”.

To qualify as a biodiversity hotspot on Myers 2000 edition of the hotspot-map, a region must meet two strict criteria: it must contain at least 0.5% or 1,500 species of vascular plants as endemics, and it has to have lost at least 70% of its primary vegetation.Around the world, at least 25 areas qualify under this definition, with nine others possible candidates. These sites support nearly 60% of the world's plant, bird, mammal, reptile, and amphibian species, with a very high share of endemic species.

The Western Ghats of southwestern India and the highlands of southwestern Sri Lanka, separated by 400 kilometers, are strikingly similar in their geology, climate and evolutionary history. The Western Ghats, known locally as the Sahyadri Hills, are formed by the Malabar Plains and the chain of mountains running parallel to India's western coast, about 30 to 50 kilometers inland. They cover an area of about 160,000 km² and stretch for 1,600 kilometers from the country's southern tip to Gujarat in the north, interrupted only by the 30 kilometers Palghat Gap.

Sri Lanka is a continental island separated from southern India by the 20-meter-deep Palk Strait. The island, some 67,654 km² in size, has been repeatedly connected with India between successive interglacials, most recently until about 7,000 years ago by a land bridge up to about 140 kilometers wide.

The Western Ghats mediates the rainfall regime of peninsular India by intercepting the southwestern monsoon winds. The western slopes of the mountains experience heavy annual rainfall (with 80 percent of it falling during the southwest monsoon from June to September), while the eastern slopes are drier; rainfall also decreases from south to north. Dozens of rivers originate in these mountains, including the peninsula’s three major eastward-flowing rivers. Thus, they are important sources of drinking water, irrigation, and power. The wide variation of rainfall patterns in the Western Ghats, coupled with the region’s complex geography, produces a great variety of vegetation types. These include scrub forests in the low-lying rainshadow areas and the plains, deciduous and tropical rainforests up to about 1,500 meters, and a unique mosaic of montane forests and rolling grasslands above 1,500 meters.

Precipitation across Sri Lanka is dependent on monsoonal winds, resulting in much of the island experiencing relatively low rainfall (less than 2,000 millimeters per year), except for the south-western “wet zone” quarter, where precipitation ranges to as much as 5,000 millimeters per year. While dry evergreen forests occupy almost the entirety of the “dry zone,” dipterocarp-dominated rainforests dominate the lowlands of the wet zone, and some 220 km² of tropical montane cloud forest still persist in the central hills, which rise to a maximum altitude of 2,524 meters.

Stretching in an arc over 3,000 kilometers of northern Pakistan, Nepal, Bhutan and the northwestern and northeastern states of India, the Himalaya hotspot includes all of the world’s mountain peaks higher than 8,000 meters. This includes the world’s highest mountain, Sagarmatha (Mt. Everest) as well as several of the world’s deepest river gorges.

This immense mountain range, which covers nearly 750,000 km², has been divided into two regions: the Eastern Himalaya, which covers parts of Nepal, Bhutan, the northeast Indian states of West Bengal, Sikkim, Assam, and Arunachal Pradesh, southeast Tibet (China), and northern Myanmar; and the Western Himalaya, covering the Kumaon-Garhwal, northwest Kashmir, and northern Pakistan. While these divisions are largely artificial, the deep defile carved by the antecedent Kali Gandaki River between the Annapurna and Dhaulagiri mountains has been an effective dispersal barrier to many species.
The abrupt rise of the Himalayan Mountains from less than 500 meters to more than 8,000 meters results in a diversity of ecosystems that range, in only a couple of hundred kilometers, from alluvial grasslands (among the tallest in the world) and subtropical broadleaf forests along the foothills to temperate broadleaf forests in the mid hills, mixed conifer and conifer forests in the higher hills, and alpine meadows above the treeline

REVISED NATIONAL HIGHWAYS NUMBERS

INDIAN ECONOMY BASICS

NATIONAL INCOME ACCOUNTING

GDP: It in the money value of all the final goods and services produced within the geographical boundaries of the country during a given period of time.

GNP: It refers to the money value of total output or production of find goods and service produced by the nationals of a country during a given period of time.

GDP Deflator: The ratio of nominal to real GDP.
GDP Deflator = Nominal GDP/Real GDP.

Producers Price Index: it is the cost incurred by the producer in producing single unit in terms of GDP. It does not include any indirect taxes. It is used as early warming. It is having effect on the consumer price.

Blue Book: An annual digest published by the UK office of National Statistics containing the national income and expenditure statistics of the UK.

PLANNING IN INDIA

Open economy: Capitalist or mixed/progressive capitalist economy.

Plan Holidays: It refers to a period which is not covered in any five year plan (period between 1966 to 69 i.e. between 3^rd and 4^th Five Year Plan).

