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CHALLENGES AND OPPORTUNITIES

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ECONOMY Challenges and Opportunities Skill Development Gap:  Despite initiatives like Skill India, there’s a shortage of digitally skilled workers, crucial for sectors like cybersecurity and enterprise management. Logistics and Infrastructure:  India’s potential to streamline transport via inland waterways is significant, akin to the Netherlands’ network handling 40% of international freight. Access to Finance:  Small and medium enterprises face financial access challenges; initiatives like Mudra Yojana aim to improve credit flow and streamline loan processes. Regulatory Reforms:  GST simplification, Start-up India, and the Real Estate Act are enhancing the business environment, with a push for single-window systems and digitization. Data Privacy and Cybersecurity:  Growing digitization necessitates robust data protection laws and cybersecurity measures, with the government promoting secure tech adoption. Inland Waterways Opportunity:  Kerala’s Kochi Water ...
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WHERE DOES THE RBI’S SURPLUS COME FROM?

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ECONOMY WHERE DOES THE RBI’S SURPLUS COME FROM? THE CONTEXT:  When the Reserve Bank of India (RBI) prints money or earns interest on the foreign securities it holds, it makes a profit. After keeping aside a safety-cushion called the Contingent Risk Buffer (CRB) to face future crises, the leftover amount is handed to the Union Government. The latest hand-over is a record ₹ 2.69 lakh crore for 2024-25, comfortably beating the Budget estimate of ₹ 2.56 lakh crore. Year Surplus transferred (₹ lakh crore) CRB as % of balance-sheet Policy backdrop 2021-22 1.00 5.5 COVID-19 aftermath 2022-23 0.87 6.0 Rate-hike cycle begins 2023-24 2.11 6.5 (upper end of old band) Exchange-rate defence 2024-25 2.69 7.5 (upper end of new band) ECF review + record FX sales NOTE:  The  Bimal Jalan Committee (2019)  had earlier fixed the CRB band at  5.5–6.5 %  of the balance-sheet. The five-yearly review concluded in May-2025 has  widened the band to 4.5–7.5 % , giving the Board ...
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CHALLENGES AND OPPORTUNITIES IN INFRASTRUCTURE SECTOR

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  ECONOMY Challenges and Opportunities in Infrastructure Sector Land Acquisition and Clearances : Delays in land acquisition and clearances affect infrastructure sectors. Issues with onboarding digital land records. Greenfield airport projects face time-intensive processes due to site selection and approvals. Skill Demands : Limited technical knowledge in aviation sectors like MRO operations and manufacturing. Specialized skills needed for project development and management. Effective public-private partnerships are essential for skill development. Private Sector Participation : High capital investment and long payback periods deter private involvement. Project structuring issues, delays in clearances, lack of independent regulators, and contractual issues impact participation. Climate and Environmental Sustainability : Aviation sector faces compliance challenges with CORSIA from 2027. No ICAO-approved emissions unit programs in India. Cost of sustainable aviation fuel is significa...
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INTRODUCTION

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  ECONOMY Introduction India’s services sector can be broadly classified into two categories: contact-intensive and non-contact-intensive services. Contact-intensive services : trade, hospitality, transport, real estate, social, community and personal services. Non-contact-intensive services:   financial, information technology, professional, communication, broadcasting, storage services, public administration and defence services. Continue..
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SECTOR - WISE PERFORMANCE

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ECONOMY Sector-wise Performance 1. Insurance Sector The insurance sector in India comprises life insurance, general insurance, and health insurance, playing a critical role in providing financial security and stability. It is a significant component of the financial services industry, contributing to economic growth and social well-being. Current Status Market Size:  The insurance market in India is substantial, with total premiums growing at a compound annual growth rate (CAGR) of 14.9%, expected to reach INR 33 trillion by 2031. Life Insurance:  India is the 9th largest life insurance market globally, with penetration at 3.2% of GDP. Non-Life Insurance:  This segment, including health insurance, has a penetration of 1.0% of GDP. Growth Drivers:  The sector’s growth is driven by increasing middle-class incomes, rising awareness, digital penetration, and regulatory reforms such as the increase in FDI limit to 74%. continue..
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Join PT-25 Marathon Classes by S. Ansari & Team, starting 18th March 2025.

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 🚀 Unlock Success with 70 Hours of Chak-de-India! 💪 Join PT-25 Marathon Classes by S. Ansari & Team, starting 18th March 2025. Transform your preparation in just one week and turn the tide from failure to success! 🌟 📞 Call Now: 85060 99919 for Counselling 👉 Learn More: https://lukmaanias.com/pt-24-marathon-classes/ ⬇️ Stay Connected: 📺 YouTube: https://link.lukmaanias.com/r/Utube 📲 Telegram: https://link.lukmaanias.com/r/teleg 📱 WhatsApp: https://link.lukmaanias.com/r/wapp #MarathonClasses #UPSC2025 #LukmaanIAS #SuccessJourney
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Join the new Batch under S. Ansari and ensure your success.

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 Do you want to ace GS Paper-II for Mains 2025-26?  Join the new Batch under S. Ansari and ensure your success.  Enroll now as Batch starts from 16th January 2025 (Today). Click -   ⬇️Join us: YouTube👉🏻 https://link.lukmaanias.com/r/Utube Telegram👉🏻 https://link.lukmaanias.com/r/teleg WhatsApp👉🏻 https://link.lukmaanias.com/r/wapp ..
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