EPS

Assignment_1
PGP-24
Q1 Collect the following most recent available data about the Indian Economy from reliable
sources and cite the sources wherever possible.

Parameters Values Sources

GDP($tr) 2.72 World Bank
GNI($tr) 10.39 World Bank
GDP/Capita ($) 2010 World Bank
GDP
%manufacturing 31 Economic Survey 19-20
%Agri 16.5 Economic Survey 19-20
%Services 55 Economic Survey 19-20
Annual Unemployment Rate 6.1 NSSO Report
Wage Growth 9.1 Economic Times
Inflation 4.54% Statista
Interest Rates (10 Year Bond Yield) 6.35 Economic Times
CAD $1.4bn Economic Times
(Q3 of
2019-20)
Fiscal Deficit 3.3% Union Budget
Import in Bn ($) 617.95 World Bank WITS
Export in Bn ($) 322.29 World Bank WITS
Balance of Trade (in Bn $) -295.66 World Bank WITS
Total Reserves ($ Billions) 412 Bn Economic Survey 19-20
Reserves % external Debt 76.6 World Bank, RBI

Q2 Create a time-series graph of following Indian economic indicators. Identify major

movements, find out the reasons behind significant changes and present your understanding.
(Collect data points since the 1980s or a minimum 10 data points wherever data could not be
found)
 GDP growth
 Unemployment rates
 Inflation
 Trends of Economic Parameters
14

12

10

0
1980 1985 1990 1995 2000 2004 2009 2010 2019 2020
GDP Growth 6.7 5.524 5.53 7.754 3.8 7.923 8.48 10.26 4.23 1.87
Unemployment 5.45 5.64 2.73 3.1 2.48 2.44 2.55 6.1
Inflation 11.5 6.25 10 9.96 3.6 3.82 12.31 10.5 4.9 3.34

GDP Growth Unemployment Inflation

Inference:
 One can see how growth and inflation are related. Normally higher growth is associated
with an increased standard of living of the citizens, thereby resulting in an increase in
demand of goods and hence their prices.
 Higher growth in India could be largely attributed to the increasing share of the services
sector which has seen a boom in the post globalization period.
 In recent times, the Monetary Policy Committee of the RBI has been tasked with
Inflation targeting, which is aimed to be kept at 4% with a range of +/-2% i.e. a band of
2-6% of GDP growth rate.
 Growth in India has been often termed by some as a “jobless growth” which is a
possible reason why unemployment rate has remained more or less the same.
 The growth has definitely led to more people shifting from agricultural to manufacturing
and the tertiary sector but hasn’t necessarily led to an increase in the absolute number of
jobs. There is still rampant seasonal and disguised employment in agricultural sector.
 The recent dive in GDP growth rate can be attributed to the CoVID-19 crisis.
 There is an inverse relationship between unemployment rate and inflation rate
Q3 Write about 80 words on each 5-year plan since Independence and make a comparison with
the current approach of action plans adopted by Niti Aayog.

A:

Five Year Description

Plans
Major attention on the agricultural sector, which back then was far from
1st FYP modernization, backward and had been devastated by the colonial regime.
(1951-56) Self-reliance in food security continued to be a major goal as people were
starving and in huge numbers.
This also led to reduced attention on the Industries’ sector. Only 55 crores out
of 1960 crores were allotted to industries.
Based on Harrod Domar growth model. The GDP growth rate was 3.6%
which was more than its target.
2nd FYP Based on P.C. Mahalanobis Model which lasted from 1956-61.
(1956-61) It was meant to kick start the process of industrialization and cut down on
import of necessary capital goods and machinery.
After covering the agricultural sector in the last plan, the government took
initiatives towards the industrial development which was in a budding stage
after the Britishers left the country.
The plan was a huge success as it achieved a growth rate of over 4%.
3rd FYP Focused on the development of agriculture as one of the objectives. Main
(1961-66) objective was to make the country self-reliant but the war ensured that the
growth rate was just 2.5% but again due to rising population, it failed to
make Indian economy independent. Besides, considering the cause of
balanced regional development. Investments were also made in producer
goods, infrastructure and transport sector.

4th FYP Focused on export promotion and import substitution in sync with the core
(1969-74) principles of “self-reliance”. It was based on the Gadgil strategy focused on
growth and progress based on a self-reliant economy. The plan faced
financial crunch due to dearth of funds owing to droughts and an over-
burdened treasury owing to previous wars and the Indo-Pak war of 1971.