Inclusive Grown: Faster economic growth is also transferring into more inclusive growth, both in terms of employment generations and poverty reduction.

Export Pessimism: It happens when the government in not confident of getting sufficient amount of exports to finance its imports. India followed during the earlier days of planning era.

Investment Led Growth: It is growth of which a major portion of demand comes from investment. India is facing balanced growth.

Export Led Growth: When exports are a major reason of growth. China and ASEAN tigers are facing export- led growth.

ICOR: Incremental Capital Output Ratio: It refers to the units of capital that have to be employed for raising one unit of output.

Merit Goods: A commodity, the consumption of which is regarded as socially desirable irrespective of consumer's preferences. Governments are readily prepared to suspend consumer's sovereignty by subsidizing the provision of certain goods and services.

White Goods: White goods are luxury goods. After the economic reforms consumption of white goods increased in India, it gives more tax benefit to government.

Wage Goods Strategy: It is a strategy in which the society gives more importance the production of basic necessity like food, shelter and health care. It is contrast with heavy industry.

Competition Act: In 1980, the aforesaid act was passed to withdraw all such restrictions to that retarded competition, so as to encourage a better and effective utilization of the sources and to lower the cost of production and to raise the quality of the produce.

Washington Consensus: It is given by John Williamson in 1989. It gives a prescription on various measures on which developing countries have to take in order to grow in a faster way. The measure includes fiscal policy reform, monitory policy reforms.

MONEY & BANKING

Credit Control: By credit control we mean to regulate the volume of credit created by banks in India. It is the principal function of Reserve Bank of India. The basic objective of credit control mechanism is to realize both price stability and exchange stability in the economy. RBI uses two types of methods to control credit: (i) Quantitative Methods, and (ii) Qualitative Methods.

Quantitative Measures are used to control the volume of credit or indirectly to control inflationary and deflationary pressures caused by expansion and contraction of credit. These are also known as general credit measures. These consist of Bank Rate, Cash Reserve Ratio, Statutory Liquidity Ratio and Open Market Operations.

Qualitative Measures are used to control the quantum as well as purpose for which credits are given by banks. RBI uses measures like Publicity, Rationing of Credit, Regulation of consumer credit, Moral suasion and Variation in margin requirement for qualitative credit control.

Bank Rate: Bank rate is the rate at which the RBI is prepared to buy or rediscount eligible bills of exchange or other commercial papers. In simple words, bank rate is the rate at which RBI extends advices (Credit) to commercial banks. A change in the bank rate will result in a change in the prime lending rate of banks and thus act as an independent instrument of monetary control. At present it is 6.0%.

Cash Reserve Ratio (CRR): Cash reserve ratio is the cash parked by the banks in their specified current account maintained with RBI. In other words, it is the percentage of deposit (both demand and time deposit) which a bank has to keep with the RBI. RBI is empowered to vary the CRR between 3% to 15%. The purpose of reducing CRR is to leave large cash reserve with banks so as to enable them to expand bank credit. Similarly increasing of CRR means squeezing the cash reserve of the banks and limits their credit providing capacity. At present CRR is 6.0%.

Statutory liquidity Ratio (SLR): Statutory liquidity ratio is the liquid assets commercial banks maintain with the RBI in the form of cash (book value), gold (current market value) and balances in unencumbered approved securities. At present SLR is 25% of the total demand and time deposit liabilities of the bank. However, RBI can change SLR from time to time. Both CRR and SLR reduce or increase the capacity to expand credit to business and industry. Thus both of these are anti-inflationary.

Open Market Operations (OMO): The buying and selling of eligible securities in the money market by RBI for the purpose of curtailing or expanding the volume of credit. By selling securities the RBI can absorb funds, and buying the securities can release funds also into the market. The purpose of OMO is to influence the volume of cash reserves with the commercial banks and thus influence the volume of loans and advances they can make to the industrial and commercial sector.

Selective Credit Controls: Under the Banking Regulation Act 1949, section 21 empowers RBI to issue directives to the banking companies regarding their advance in order to check speculation and rising prices. The controls are selective as they are used to control and check the rising tendency of price and hording of certain individual commodities of common use. However, while imposing selective control, RBI takes care that bank credit for production and transportation of commodities and exports is not affected. These are mainly focused on credit to traders who use such credit for financing hoarding and speculation. Since 1956-57 RBI is employing this method.

Prime Lending Rate (PLR): It is rate of interest of which commercial banks lend to their prime high profile blue chip corporate borrowers. (From 1990’s banks are free to determine PLR).

Repo Rate: Repurchasing option is traded in this market for a short time periods. Repo is Repurchasing by RBI.

Priority Sector Lending: It is lending to some particular sector at lower interest rate. RBI orders all public sector banks to give 18% of credit to priority sector.

Market Stabilization Scheme: It is a scheme under which RBI buys and sells Government of India securities in order to control liquidity.

