Foreign Exchange Regulating Act, 1973) was replaced with FEMA (Foreign Exchange Management Act, 1999)

The following are major differences in FERA and FEMA: > The essence of FERA was to regulate the foreign exchange while that in case of FEMA is management of foreign exchange. > Any offence under FERA was considered to be a criminal offence liable to imprisonment however in case if FEMA and offence is considered to be civil offence. > Under FERA nothing was permitted unless mentioned as permitted, in case of FEMA everything is permitted unless it is mentioned as prohibited. > Under FERA it was necessary to obtain permission from RBI; however its not the case with FEMA. Thus the objective of FEMA is to facilitate external trade and payments and promote the orderly development and maintenance of foreign exchange market in India.

Routes of FDI in India:

There are three routes through which FDI is permitted in India: 1. Automatic route: Under this route foreign investors can straightaway brings in the investment in India. All they need to do is inform RBI within 30 days.The government has notified the sectors which are open to foreign investors under the automatic route e.g.infrastructure. 2. Foreign Investment Promotion Board (FIPB): FIPB was set up in 1992. A foreign investor requires prior approval from FIPB in the sectors which are not listed under automatic route. 3. Cabinet Committee on Foreign Investment (CCFI): The prior approval of Cabinet Committee on Foreign Investment (CCFI) is required before the foreign investment if: -The sector is not is not notified in the automatic route. -The cost of project is Rs 6000 million or more.

Some important Economic topics(Traditional as well as Current) 1. Fiscal Policy 2. Monetary policy 3. Exim Policy(2009-2014) 4. Inflation causes, effects and control. 5. Poverty and unemployment in India. 6. FDI,FII and QFI

7. GAAR and DTA 8. Recent Economic Reforms 9. Pension Reforms 10. Rupee Depreciation and its impact 11. LPG Portability and Bank account number Portability 12. Producer Price Index 13. Financial Inclusion(NBFC/MFIs) 14. Direct To Cash Transfer 15. SEZs,NIMZ.

Maharatna CPSEs
In 2009, the government established the Maharatna status, which raises a company's investment ceiling from Rs. 1,000 crore to Rs. 5,000 crore. The Maharatna firms can now decide on investments of up to 15 per cent of their net worth in a project; the Navaratna companies could invest up to Rs 1,000 crore without explicit government approval. Criteria The six criteria for eligibility as Maharatna are: 1. Having Navratna status. 2. Listed on Indian stock exchange with minimum prescribed public shareholding under SEBI regulations. 3. An average annual turnover of more than Rs. 20,000. crore during the last 3 years. Earlier it was Rs 25,000 Crore. 4. An average annual net worth of more than Rs. 10,000 crore during the last 3 years. Earlier it was Rs. 15,000 crore. 5. An average annual net profit after tax of more than Rs. 2500 crore during the last 3 years. Earlier it was Rs. 5000 crore. 6. Should have significant global presence/international operations. List of Maharatna (as on February, 2013) 1. 2. 3. 4. 5. 6. 7. Bharat Heavy Electricals Limited Coal India Limited GAIL (India) Limited Indian Oil Corporation Limited NTPC Limited Oil & Natural Gas Corporation Limited Steel Authority of India Limited