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This ministry comprises five departments

Economic Affairs



Investment & Public Asset Management

Financial Services.

Dept of Economic Affairs

advises the government on all matters like prices, credit, fiscal and monetary policy and investment regulations.)

responsible for preparation and presentation of Union Budget to the Parliament and the budget for the state governments under President’s Rule and union territory administrations.)

formulating and executing policies and programmes relating to designs/ security feature of bank notes and coins and issue of commemorative coins)

In regard to union territories without Legislature there is a separate Demand for grants presented for each of the union territories.)

The eight core infrastructure supportive industries, namely, coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity are used for calculating the IIP.)

India’s foreign exchange reserves comprise:)

foreign currency assets (FCAs)



reserve tranche position (RTP) in the IMF. )

Infrastructure Finance
India Infrastructure Finance Company Limited (IIFCL)

To fund infrastructure projects through Long Term Debt, Refinance to Banks and Financial Institutions for loans granted by them, with term exceeding 10 years.

Tax free bonds for investment in infrastructure. To give long term, stable financing for the projects and good returns on investment for consumers.

Public Private Partnership’s

 Due to the importance of having good quality infrastructure and the limited availability of public funds to build them, India has taken the PPP route for building such infrastructure.
World bank has rated India as one of the top rated institutions when it comes to PPP readiness.
The following steps are taken to improve PPP in India:

 Public Private Partnership Appraisal Committee (PPPAC) was set up for the appraisal of PPP projects in the Central Sector. The appraisal procedure now allows for speedy appraisal of projects, eliminate delays, adoption of international best practices and have uniformity in appraisal mechanisms and guidelines.

Standardized Bidding Documents

Viability Gap Funding to PPP projects in Infrastructure to make them commercially viable.

The scheme for ‘India Infrastructure Project Development Fund’ (IIPDF) supports up to 75 per cent of the project development expenses.


Securities Appellate Tribunal

Chairman and 2 members appointed by central government for 5 year term.

Can be reappointed by chairman can’t exceed 68 years in age and members 62 years.

Can regulate own procedure, can review own judgment and doe not follow civil procedure code but principles of natural justice.

Appeals can be made against orders of SEBI, IRDA and PFRDA.

Appeals against SAT orders are heard by SC.

Civil courts are barred from interference in such matters.

SAT Chairman should be a sitting/retired judge of the Supreme Court or a sitting retired Chief Justice of a High Court; or a sitting or retired judge of a High Court who has completed not less than seven years of service as a judge of a High Court and two members who are having knowledge in field of securities law, finance, economics or accountancy.

 India is a founder member of the International Monetary Fund (IMF), which was established to promote a cooperative and stable global monetary framework. Finance minister is a member of the Board of Governors of the IMF and RBI Governor is the ex-officio Alternate Governor at the board of IMF

India is the founding member of the Iternational finance corporation, BRICS (New Development Bank) and Asian infrastructure and investment bank.

 Asian Development Bank

India is a founding member.

HQ- Manila, Phillipnes.

Indian finance minister is the member of the board of governors and Secretary of Dept of Economic Affairs is the alternate governor.

The Bank is engaged in promoting economic and social progress of its developing member countries (DMCs) in the Asia Pacific Region.

 Rural Infrastructure Development Fund

Created and operated by NABARD where Scheduled commercial banks and foreign banks with more than 20 branches deposit money in the event of a shortfall in meeting their priority sector lending requirments.

Aam Aadmi Bima Yojana

Under this social security scheme below poverty line (BPL) and marginally above poverty line citizens are covered under 48 identified occupations.
The scheme provides death cover of 30,000/- in case of natural death. total disability cover of 75,000/- and partial permanent disabilitycover of 37,500/- .
nominal premium of 200/- per member per annum, out of which 100/- is borne by the Central Government.
In addition, there is an add on benefit of scholarship at the rate of 1,200/- per annum per child for two children per family of the insured members.
Corporate Affairs

Serious Fraud Investigation Office

The main function of SFIO is to investigate corporate frauds of serious and complex nature.

SFIO has staturory status and police like powers of search and seizure.

Investigations are carried out by a multidisciplinary team which includes experts from the field of accountancy, forensic auditing, taxation, customs and central excise, information technology, capital market, financial transaction (including banking) and enforcement agencies like (CBI), (IB), and Enforcement Directorate.

SFIO once starts investigation on a case the other agencies have to stop work and handle all progress to it.

Food and Civil Supplies
Rajiv Gandhi Scheme for Empowerment of Adolescent Girls – ‘SABLA’

Empowering adolescent girls of 11-18 years by improvement of their nutritional and health status and upgrading various skills like home skills, life skills and vocational skills.

Equipping the girls on family welfare, health hygiene etc

Aiming to mainstream out-of-school girls into formal or non-formal education.

Women and child dept. is implementing it.

Fair and Remunerative pricing system for Sugarcanes

Decided by Government on recommendation of Commission on agriculture cost and prices.

FRP system rewards higher recovery of sugar from sugarcane . Usually only 10% by weight of sugarcane is converted to sugar

FRP system has

cost of production of sugarcane

return to the growers from alternative crops and the general trend of prices of agricultural commodities

availability of sugar to consumers at a fair price

price at which sugar produced from sugarcane is sold by sugar producers
recovery of sugar from sugarcane

the realisation made from sale of by-products viz. molasses, bagasse and press mud or their imputed value

reasonable margins for the growers of sugarcane on account of risk and profits.

International Grains Council

Intergovernmental forum of exporting and importing countries for co-operation in wheat and coarse grain matters. India also a member.

Chapter Review
Score more than 80% marks and move ahead else stay back and read again!

Q1: International Grains Council is
2.European organization
3.UN Specialist agency
4.Inter governmental body

Q2:Fair and Remunerative pricing system for Sugarcanes is based on
1.cost of production of sugarcane
return to the growers from alternative crops and the general trend of prices of agricultural commodities
2.availability of sugar to 3.consumers at a fair price

Q3: Rajiv Gandhi Scheme for Empowerment of Adolescent Girls – ‘SABLA’ is implemented by which ministry
4.Social justice

Q4: Banks who cant meet their PSL targets deposit money in which funds
3.both A and B

Q5:Asian Development Bank has following features
1.India is a founding member.
2.HQ- Manila, Phillipnes.
3.The Bank is engaged in promoting economic and social progress of its developing member countries (DMCs) in the Asia Pacific Region.