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Showing posts from February, 2021

Which are the best agricultural firms in India?

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The main maker of spices, legumes, milk, tea, cassava and jute is India. The second biggest maize, rice, fruit and vegetable producer, sugarcane, cotton and oleaginous. India has the world's 10th largest arable field. It is also the main spice and spice producer and exporter.    For 2019, India accounts for 16% of the country's Gross Added Value (GVA). The share of agriculture has been slowly diminishing. GVA has dropped from 18.2% in 2015 to 16.0% in 2019. The top agricultural companies in India are listed below. The list is declining, based on net revenue. JK Agri Genetics Ltd. The leading seed company JK Agri Genetics Ltd.(JKAL). It has its head office in Hyderabad, Pradesh, and is established in 1989. (India). JKAL is among the pioneers for supporting the farming communities in the Indian seed industry. The business is ranked among India's top 10 farms.   HPC Biosciences Ltd. In particular, for the seed line and the wide-ranging sectors, HPC Biosciences Ltd....

Does RBI keeps repo rate at 4%, pegs GDP at 10.5%?

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  The Repo rate is the rate at which commercial banks borrow money by selling their securities to the Central Bank of India, i.e. the Reserve Bank of India (RBI), to preserve liquidity in the event of a lack of funds or due to such statutory steps. It is one of RBI's key instruments to keep inflation under check.  When you borrow money from the bank, the transaction will attract interest on the principal sum. This is referred to as the expense of the loan. Likewise, banks often borrow money from RBI during a cash crunch for which they are expected to pay interest to the Central Bank. This rate of interest is known as the currently prevailing repo rate. Technically, repo stands for 'Repurchase Option' or 'Repurchase Arrangement.' It is an arrangement in which banks supply RBI with qualifying securities, such as treasury bills while offering overnight loans. A deal to repurchase them at a set price would still be in effect. The bank, however, collects the cash and the...

How does capital deepening contribute to economic growth?

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  Capital deepening refers to an increase in the share of capital stock in the number of hours employed. Movements in this ratio are closely related to labour production movements, all other items held to be equal. A rise in capital per hour (or an increase in capital) contributes to an increase in labour productivity.  Remember the factory staff in a motor car facility, for example. If employees have improved access to equipment and automotive building materials, they can build more cars in the same amount of time. Capital deepening often usually contributes to an increase in the growth rate of overall production. Capital deepening is also thought to be a key – if not a prerequisite – factor for economic growth in emerging markets.  During recessions, the labour time dropped, but capital stayed stable in the short run leading to a rising capital per hour (or, in other words, capital deepening). This was true during the Great Crisis when wealth spiked at the hour of labou...