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The prelims season is coming.

What skills are needed to clear the prelims exam ?

🔥A video to decode prelims exam into a step-by-step actionable agenda is coming up tomorrow. This will also explain how VK IAS's upcoming prelims mentorship program will address the needs of student( Not just a test series with 1000s of questions 🙂)

Even if you don't decide to take the mentorship program ( with CA classes and Test series) - feel free to use this video to plan your prelims preparation and reduce uncertainty
.

⭐️ Along with this - High yielding IE Explained series of videos are also planned for YouTube. Good luck 🙂

Subscribe to VK IAS's channel :

Click here and join the VK IAS channel
https://youtu.be/btrKPOXSg3k

A lot of research went into understanding the actual problem for prelims - Irrespective of where and how you are preparing for this exam- this is relevant for all UPSC Aspirants. Please do watch this- without fail and also without getting distracted. I request you not to  watch it casually - Take time to let it sink and contemplate so that you can understand your problems before taking a decision .

- Yours VK.

Registration link for prelims mentorship program -
https://courses.vkias.com/course/AnirveshPrelimsMentorshipprogram-2024-62126
Gs-3 : Inclusive growth-Before reading this present article, read these in the same order( Series of articles by Arun Maira )

🅾️Problems of Indian economy : Criticism of Raghuram Rajan's work

⚜️1. What is the primary challenge in India's economic structure-mismatch between skills, jobs, and incomes

⚜️2. Why have economic theories failed?-They overlook the essence of development which includes learning and skill acquisition they are developed by analyzing numbers rather than experiences.

⚜️3. Why does investing in 'adjacencies' in work and skills matter?-Investing in adjacencies—areas of work that are closely related to what people are already doing—can help workers climb the skill-income ladder more effectively.


🅾️ Suggestions


⚜️1. Shift from focusing on high-end services and large manufacturing to local webs of economic activity.

⚜️2. Increasing the masses' earning and purchasing power


⚠️VK IAS subject wise channels - Click here
#Economy

Short selling - Naked short selling ban

🅾️Short selling is an investment strategy where an investor borrows shares and sells them on the market, hoping to buy them back later at a lower price. For example, if an investor anticipates that Adani's stock will drop from ₹1800 to ₹1700, they borrow and sell it at the current high price (₹1800). Later, if the price drops as expected to ₹1700, they buy the same number of shares back at this lower price, return the shares to the lender, and keep the difference (₹100 per share) as profit.

🅾️In the Adani case, Hindenburg Research released a report alleging financial misconduct by the Adani Group. This led to a drop in Adani's share price, and there were claims that Hindenburg profited from this price fall through short selling.

@upschighlights - Relevant hashtags for Prelims- Click here
Gs-3: Inclusive growth

🅾️What is K shaped recovery?-The term refers to a situation where parts of the economy recover at different rates after a downturn

🅾️Present article : The report argues against claims that India is experiencing such a recovery, implying the report suggests that all sections of the economy are improving together rather than some parts getting richer while others get poorer.

📍Reasons provided :

⚜️1. A significant portion of small companies are growing into larger ones, indicating economic development.

⚜️2. People are spending more on services like food delivery

⚜️3. The number of people in the higher income bracket has increased.

⚜️4. The report also mentions that the decrease in two-wheeler sales is not a good indicator of distress in the rural economy


⚠️VK IAS subject wise channels - Click here
➡️If you are struggling with prelims- Click here for a solution

📞Contact - Team VK IAS ( @VK_IAS)
#Economy

Budget 2024- How is our money spent?

🅾️High interest payments can:
⚜️Reduce the money available for welfare programs and services.
⚜️Decrease funds for capital expenditures (CapEx), which are crucial for long-term investments in infrastructure and development.
⚜️Affect the country's sovereign credit ratings negatively, making borrowing more expensive.
⚜️Create a cycle of debt where the government ends up borrowing more to pay off existing loans.

