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banking terms

  ✍️ CRR Cash Reserve Ratio is the minimum fraction of total deposits of a bank’s customers that banks have to hold as reserves with the central bank. ✍️ SLR Statutory Liquidity Ratio is the ratio of liquid assets to the net demand and time liabilities. ✍️ LAF Liquid Adjustment Facility is a tool to allow banks to borrow money through repurchase agreements. It consists of repo and reverse repo operations. ✍️ MSF Marginal Standing Facility allows scheduled banks to borrow funds overnight from RBI against approved government securities. ✍️ MSS Market Stabilization Scheme is a monetary policy intervention by RBI to withdraw excess liquidity by selling government securities in the economy. ✍️ OMO Open Market Operations refers to the buying and selling of government securities in the open market so as to expand or contract the amount of money in the banking system. ✍️ REPO Repo stands for Repurchase agreement where a seller of a security agrees to buy it back from a buyer at a

Importance of Agriculture in Indian Economy

 Introduction: India is mainly an agricultural country. Agriculture is the most important occupation for most of the Indian families. In India, agriculture contributes about sixteen percent (16%) of total GDP and ten percent (10%) of total exports.

Over 60 % of India’s land area is arable making it the second largest country in terms of total arable land. Agricultural products of significant economic value includes rice, wheat, potato, tomato, onion, mangoes, sugar-cane, beans, cotton, etc.

Economic Growth: Agriculture is the backbone of Indian economy. Though, with the growth of other sectors, the overall share of agriculture on GDP of the country has decreased. Still, Agriculture continues to play a dominant part in the overall economic scenario of India.

Source of Food for domestic consumption: Food is essential for life. We depend on agricultural outputs for our food requirements. India produces large quantity of food grains such as millets, cereals, pulses, etc. A major portion of the food-stuffs produced is consumed within the country. Our farmers works day and night to feed our population that counts over 1.21 billion.

Besides agriculture with a commercial bias, subsistence agriculture with its emphasis on the production of food for the cultivator’s family is widespread. Traditionally, Agriculture is followed as the simplest method of obtaining food for the family. Agriculture in India is more a ‘way of life’ then a ‘mode of business’.

Export: India exports excess food and agricultural products. A large proportion of India’s export trade is based on the agricultural products, such as jute, tea, tobacco, coffee, spices, and sugar. It helps in increasing the foreign exchange. India is ranked seventh in terms of agricultural exports. In 2013, India exported agricultural products valuing around 39 billion dollars.

Basic occupation of millions: Agriculture is the basic occupation for majority of main-workers in India. A large number of rural women are also engaged in agriculture. According to 2001 census, over 56.6%  of the main workers in India are engaged in agricultural and allied activities.

Agro-based industries: A number of industries are agro-based industries, such as jute, cotton, sugar, tobacco, etc. Raw materials for such industries are supplied from agricultural produce.

Green revolution: Green revolution began in India with an objective to give greater emphasis on Agriculture. The era of Green revolution that began in 1960s witnessed significant increase in the production of food crops. The introduction of improved methods of agriculture and high yielding varieties (HYV) seeds, mainly wheat, had resulted into remarkable improvement in agricultural outputs. The productivity of land increased tremendously giving huge economic boost to the nation.

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banking terms

  ✍️ CRR Cash Reserve Ratio is the minimum fraction of total deposits of a bank’s customers that banks have to hold as reserves with the central bank. ✍️ SLR Statutory Liquidity Ratio is the ratio of liquid assets to the net demand and time liabilities. ✍️ LAF Liquid Adjustment Facility is a tool to allow banks to borrow money through repurchase agreements. It consists of repo and reverse repo operations. ✍️ MSF Marginal Standing Facility allows scheduled banks to borrow funds overnight from RBI against approved government securities. ✍️ MSS Market Stabilization Scheme is a monetary policy intervention by RBI to withdraw excess liquidity by selling government securities in the economy. ✍️ OMO Open Market Operations refers to the buying and selling of government securities in the open market so as to expand or contract the amount of money in the banking system. ✍️ REPO Repo stands for Repurchase agreement where a seller of a security agrees to buy it back from a buyer at a

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