QUESTION-Prelims-IAS – ECONOMICS MCQ-28
FDI is prohibited under the Government Route as well as the Automatic Route in the following sectors:
- Atomic Energy
- Lottery Business
- Gambling and Betting
- Business of Chit Fund
- Nidhi Company
- Agricultural (excluding Floriculture, Horticulture, Development of seeds, Animal Husbandry, Pisciculture and cultivation of vegetables, mushrooms, etc. under controlled conditions and services related to agro and allied sectors) and Plantations activities (other than Tea Plantations)
- Housing and Real Estate business (except development of townships, construction of residential/ commercial premises, roads or bridges)
- Trading in Transferable Development Rights (TDRs).
- Manufacture of cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes.
- The role and functions of the Department of Industrial Policy and Promotion includes Formulation of Foreign Direct Investment (FDI) Policy and promotion, approval and facilitation of FDI; The Foreign Investment Promotion Board (FIPB), housed in the Department of Economic Affairs, Ministry of Finance, was an inter-ministerial body, responsible for processing of FDI proposals and making recommendations for Government approval.
- FIPB was abolished in May, 2017.
- The Head count ratio (HCR) is the proportion of a population that exists, or lives, below the ‘poverty line’. The Poverty headcount ratio at national poverty line (% of population) in India was last reported at 21.9% in 2011-12.
- The Human Development Report Office releases five indices each year: the Human Development Index (HDI), the Inequality-Adjusted Human Development Index (IHDI), the Gender Development Index (GDI), the Gender Inequality Index (GII), and the Multidimensional Poverty Index (MPI).
- The index identifies deprivations across the same three dimensions as the HDI: health, education, and standard of living. The most recent survey data that were publically available for India’s MPI estimation refer to 2005/2006. In India 55.3 percent of the population (631,999 thousand people) are multidimensionally poor while an additional 18.2 percent live near multidimensional poverty (208,588 thousand people).
- The 2010 HDR introduced the MPI, which identifies multiple deprivations in the same households in education, health and living standards.
- The education and health dimensions are each based on two indicators, while the standard of living dimension is based on six indicators.
- All of the indicators needed to construct the MPI for a household are taken from the same household survey.
- The indicators are weighted to create a deprivation score, and the deprivation scores are computed for each household in the survey.
- A deprivation score of 33.3 percent (one-third of the weighted indicators), is used to distinguish between the poor and nonpoor.
- If the household deprivation score is 33.3 percent or greater, the household (and everyone in it) is classified as multidimensionally poor.
Usual Principal Subsidiary Status (UPSS) or Usual Status (PS +SS)
- This approach seeks to identify ‘workers’ out of those who were classified as ‘unemployed’ or as ‘outside labour force’ on the basis of the majority time criterion of the UPS approach.
- For example, all individuals reported to have been employed and/or unemployed for a total of less than six months will be treated as outside the labour force based on UPS criteria.
- Similarly, if someone is classified as being in the labour force and has worked only for a minor period of time, then he will be classified as ‘unemployed’ based on UPS approach.
- It’s quite likely that one who is outside the labour force by virtue of his spending longer time on ‘neither seeking/nor being available for work’ might have worked for a minor time period during the year long reference period.
- To capture such exclusions, the concept of ‘subsidiary status worker’ was devised and thus the approach of UPSS.
- According to this approach all individuals who are either unemployed or outside the labour force, but have worked for a minor period of not less than 30 days during the reference year are classified as subsidiary status workers.
- This gives us a different measure of Usual Status called the Usual Status (PS+SS) i.e. usual status of an individual determined on the basis of his usual principal status and usual subsidiary status taken together.
- Inclusion of subsidiary status workers increases the proportion of persons inside the labour force for usual status (PS+SS) as compared to usual status (PS) and also the unemployment rate is lower for the former as compared to latter.
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