📍Relevant concept here : Ricardian equivalence- It is an economic theory suggesting that government borrowing doesn't affect the overall level of demand in the economy because people anticipate higher taxes in the future to pay off the debt, leading to an increase in savings.

⚠️VK IAS subject wise channels -
Click here
Gs-3 : Economic growth models- Strategy in Amrit kaal for "Viksit Bharat" aimed at modernizing India by 2047

🅾️Why are the present economic models failing?=
Economics of inclusive growth

➡️India did not follow the china model-
Why- and its implications?

➡️Present article suggestions : redirect more resources towards agricultural research and development, irrigation, rural roads, and agricultural marketing to support sustainable and inclusive growth.

➡️The current budget allocation for fertilizer subsidies could be optimized and directed towards more strategic initiatives like nutritional security and climate-smart farming practices

⚠️VK IAS subject wise channels -
Click here

🎖
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Gs-3 : Economic growth

⚠️GDP formula G= C+I+G+(X-M)

🅾️This article is talking about investment (I) component

➡️Why is Investment important?- Because it is a growth multiplier.

🅾️In this regards, the article is talking about households' contribution- Why households cant invest much?-
Click here for a brief explainer- read the analysis

🅾️👆Since households were unable to contribute, government went for a Corporate tax cut to attract investments-
Click here to know the impact

🅾️But you can see tremendous growth in stock markets Consider this- Nifty - a metric for growth - went from 8000 odd to almost 22000 recently- almost 3x growth.

🅾️So conclusion= Inequality

🎖Then solution?- We disucssed this

⚜️1. Reduce subsidies-
Click here
⚜️2. Read these in the same order(
Series of articles by Arun Maira )

🎖
@Economyhighlights for more economy related articles at one place

⚠️VK IAS subject wise channels -
Click here

🎖
Please Subscribe : Youtube.com/vikaskanukollu
UPSC Economy by VK IAS (Vikas Kanukollu)
https://youtu.be/rQpQUeFZ16I?feature=shared
Request everyone to See the above video and subscribe to the youtube channel to stay connected : click here
https://x.com/vikaskanukollu/status/1755471817073164758?s=20

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#Economy

Section 43 B(h) of Income tax act.

🅾️Background : Under the Micro, Small and Medium Enterprises Development (MSMED) Act, payments to MSMEs should be made within 45 days of accepting goods or services if there is a written contract. If no such agreement exists-15 days. Section 43B (h) of the Income Tax Act reinforces this by stipulating that such payments will be allowed as a deduction for the buying company only if made within the timeframe . Otherwise, the amount due would be treated as income - thus taxable.

🅾️Challenge : some buyers, to avoid the stringent conditions of timely payments, might prefer to engage with suppliers not registered under UDYAM, hence not protected by the provisions of the MSMED Act= registered MSMEs at a disadvantage, potentially leading to longer payment cycles or even loss of business as buyers shift to unregistered suppliers to circumvent the regulations.

🎖VK IAS subject wise channels -
Click here

⚠️Youtube : Click here and join the VK IAS channel
Kaushik merugu - AIR 82 cracked this exam in the very first attempt- what sets him apart is his wisdom.

He picked his battles very wisely- he knew his limitations and played the game to his strengths - his minimalistic approach worked in his favour.

Watch this talk on how his journey shaped up and how VK IAS was instrumental in his journey

MERUGU KAUSHIK AIR - 82 in 1st Attempt UPSC CSE 2023- VK IAS Mentorship
https://youtu.be/73Zso_cm-eA
Gs-3 : Agriculture- Agri trade

GS3- Food processing/Agri cropping patterns

🔰This is an important news for both pre and mains. Why?- Because of our agricultural export policy

🅾️It says that we have to double agricultural exports from the present $30 billion to $60 billion by 2022 and reach $100 billion in the next few years thereafter, with a stable trade policy regime-
Click here to read

⚡️VK IAS subject wise channels -
Click here

⚠️Youtube : Click here and join the VK IAS channel
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