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Knowledge Process Outsourcing (KPO) is one step ahead of Business Process Outsourcing (BPO). Itstarted emerging in India around the turn of the century, when the global industries realized thatapart from software development and technical support, knowledge work could also be outsourced. Itinvolves transfer of business processes to other geographic locations; specialized domain specificknowledge and business expertise of a higher level rather than just process expertise. The followingare the areas associated with the KPO sector. Animation & Design Advanced Web Applications

Business and Technical Analysis Business & Market Research Data Analytics Financial Consultancy andServices Intellectual Property (IP) Research Learning Solutions Legal Services Medical ServicesNetwork Management Pharmaceuticals and Biotechnology Research & Development Training & Consultancy Writing & Content Development Many companies have started outsourcing their high-endprocesses like Market Research (MR), Equity Research, Engineering Design, Intellectual PropertyRights (IPR), Legal Services, Remote Education and Publishing Operations to India after the success of BPOs. These companies outsource their processes to India for: Cost savings Operational efficienciesAccess to highly skilled workforce Improved quality A KPO can provide quality work and on- timedelivery with uninterrupted services. KPOs are the next big thing in the outsourcing sector. Initially,KPOs focused on data collection, updating financial models, patent searches and basic data mining.But now KPOs have also started focusing on sector insights, equity research, patent analytics, highend data mining, analysis and recommendation. Some of the hot destinations for KPOs other than

India are Russia, China, Czech Republic, Ireland and Israel. Difference between KPOs and BPOs: Wecan say that KPOs emerged from BPOs.

BPO-- It provides services like customer care, technical support through voice processes, tele-marketing, sales, etc. Low end servicesProcess exper tise Pre - defined processes.It employees not - so- qualified workers as it focuses oncommunication skills

KPO--- KPO provides in-depth knowledge, expertise and analysis on complex areas like Legal Services,Business & Market Research, etc. High end services . Knowledge expertise Requires application,understanding of business and analytical bent of It involves skill and expertise of knowledge workerswith excellent educational background.

VAT stands for Value Added Tax and i t is levied by State Govt. on sale of goods. It is goverened byState Level VAT / Sales Tax acts CENVAT stands for Central Value Added Tax. Actually 'Duties of Excise' are called as CENVAT :: It is tax on manufacturing or production of goods as described underThe Central Excise Act, 1944. CENVAT is a central level tax and also other legislations like CENVATcredit rules, 2004 administres CENVAT.

1) The Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS) is an internationalagreement administered by the World Trade Organization (WTO) that sets down minimum standards for many forms of intellectual property (IP) regulation. It was negotiated at the end of the Uruguay Round of the General Agreement on Tariffs and Trade (GATT) in 1994.

2) The WTO Agreement on Trade Related Investment Measures (TRIMs) are rules that apply to thedomestic regulations a country applies to foreign investors, often as part of an industrial policy.


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Policies such as local content requirements and trade balancing rules that have traditionally been used toboth promote the interests of domestic industries and combat restrictive business practices are nowbanned. Trade related Investment Measures is the name of one of the four principal legal agreements of the WTO trade treaty. TRIMs are rules, which restrict preference of domestic firms and thereby enableinternational firms to operate more easily within foreign markets.

Yes, they are part of IPR (Intellectual Property Regulation).

GATS, TRIMs,TRIPsGATS (General Agreements on Trade in Services)It is a known fact that trade in services is the rapidly growing field in the globalscenario. According to WTO, in the year 2001, services constituted about 60% of theworlds output (in GDP). The trade in services has particularly increased in developing countries. The total trade in services occupied more than 50% in theexports of the developing countries. The rapid growth and change has prompted themembers of the WTO to bring in changes in rules and regulations on trade inservices and GATS was introduced on 1st January 1995. This is one of the important

agreements of WTO which contains two main parts: the frame work of agreementcontaining rules and regulations and the schedule of Nations who gave thecommitment on access to their domestic markets by foreign suppliers. Now WTO has148 member countries.Each WTO member lists in its national schedule those services, which it wished toguarantee access to foreign suppliers. All member countries are considered as MFNs(Most Favoured Nations) i.e, all commitments apply on non discriminatory basis toall member countries.

