1. MONETARY POLICY Definition:
Monetary policy is the process by which the government, central bank or monetary authority of a country controls
The supply of money
Availability of money and
Cost of money or rate to attain a set of objectives oriented towards the growth and stability of the economy.
“Monetary policy is the attitude of the political authority towards monetary system of the community under its control.”

2. Money stock measures: Old money Aggregate:
M1 =Currency with the public + Demand deposits with banks + other deposits with the RBI
M2 = M1 + Post office savings
M3 = M1+ Time deposits of the public with banks
M4 = M3 +Savings and time deposit with the post office

3. Objectives of Monetary policy
Rapid Economic Growth
Price Stability
Exchange rate Stability
Balance of Payments Equilibrium
Full Employment
Equal Income Distribution

4. ROLE OF MONETARY POLICY IN A DEVELOPING ECONOMY
Economic Development
Maintenance of stability
Improving the Efficiency of the Banking system
Improving the condition of unorganized money and capital markets
Management of public debt
Extended monetization

5. FISCAL POLICY
Fiscal Policy is the main part of Economic Policy and Fiscal Policy's first word Fiscal is taken from French word Fisc it means treasure of Govt. So we can define fiscal policy as the revenue and expenditure policy of Govt. of India

6. Objectives of fiscal policy:
Development by effective mobilization of savings
Taxation Policy
Public saving
Private Savings
Efficient allocation of financial Resources:
Reduction in Inequalities of income and Wealth:
Price stability and control of Inflation:
Increasing National Income:

7. EXIM Policy Also know as foreign trade policy
The government of India , ministry of commerce & industry announced new foreign trade policy on 27th august 2009 for the period of
Announced every five years
Every year on 31st of march the government announces a supplement to this policy
Mr. v.p singh the commerce minister announced the EXIM policy on 12th april ,1985

8. Special feature of EXIM Policy
EPCG (Export Promotion Capital Goods Scheme)
Marine sector
Gems & Jewelers Sector
Agriculture Sector
Leather Sector
Pharmaceutical Sector
Handloom Sector

9. EXIM BANK OF INDIA
The export and Import bank India ,commonly Known as EXIM bank of India, was set up in January 1st 1982
Objectives of EXIM bank:
To translate national trade policies in to action phase.
To provide alternate financial solutions to exporters and importers
To responsible to export problems of Indian exporters
To initiate and participate in debates on issues central to India’s international trade.
To develop mutually beneficial relationship with international financial institutions.

10. Financing Programs/financial Assistance by EXIM:
Funded Assistance
Non-Funded Assistance
Loans to Indian Companies
Deferred Payment Credit
Pre-Shipment Credit
Term loan to Export production
Overseas Investment finance

11. BALANCE OF PAYMENT Components of Balance of Payment
In the balance of payment there four major components or elements
components
current account
capital account
unilateral transfer account
official settelement account

12. Impact of Economic policy in Balance of Payment
Sharp increase in imports and exports
The dependence of external borrowings and external assistance is declined
Reserves of foreign currencies were doubled
Increases soft ware services
The balance of payment pressure

13. Correction Measures in the Balance of Payments
Monetary Policy
Fiscal Policy
Exchange Control
Devaluation
Export Promotion
Import Quotas

14. World Trade Organization
The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations.
Objectives of WTO:
To Set And Enforce Rules for International Trade
To provide a forum for negotiation and monitoring further trade liberlasiation.
To resolves trade disputes.
To increase the transparency of decision making process

16. Trade related Investment Measures (TRIMS)
Encouraging foreign direct investment.
Give equal preference to both domestic and foreign investor.
Allow foreign direct investment in all sectors without any restrictions.
No restriction for volume of foreign investment, provide 100% investment opportunity.
No restriction on usage of material.
No restriction of importing of resources.
No compulsion of export of goods produced by foreign companies

17. The General Agreement on Trade in Services (GATS)
The creation of the GATS was one of the landmark achievements of the Uruguay Round, whose results entered into force in January 1995
Principles of GATT:
trade without discrimination
Free trade through negotiation
predictability: through binding and transparency
promoting fair competition
encouraging development and economic reform

18. DUMPING AND ANTI DUMPPING MEASURES
In international trade, this occurs when one country exports a significant amount of goods to another country at prices much lower than in the domestic market.
Objectives of Dumping:
To enter the foreign market
To sell surplus production
To develop trade relations

19. Anti dumping measures by WTO:
tarif measuresf
import quota
ban 0f imports
Exports Restrains