Money in Circulation: Money in use to finance current transactions as distinct from idle money.

Investment Bank: A Bank that provides long term fixed capital for industry, generally by taking up shares in limited companies.

Regional Rural Bank: It was established in 1975 under the provision of RRB Act 1976, with a view to develop rural economy.

Lead Banking Scheme: Under this scheme all the nationalized banks and few private sector banks were allowed specially and were asked to play the “Lead Role”. The lead banks act as a leader to bring about co-ordination of cooperative banks, commercial banks and other financial institutions in their respective demises to bring about rapid economic development.

Call Money: It is a loan that is made for a very short period i.e. for a few days only or for duration of a week. It carries a low rate of interest. In case of a stock exchange market, the duration of call money may be for a fortnight.

LIBOR: London Inter- Bank Offered Rate. An interest rate at which banks can bestow funds, in marketable size, from other banks in London inter- bank market.

MIBOR: Mumbai Inter Banking Operative Rate.

Capital Deepening: It occurs when capital to LIBOR ratio increase in a country, it helps in economic development of the country.

BASEL II: This norms assess the need for risk capital and replaces the minimum 9% capital adequacy norm under BASEL-I. BASEL II enables greater transparency and banks will evaluate themselves.

CAMELS: Capital Adequacy, Asset Quality, Management, Earnings Liquidity and Systems.

Capital Adequacy Ratio: It is the ratio of total capital fund of a bank to its risk weighted assets. It is an indicator of banks financial health.

Asset Reconstruction Company: Takes over the NPA of banks or financial institutions at cheaper rate, reconstruct it and sells it and makes profit out of it. This helps in clearing the balance sheet of banks.

Universal Banking: It is a banking scheme given by Khan Committee according to which conduction of all financial activities under one roof by a bank or financial institution. In other words, this means integration of roles of bank and other development banks.

Service Area Approach: Under this scheme, branches of commercial banks were allotted certain specific semi-urban and rural areas. These branches were made more responsible for overall development of prescribed areas. It was implemented in 1989.

Merchant Banking: It is an activity under which a bank take up portfolio management (Banks advising their clients about management of fund) as well as banker to the issue of the company.

Greshem’s Law: Bed money (Black Money) pushes good money (White Money) out of circulation.

Bank of International Settlement: Based in Switzerland, gives the statement of international monetary transactions. It is the one which gives CAMELS, BASEL

Demonetization: It takes place, when the society starts using less of currency for transaction with deepening of the financial system.

Tied Loan: A loans made on condition that certain purchases are made from the Lender.

INFLATION

Over Heating of Economy: When the supply is not able to keep phase with demand, it is as called over heating of economy. It leads to inflation and shortage goods.

Cost-push Inflation: General prices of goods and services in the economy rises due to an increase in production cost. Such types of Inflation are caused by three factors (i) an increase in wages, (ii) an increase in profit and (iii) imposition of heavy tax.

Demand- pull inflation: The most common cause of inflation is the pressure of ever-rising demand on a less rapidly increasing supply of goods and services. The expansion in aggregate demand may be the result of rapidly increasing private investment and/or spending government money for war or for economic development.

Stagflation: Stagflation occurs when inflation rises while output is either falling or at least not rising.

Structural Inflation: When there is a short supply the commodity, prices rise rapidly. It is temporary structure shortage in economy. It is also called bottleneck inflation.

Headline Inflation: It is an inflation which appears in headlines. It does not reflect the core inflation.

Under Lying Inflation: Measure of headline inflation after the removal of volatile items.

Core inflation: This nomenclature is based on the inclusion or exclusion of the goods and services while calculating inflation.

Hyperinflation (or) Galloping Inflation: The main feature of Hyper-Inflation is that money looses almost all of its value. Prices rise to fantastic levels, and the velocity of circulation becomes enormous. Money looses value so rapidly that people are unwilling to hold it for more a few moments.

Fiscal Drag: The effect of inflation upon effective tax rate. In other words, fiscal drag is directly related to inflation and tax rates.

Inflation Targeting: It is the goal of RBI, where RBI focuses as its main goal a particular band of inflation. This helps in expectation building by economic agents.

Administered Price Mechanism: In which the government decides the price of scarce goods and sell them at price less then the cost of its purchase and bears the burden.

Phillips Curve: The relationship between the percentage change of money wage and the level of unemployed is called as Phillips curve. The lower the unemployment, the higher will be the rate of change of wages.

Taylor Rule: A simple rule for setting interest rates with a view to keeping inflation stable.

CAPITAL MARKETS

Zero Coupon Bonds: Zero Coupon Bonds (also called as pure discount bonds) are bonds that pay no periodic interest payments or so called ‘Coupens’. Zero coupon bonds are purchased at a discount from their value at maturity. The holder of a Zero Coupon bond is entitled to receive a single payment, usually of a specified sum of money at a specified time in future. Investors earn interest via difference between the discounted price of the bond and its par (or redemption) value.