Coverage of GATS:The GATS covers all internationally traded services with two exceptions: servicesprovided by the Government and services in Air transport sector. The GATS definesthat trade in services can be made in four ways, they are:1. Services supplied from one country to another (e.g. International telephone calls)2. Consumers from one country making use of another country (e.g. Tourism)3. A company from one country setting up subsidiaries or branch to provide servicesin another country (e.g. Banking)4. Individual travelling from their own country to supply services in other country(e.g. Actress or construction worker)

Benefits of Services Liberalisation:1. An efficient services infrastructure provides a base for economic success.Services such as telecommunications, banking, insurance and transport supply

strategically important inputs for all sectors.2. People can have access to world-class services.3. Trade liberalisation in services leads to low cost. The best e.g.telecommunications.4. Faster innovation takes place with liberalised services e.g. ATM, Phone banking,Internet banking etc.5. Greater transparency and predictability benefit is there for customers. This makespossible for the people to make their investments in service sector.6. More FDIs are attracted in the countries, which will bring the new skills and


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technologies into the country. The domestic employees can learn the new skills fromthe MNCs.

Service sector in India:In the line with the global trend, the services sector in India is growing rapidly andthe contribution of services in Indias GDP increased to 54.2% in 2000 -01 from 51.5%in 1998-99. The total trade in services from India is accounting to 1.3% in the totalworld trade in services. India exhibits a strong revealed comparative advantage inservices related goods. The importance in service sectors in India aretelecommunications, IT, ITES, BPO and Banking and financial services. India haspermitted 100% FDI in IT and ITES and more than 51% in telecommunications.

Trade Related Investment Measures (TRIMs)It refers to certain condition or restrictions imposed by a Government in respect of foreign investment in the country. The TRIM text provides that the foreign capitalwould not be discriminated by the member Governments.

Features of TRIMs1. Abolition of restriction imposed on foreign capital2. Offering equal rights to the foreign investor on par with the domestic investor 3. No restrictions on any area of investment4. No limitation or ceiling on the quantum of foreign investment5. Granting of permission of without restrictions to import raw material and other components6. No force on the foreign investors to use the total products and or materials7. Export of the part of the final product will not be mandatory8. Restriction on repatriation of dividend interest and royalty will be removed9. Phased manufacturing programming will be introduced to increase the domesticcontent of manufacturer

Trade Related Intellectual Property Rights (TRIPs)Intellectual property rights may be defined as Information with commercial value.IPR have been characterised as a composite of ideas and creative expression. Plus the public willing ness to bestow the status of property. It includea. Protection of patentb. Copyrightc. Industrial designd. Geographical indicatione. Trademarksf. Trade secrets

g. Layout design (topographies of integral circuits)

Deficit financing is defined as financing the budgetary deficit through public loans and creation of newmoney. Deficit financing in India means the expenditure which in excess of current revenue and publicborrowing. the government may cover the deficit in the following ways.

1. By running down its accumulated cash reserve from RBI.


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2. Issue of new currency by government it self.

3. Borrowing from reserve bank of India and RBI gives the loans by printing more currency notes.

Objectives of deficit financing :

1. To finance war:- Deficit financing has generally being used as a method of financing warexpenditure. During the war time through normal methods of raising resources. It becomes difficult tomobilize adequate resources. Therefore government has to adopt deficit financing.

2. Remedy for depression :- In developed countries deficit financing is used as on instrument of economic policy for removing the conditions of depression. Prof. Keynes has also advocated for deficitfinancing as a remedy for depression and unemployment.

3. Economic development:- The main objective of deficit financing in an under developed country like

India is to promote economic development. The use of deficit financing in fact becomes essential forfinancing the development plan especially in underdeveloped countries.

4. Mobilization of Resources :- deficit financing is also used for the mobilization of surplus, ideal andunutilized resources in the country.

5. For granting subsidies :- In a country like India government grants subsidies to the producers toencourage them to produce a particular type of commodity, granting subsidies is a very costly affairwhich we cannot meet with the regular income this deficit financing becomes must for it.

6. Increase in aggregate demand :- Deficit financing loads to increase in aggregate demand throughincreased public expenditure. This increase the income and purchasing power of the people as aconsequence there is an increase availability of goods and services and the production and employmentlevel also increase.

7. For payment of interest:- Loan which are taken by the govt. are supposed to be repaid with theirinterest for that government needs money deficit financing is an important tool to get the income forthe repayment of loan along with the interest.

