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Explain the significance of backward and forward linkages in the Food Processing Industry. Also, discuss the challenges in establishing robust linkages in India.
Linkages enhance the capability of the food processing industry to generate demand for the products of/in the other industries. They are mainly of two types: Backward Linkages: These linkages establish the connectivity of the food processing industry with sources of raw material supply. For example,Read more
Linkages enhance the capability of the food processing industry to generate demand for the products of/in the other industries. They are mainly of two types:
Significance of backward and forward linkages
Challenges in establishing robust linkages
To address these challenges, the government has launched the ‘Scheme for Creation of Backward and Forward Linkages’ for effective and seamless backward and forward integration by plugging the gaps in the supply chain. Under the scheme, financial assistance is provided for setting up of primary processing centers/ collection centers at farm gate and modern retail outlets at the front end. Furthermore, the government organised Mega International Food Submit and World Food India Hackathon to design solutions by leveraging technology for various problems in the food processing sector.
See lessWhat is the balance of payments of a country? Give an account of its various components.
The balance of payments (BoP) is the transactions in goods, services, and assets between residents of a country with the rest of the world for a specified period, typically a year. A country's BoP reveals its financial and economic status and helps the government decide on fiscal and trade policy reRead more
The balance of payments (BoP) is the transactions in goods, services, and assets between residents of a country with the rest of the world for a specified period, typically a year. A country’s BoP reveals its financial and economic status and helps the government decide on fiscal and trade policy records. There are three components of BoP viz. current account, capital account, and financial account. (A) Current account: It is the record of trade in goods and services and transfer payments. The current account is in balance when receipts on the current account are equal to the expenditure/payments on the current account. Similarly, the current account could be in surplus or deficit depending upon the quantum of receipts and expenditure on the current account. It includes various components like:
(C) Financial account: The flow of funds from and to foreign countries through various investments in real estate, business ventures, FDI, etc. is monitored through the financial account. This account measures the changes in the foreign ownership of domestic assets and domestic ownership of foreign assets. As per the IMF’s new accounting standards financial accounts have also been included as a component of BoP. India has also made the changes but the RBI continues to publish data according to the old classification as well.
See lessExplaining the concept of multi-dimensional poverty, state the measures which have been taken to address this problem in India.
Multidimensional poverty, going beyond the income criteria, measures poverty deprivation in three key areas - living standards, education and healthcare, that a poor person simultaneously faces. Recently, the NITI Aayog has released the 'National Multidimensional Poverty Index: Baseline Report and DRead more
Multidimensional poverty, going beyond the income criteria, measures poverty deprivation in three key areas – living standards, education and healthcare, that a poor person simultaneously faces. Recently, the NITI Aayog has released the ‘National Multidimensional Poverty Index: Baseline Report and Dashboard’.
The Multi-dimensionality Poverty Index (MPI) serves as a better model than income criteria to identify poor persons due to the following reasons:
In this context, the following steps have been taken to help reduce multidimensional poverty in India:
Apart from the above mentioned initiatives, the government should focus on accelerating economic growth, agricultural growth, human resource development and infrastructure development, implementation of Universal Basic Income, capacity development of government officials etc., which will help India achieve its Sustainable Development Goal 1 i.e. end poverty in all its forms everywhere.
See lessElaborate on the demand-pull and cost-push factors of inflation in India.
Inflation refers to a sustained rise in the general price level in the economy and a fall in the purchasing power of money over some time. It primarily occurs due to two sets of factors, the demand-pull factors, and the cost-push factors. Demand-pull inflation arises when aggregate demand in the ecoRead more
Inflation refers to a sustained rise in the general price level in the economy and a fall in the purchasing power of money over some time. It primarily occurs due to two sets of factors, the demand-pull factors, and the cost-push factors. Demand-pull inflation arises when aggregate demand in the economy becomes more than aggregate supply. It occurs due to the following factors:
Cost-push inflation arises when the aggregate supply of goods and services decreases because of an increase in production costs. It occurs due to the following factors: Demand and supply mismatch: When aggregate supply does not meet the aggregate demand e.g., a rise in oil price due to situations like the Russia-Ukraine crisis leads to inflation. An increase in the cost of wages and raw materials also leads to cost-push inflation.
To control inflation and maintain price stability in the economy, the government has formed an institutional Monetary Policy Committee. Further, the fiscal policy of the government works in tandem with the inflation target determined by the Monetary Policy Committee.
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