Undated Securities: Securities not bearing a redemption date or option.

Tap Issue: An issue of treasury bills to government departments and others at a fixed price stand, without going through the market, as distinct from a tender issue.

Buy Back of Shares: Various individuals, financial institutions, directors of the company, hold company shares. This indicates the ownership of the company, when a company is allowed to buy-back its shares. It means it is increasing its ownership.

Penny Stocks: Penny stocks are securities or stocks which are sold by smaller new companies. They are generally sold because companies are seeking money for expansion, basic operations, and even for the commencement of business.

Participatory notes: These are notes issued by FIIs and some of the Indian based foreign banks.

GDR/ADR: Global Deposit Receipts (GDR) are popularly known as Euro issues i.e. shares of Indian companies sold in the European market. When these shares of Indian companies are sold in the US capital market they are called as American Deposit Receipts (ADR).

Black-Sholes Formula: A formula used to establish a fair price for options in financial markets.

Swap: A transaction in which securities of a certain value are sold to a buyer in exchange for the purchase from the buyer of securities having the same value. The purpose being to obtain an improvement, in the eyes of either of the parties, in the quality of the security or to anticipate a change in yield. Currency as well as securities are swapped in this way.

Screen Based Book- where securities are auctioned through an anonymous screen based system, and the price of which securities are sold is discovered in screen. This eliminates the delays, risks and implementation difficulties associated with traditional procedures.

ESOP: Employee Stock Option.

Market Capitalisation: Total value of the equity in the present market price is called market capitalization.

Hedge Funds: They are basically private investment pools for wealthy, financially sophisticated investors. Traditionally they have been organized as partnership, with the general partner managing the fund’s portfolio.

Mutual Funds: Funds set up on the principal of pooled risk and pooled resources with the purpose of giving them the benefits of share market without exposing individually to the volatility of share market.

Venture Capital: Risk capital is called venture capital.

Sovereign Wealth Fund: It is state owned fund composed of financial assets such as stocks, bonds, property or other financial investment.

Futures: Contracts made in a future market for the purchased or sale of commodities on a specified future data. Futures provide a convenient mechanism for holding market risk. Future market forms an important part of many organized commodity exchange or market.

NCDEX: National Commodity Derivatives Exchange. It is the largest commodity futures exchange.

Forward Market Commission: It is a regulatory body for commodity futures, and forward trade in India. It was set up under Forward Contract (Regulation) Act 1952. It’s headquarter is in Mumbai.

CARE: Credit Analysis and Research Ltd. It was started in November 1993. It was set up by IDBI.

ICRA: Investment Information and Credit Rating Agents of India Limited. It was established in 1991. It primarily rates short, medium and long debt instruments. But, since 1995 it has been doing equity rating also.

Voting Shares: Equity shares entitling holders to vote in the election of directors of a company. Normally all ordinary shares are voting shares, but sometimes a company may create a class of non-voting ordinary shares.

Tobin Tax: The tax foresighted by James Tobin. It is a tax that should be imposed on portfolio capitals, so that when a foreign investor wants to take out this investment he has to pay tax, which is expected to discourage the tendency to move from one country to another in search of quick gains.

Factoring: The business in which, a firm takes over the collection of trade debts on behalf of others, thereby enabling them to obtain insurance against bad debts. It is a service primarily intended to meet the needs of small and medium-size firms. The procedure is for the factoring company to buy up its client’s invoices and then itself claim payment of them.

Underwriting: Underwriting is the business of insuring against risk.

Counter Guarantee: It is given by an economic agent, another agent will oblige the contract signed with the 3^rd party.

NSDL: It is the first registered depository in India set up in November 1996 and has been promoted by IDBI, UTI and NSE.

CDSL: Central Depository Services Limited.

Sub- Prime Loans: It is also called as ‘B’ loans or second chance loans. These are loans originated to borrowers who do not qualify for market interest rates because of problems in their credit history.

Derivative Trading: It is trading on claims, on claims on real producers.

Currency Future: Where in a contract in made between two parties, in which a party agrees to buy or sell a fixed amount of currency at fixed foreign exchange at a later date. It reduces currency volatility rise for both the parties.

Insider Trading: When insider (managers, directors, others) have more information of the companies performance than the external share holders. And they use it to make a profit is called insider trading. It is banned in India by SEBI.

Multi Commodity Exchange (MCE): The trading happening in papers instead of commodities in physical. The largest MCX is in Ahmedabad.

Arbitrage: The act of buying a currency or a commodity in one market and simultaneously selling it for a profit in another market.

Badla: A carrying forward mechanism wherein only some margin is paid for shared, by the delivery of share and settlement could be carried forward for up to two weeks.