8. To overcome low tax receipts.

9. To overcome the losses of public sector enterprises

10. For implementing anti poverty programme.

ADVERSE EFFECTS OF DEFICIT FINANCING

Deficit financing is not free from its diffects. It has its adverse effect on economy. Important evileffects of deficit financing are given below.


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1. Leads to inflation :- Deficit financing may lead to inflation. due to deficit financing money supplyincreases & the purchasing power of the people also increase which increases the aggregate demandand the prices also increase.

2. Adverse effect on saving:- Deficit financing leads to inflation and inflation affects the habit of voluntary saving adversely. Infect it is not possible for the people to maintain the previous rate of saving in the state of rising prices.

3. Adverse effect on Investment ;- deficit financing effects investment adversely when there isinflation in the economy trade unions make demand for higher wages for that they go for strikes andlock outs which decreases the efficiency of Labour and creates uncertainty in the business which adecreases the level of investment of the country.

4. Inequality :- in case of deficit financing income distribution becomes unequal. During deficitfinancing deflationary pressure can be seen on the economy which make the rich richer and the poor,

poorer. The fix wage earners are badly effected and their standard of living detoriates thus no gap b/wrich & poor increases.

5. Problem of balance of payment :- Deficit financing leads to inflation. A high price level as comparedto other countries will make the exports more expensive and thus they start declining. On the otherhand rise in domestic income and price may encourage people to import more commodities fromabroad. This will create a deficit in balance of payment and the balance of payment will becomeunfavorable.

6. Increase in the cost of production :- When deficit financing leads to the rise in the price level thecost of development projects also rises this means a larger dose of deficit financing is required on theport of government for completion of these projects.

7. Change in the pattern of investment:- Deficit financing leads to inflation. During inflation prices riseand reach to a very high level in that case people instead of indulging into productive activities theystart doing speculative activities.

Is Deficit Financing Inflationary?

Deficit financing may not necessarily be inflationary there are certain conditions under which defici tfinancing may not lead to inflation. With increase in money supply due to deficit financing prices dorise but rise in price will only be temporary for about a period. As flow of goods and services increaseprices will began to fall. deficit financing is an important device for financing development plans forunderdeveloped countries and accelerate their rate of economic development. But If deficit financingis not kept with in limits It may give rise to prices, distorted investment and unequal and unjustdistribution of income. therefore it is essential that deficit financing is kept within limits and its impacton prices and costs are softened through various controls.

Monetary Policy


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Monetary policy is carried out by RBI and manifests itself by setting interest rates like the Repo andReverse Repo as well as determining levels of CRR and SLR which influence money supply and creditflow in the economy.The main aim of RBIs monetary policy is to keep a check on inflation and maintain an optimum

level of GDP growth at the same time. If they raise the interest rates too high then that might help inchecking inflation but at the same time deter economic activity and slow down GDP growth, and if they keep the rates too low then that will promote economic activity but it will also spur inflation.

They have to keep a balance between both so one is not sacrificed for the sake of the other.

The RBI is independent from the government and you can see this in the fact that RBI has been very slow to lower rates even when a lot of government officials have publicly said that rates should comedown in the past couple of years or so.

Fiscal Policy Fiscal policy is the policy that determines how the government spends money, and taxes people topay for those expenses. Taxes are the main form of earnings for the government although there areother forms as well like 3G auctions or PSU disinvestments. When the government is not able tocome up with enough earnings to pay for their expenses they incur a fiscal deficit (Read: What is themeaning of fiscal deficit? ), and this deficit is financed by borrowings.The purpose of the fiscal policy is to promote economic growth as well, and during times of recession

when government increases its spending or cuts taxes thats termed as a fiscal stimulus package because you are using the instruments of fiscal policy to boost the economy. India has had three

fiscal stimulus packages following the last recession which involved tax cuts and boosts in spending,and were similar to stimulus measures used by countries around the world.

Conclusion The goals of the monetary policy and fiscal policy are the same which is to promote stable andgrowing economic conditions in an economy, but the instruments used to carry these out and the bodies that carry these out are different.

They should be in synch to work well and such that actions of one dont scuttle the actions of anotherand they succeed in their goals of maintaining a reasonable level of inflation and steady economicgrowth.

