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Disclaimer:- All the Information provided in this post are prepared & compiled by A. Praveen Kumar, SPM, Papannapet SO-502303, Telangana State for in good faith of Postal Assistant Exam Aspirants. Author of blog does not accepts any responsibility in relation to the accuracy, completeness, usefulness or otherwise, of contents.
Disclaimer:- All the Information provided in this post are prepared & compiled by A. Praveen Kumar, SPM, Papannapet SO-502303, Telangana State for in good faith of Postal Assistant Exam Aspirants. Author of blog does not accepts any responsibility in relation to the accuracy, completeness, usefulness or otherwise, of contents.
The economy of India is the 11th
largest economy in the world by nominal GDP and the fourth largest by
purchasing power parity (PPP). Economists predict that by 2020, India will be
among the leading economies of the world.
Since 1991,
continuing economic liberalisation has moved the economy towards a market-based
system. By 2008, India had established itself as the world’s second fastest
growing major economy. However, the year 2009 saw a significant slowdown in
India’s official GDP growth rate to 6.1% as well as the return of a large
projected fiscal deficit of 10.3% of GDP which would be among the highest in
the world.
India’s large
service industry accounts for 62.6% of the country’s GDP while the industrial
and agricultural sector contributes 20% and 17.5% respectively. Agriculture is
the predominant occupation in India, accounting for about 52% of employment.
The service sector makes up a further 34%, and industrial sector around 14%.
Basic Features of Indian Economy
i. Low per capita income.
ii.
Inequalities in income distribution.
iii.
Predominance of agriculture
(More than
2/3rd of India’s working population is engaged in agriculture. But in USA, only
2% of the working population is engaged in agriculture).
iv. Rapidly
growing population.
v. Chronic
unemployment
(A person is
considered employed if he / she works for 273 days of a year for eight hours
every day).
vi. Low rate
of capital formation.
vii.
Dualistic Nature of
Economy
(features of a modern economy, as well as traditional).
viii. Mixed
Economy
ix. Follows
Labour Intensive
The
national income is the sum total of the value of all the final goods produced
and services of the residents of the country in an accounting year.
Dadabhai
Naoroji was the first to calculate the national income of India. Dadabhai
Naoroji is known as the Father of Indian Politics and Economics. He is also
called the 'Grand Old Man of India'.In his book Poverty and Un British Rule in
India he describes his economic theory, i.e. the economic exploitation of India
by the British. His theory is popularly called the Economic Drain Theory. First
scientific attempt to calculate National Income was done by Dr. VKRV. Rao in
1931-32.
GDP: It in the
money value of all the final goods and services produced within the
geographical boundaries of the country during a given period of time.
GNP: It refers to the money value of
total output or production of find goods and service produced by the nationals
of a country during a given period of time. In
India Gross Domestic Product (GDP) is larger than national income because net
factor income from abroad is negative, i.e. foreign payment is larger than the
foreign receipt.
GDP Deflator: The ratio of nominal to real GDP.
GDP Deflator = Nominal
GDP/Real GDP.
Producers Price Index: it is the cost incurred by the
producer in producing single unit in terms of GDP. It does not include any
indirect taxes. It is used as early warming. It is having effect on the
consumer price.
Blue Book: An annual digest published by the
UK office of National Statistics containing the national income and expenditure
statistics of the UK.
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