PUBLIC FINANCE

Non Tax Receipts: It is revenue receipts of government of India from social services and taxes like dividend from PSU’s, interest on loan given to states and other agencies, fees provided for services etc.

Capital Receipts: Receipts on which the government has repayment obligations: e.g. government borrowing, disinvestment proceeds etc.

Non Debt Capital Receipts: The capital receipts of Government of India agencies which are non debt in nature like selling of PSU’s and foreign aids.

Social Overhead Capital: The capital where the emphasis is on the capital assets that provide the services: house, bridges, roads, railways, school etc.

Primary Deficit: Primary deficit = Fiscal deficit – interest payment. Fiscal deficit is budgetary deficit + market borrowings and other liabilities of the government of India.

Monetized Deficit: The budget deficit can be financed in two ways either borrowing from the public or by borrowing from the RBI. When it is financed through borrowing from the RBI, it is called monetized deficit. In other word, it is increase in the net RBI credit to the Government.

Zero Base Budget: A technique where the budget of each ministry is prepared assuming that there was no budget in the previous years.

Outcome Budget: As par the promise of the annual budget 2005-06 Finance Ministry has come out with an outcome Budget. This will ensure good governance. In simple words, it provides outcome for expenditure provides for in the Budges for a fiscal.

Performance Budget: It emphasizes on the purpose at expenditure rather than the expenditure itself. It presents budget in terms of functions, programmes, activities and projects.

Dalit Budgeting: It is like that of gender budgeting wherein an analysis made on how much resources are allocated for the deprived section in planning, implementation and post-implementation analysis.

Tax Base: The quantity or coverage of what is taxed.

Tax Avoidance: Arranging one's financial affairs within the law so as to minimize taxation liabilities as opposed to tax evasion, which is failing to meet actual tax liabilities through, for example not declaring income or profit.

Specific Tax: It is a tax imposed on the basis of quantity i.e. volume or weight etc. of a commodity.

Advalorem: In this case the duty is imposed on the basis of value of the product.

VAT: Value Added Tax is a multi-point destination based system of taxation, with tax being levied on value addition in each stage of transaction in the production chain.

Turnover Tax: A tax levied as a proportion of the price of a commodity on each sale in the production and distribution chain all so called as cascade tax. Such a tax encourages vertical integration.

Fringe Benefit: Fringe benefits are the low or no tax benefits that companies offer to attract employees in addition to the normally taxed salaries, such as free transportation, health cover etc.

Goods and Services Tax: Goods and Services Tax (GST) is a part of the proposed tax reforms that center round evolving an efficient and harmonized consumption tax system in the country. Presently there are parallel systems of indirect taxation at central and state levels. Each of the systems needs to be reformed to eventually harmonize team.

CENVAT: In Union Budget 200-01 major overhaul at the central excise system was undertaken with innovation of a uniform 16% basic Central Value Added Tax (CENVAT) at production stage.

MODVAT: Tax is levied on final goods and tax on inputs and intermediate goods was abolished. This amended system excluded the possibilities of Double Taxation. It was introduced on the recommendation of L.J. Jha Committee in 1976.

MAT (Minimum Alternative Tax): Normally a company is liable to pay tax on income computed in accordance with the provisions of the IT Act but the profit and loss account of the company is prepared as per provisions of the Company Act. It is called MAT.

Exempt-Exempt Tax: The contributors will be excluded from income for tax purpose; the accruals will also be exempted from tax; and only the terminal benefits will be at the applicable rare in year or receipt.

Presumptive Tax: It refers to the use of appropriate indicators of income, wealth, etc. Instead of actual records of the tax bases. In case of income tax, a presumptive tax is imposed on the basis of an estimated taxable income.

Wind Fall Tax/ Super Profit Tax: Tax on sudden profit or high profit i.e. petroleum industry etc.

Laffer Curve: This curve is given by American economist Prof. Arthur Laffer. It represents relationship between total tax revenue and corresponding tax rate.

External Commercial Borrowings (ECB): It is an additional source of funds to Indian corporate and PSU’s for financing expansion of existing capacity as well as for fresh investment, augmenting the resources available domestically.

Cross Subsidy: The government purchases at a lesser cost and sells at a higher cost, like petrol. In this system government is the sole purchaser of the goods.

Oil Bonds: The bonds issued by Government of India to oil marketing companies to overcome their losses. It is a way of transferring burden of subsidy on the future generations.

Oil Pool Account: It is account through which Government of India issue bonds to oil making companies to cover for the losses because of Administer Price system. It was abolished few years back. Now it has been charged on Consolidated Fund of India.

Financial Inclusion: Delivering financial services (savings, insurance, credit) to the deprived section at an affordable cost. Microfinance, SHG and post office schemes are all examples for financial inclusion.

