ECONOMY & FINANCE

INTRODUCTION Economics focuses on the behavior and

interactions of economic agents and how economies work.

Finance aims to price assets based on their risk level and their expected rate of return.

The ultimate goal of economics and finance is to improve the living conditions of people in their everyday life.

• The Economy in India is the seventh-largest in the world by nominal GDP .

• India has the one of fastest growing service sectors in the world with annual growth rate of above 9% since 2001, which contributed to 57% of GDP in 2012-13.

• India's economy became the world's fastest growing major economy from the last quarter of 2014, replacing the People's Republic of China.

ECONOMIC GROWTH

ECONOMY IN EU• The economy of the European Union generates a

GDP (nominal) of about €14.303 trillion (US$18.451 trillion in 2014) and a GDP (PPP) of about €12.710 trillion (US$16.773 trillion in 2014) according to International Monetary Fund.

• The European Union (EU) economy consists of an internal market and the EU is represented as a unified entity in the World Trade Organization (WTO).

• The current map of EU growth is one of huge regional variation, with the larger economies suffering from stagnant growth and the new nations enjoying sustained, robust economic growth.

ECONOMIC GROWTH

EU & INDIA

FINANCE• European commission Promotes the

general interest of the EU by proposing and enforcing legislation as well as by implementing policies and the EU budget.

• It is the EU's politically independent

executive arm.

• It is alone responsible for drawing up proposals for new European legislation.

• IT implements the decisions of the European Parliament and the Council of the EU

FINANCIAL BODIES

FINANCEFinancial Sector of India – Chief Characteristics

• The financial sector of India allows Most Favored Nation (MFN) reputation to all international banks and firms offering financial facilities.

• The sector has relaxed previous MFN tax exemption on banking activities.

• Allows 12 new financial bank division authorizations every year to international banks, that is higher as compared to the existing 8 every year.

• Raises the 10% limit of reinsurance by insurance firms in India.

• Permits 51% foreign endowment in fiscal advisory, issuing, hiring, business enterprise capital, business banking and non-banking credit firms.

FINANCIAL SYSTEM

GOVERNMENT FINANCE

STATISTICS The GFS Compilation Guide provides detailed information

on how to gradually introduce the guidelines of the Government Finance Statistics Manual 2001 and best practices into the compilation and dissemination of fiscal statistics.

Government Finance Statistics Manual 2001 Describes an integrated Government Finance Statistics (GFS) system that is harmonized, to the extent possible, with the System of National Accounts, 1993 .

These statistics are crucial indicators for determining the health of a Member State’s economy.

DEBT TO GDP EU Generally, Government debt as a percent of GDP is used by

investors to measure a country ability to make future payments on its debt, thus affecting the country borrowing costs and government bond yields. This page provides the latest reported value for - Euro Area Government Debt to GDP - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

DEBT TO GDP INDIA Generally, Government debt as a percent of GDP is used by

investors to measure a country ability to make future payments on its debt, thus affecting the country borrowing costs and government bond yields. This page provides - India Government Debt To GDP - actual values, historical data, forecast, chart, statistics, economic calendar and news.

LABOUR PRODUCTIVITY

A measurement of economic growth of a country. Labor productivity measures the amount of goods and services produced by one hour of labor. More specifically, labor productivity measures the amount of real GDP produced by an hour of labor. Growing labor productivity depends on three main factors: investment and saving in physical capital, new technology and human capital. The results of regression exercises for various subsets of districts classified according to growth of output tend to confirm the hypothesis that labour productivity in agriculture is determined by the use of capital inputs on the one hand and output-augmenting modern biological inputs on the other.

INDIA

EU

INDIA & EUAchievements:• India and the European Commission's Humanitarian

Aid and Civil Protection department (ECHO) maintain an ongoing dialogue for the delivery of humanitarian relief supplies and assistance during natural disasters (floods, cyclones and earthquakes) and man-made crisis.

• ECHO has a long history of assistance as a donor of relief supplies & financing, project planning & coordination, and the in-field deployment of speciality skill-sets. Several European universities have vibrant student-exchange and research partnerships with Indian educational institutions.

• European Commission support for joint research and heritage conservation projects have enjoyed widespread acclaim in India.

INDIA-EU ECONOMIC RELATIONSHIP

EU is India's largest trading partner. The bilateral relationship is reviewed

annually by India-EU Summit at the level of India's Prim Minister and the Presidency of the EU.

Announcement of strategic partnership was made at 5th in November 2004, at India–EU Summit held.

EU-India Trade in Goods, 2000-2013