Directions (1-9): Read the following passage to answer the given question. The ongoing intellectual property (IP) dispute between the United States and Myanmar has drawnattention, particularly concerning trademark laws and patent rights. Myanmar’s decision to step back from international IP agreements and build its own patent system has raised concerns in the U.S., which stresses the importance of aligning with global standards for intellectual property protection. The U.S. has voiced its apprehension over Myanmar’s withdrawal from established IP frameworks,particularly those that support trademarks and patents. Intellectual property rights play a crucial role inglobal trade and innovation. Adhering to international IP agreements is essential for countries involved inglobal commerce, as it ensures the protection of businesses and inventors. The U.S. maintains thatMyanmar’s move could disrupt trade relations, complicate the protection of American business interests,and create a less favorable environment for foreign investment. Myanmar’s decision to create its own patent system, rather than adhering fully to global agreements likethe World Intellectual Property Organization (WIPO), is a key point of contention. While national patentsystems are common, the U.S. is concerned that Myanmar’s system might not meet international standards. This inconsistency could create barriers for U.S. businesses seeking to protect their IP in Myanmar, leading to higher costs and potential legal disputes. Furthermore, a weak IP system in Myanmar could encourage counterfeiting and undermine the protections that American companies rely on globally. A significant legal framework relevant to this dispute is Section 103 of The Trade Marks Act, 1999, whichgoverns trademark protection in many countries adhering to international standards. Section 103addresses trademark infringement, registration, and penalties for violations. It offers legal remedies likeinjunctions, damages, and the seizure of infringing goods, thus safeguarding the rights of trademarkowners. The U.S. is concerned that Myanmar’s actions may dilute protections provided under frameworkslike Section 103, affecting the ability of U.S. companies to safeguard their trademarks in the country.American businesses depend on legal protections such as those outlined in Section 103 to ensure their IPis respected abroad. If Myanmar’s patent system fails to offer the same level of protection, U.S. companiescould face challenges, including legal battles and financial losses. Moreover, insufficient IP protection maylead to an increase in counterfeit goods, harming both businesses and consumers. The U.S. also emphasizes that Myanmar’s participation in global IP agreements is critical to its economicdevelopment. _________________. By stepping away from international agreements and establishingits own patent framework, Myanmar risks losing investor confidence and limiting its economic growth.In conclusion, the ongoing intellectual property dispute between the United States and Myanmar highlights the complexities of international trade and the importance of intellectual property protections in fostering economic growth and innovation. The concerns raised by the U.S. regarding Myanmar’s decision to establish its own patent system and the potential implications for trademark protection under frameworks like Section 103 of The Trade Marks Act, 1999, underscore the need for collaboration and alignment with global IP standards. Q1. What is the primary concern of the United States regarding Myanmar’s decision to create its own patent system? (a) The U.S. is concerned that Myanmar’s patent system will result in increased taxes for American companies, making it harder for them to conduct business in the country.(b) The U.S. believes that it may lead to higher operational costs for U.S. businesses, as they will need to comply with different and potentially less reliable IP protection standards.(c) The U.S. government fears that it will make it easier for U.S. companies to register their intellectual property without facing international scrutiny, which may reduce transparency.(d) Myanmar’s decision could increase the likelihood of innovative goods in the market, harming American businesses and consumers globally.(e) The U.S. is concerned that Myanmar’s new patent system could limit foreign investments, as it may not offer the same legal protections provided by international IP agreements. Q2. How does the United States view the role of international intellectual property (IP) agreementsin global trade? (a) The U.S. sees international IP agreements as useful but believes that countries like Myanmar should have the freedom to adapt them to their national interests without significant consequences for global trade.(b) The U.S. views international IP agreements as a barrier to innovation, which reduces the ability of countries to create independent IP systems.