Industrial Finance Corporation of India: It was set up by Government of India in 1948 July under a special act. The scheduled banks, insurance companies, investment and cooperative banks are share holder of IFCI, to provide medium and long term credit to industry.

FOREIGN TRADE & WTO

Free on Board: A term given to the system of paying for goods shipped from or to another country when the amount is sufficient only to cover the value of the good and excludes insurance and frights.

Quantitative Restrictions: The quantitative limits placed on the importation of specified commodities. For protection, the quota is more certain then a tariff in its effects on the quantity of imports.

Counter Trade: It is exchange in goods and services that are paid for other goods and service. i.e. Barter System, Switch Trading, Buy Bank, Off set.

Social Dumping: It is a practice of exporting goods form a country where the labours are suppressed and labour court is low in order to compete international market.

Appreciation: When the value of currency rises with respect to another currency is said to have appreciated. It also indicates the increase in value of an asset.

Countervailing Tax: It is the duty imposed to raise the price of imported c commodity so that it becomes higher than the price of domestic goods. It is also known as outervailing measure.

Debt Service Ratio: The Ratio of interest and principal payments on debt as a proportion of the country’s total export for a particular year in called debt service ratio. DSR = Interest + Principal/Export.

Visible Balance: The balance of payments in visible trade (imports and exports).

Current Account Deficit: It is the difference between exports and imports of goods and services as well as the transfer on invisibles. It signifies saving investment gap.

FEMA: Foreign Exchange Management Act was introduced in July 1998 in the Parliament to repeal FERA 1973. Under FEMA, 1999 provisions related to foreign exchange have been modified and liberalized so as to simplify foreign trend and payments.

Crawling Peg: When small exchange adjustments in external value of currency of a country is made to rectify and under or over valuation of the home currency in terms of a given foreign currency, it may be called crawling peg.

Currency Board: The exchange rate is fixed, with institutional constraints on monetary policy. The monetary authority can only issue domestic money when it is fully backed by inflows on foreign exchange.

Devaluation: In a fixed exchange rate system, when the country has decided to reduce the value of its currency in comparison with foreign currency. India devalued its currency in the past. It increase exports and reduces imports.

Hard Currency: It refers to the currency of an industrialized country which has general convertibility.

Soft Currency: A currency with limited convertibility into gold and other currencies either because it is of depreciating due to balance of payment, deficit or because cannot have been placed on it.

Exim Bank: It is established for financing, facilitating and promoting foreign trade in India.

Duty Drawback Scheme: It is a scheme in which exporter are allowed to drawback the duties (customs duty, service tax. etc) as a part of an incentive to increase exports.

EPCG Scheme: It is Export Promotion Capital Goods (EPCG) scheme, where in capital goods is imposed 5% rate for export purpose. If the capital is imported for agriculture exports then it is zero percent (0%).

Agri Export Zone: It was setup in EXIM policy 2001-02 for encouraging exports of specific agriculture products from geographically identified areas.

Custom Union: More advanced level of economic integration than the free trade area. It not only eliminates all restrictions on trade among members but also adopts a uniform commercial policy against the non-members.

Mercosur: A customs union of Argentina, Brazil, Paraguay and Uruguay. In 1996, Bolivia and Chile became associate members.

de minimis support under WTO: It is a support given by government, which does not fall under green, blue, amber box subsidies. They are subject to reduction under WTO.

Amber Box: It comprises all forms of domestic support deemed to be trade distorting, primarily by encouraging excessive production. A market price support mechanism that set no product limit.

GATS: General Agreement of Trade in Services

TRIPS: Trade Related Intellectual Property Rights

TRIMS: Trade Related Investment Measures

MIGA: It is set up in 1988 as an agency of the World Bank whose purpose/ objective is to protect the interest of the foreign investors operating in a country against non – commercial risks (communal riots, natural calamities, etc) due to which property of foreign investors may be destroyed.

Tariff Binding and WTO: The maximum Tariff, which country can impose on imports. Indian tariff rates are much below then the binding rates which are prescribed for developing countries.

Special Safeguard Measure under WTO: It is a mechanism which allows developing countries to impose tariff, when the price of agricultural commodities falls by a certain percentage. The amount of percentage is bone of contention in WTO, between India and western countries. India says 10% fall and West says 40% fall.

Multi fiber Agreement: Agreement between developed and developing countries. Where by developed countries imposed a fixed quota on textile exports from developing countries. It has been dismantled.

Asian Development Bank: Set up in 1966 under the recommendation of United Nation Economic Commission for Asia and Pacific. The bank was formed with two fold objectives:

· To inculcate cooperation in the Asia Pacific.

· To accelerate the pace of economic development of the region’s developing countries.

Special Drawing Rights (SDR): The Special Drawing Rights is an international financial assets created by IMF and serves as an international unit of account. A means of payment amount certain eligible official entities.

