AdminsRaj

Current Account Deficit(CAD) is an economic term where country's import exceeds the exports. So I was going through few of the data from tradingeconomics.com, where I found some good Insight which I would like to share with you all. So during CAD, a home country purchases the more goods from the foreign country because: 1) Either a home country lacks enough resources to produce. 2) Or a home country lacks the Skilled and efficient workforce to produce more goods in the International market. Both the reasons are general but there can be third reasons too which the country is saving its limited resources for future. As per the recent report, India's CAD is expected to touch $40 billion, or 1.5 percent of GDP(Nomura report), which is the huge number. Now the question is that what we import? Basically many things but the major portion is crude oil from Gulf countries like Saudi Arabia. Now this means that Saudis are depleting its limited oil resources while India is c...

A couple of months ago Government of India has had introduced the Financial Deposit Resolution Insurance bill which is envisaged to replace the activity of Deposit Insurance and Credit Guarantee Corporation (DICGC). Background: Earlier DICGC was supposed to provide the insurance of up to 1 lakh Rupees for the depositors, in case of any 'Bank run' kind of situation. Now, what FDRI bill offers for the depositor? Will it be different from DICGC?  FDRI brings two important things: 1) Resolution Corporation   2) From 'Bail out' to 'Bail in' Let me explain here: Resolution Corporation would constitute of the eminent experts(Specialist in Finance of course), who would monitor the condition of the firms based on a certain parameter which is: a) Low-Risk b) Medium Risk  c) High-Risk d) Imminent Risk   e) Critical This risk refers to how financially secure any firm is? When the clock parameter clicks the Critical then this Resoluti...