(c) The U.S. believes that they are essential for ensuring the protection of businesses and inventors involved in global commerce, thereby safeguarding trade relations and foreign investments.(d) The U.S. argues that international IP agreements are primarily designed to protect developing nations’ intellectual property.(e) The U.S. maintains that international IP agreements are important, and they should be applied when the majority of trading partners agree to adopt them simultaneously to avoid competitive disadvantages. Q3. Why does the U.S. highlight Section 103 of The Trade Marks Act, 1999, in the context of thedispute with Myanmar? (a) The U.S. wants to promote Section 103 globally to ensure that all countries follow the same standards for trademark and patent protection.(b) The U.S. believes that Section 103 offers superior protection for U.S. businesses and should be adopted by Myanmar as part of its national patent system to avoid legal conflicts.(c) The U.S. emphasizes Section 103 because it provides legal remedies such as injunctions, damages, and the seizure of infringing goods, which could help American businesses to perpetuate in the longer run.(d) The U.S. is concerned that Myanmar’s actions may dilute protections provided by frameworks like Section 103, making it harder for U.S. companies to safeguard their trademarks in the country.(e) The U.S. is concerned that Section 103 gives too much power to foreign businesses, undermining the competitiveness of American companies in countries like Myanmar. Q4. What is one potential risk highlighted in the passage if Myanmar’s intellectual propertyprotection system does not meet international standards? (a) U.S. businesses may benefit from reduced competition in Myanmar’s market due to less stringent IP regulations, allowing them to operate with fewer legal restrictions and challenges from local competitors.(b) Insufficient protection under Myanmar’s IP system could result in an influx of counterfeit goods,negatively affecting not only U.S. businesses through financial losses but also
Trade Deficit
Definition of Trade Deficit A trade deficit occurs when the value of any country’s imports exceeds the value of its exports which creates a negative balance of trade. Reason behind India’s Trade Deficit Key Impacts of the Trade Deficit on the Indian Economy Benefits: Challenges: Measures to Control Trade Deficit Conclusion: It’s important to note that there’s no one-size-fits-all solution, and the effectiveness of these measures depends on various factors like the specific trade partner, the nature of imports and exports, and the global economic climate. The Indian government needs to carefully assess the situation and implement a combination of these strategies to effectively address the trade deficit and promote sustainable economic growth.
Nuclear Power Corporation of India (NPCIL)
About It is an Indian Public Sector undertaking based in Mumbai, Maharashtra. Nuclear Power Plants in India
Employment Linked Incentive (ELI) Scheme
About ELI Scheme The Employment Linked Incentive (ELI) Scheme was being launched in the Union Budget of the financial year 2024-25 aiming to generate a number of employment which is basically targetting the first time employees in the formal sector which is registered with EPFO.
Schemes for Welfare of Farmers
Sl. No. Name of the Scheme Launch Date Purpose 1. Pradhan Mantri Kisan Samman Nidhi ( PM-KISAN) 05 October 2024 PM-KISAN is a central sector scheme launched on 24th February 2019 to supplement financial needs of land holding farmers, subject to exclusions. Under the scheme, financial benefit of Rs. 6000/- per year is transferred in three equal four-monthly installments into the bank accounts of farmers’ families across the country, through Direct Benefit Transfer mode. Till now, Rs. 2.81 lakh crores have been transferred through Direct Benefit Transfer to more than 11 crores beneficiaries (Farmers) through various instalments. 2. Pradhan Mantri Kisan MaanDhan Yojana (PM-KMY) 12 September 2019 Pradhan Mantri Kisan Maandhan Yojna is a central sector scheme which is launched to provide security to most vulnerable farmer families. It is contributory scheme, small and marginal farmers , subject to exclusion criteria, can opt to become member of the scheme by paying monthly subscription to the Pension Fund. Similar, amount will be contributed by the Central Government. Applicants who are between the age group of 18 to 40 years will have to contribute between Rs. 55 to Rs. 200 per month till they attain the age of 60. PMKMY is taking care of the farmers during their old age and provides Rs. 3,000 monthly pension to the enrolled farmers once they attain 60 years of age, subject to exclusion criteria.Life Insurance Corporation (LIC) is pension fund manager and registration of beneficiaries is done through CSC and State Govts. So far 23.38 lakh farmers have enrolled under the scheme. 