NATIONAL RURAL EMPLOYMENT GUARANTEE SCHEME

The National Rural Employment Guarantee Act was notified by the
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Government of India on September, 2005 and was made effective w.e.f. 2nd February

2006. In the first phase, the National Rural Employment Guarantee scheme (NREGS) was

introduced in District Chamba and Sirmour on 2nd February, 2006. In second phase

NREGS was started in District Kangra and Mandi w.e.f. 1-4-2007. In the third phase all

the remaining 8 districts of the State have been covered under the scheme w.e.f. 1.4.2008.

1. SALIENT FEATURE

The salient feature of the scheme is to provide for the enhancement of

livelihood security of the households in rural areas of the State by providing 100 days

of guaranteed wage employment in every financial year to every household whose

adult members volunteer to do unskilled manual work.

2. ELIGIBILITY

The National Rural Employment Guarantee Scheme is open to all rural

households in the areas notified by the Government of India. The entitlement of 100

days of guaranteed employment in a financial year is in terms of a household. This

entitlement of 100 days per year can be shared within the household.

All adult members of the household who registered can apply for work. To

register, they have to:-

a) Be local residents "local" implies residing within the gram panchayat.

b) Be willing to do un-skilled manual work.

c) Apply as a household at the local gram panchayat.

3. APPLICATION FOR REGISTRATION AND ISSUANCE OF JOB

CARDS

The application for registration can be given on plain paper or on the

prescribed application format available at gram panchayat level or an oral request

for registration can be made. The application should contain the names of those

adult members of the household who are willing to do un-skilled manual work, and

particulars such as age, sex and SC/ST status etc. After verification all particulars

are entered in the registration register by the concerned gram panchayat. Every

household is assigned a registration number.

Job cards to every registered household are issued by the gram panchayat. The

job cards are issued within a fortnight of the application for registration.

Photographs of adult members who are applicants are attached to the job cards. The

cost of job card and photographs is borne as part of the programme funds. The job

card is valid for a period of 5 years


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4.PERMISSIBLE WORKS

As per schedule 1 of the Act the focus of the scheme is on the following works

in their order of priority:-

(i) Water Conservation and Water Harvesting works;

(ii) Drought proofing works (including afforestation and tree plantation)(iii) Irrigation canals including micro and minor irrigation works;

(iv) Provision of irrigation facility, horticulture plantation and land

development facilities on land owned by the households belonging to

the Scheduled Caste and Scheduled Tribes or to below poverty line

families or to Marginal Farmers or Small Farmers to beneficiaries of

land reforms or to the beneficiaries under the Indira Awas Yojana of

the Government of India;

(v) Renovation of traditional water bodies including de-silting of tanks ;

(vi) Land developments works;(vii) Flood control and protection works including drainage in water logged

areas;

(viii) Rural connectivity to provide all-weather access; and

(ix) Any other work which may be notified by the Government of India in

consultation with the State Government.

The Government of India has been requested to allow engaging "Crop

protectors" as one of the Permissible works under NREGA for Himachal Pradesh

5.FUNDING PATTERN

The following costs are borne by the Government of India:-

(a) The entire cost of wages for unskilled manual workers.

(b) 75 percent of the cost of material and wages for skilled and semi-skilled

workers.

(c) Administrative expenses.

The following costs are borne by the State Government:-

(a) 25 percent of the cost of material and wages for skilled and semiskilled

workers.

(b) Un-employment allowance.

(c) Administrative expenses of State Employment Guarantee Council.

Impact of the Scheme

Implementation of NREGS in the State has been proved and important tool to give

a legal guarantee of employment to any one in rural areas who is willing to do casual manual


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day work. Thus, an employment guarantee act has provided a universal and enforceable legal

right to the most basic form of employment. It is a step towards legal enforcement of the right

to work. The implementation of the Act has checked the migration of labour and it as also

been a major source of empowerment for women. By creating directly productive economic

assets under the scheme, rural livelihood base has been strengthened. The employmentguarantee act has also strengthened the bargaining power of unorganized workers.

The impact assessment study of the implementation of NREGA in the State

has not yet been conducted. However, the aforementioned results of the implementation of

NREGA are based on the feedback obtained from the implementing agencies and assessing

the impression of the general public towards the implementation of NREGA in the State.

