Indian Economy – Important Terminology Part 3rd

Current Account Convertibility :- It defines that one can import and can import and export goods or receive or make payments for services rendered. However, investments and borrowings are restricted.

Capitalism :- Capitalism as an economy is based on a democratic political ideology and produces a free market economy, where business are privately owned and operated for profit; in capitalism, all of the capital investments and decisions about production, distribution, and the prices of goods, services, and labour, are determined in the free market and affected by the forces of supply and demand.

Socialism :- Socialism as an economy is based on a collectivist type of political ideology and involves the running of business to benefit the common good of a vast majority of people rather than of small upper class segment of society.

Corporate Governance :- Corporate governance is the set of processes, customs, policies, laws and institutions affecting the way a corporation (or company) is directed, administered or controlled.

E - Governance :- E – Governance is the public sector’s use of information and communication technologies with the aim of improving information and service delivery, encouraging citizen participation in the decision – making process and making government more accountable, transparent and effective.

Right to Information Act :- The right to Information Act is a law enacted by the Parliament of India giving citizens of India access to records of the Central Government and State Government. The act applies to all states and Union Territories of India, except the state of Jammu & Kashmir – which is covered under a State – level law.

Credit Rating Agencies in India  :- The credit rating agencies in India mainly include IICRAIL (Investment Information and Credit Rating Agency of India Limited) and CRISIL (Credit Rating Information Services of India Limited). Their main function is to grade the different sectors and companies in terms of performance and offer solutions for up gradation.

NASSCOM :- The National Association of Software and services Companies (NASSCOM) is a consortium that serves as an interface to the Indian Software industry and Indian BPO industry.

ASSOCHAM :- The Associated Chambers of Commerce and Industry of India (ASSOCHAM) was established in 1920 by promoter chambers, representing all regions of India to represent the interests of industry and trade, interfaces with Government on policy issues and interacts with counterpart international organizations to promote bilateral economic issues.

SENSEX and NIFTY :- SENSEX is the short term for the word “Sensitive Index” and is associated with the Bombay (Mumbai) Stock Exchange (BSE). The SENSEX was first formed on 01 -01- 1986 and used the market capitalization of the 30 most traded stocks of BSE, where as NSE has 50 most traded stocks of NSE. SENSEX is the index of BSE and NIFTY is the index of NSE. Both will show daily trading marks. Sensex and Nifty both are an “index”. An index is basically an indicator, it indicates whether most of the stocks have gone up or most of the stocks have gone down.

More terminology to be continued soon…………………..