3. Pradhan Mantri Fasal Bima Yojana (PMFBY) 13 January 2016 PMFBY was launched in order to provide a simple and affordable crop insurance product to ensure comprehensive risk cover for crops to farmers against all non-preventable natural risks from pre-sowing to post-harvest and to provide adequate claim amount. The scheme is demand driven and available for all farmers A total of 5549.40 lakh farmer applications were insured under the scheme since 2016-17 and Rs 150589.10 crore has been paid as claim. 4. Modified Interest Subvention Scheme (MISS) In the year 2006-07 Interest Subvention Scheme provides concessional short term agri-loans to the farmers practicing crop husbandry and other allied activities like animal husbandry, dairying and fisheries. It is available to farmers availing short term crop loans up to Rs.3.00 lakh at an interest rate of 7% per annum for one year. An additional 3% subvention is also given to the farmers. NWRs on crop loans for a further period of six months post-harvest to small and marginal farmers having Kisan Credit Cards (KCCs), on occurrence of natural calamities and severe natural calamities. As on 05-01-2024, 465.42 lakh new KCC applications have been sanctioned with a sanctioned credit limit of Rs. 5,69,974 crore as part of the drive. 5. Agriculture Infrastructure Fund (AIF) 28th August 2024 In order to address the existing infrastructure gaps and mobilize investment in agriculture infrastructure, Agri Infra Fund was launched under Aatmanirbhar Bharat Package. AIF was introduced with a vision to transform the agriculture infrastructure landscape of the country. The Agriculture Infrastructure Fund is a medium – long term debt financing facility for investment in viable projects for post- harvest management infrastructure and community farming assets through interest subvention and credit guarantee support. The Fund of Rs. 1 lakh crore under the scheme will be disbursed from FY 2020-21 to FY2025-26 and the support under the scheme will be provided for the duration of FY2020-21 to FY2032-33.Under the scheme, Rs. 1 Lakh Crore will be provided by banks and financial institutions as loans with interest subvention of 3% per annum and credit guarantee coverage under CGTMSE for loans up to Rs. 2 Crores. Further, each entity is eligible to get the benefit of the scheme for up to 25 projects located in different LGD codes. Eligible beneficiaries include Farmers, Agri-entrepreneurs, Start-ups, Primary Agricultural Credit Societies (PACS), Marketing Cooperative Societies, Farmer Producers Organizations(FPOs), Self Help Group (SHG), Joint Liability Groups (JLG), Multipurpose Cooperative Societies, Central/State agency or Local Body sponsored Public Private Partnership Projects, State Agencies, Agricultural Produce Market Committees (Mandis), National & State Federations of Cooperatives, Federations of FPOs (Farmer Produce Organizations) and Federations of Self Help Groups (SHGs). As on 31-12-2023, Rs.33.209 Crores have been sanctioned for 44,912 projects under AIF, out of this total sanctioned amount, Rs 25,504 Crores is covered under scheme benefits. These sanctioned projects have mobilized an investment of Rs 56.471 Crores in agriculture sector. 6. Formation & Promotion of new 10,000 FPOs In the year 2020 The Government of India launched the Central Sector Scheme (CSS) for “Formation and Promotion of 10,000 Farmer Producer Organizations (FPOs)” in the year 2020. The scheme has a total budgetary outlay of Rs.6865 crores. Formation & promotion of FPOs are to be done through Implementing Agencies (IAs), which further engage Cluster Based Business Organizations (CBBOs) to form & provide professional handholding support to FPOs for a period of 5 years.FPOs get a financial assistance upto Rs 18.00 lakh per FPO for a period of 03 years. In addition to this, provision has been made for matching equity grant upto Rs. 2,000 per farmer member of FPO with a limit of Rs. 15.00 lakh per FPO and a credit guarantee facility upto Rs. 2 crore of project loan per FPO from eligible lending institution to ensure institutional credit accessibility to FPOs. Suitable provisions have been made for training and skill development of FPOs. Further, FPOs are onboarded on National Agriculture Market (e-NAM) platform which facilitate online trading of their agricultural commodities through transparent price discovery method to enable FPOs to realize better remunerative prices for their produce. As on 31.12.2023, total 7,774 FPOs were registered under the scheme in the country. 7. National beekeeping and Honey Mission (NBHM) In the year 2020 Keeping in view the importance of beekeeping, a new Central Sector Scheme entitled National Beekeeping & Honey Mission (NBHM) was launched in 2020 under Atma Nirbhar Bharat Abhiyan for its implementation in the field for overall
