UPSC Syllabus : Economic growth, inflation
The Reserve Bank of India (RBI) surprised the market by keeping the policy interest rate unchanged at 5.15% at the fifth bimonthly monetary policy review meeting, despite slowing economic growth, citing inflation concerns.
Monetary Policy Committee (MPC):
The policy interest rate required to achieve the inflation target is decided by the Monetary Policy Committee (MPC). MPC is a six-member committee constituted by the Central Government (Section 45ZB of the amended RBI Act, 1934).
The MPC is required to meet at least four times in a year. The quorum for the meeting of the MPC is four members. Each member of the MPC has one vote, and in the event of an equality of votes, the Governor has a second or casting vote.
2. Intellectual Property Rights (GS-3)
UPSC Syllabus : Intellectual Property Rights
Article 27 of the Universal Declaration of Human Rights provides for the right to benefit from the protection of moral and material interests resulting from authorship of scientific, literary or artistic productions.
IPR are the rights given to persons over the creations of their minds: inventions, literary and artistic works, and symbols, names and images used in commerce. They usually give the creator an exclusive right over the use of his/her creation for a certain period of time.
UPSC Syllabus : Inflation
Prelims and Mains:
What is Consumer Price Index (CPI) Inflation?
Consumer Price Index (CPI) or Market Basketas is an index measuring retail inflation in the economy by collecting the change in prices of most common goods and services used by consumers.
How is it measures?
Consumer Price Index formula:
CPI = (Cost of basket divided by Cost of basket in the base year) multiplied by 100
The CPI is calculated with reference to a base year that is used as a benchmark. The price change pertains to that year.
Note: the price of the basket in 1 year has to be first divided by the price of the market basket of the base year. Then, it is multiplied by 100.
CPI is calculated for a fixed list of items including food, housing, apparel, transportation, electronics, medical care, education, etc.
The price data is collected periodically. This data can be further used to compute the cost of living. This also provides insights as to how much a consumer can spend to be on par with the price change.
The significance of CPI:
The RBI and other statistical agencies study CPI so as to understand the price change of various commodities and keep a tab on inflation.
CPI is a helpful tool in understanding the real value of wages, salaries and pensions, the purchasing power of a country’s currency; and regulating prices.
Who maintains Consumer Price Index in India?
1. CPI for Industrial Workers (IW)
2. CPI for Agricultural Labourers (AL)
3. CPI for Rural Labourers (RL) and
4. CPI for Urban Non-Manual Employees (UNME)
While the Ministry of Statistics and Program Implementation collects CPI (UNME) data and compiles it, the remaining three are collected by the Labour Bureau in the Ministry of Labour.
UPSC Syllabus : Role of media and social networking sites in internal security challenges
Section 69A of the IT Act, 2000, empowers the government to block any information generated, transmitted, received, stored or hosted in any computer resource in the interest of sovereignty and integrity of India, defence of India, security of the state, friendly relations with foreign states or public order or for preventing incitement to the commission of any cognisable offence relating to above.
Bharat Bond ETF will be a basket of bonds issued by central public sector enterprises/undertakings or any other government organization bonds. (Initially, all AAA rated bonds.)
6. CPPIB to invest $600 mn via NIIF CSAT-1 & GS-3
National Investment and Infrastructure Fund: It is India’s first sovereign wealth fund that was set up by the Government of India in February 2015
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