Effective rate of interest
The percentage rate of return on an annual basis. It reflects the effect of intra-year compounding.
Excise duties
Levied on items manufactured within the country and are paid by the manufacturer.
Fiscal Deficit
It is the gap between center's receipts & payments.
Foreign Direct Investment
Investments of a company incorporated outside India either through a branch or a representative office or through a subsidiary company set up in India.
Foreign institutional investor
FII is an institution established or incorporated outside India, which proposes to make investment in India.
Gross Domestic Product (GDP)
The total of market value of the finished goods and services produced in the country in a given year. It is made of three sectors Agriculture, Industry & Services.
Gross National Product (GNP)
The total market value of the finished goods and services produced in the country in a given year, plus the income of domestic residents from investments made abroad, minus the income earned by foreigners abroad from the domestic market.
Income Tax
Tax levied on individual income from various sources like salaries, investments, interest, etc.
Inflation
Inflation rate is the percentage rate of change in the price level.
Indirect taxes
Taxes which are charged on goods produced, imported or exported : Excise and Customs duties
Marginal tax rate
The tax rate applicable to income at the margin
Monetised Deficit
It is amount by which fiscal deficit is going to be financed by printing of currency.
M1
It is also called narrow money & includes currency with public (notes and coins in circulation less cash in hand with banks), deposit money with public, and `other' deposits with RBI.
M3
It is also called broad money & includes M1 plus time deposits with banks. Time deposits exclude inter-bank deposits.
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