Banking Related Government Schemes
1. Pradhan Mantri Jan Dhan Yojna Pradhan Mantri Jan Dhan Yojana is National Mission under the ministry of Finance on Financial Inclusion for ensuring comprehensive financial inclusion of all the households in the country by providing universal access to banking facilities with at least one basic bank account to every household, financial literacy, access to credit, insurance and pension facility. Under this, a person who is not having a savings account can open an account without the requirement of any minimum balance and, in case they self-certify that they do not have any of the officially valid documents required for opening a savings account, they may open a small account also. PMJDY was conceived as a bold innovative and ambitious mission. In the first phase of the scheme, these households were targeted for inclusion through the opening of a bank account within a year of the launch of the scheme. This year on August 2024 it successfully completed its 10 years. Features of PMJDY In PMJDY accounts there is no any requirement to maintain any minimum balance. Free debit cards are provided to the account holders. The account holders can also avail accidental insurance. This account is eligible for many governmental schemes listed below: No mandatory free cheque book will be provided to the account holders. 2. From Jan Dhan to Jan Suraksha To create a universal social security system for all Indians, especially the poor and the underprivileged the Hon’ble Prime Minister launched three Social Security Schemes in the Insurance and Pension sectors on 9th of May 2015 3. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) The PMJJBY was launched in the year 2015 by Prime Minister Shri Narendra Modi. It is available to people in the age group of 18 to 50 years having a bank account who give their consent to join /enable auto-debit. Aadhar is the primary KYC for the bank account. The life cover of Rs. 2 lakh is for the one year period stretching from1st June to 31st May and is renewable. Risk coverage under this scheme is for Rs. 2 lakh in case of death of the insured, due to any reason. Premium is Rs. 330 per annum which is to be auto-debited in one installment from the subscriber’s bank account. The scheme is being offered by the Life Insurance Corporation and all other life insurers who are willing to offer the product on similar terms with necessary approvals and tie up with banks for this purpose. 4. Pradhan Mantri Suraksha Beema Yojna The Scheme is available to people in the age group 18 to 70 years with a bank account who give their consent to join/ enable auto-debit on or before 31st May for the coverage period 1st June to 31st May on an annual renewal basis. Aadhar would be the primary KYC for the bank account. The risk coverage under the scheme is Rs. 2 lakh for accidental death and full disability and Rs. 1 lakh for partial disability. The premium of Rs.12 per annum is to be deducted from the account holder’s bank account through ‘auto-debit’ facility in one installment. The scheme is being offered by Public Sector General Insurance Companies or any other General Insurance Company who are willing to offer the product on similar terms with necessary approvals and tie up with banks for this purpose. 5. Atal Pension Yojna 6. Pradhan Mantri Mudra Yojna This scheme was launched on 8th April 2015 under the ministry of finance . Under the scheme a loan of upto Rs. 50,000 is given under sub-scheme ‘Shishu’; between Rs. 50,000 to 5.0 Lakhs under sub-scheme ‘Kishore’; and between 5.0 Lakhs to 10.0 Lakhs under sub-scheme ‘Tarun’.Loans taken do not require collaterals. These measures are aimed at increasing the confidence of young, educated or skilled workers who would now be able to aspire to become first generation entrepreneurs; existing small businesses, too, will be able to expand theirs activates. 7. Pradhan Mantri Vaya Vandana Yojana Based on the success and popularity of Varishtha Pension Bima Yojana 2003 (VPBY-2003), Varishtha Pension Bima Yojana 2014 (VPBY-2014) schemes, and to protect elderly persons aged 60 years and above against a future fall in their interest income due to the uncertain market conditions, as also to provide social security during old age, it has been decided to launch a simplified scheme of assured pension of 8% called the ‘प्रधानमंत्री वय वन्दना योजना’. This is implemented through Life Insurance Corporation (LIC) of India. As per the scheme, on payment of an initial lump sum amount ranging from a minimum purchase price of Rs. 1,50,000/- for a minimum pension of Rs 1,000/- per month to a maximum purchase price of Rs. 7, 50,000/- for the maximum pension of Rs. 5,000/- per month, subscribers will get an assured pension based on a guaranteed rate of return of 8% per annum, payable monthly.