Double Taxation Avoiding Agreement: When two countries have an agreement to avoid the tax on same goods is called Double Taxation Avoiding Agreement. At present India having this agreement with Mauritius.

Soft Loan: It is given by IDA to under developed country for long duration and zero interest.

HUMAN DEVELOPMENT

Physical Quality of Life Index: Given by Morris, which means 1/3 of life expectancy index + infant mortality index + Basic literary index.

PQLI = 1/3 (LQI + IMI + BLI)

Human Poverty Index: Human Development Report 1997 introduced the concept of Human Poverty Index, which concentrates on deprivation in three essential elements of human life already reflected in HDI. (i) Longivity, (ii) Knowledge, (iii) Living Standard. It is released by UNDP.

GDI: Gender Related Development Index: It is a composite index measuring average achievement in the three dimensions captured in the Human Development Index.

· A long and healthy life.

· Knowledge and decent standard of living.

· Adjusted to account for inequalities between men and women.

GEM (Gender Empowerment Measure): Composite index measuring gender inequalities in three basic dimensions of empowerment – economic participation and decision making, political participation and decision making and power over economic resources.

Technology Index: Based on observed data and survey results, the index measures the value of technology in a country. It takes into account country’s involvement in innovation and import of technology from abroad.

Green Index: A measure of nation’s wealth by using produced assets, natural resources and human resources each being allocated specific value to see whether the development is sustainable or not.

Millennium Development Goods: Adopted by U.N. General Assembly in 2000; it prescribes the goals to achieve by year 2015. It has 8 goods to be achieved.

POVERTY & UNEMPLOYMENT

Poverty Line: The per capital expenditure on certain minimum needs of a person including food intake of a daily average of 2400 calories in rural areas and 2100 calories in urban areas.

Poverty Gap: It is calculated as the total shortfall of consumption below the poverty line, divided by the total population. This per capital shortfall in consumption below the poverty line is then expressed on a percentage of the poverty line.

Poverty Gap Index: Poverty ratio × (Poverty line = per capita conception of the poor) / poverty link × 100.

Relative Poverty: It indicates inequality in the income of the people. May not be absolutely poor in terms of calories but income wise.

Lorenz Curve: Cumulative frequency curve showing the distribution of a variable such as population against an independent variable such as income. In cumulative % of income less than a given value are plotted against the cumulative % of persons.

Gini-coefficient: It represents the measurement of inequality derived from the “Lorenz curve”. With every increase in the degree of inequality, the curvature of the Lorenz curve also increase and the area between the curve and 45⁰ line becomes larger. The Gini – coefficient is measured as:

G = Area between Lorenz-curve & 45⁰ line / Area above the 45⁰ line.

Frictional Employment: Temporary unemployment caused by incessant changes in the economy. It takes time, for example for new workers to search among different job possibilities, even experienced workers often spend a minimum period of unemployment time moving from one job to another.

Unemployment trap: The existence of social security benefits for the out of work that erode an incentive for the unemployed to take a job.

Current Daily Status of Unemployment: It considers the activity status of a person for each day of the preceding seven days. A person who works for one hour but less than 4 hours is considered having worked for half a day. If he works for 4 hours or more during a day, it is considered whole day.

Demographic Divided: It is being enjoyed by India and if it is not managed properly it become demographic nightmare. It occurs when the countries working population (16-64year of age) is very large when compared to rest of the population.

Misery Index: Index combining unemployment rate and inflation rate: It is measured for practical significance of condition of economy, as well as consumer confidence.

CAPART: The Council for Advancement of People’s Action and Rural Technology. It is autonomous organization under the Ministry of Rural Development set up in 1986 as a supporting and funding agency to the voluntary organization.

TRYSEM: Training to Rural Youth for Self Employment is an integral part of Integrated Rural Development Programme. Since April 1, 1999, TRYSEM has been merged with newly introduced programme namely, Swarna Jayanti Gram Swarozgar Yojana. Since the launching of MGNREGA, it has become a part of it.

AGRICULTURE & INDUSTRY

Second Green Revolution: It aims at efficient use of resources and conservation of soil, water and ecology on sustainable basis and in a holistic framework.

Rainbow Revolution

· Over 4% annual growth rate in agriculture.

· Greater private sector participation through farming

· Price protection for farmers

· National Agriculture Insurance Scheme to be lowered for all farmers and all crops.

· Dismantling movement and agriculture commodity throughout the country.

Accelerated Irrigation Benefit Programme: It is started in 1995 by government of India to complete incomplete projects of states in which central funds flow on.

Debt Swap Scheme: It is a scheme through which farmers get loan from bank with minimum rate of interest to pay back loan from local money center, PNB launched it first.