Competition Commission of India is a body of the Government of India responsible for enforcing The

Competition Act, 2002 throughout India and to prevent activities that have an adverse effect on

competition in India. It was established on 14 October 2003. It became fully functional in May 2009 . [2][3]

The Competition Act, 2002 [edit ]

Main article: The Competition Act, 2002

The Competition Act, 2002, as amended by the Competition (Amendment) Act, 2007, follows thephilosophy of modern competition laws. The Act prohibits anti-competitive agreements, abuse of dominant position by enterprises and regulates combinations (acquisition, acquiring of control and Merger and acquisition ), which causes or likely to cause an appreciable adverse effect on competition withinIndia .[5]

Competition Commission of India [edit ] The objectives of the Act are sought to be achieved through the Competition Commission of India (CCI),which has been established by the Central Government with effect from 14 October 2003. CCI consists of a Chairperson and 6 Members appointed by the Central Government. It is the duty of the Commission toeliminate practices having adverse effect on competition, promote and sustain competition, protect theinterests of consumers and ensure freedom of trade in the markets of India . [5] The Commission is alsorequired to give opinion on competition issues on a reference received from a statutory authorityestablished under any law and to undertake competition advocacy, create public awareness and imparttraining on competition issues . [5]

ObjectivesPreamble to the Competition Act [edit ]

An Act to provide, keeping in view of the economic development of the country, for the establishment of aCommission to prevent practices having adverse effect on competition, to promote and sustaincompetition in markets, to protect the interests of consumers and to ensure freedom of trade carried onby other participants in markets, in India, and for matters connected therewith or incidental thereto . [5]
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To achieve its objectives, the Competition Commission of India endeavours to do the following:

Make the markets work for the benefit and welfare of consumers.

Ensure fair and healthy competition in economic activities in the country for faster and inclusivegrowth and development of economy.

Implement competition policies with an aim to effectuate the most efficient utilization of economicresources.

Develop and nurture effective relations and interactions with sectoral regulators to ensure smoothalignment of sectoral regulatory laws in tandem with the competition law.

Effectively carry out competition advocacy and spread the information on benefits of competitionamong all stakeholders to establish and nurture competition culture in Indian economy.

Definition of 'Derivative'A security whoseprice is dependentupon or derivedfrom one or moreunderlying assets.The derivativeitself is merely acontract betweentwo or moreparties. Its valueis determined by

fluctuations in theunderlying asset.The most commonunderlying assetsinclude stocks,bonds,commodities,currencies,interest rates andmarket indexes.Most derivatives

are characterizedby high leverage.

Investopedia explains 'Derivative'


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Futures contracts, forward contracts, options and swaps are the mostcommon types of derivatives. Derivatives are contracts and can beused as an underlying asset. There are even derivatives based onweather data, such as the amount of rain or the number of sunnydays in a particular region.

Derivatives are generally used as an instrument to hedge risk, butcan also be used for speculative purposes. For example, a Europeaninvestor purchasing shares of an American company off of anAmerican exchange (using U.S. dollars to do so) would be exposed toexchange-rate risk while holding that stock. To hedge this risk, theinvestor could purchase currency futures to lock in a specifiedexchange rate for the future stock sale and currency conversion backinto Euros.

What is the difference between options and futures?

The main fundamental difference between options and futures lies in the obligations theyput on their buyers and sellers. An option gives the buyer the right, but not the obligation tobuy (or sell) a certain asset at a specific price at any time during the li fe of the contract. Afutures contract gives the buyer the obligation to purchase a specific asset, and the seller tosell and deliver that asset at a specific future date, unless the holder's position is closedprior to expiration.

Aside from commissions, an investor can enter into a futures contract with no upfront costwhereas buying an options position does require the payment of a premium . Compared tothe absence of upfont costs of futures, the option premium can be seen as the fee paid forthe privilege of not being obligated to buy the underlying in the event of an adverse shift inprices. The premium is the maximum that a purchaser of an option can lose.

Another key difference between options and futures is the size of the underlying position.Generally, the underlying position is much larger for futures contracts, and the obligation tobuy or sell this certain amount at a given price makes futures more risky for the

inexperienced investor.The final major difference between these two financial instruments is the way the gains arereceived by the parties. The gain on a option can be realized in the following threeways: exercising the option when it is deep in the money , going to the market and takingthe opposite position, or waiting until expiry and collecting the difference between the assetprice and the strike price . In contrast, gains on futures positions are automatically 'markedto market' daily, meaning the change in the value of the positions is attributed to the
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futures accounts of the parties at the end of every trading day - but a futures contractholder can realize gains also by going to the market and taking the opposite position.

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