National Green Tribunal ( NGT )
National Green Tribunal is a specialized body set up under National Green Tribunal Act (2010) for effective and expeditious disposal of cases relating to environmental protection and conservation of forests and other natural resources. Justice Prakash Shrivastava, former chief justice of the Calcutta High Court has been appointed as the new chairperson of NGT. With the establishment of National Green Tribunal, India became the third country in the world to set up a specialized environmental tribunal, only after Australia and New Zealand, and the first developing country to do so. National Green Tribunal is mandated to make disposal of applications or appeals finally within 6 months of filing of the same. It has five places of sittings, New Delhi is the Principal place of sitting and Bhopal, Pune, Kolkata and Chennai are the other four. Structure of National Green Tribunal Powers and Jurisdictions of NGT It has jurisdiction over all civil cases involving substantial question relating to environment (including enforcement of any legal right relating to environment). Strengths of NGT NGT has emerged as a critical player in environmental regulation, passing strict orders on issues ranging from pollution to deforestation to waste management. NGT offers a path for the evolution of environmental jurisprudence by setting up an alternative dispute resolution mechanism. It helps reduce the burden of litigation in the higher courts on environmental matters. NGT is less formal, less expensive, and a faster way of resolving environment related disputes. It plays a crucial role in curbing environment-damaging activities. The Chairperson and members are not eligible for reappointment, hence they are likely to deliver judgements independently, without succumbing to pressure from any quarter. The NGT has been instrumental in ensuring that the Environment Impact Assessment process is strictly observed. Landmark Judgements of NGT In the year 2012, POSCO a South-Korean steelmaker company signed a MoU with the Odisha government to set up steel project. NGT suspended order and this was considered a radical step in favour of the local communities and forests. In 2012 Almitra H. Patel vs. Union of India case, NGT gave judgment of complete prohibition on open burning of waste on lands, including landfills – regarded as the single biggest landmark case dealing with the issue of solid waste management in India. In 2013 in Uttarakhand floods case, the Alaknanda Hydro Power Co. Ltd. was ordered to compensate to the petitioner – here, the NGT directly relied on the principle of ‘polluter pays’. In the Save Mon Federation Vs Union of India case (2013), the NGT suspended a ₹6,400-crore hydro project, to save the habitat of a bird. In 2015, the NGT ordered that all diesel vehicles over 10 years old will not be permitted to ply in Delhi-NCR. A December 2016 amendment to EIA 2006 notification — the amendments basically sought to give local authorities powers to grant environmental clearance to builders — was nullified by the NGT, terming it as a “ploy” (by the government) to circumvent the 2006 rules. In 2017, the Art of Living Festival on Yamuna Food Plain was declared violating the environmental norms, the NGT panel imposed a penalty of Rs. 5 Crore. The NGT, in 2017, imposed an interim ban on plastic bags of less than 50-micron thickness in Delhi because “they were causing animal deaths, clogging sewers and harming the environment”. Conclusion There is a need for more autonomy and widen NGT’s scope for an effective protection of environment in balance with human developmental activities.
Important Summits and Confrences of 2024
JANUARY 2024 Summit/Confrence Led by Venue Organizer Summit/ ConferenceLed byVenueOrganizer Uganda Kampala, Uganda The summit adopted the Kampala Declaration, which called for the implementation of the UN Security Council resolution to allow humanitarian aid into the besieged Gaza Strip. Theme: Deepening Cooperation for Shared Global Affluence. Global Peace Summit on Ukraine Switzerland Bürgenstock (Canton of Nidwalden), Switzerland The summit aims to develop a common understanding of a path towards a just and lasting peace in Ukraine. It provides a platform for dialogue on ways towards a comprehensive, just, and lasting peace based on international law and the UN Charter. The goal is to jointly define a roadmap for involving both parties in a future peace process. World Sustainable Development Summit 2024 The Energy and Resources Institute (TERI) New Delhi, India The summit aimed to promote environmental stewardship across all levels and spheres, recognizing that today’s challenges for attaining sustainable development are complex and interconnected. Theme: Leadership for Sustainable Development and Climate Justice. FEBRUARY 2024 Summit / Conference Led By Venue Objectives World Government Summit 2024 ( WGS ) Dubai Police Dubai, United Arab Emirates Focus on harnessing innovation and technology to address universal challenges facing humanity. The theme is ‘Shaping Future Governments’ Future Skills Summit 2024 National Institute of Electronics and Information Technology (NIELIT) Guwahati The goal is to bring together young Indians, smart thinkers, industry pros, policymakers, teachers, and tech fans to plan how to prepare talented people for the future in India and beyond. Theme: Catalysing future-ready talent for India & the World World Neem Organization (WNO) Neem Summit 2024 World Neem Organization (WNO) in collaboration with ICAR-Central Agroforestry Research Institute (Jhansi) New Delhi To discuss and explore the diverse applications of neem and its contributions to sustainable practices. Theme: Neem for sustainable Agriculture, health and Environment. INDUS-X (India-U.S. Defence Acceleration Ecosystem) Summit 2024 Joint initiative between India and USA New Delhi The INDUS-X Summit aims to advance defence innovation and collaboration between India and the United States. It focuses on co-producing advanced military capabilities, strengthening defence supply chains, and enhancing U.S.