5th FYP Focused on “poverty alleviation” and self-reliance. It also saw the launch of
(1974-79) the Twenty-point program (1975). The havocs of hyper-inflation led the
government to hand over a new function to the Reserve Bank of India to
stabilize the inflation. A judicious price wage policy was started to check
the menace of inflation on the wage-earners.

6th FYP Objective of poverty eradication and to make India self-reliant in

(1980-85) technological field. It achieved a target of 5.7% where as it was targeted at
5.2%, showing a significant drive towards the growth path. It also saw the
launch of various national schemes such as NREP (National Rural
Employment Programme), DWERA, Khadi and Village Industries program
in the restructured Twenty Point Program.
7th FYP Emphasized on rapid food grain production, increased employment creation
(1985-90) and productivity in general. The basic tenets of planning, i.e., growth,
modernization, self-reliance and social justice remained as the guiding
principles.75 The Jawahar Rojgar Yojana (JRY) was launched. Some of the
already existing programs, such as the IRDP, CADP, DPAP and the DDP
were re-oriented.

8th FYP The New Economic Policy was introduced in this plan. It brought about
(1992-97) monumental changes in the Indian Industrial Sector The economic reforms
were already started (in July 1991) with the initiation of the structural
adjustment and macro-stabilization policies necessitated by the worsening
balance of payments, higher fiscal deficit and unsustainable rate of
inflation. The plan saw a reformed role played by the state in the economy,
market based development i.e. increased role of the private sector in the
areas which were thrown open to it. It also witnessed restructuring and
rationalizing non-plan expenditure, subsidies etc.

9th FYP This plan came at a time when the economy was facing a slowdown
(1997-2002) triggered by the South Asian Financial Crisis. In spite of the New
Economic policy, the industrial growth rate remained low and far below the
target. It saw the introduction of the BMS (Basic Minimum Services) plan
which included time bound social objectives like safe drinking water,
primary healthcare, universal primary education, nutrition support to
children, public housing assistance, connectivity to villages and
streamlining the PDS.

10th FYP This plan took the economy on the course of rapid development. The
(2002-07) economy grew at a rate of 8%. It saw the contribution of the NDC in policy
planning. Some very important changes were introduced in the plan:
increased reliance on states and PRIs to make sure the grass roots reaped
the benefits of the plans, governance came to be considered as an important
factor in planning, increased emphasis on social sector (health, education)
and acceptance that higher growth rate is not the only objective-that it
should translate to an increased quality of life for the people.

11th FYP The eleventh five-year plan was created by C. Rangarajan for 2007-12
(2007-12 whose main agenda was faster and more inclusive growth. The growth rate
was rising at a good pace but it fell short by the target by just 0.2%
achieving a GDP growth of 7.9%. The economy continued with the
momentum of the tenth plan but owing to the global recession of 2008,
growth rates fell. However, the Indian economy showed surprising
resilience to the crisis. There was also concern among the commission
regarding realizing growth figures while adhering to fiscal discipline under
the FRBM Act of 2008. In this period, the manufacturing sector witnessed
very low growth figures
 Comparisons with NITI Aayog:

Planning Commission NITI Aayog

Enjoyed the powers to allocate funds to
ministries and state governments.
States' role was limited to the National
Development Council and annual
interaction during Plan meetings.
Secretaries or member secretaries were
appointment through the usual process
Full Planning Commission had no
provision for part-time members.
The commission reported to National
Development Council that had state
chief ministers and lieutenant
governors.
Had deputy chairperson, a member
secretary and full-time members
Policy was formed by the commission
and states were then consulted about
allocation of funds.
Top Down model
Competitive Federalism
Imposed policies on states and tied
allocation of funds with projects it
approved.
Advisory body, or a think-tank. The powers
to allocate funds vested in the finance
ministry.
State governments are expected to play a
more significant role than they did in the
Planning Commission.
Secretaries to be known as the CEO and to
be appointed by the prime minister.
Have a number of part-time members,
depending on the need from time to time.
Governing Council has state chief ministers
and lieutenant governors.
New posts of CEO, of secretary rank, and
Vice-Chairperson. Will also have five full-
time members and two part-time members.
Four cabinet ministers will serve as ex-
officio members.
Consulting states while making policy and
deciding on funds allocation. Final policy
would be a result of that.
Bottom up model
Cooperative & Competitive Federalism
NITI is a think-tank and does not have the
power to impose policies.

