Skip to main content

Land utilisation

  LAND UTILIZATION  Land is a scarce resource, whose supply is fixed for all practical purposes. At the same time, the demand for land for various competing purposes is continuously increasing with the increase in human population and economic growth.Land use pattern at any given time is determined by several factors including size of human and livestock population, the demand pattern, the technology in use, the cultural traditions, the location and capability of land, institutional factors like ownership pattern and rights scale regulation. Major Types of Land Utilization in India : As in all other countries, land in India is put to various uses. The utilization of land depends upon physical factors like topography, soil and climate as well as upon human factors such as the density of population, duration of occupation of the area,land tenure and technical levels of the people.There are spatial and temporal difference in land utilization due to the continued interplay of phys...
Post a Comment

Price rise in economy

PRICE RISE IN ECONOMY
Introduction
The finance minister announced a tax cut on fuel and reduction in customs duty for imported raw materials.  A further tightening of monetary policy is expected.

Inflation vs jobs
Policymakers are more worried about high inflation than high unemployment.  When an economy goes through a phase of high inflation, chances are that unemployment rate will. While high inflation may be robbing people of their purchasing power, it often ends up getting unemployed jobs. 

Options
•The political sensitivity to high unemployment and high inflation varies from country to country and is influenced by past experience. •The central bank is mandated to give equal weightage to achieve maximum employment and containing inflation. 
•According to study, 'A one percentage point increase in unemployment rate lowers well being by more than five times as much as one percentage point increase in the inflation rate. 
•The situation is more complex in India. Since 2016,the country has been facing rather high levels of unemployment. 

Ways to control inflation
•India's current inflationary spiral is largely driven by 'Cost push' inflation. 
•In this situation, a tighter monetary policy,is an inefficient instrument.
•This is because higher interest rates can bring down fuel prices.  It can only control inflation in the economy. 
•By slowing down overall demand and by extension, the GDP growth rate, a tighter monetary policy is expected to allow the "supply" more time to get in sync with "demand" .
•The fiscal policy of taxation and expenditure can help. 
•The cutting of taxes on fuel and custom duty on imported raw material will moderate inflation and overall demand.
•From the expenditure  front,  the key point is that monetary tightening will result in slower GDP growth and lower revenues for the government. 
•The government here should boosts economy's capacity to produce more and curtail borrowing money for consumption expenditure. 
•It is important as Higher interest rate will lead to lower investment from private sector. 
•The government should step up investment in small infrastructure projects as doing so will provide support to beleaguered MSME's

Comments

Post a Comment

Popular posts from this blog

MAJOR ISSUES IN INDIAN ECONOMY

Major issue facing Indian economy Introduction - After independence, India made progess in political, economic, social fields but many problems like poverty, unemployment and inflation are yet to be solved. Meaning - Economy means a money framework in which all economic activities of a country are explained. Indian economy is a mix economy whereby both private and public sector plays its role. The root cause of the 3 problems namely poverty , unemployment and inflation is population explosion that is increasing at very fast speed. These three problems are major challenges for Indian economy. Poverty Poverty has attracted attention of economists, sociologists and educationists . It exists when one is not able to get the basic necessities of life - food ,clothes and shelter. It is condition of lower standard of living, inability of an individual to get minimum requirement of food , education and health. It further indicates 3 direction  a) Economic inequality b) Economic dependence ...
1 comment
Read more

Land utilisation

  LAND UTILIZATION  Land is a scarce resource, whose supply is fixed for all practical purposes. At the same time, the demand for land for various competing purposes is continuously increasing with the increase in human population and economic growth.Land use pattern at any given time is determined by several factors including size of human and livestock population, the demand pattern, the technology in use, the cultural traditions, the location and capability of land, institutional factors like ownership pattern and rights scale regulation. Major Types of Land Utilization in India : As in all other countries, land in India is put to various uses. The utilization of land depends upon physical factors like topography, soil and climate as well as upon human factors such as the density of population, duration of occupation of the area,land tenure and technical levels of the people.There are spatial and temporal difference in land utilization due to the continued interplay of phys...
Post a Comment
Read more

BASICS OF MACROECONOMICS

Basics of Macroeconomics   a) Capital goods : Capital goods are described as fixed assets of producers which are used in the process of production for several years. Plant, heavy equipment, machinery are examples. b) Investment : Investment is a process of capital formulation also known as the process of increase in stock of capital .             I =∆k Where I is investment and ∆k refere to the change in capital stock during the year. There are two types of investment  Fixed investment refers to increase in stock of fixed assets of producers during the period of an accounting year .Plant ,machinery are some of its examples.It is also called as fixed capital formation. Inventory investment are those stock which keeps varying . At a point of time,producers have stock of finished goods ,semi finished goods or raw material . These are called as inventory investment. Change in the stock of these are called as inventory investment of producers. c) D...
Post a Comment
Read more