JKSSB EXAMS INDIAN ECONOMY EBOOK BY KASHMIR STUDENT
Contents:-
- Outline of Indian Economy
- Poverty
- Agriculture
- Unemployment
- Industries
- Banking & Finance
- Census 2011
- Economic Terms
The economy of India is the 5th largest in the world by nominal GDP and 3rd largest by Purchasing Power Pariety (PPP).
Nature of the Indian Economy
(i) Mixed Economy Existence of both public and private sectors. This term was coined by Pat Mullins and Supported by JM Keynes.
(ii) Agrarian Economy Even after six-decades of independence 58% of the workforce of India is still agriculturist and its contribution to GDP is around 17% at current prices.
Features
Following are the features of Indian economy
(i) Slow growth of national and per capita income.
(ii) Capital deficiency and low rate of capital formation, hence low rate of investment, low production, etc; poor quality of human capital.
(iii) Overdependence on agriculture alongwith low productivity in agriculture; heavy population pressure.
(iv) Unequal distribution of income and wealth.
(v) Mass poverty, chronic inflation and chronic unemployment.
Broad Sectors of Indian Economy
Primary Sector Agriculture, forestry and fishing, mining etc.
Secondary Sector manufacturing, electricity, gas and water supply and construction.
Tertiary Sector (also called service sector) business, transport, telecomm- unication, banking, insurance, real estate, community and personnel services.
Economic Planning in India
Planning Commission (1950) was set-up under the Chairmanship of Pandit Jawaharlal Nehru (Gulzarilal Nanda was the first Deputy Chairman). Basic aim of Economic Planning is to bring rapid economic growth through agriculture, industry, power and all other sectors of the economy.
NITI Aayog
NITI Aayog or National Institution for Transforming India Aayog came into existence on 1st January, 2015; policy making think-tank of government that replaces Planning Commission and aims to involve states in economic policy making. It will provide strategic and technical advice to the Central and the State Governments. The Prime Minister heads the Aayog as its chairperson.
Rajiv Kumar is the Vice-Chairperson of NITI Aayog of India.
Historical Milestones
- Planned Economy for India (1934) M Visvesvaraya
- National Planning Committee (1938) Jawaharlal Nehru
- Bombay Plan (1944)
- Gandhian Plan (1944) SN Agarwal
- People’s Plan (1945) MN Roy
- Sarvodaya Plan (1950) JP Narayan
National Income in India
National Income refers to the aggregate value of goods and services produced in an economy in one year.
Following are the measures of National Income in India
Gross Domestic Product (GDP) is the final value of the goods and services produced within the geographical boundaries of a country during a year.
Net Domestic Product (NDP) equals to the GDP minus depreciation (value loss of an asset) on country capital goods.
Gross National Product (GNP) is an estimate of the total value of all the final products and services produced in a given period (usually a year) by the nationals of a country.
The Net National Product (NNP) is obtained by subtracting depreciation value from GNP.
When NNP is obtained at factor cost it is called National Income. It is calculated by deducting indirect taxes and adding subsidies in NNP at market price.
IndianTax Structure
Direct Tax
The term direct tax generally means a tax paid directly to the government by the persons onwhom it is imposed. e.g. income tax, Corporate income tax, capital gain tax, stamp duty, land tax, estate duty, wealth tax, petroleum revenue tax. The government earns maximum from corporate income tax.
Indirect Tax
An indirect tax is a tax collected by an intermediary from the person who bears the ultimate economic burden of the tax. e.g. sales tax or VAT, customs duty, insurance premium tax, excise duties, landfill tax, electricity duty, climate change levy.
Goods and Service Tax (GST)
The GST as it is more commonly referred to is a system of taxation where there is a single tax in the economy for goods as well as services. Indian GST was first proposed in India in the Union Budget speech in 2006-07. This tax come into effect from 1 July, 2017. The main feature of the GST is that there is a tax credit available at each stage of the value chain.
Inclusive Development
Human Development Index (HDI)
HDI measure was given by Pakistani Nobel Prize Winner, Mehbub-ul-Haq.
Level of Human development is measured by Human Development Index (HDI), published by UNDP since, 1990.
Three dimensions
1. Life expectancy at birth;
2. Education Index comprising means year of schooling and expected year of schooling;
3. GNI per capita (PPP US $) Index.
India has been ranked 129 out 189 countries on 2019’s HDI.
Programmes/Measures
NRHM (National Rural Health Mission) was launched on 2nd April, 2005 to reduce Infant Mortality Rate and Maternal Mortality Rate.
NUHM (National Urban Health Mission) launched on 2013. Education programmes like Sarva Shiksha Abhiyan, Mid-Day Meal Scheme etc were launched.