Q4. Within 500 words give your views on the statement “Media is no longer about Journalism”
A: Media is often touted as the 4th pillar of democracy. Post-independence, JL Nehru
claimed media as a watchdog of Indian democracy crucial to its functioning. It was expected to
critique government policies, schemes and laws and present fair and unbiased reports on both
sides of the coin.
But in recent times, the role of media as a sentinel to democracy has taken a hit. In 2020
Press Freedom Index report brought out by Reporters without borders, India has been placed at
142nd rank out of 180 countries. The reasons that have been cited are press freedom violations,
including police violence against journalists, ambushes by political activists, and reprisals
instigated by criminal groups or corrupt local officials. All these stand in blatant violation of
Article 19 of our constitution which guarantees freedom of speech and expression to all.
Journalism refers to the accurate reporting of facts and contemporary happenings with
solid evidence and witnesses to back them up. This should be reflected in various kinds of media
used to transmit information to the public like print and electronic media. But in recent years,
both these forms of channels along with internet and social media have fallen prey to various
maladies.
Why Media is no longer about journalism? Rise of sensationalism has been a major factor. There
are increasing evidence of fake news and paid news, sensational news for the sake of TRP
ratings and politically biased views on every theme of note. This can be attributed to the revenue
generation need which becomes highly unethical. Besides, every news channel can be seen
supportive of certain political parties and scathing about another. This is due to the fact that
media houses are owned by political-corporate barons who drive the direction of news.
The print media has also inherited its share of ills. In place of proper journalistic standards and
reports, there has been an increasing tendency to orient oneself to leftist or rightist ideologies.
Besides, increasing coverage of Bollywood gossips and trifling issues have become a
commonplace scenario.
Social media has also become an anathema. In the recent Cambridge Analytica case of Facebook
supporting Trump’s election process highlights the fact that journalism and independence have
been highly affected.
As a result in recent times, several steps are being taken to bring media on the lines of an
independent pillar of democracy along with Legislature, Judiciary and Executive. Reliable facts
and information are dispensed through official government channels like PIB, Tweeter etc.
Election Commission of India has taken certain steps to curb on fake and paid news through the
Representation of People’s Act, 1951 (Section 124) where incitement and public speech through
media during election time has been banned. Further, there have emerged a lot of AI tools which
deal with fake news. The Government of India has also taken certain steps like setting up
helplines, Whatsapp helpline to enquire about possible fake news when any reader comes across
any. All in all, as responsible citizens, we must take steps forward to keeping ourselves informed
and alert at every possible step.

Q5. “Should corporates take a political stance.” Discuss, based on the recent security law
in Hong Kong and BlackLivesMatter Movement.
A: The nexus between corporates and politics has remained from times immemorial. In
the initial days of capitalism in 18th century, business enterprises and state sided with one another
in promoting the interests of each other. While profits were the main intention of corporates,
revenues became the motto for state. In recent times, this nexus has grown and one can see
extensive lobby companies who handle relations between corporates and state at national and
global level. They side with government’s plans and schemes which can benefit them potentially
and criticize those which are not in their favor. Ex: Sundar Pichai’s criticism about curtailment
of H1B visas by Donald Trump, the President of USA.
But unlike the yesteryears, corporates today have a huge role to play in the shaping and
functioning of the society. Their stances and decisions, in turn, affect the policies and ways
government make and shape their policies. For ex: The Ease of Doing Business indicator holds
respective governments in loop who try harder to make better and friendly policies in order to
attract investment from domestic and global investors. As a result, the voices of corporates are
beginning to matter everyday and becoming powerful enough to stir society.
In this regard, I believe corporates should take political stances on issues which can
affect society in the long run and contribute to its betterment. In case of recent security law
imposed by China on Hong Kong, several companies are moving out of China partially in protest
of its increasingly authoritarian nature. This sends a signal to the present government that it
needs to mold its way of dealing with things.
BlackLivesMatter movement started after George Flyod, a black man was murdered by a
police officer. When the justice system starts to become unjust, it is the social responsibility of
the corporates to step in and take a stand. They should use their influence and make a change. In
USA, several companies in USA have and are doing away with racist policies and becoming
increasingly aware of their market positioning and brand images. They do not wish to be
identified with something wrong and are taking baby steps towards amending it.
 In India, too, recently, Fair and lovely cream brand has decided to move away from its
racial ads and name.
There is nothing more empowering than standing up for a cause. Corporates should not
take a political stand in all the issues but definitely for those which can create goodness in
society in the long run. I believe it is a duty of the corporates towards the society to take a stand
whenever something wrong happens. This will not only create a deep impact on the society but it
would also uplift the image of the company and create an impression that the said corporate
doesn’t just earn money but gives back to the society as well.
Q6. It is paramount to have an understanding of the landmark events of 2020 (Write a small
summary of 10 points capturing the major dates, events or data whichever is applicable):
A. COViD-19 Crisis, its economic impact
B. Indo-China Border Dispute and its History
C. US election Race
D. The passage of new security bill by Chinese parliament affecting Hong-Kong
E. Black Lives Matter Movement was it justified