Social Forestry: Involving the local community in preservation and rejuvenation of forest resources including wild life and etc.

Contract Forming: It is a new way of farming in which big corporates sign contract with farmers making provision for the production of farm goods and delivery at a later date at a price signed in the contract. This helps farmers get a fixed amount for the goods. It stabilizes the farmer’s income.

Footloose Industry: These industries are mobile industry which are not based in a particular area and can be seen anywhere for performing their activities.

Sunrise Industries: Industries in the forefront of development which have immense future potential. e.g. IT, Biotechnology, Pharma.

Index of Industrial Production: It is used to measure the growth rate of industry in India. It is the weighted average of mining, manufacturing and electricity. The base year of IIP is 1993-94.

Green Field Investment: In software engineering jargon Greenfield is a project which lacks any constraints imposed by prior work. The image is that of construction on Greenfield land. Where there is no need to remodel or demolish an existing structure.

Brown Field Investment: Those facilities which are modified/ upgraded are called Brown Field Projects.

Cortel: An association of producers in a given industry whose purpose is to restrict or bar competition in the industry.

Special Economic Zone (SEZ): Introduced in the EXIM policy of 2000-01 with a view to provide internationally competitive and haste free environment for export. They are free from taxes and duties. Such area is considered as foreign territory for the purpose of trade operations and tariffs.

Special Purpose Vehicle: It is introduced outside control and obligation of the government involved in setting up of new firms like DMRC. SPV is used by government in order to enhance public private partnership (PPP).

Golden Hand Shake: Voluntary retirement scheme (VRS) in Industrial Policy Resolution 1991 for reducing the pressure of employees on public sector enterprises.

Exit Policy: it is a part of liberation policy adopted by the government. It was adopted in 1991 which aimed at closing down the sick and inefficient industries and making handshakes with excess employees so as to reduce the financial burden on the economy.

Capital Widening: It is a phenomenon of growth in which capital to labour ratio is constant. When capital ratio is constant then wage rate is also constant.

MISCELLANEOUS

Tournament theory: The piece of economic thinking that suggests rewards can usefully be based upon the relative performance of economic agents, rather than on their absolute performance.

Yield Curve: A graphical representation of the relationship between the annual return on an asset and the number of years the asset has to run before expiring. Long term assets usually offer some premium over short-term ones and yield curves, thus typically slop upwards.

Zero sum game: A game in which one players gain is equal to other player's losses.

Window Dressing: Financial adjustments made solely for the purpose of accounting presentation normally at the time of auditing of company accounts.

Essential Commodities Act (1955): This act was introduced for ensuring supply of essential commodities to the consumers at fair prices and to save them from seller’s exploitation.

Book Building: This is the first draft or preliminary prospects, which carries the information of company and the project.

Micro Finance: Financial services offered to rural and urban poor. Its include insurance, credits and savings.

Swayam Sidha: it is centrally sponsored scheme for holistic empowerment of women, through mobilization and formation of women, into- Self Help Group (SHG).

Rural Infrastructure Development Fund (RIDF): It was set up under NABARD in 1995-96. Its main function is to improve rural roads and bridges, to remove inter regional, rural - urban or inter-state disparities to help the new agriculture policy to release more than 4% growth rate.

Carbon tax: it is tax on emission. New Zeland introduced it first.

Reverse Mortgage: Scheme started in 2007 wherein the older people are paid a pension by the bank till their death. And after their death the banks takes hold of house and ask legal heir to pay the amount or forbid the house. This is the way of ensuring constant support to elders.

Procurement Price: It is final price a company pays for procuring goods. It includes insurance transportation in addition to the production cost.

Bandwagen Effect: It is an observation of people to do and believe, what other people do.

Back Wash Effect: Where in people move from poorer region to richer (Industrial) region, which will undercut the industry and development of poorer region.

Pump Priming: The infection of small amounts of government spending into a depressed economy with the aim of boosting business confidence and encouraging large scale private sector investment.

Amovtization: It refers to repayment of loan principle.

G20 agrees to refrain from competitive devaluation

Leaders of the world’s 20 major economies on 2010 Novemver 12, refused to call on countries to stop undervaluing their currencies, leaving open a dispute between the U.S. and China that has raised the specter of a global trade war.

At the end of their two-day summit, the Group of 20 leaders including President Barack Obama issued a watered down statement that only said they agreed to refrain from “competitive devaluation” of currencies.

That call is of little consequence as the dispute that soured the G20 Summit is over Washington’s allegations that Beijing artificially keeps its currency, the yuan, weak to boost its exports.

The dispute over currencies is threatening to resurrect destructive protectionist policies like those that worsened the Great Depression in the 1930s.

The biggest fear is that trade barriers will send the global economy back into recession. A law the United States passed in 1930 that raised tariffs on imports is widely thought to have deepened the Great Depression by stifling trade.