-India military interoperability to address shared security challenges. Africa’s first Green Game Summit 2024 Organized by Playing for the Planet Alliance and Pan Africa Gaming Group (PAGG) Nairobi The summit aims to harness the power of gaming to meet the needs of environmental sustainability. It brings together the games industry, NGOs, policy makers, and the United Nations Environment Program (UNEP) to discuss how games can deliver on climate and environmental outcomes. World Police Summit 2024 Dubai Police Dubai The World Government Summit 2024 aims to be a pivotal platform where global law enforcement comes together. It gathers prestigious forces including the FBI, NYPD, INTERPOL, Australian Federal Police, Korean National Police Agency, and the Metropolitan Police from over 138 countries Theme: Uniting Global Forces for a Safer Tomorrow. Bio Asia 2024 summit Organized by the Government of Telangana Hyderabad, Telangana Bio Asia 2024 will investigate how data and AI can open up new chances for life sciences firms and how they might change the future of delivering health technology in the country. Theme: Data and AI: Redefining Possibilities. March 2024 Summit / Conference Led By Venue Objectives Summit for Democracy 2024 South Korean President Yoon Suk Yeol Seoul, South Korea To renew democracy at home and confront autocracies abroad, Theme: Democracy for Future Generations Global Summit on Extreme Heat International Federation of Red Cross and Red Crescent Societies (IFRC) and United States Agency for International Development (USAID) Virtual Summit The summit was a response to the growing threat of extreme heat events, which have become more frequent and intense, resulting in increased mortality and exacerbating other climate disasters such as drought and wildfires. April 2024 Summit / Conference Led By Venue Objectives World Future Energy Summit 2024 Masdar ( an Emirati state-owned renewable energy company of Abu Dhabi) Abu Dhabi, United Arab Emirates Accelerate sustainability and the global transition to clean energy, convening leaders, innovators, and global thinkers to share ideas and create blueprints for a sustainable future. Retail Summit (TRS) 2024 Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE Paris,France The Retail Summit brings together people from around the world who work in retail. It shares important information from top industry leaders and offers enjoyable networking opportunities in lively and exciting locations. International Rainbow Tourism Conference Mayako Pahichan Nepal, in collaboration with the Nepal Tourism Board Kathmandu, Nepal The main goal was to make Nepal a top LGBT-friendly tourism spot, using rainbow tourism to boost economic growth and support social empowerment within the LGBTI community. 2024 Ocean Decade Conference Intergovernmental Oceanographic Commission of UNESCO Barcelona, Spain The 2024 Ocean Decade Conference will bring together the global Ocean Decade community and its partners to celebrate achievements, review progress, and establish shared priorities for the future. May 2024 June 2024 July 2024 August 2024 September 2024 October 2024 November 2024
Comparing GVA and GDP
Gross Value Added ( GVA ) GVA is defined as the value of output less the value of intermediate consumption. It also represents the contribution of labor and the capital to production process. Thus, the value of GVA can be derived from the GDP as follows: GVA = GDP – Indirect Taxes + Subsidies Gross Domestic Product ( GDP ) GDP is an estimate of the total value of all the final products and services produced in a given period by the production owned by a country’s citizen. Final Goods and Services : It means that only the final, and not the intermediate, goods and services are taken into account for calculation of GDP. Within the Domestic Economy: It means that the produce of resident citizens as well as foreign nationals who reside within that geographical boundary is considered. GDP at Market Price GDP at Market Price is market value of all the final goods and services produced within a domestic territory of a country during a financial year. GDP at Factor Cost GDP at Factor Cost refers to aggregate value of income earned from factors of production i.e. Land, Labor, Capital, and Entrepreneurship. GDP at Factor Cost excludes indirect taxes but includes subsidies. GDP at Factor Cost = GDP at Market Price – Indirect Taxes + Subsidies Comparing GVA and GDP GVA GDP Value of all the goods and services produced within a country after deducting the value of intermediate goods and services. Market value of all the final goods and services produced within the country. Gives insight into the economy from the input or supplier side. Gives insight into the economy from the output or consumer side. Generally, calculated on a sector-wise approach. e.g. GVA for the Primary Sector, Secondary Sector, etc. Calculated for the whole economy.(GDP of economy = GVA of all the sectors) Generally, calculated at Basic Prices. Generally, calculated at Market Prices.