Rural development programmes like MGNREGA and Bharat Nirman.
POVERTY
The erstwhile Planning Commission estimated poverty rate based on data collected by National Sample Survey Organisation (NSSO).
Main Reasons for Rural Poverty Rapid population growth, lack of capital, lack of alternate employment other than poor agriculture, illiteracy and lack of proper implementationof PDS.
Main Reasons for Urban Poverty Migration from rural areas, lack of skilled labour, lack of housing facilities, limited job opportunities in cities.
(... Continue...)
UNEMPLOYMENT
It refers to a situation, when a person is able and willing to work at the prevailing wage rate, but does not get the opportunity to work.
Estimation of Unemployment
Since 1973 on the recommendation of B Bhagwati Committee, three estimates of unemployment have been brought about by Planning Commission, viz
1. Usual Principal Status Persons who remained unemployed for a major part of the year.
2. Current Weekly Status Persons who did not find even an hour of work in a week preciding the date of survey.
3. Current Daily Status Persons who did not find work even for 1 hour in a day.
(.... Continue....)
AGRICULTURE
Agriculture is the mainstay of Indian economy. It makes important
contribution in GDP, National Income, employment, trade and industry.
Green Revolution is associated with the use of HYVS (High Yielding Variety Seeds), chemical, fertilisers and new technology, which led to a revolutionary results in agricultural production.
Dr. MS Swaminathan has been called the ‘Father of Green Revolution’ in India.
Revolution | Production
- Blue | Fish Production
- Golden Fibre | Jute
- Pink | Onion
- Red | Meat
- White | Milk
- Yellow | Oilseed
Tricolour Revolutions
Tricolour revolution has 3 components
Saffron revolution–Solar energy
White revolution–Cattle welfare
Blue revolution–fisherman’s welfare
INDUSTRIES
Industrial Policies
Industrial policies were launched in 1948, 1956, 1977, 1980 and 1991.
Industrial Policy 1956 is called Economic Constitution of India and gave public sector the strategic edge.
Industrial Policy 1991 opened up the economy. Its main aims were
(a) to end license-permit raj;
(b) to integrate Indian economy with the outer world;
(c) to remove restrictions on FDI and
(d) to reform public sectors.
(.... Continue....)
BANKING & FINANCE
Bank of Hindustan was the first bank, established in India in 1770.
First bank with limited liability managed by an Indian Board was the Oudh Commercial Bank in 1881.
First purely Indian bank was Punjab National Bank (1894).
Nationalisation of Bank
A step towards social banking was taken with the nationalisation of 14 commercial banks on 19th July, 1969. Six more banks were nationalised on 1980, total number of public sector banks are 27.
(.... Continue....)
CENSUS 2011
Population Trend in India
- 1891-1921 Stagnant population
- 1921-1951 Steady growth
- 1951-1981 Rapid high growth (stage of population explosion)
- 1981-2001 High growth rate with definite signs of slowing down
- Total Population 1210569573
- Male 623121843 (51.47%)
- Female 587447730 (48.53%)
- Density 382 per sq km
- Sex Ratio 943
- Child Sex Ratio 914
(.... Continue...)
ECONOMIC TERMS
Assets Property of any kind.
Balance of Trade (BoT) The difference between the exports and imports of two countries in trade with each other is called Balance of Trade.
Balance Sheet It is a statement of accounts, generally of a business concern, prepared at the end of a year.
Banker’s Cheque A cheque by one bank to another.
Bank Rate It is the rate of interest charged by the Reserve Bank of India for lending money to commercial banks.
Barter To trade by exchanging one commodity for another.
Bearer This term on cheques and bills denotes that any person holding the same, has the same right in respect of it, as the person who issued it.
Black Money It means unaccounted money, concealed income and undisclosed wealth. The money which thus remains unaccounted for, is called the black money.
Bond A legal agreement to pay a certain sum of money (called principal) at some future date and carrying a fixed rate of interest.
Budget An estimate of expected revenues and expenditure for a given period, usually a year, item by item.
Budget Deficit When the expenditure of the government exceeds the revenue, the balance between the two is the budget deficit.
Bulls Speculators in the stock markets who buy goods, in some cases without money to pay with, anticipating that prices will go up.
Buyer’s Market An area in which the supply of certain goods exceeds the demands so that purchasers can drive hard bargains.
Commercial Banks Financial institutions that create credit accept deposits, give loans and performother financial functions.
Call Money Loan made for a very short period. It carries a low rate of interest.
(... CONTINUE....)
CLICK HERE TO DOWNLOAD FULL INDIAN ECONOMY EBOOK BY KASHMIR STUDENT
©KASHMIR STUDENT ®™