Idea of National Income
INTRO https://c4scourses.in/ National Income is a fundamental concept in the field of economics which acts as a key standard of calculating a country’s economic performance. It influences investment consideration, and socio-economic planning. This article of C4S is aiming to provide you the in detail depth concepts of GDP, NDP, GNP, NNP, Cost and Price of National Income and other related concepts. What is National Income ? National Income refers to the aggregate value of all final goods and services produced in a country in a particular time period. ( One financial Year ) Gross Domestic Product ( GDP ) GDP is an estimate of the total value of all the final products and services produced in a given period by the production owned by a country’s citizen. GDP at Market Price GDP at Market Price is market value of all the final goods and services produced within a domestic territory of a country during a financial year. GDP at Factor Cost GDP at Factor Cost refers to aggregate value of income earned from factors of production i.e. Land, Labor, Capital, and Entrepreneurship. GDP at Factor Cost excludes indirect taxes but includes subsidies. GDP at Factor Cost = GDP at Market Price – Indirect Taxes + Subsidies Gross National Product ( GNP ) GNP is an estimate of total value of all the final products and services produced in a given period by the production owned by a country’s citizens. Final Goods and Services: This means that only final, and not the intermediate, goods and services are taken into account for calculation of GNP. Owned by a Country’s Citizens: This means that produce of resident as well as non-resident citizens of the country is considered, whereas that of the foreign nationals who reside within that geographical boundary of the country is not been considered. Thus, GNP = GDP + Factor Income from Abroad to India – Factor Income from India to Abroad. = GDP + Net Factor Income from Abroad (NFIA) Net National Income Net National Income refers to the Gross National Income minus Depreciation of the fixed capital assets. Thus, it takes into account the losses due to the depreciation. Net Domestic Product ( NDP ) NDP is arrived at by deducting the depreciation from GDP. Thus, Net Domestic Product = GDP – Depreciation. Net National Product ( NNP ) NNP is calculated by subtracting the depreciation from GNP. Thus, Net National Product = GNP – Depreciation. Methods of Computing National Income National Income can be calculated by 3 methods: 1. Income Method Under this method, National Income is obtained by summing up the incomes of all the individuals in an economy. Individuals earn incomes by contributing their own services and the services of their property such as land and capital to the national production. Therefore, National Income (NI) = Employee compensation + Corporate profits + Proprietors’ Income + Rental income + Net Interest 2. Product or Value added Method This method is also known as output method. Under this method, National Income is computed by adding values of the output produced or services rendered by different sectors of economy during the year. It is to be noted that while computing the values of output figures, only value added by each firm in the production process is taken into account. Therefore, this method makes use of the concept of Value-added. 3. Expenditure Method: This method is also known as total-outlay method. This method assumes that income earned by an individual is either spent on consumer goods/services or saved and invested. Therefore, National Income (NI) = Personal Consumption Expenditure (C) + Investments (I) + Government Expenditure (G) + Exports (X) – Imports (I). Difficulties in Estimating National Income Some major problems are used to face while estimating national income that can be studied under two heads – 1.Conceptual Difficulties 2. Statistical or Practical Difficulties. Conceptual Difficulties The conceptual problem relates to how and what is to be included and what is not in the measurement of National Income. Though the concept of national income implies that everything that is produced should be reckoned, by definition, we consider only those things that are exchanged for money or carry some price. In order to mitigate these difficulties, certain guidelines have been laid down about the process of National Income estimation, and about what components have to be included. Statistical or Practical Difficulties In conclusion, much more than just a numerical figure, National Income is a comprehensive reflection of a country’s economic vitality. Though the current measures of NI have some shortcomings, they play a crucial role in guiding governments, businesses, and individuals in making informed economic decisions. As we strive for a more holistic understanding of progress, research & development should be carried out to develop more comprehensive measures of National Income that encompass social well-being and environmental sustainability.