A.
i. COVID-19 pandemic is an event of unprecedented measure.
ii. The already struggling Indian economy which had a falling growth rate took a hit.
iii. Indian growth in the 4th quarter of the FY20 went down to 3.1%.
iv. Many sectors like automobile and agriculture which are in the verge of falling and
suffered huge blows due to the lockdown which was enforced to maintain social
distancing and restrict the spread of Covid19.
v. With over 1 million cases in India, the economic effects are piling on common man.
vi. With the Government announcing certain reliefs and a cumulative 20lakh crore
package, some relief comes home.
vii. RBI has been reducing the repo rate and infusing liquidity in the market.
viii. The major problem still lies with the vaccination.
ix. Unless a vaccine is developed, this will be more torturous to bear. The virus has
claimed many lives and disrupted economies and it is a matter of time when the
effects of this will be dealt in full force.
x. There has been a increased vocal about Atmanirbhar Bharat (Self-Reliant economy).

B.

i. The India-China border tension isn’t something new.

ii. From the Indo-China war back in 1961 to the most recent Galwan Valley tension, China
has always been at the wrong end of the side.
iii. Thousands of Indian and Chinese troops are at a standoff in Ladakh since the early May.
iv. On June 15, a major conflict between the troops of both the nation resulted in the
bloodbath in the valley of snow.
v. The reports, most of them speculative, report that 40 Chinese soldiers have been killed
whereas 20 of our soldiers have been martyred.
vi. The tension seems to be increasing everyday with the latest ban of 59 Chinese apps from
the Indian app stores.
vii. The retaliation is now on the global scale.
viii. USA, Australia, India and several ASEAN countries have joined the bandwagon.
ix. They have been protesting against malicious Chinese aggression in the South China Sea,
its deceptive trade policies and border conflicts.
x. With the Covid19 spreading from China and its communist policies, it is only a matter of
time when the world looks for a different manufacturing hub.
C.

i. The U.S. elections have always been a very significant factor for India.
ii. The relationship we have with the U.S. is both strategic and diplomatic and as such, the
leader of the U.S. would significantly affect India.
iii. This will have major repercussions on issues like H1B visa restrictions, vaccine
development and trade wars.
iv. Donald Trump of the Republican Party goes face to face against Joe Biden of the
Democrat Party.
v. This would be an interesting face off as Joe Biden was seen as a potential president
candidate for long.
vi. Internet polls suggest that Joe Biden would be winning this year.
vii. But not to forget, this was the case with Hillary Clinton as well.
viii. The whole world already declared Clinton as the President when Trump shook the world
and grabbed the seat.
ix. The election is scheduled on November 3, 2020.
x. It will be the 59th quadrennial presidential election of the U.S.A.

D.
i. The day the British Empire handed Hong Kong to China, was the day when Hong Kong
was doomed.
ii. The recent events prove the claim. A national security law imposed on Hong Kong by
China which will punish crimes of secession, sedition, damage to public property as
terrorism etc, have put the people of Hong Kong at unrest.
iii. This law empowers China to set up a national security agency in the city.
iv. It also empowers China to extradite the above accused to the capital city.
v. It is a great way to curb political dissent.
vi. This is more in keeping with the authoritarian communist regime in China.
vii. This way Beijing would have a more direct control over Hong Kong.
viii. USA has been very critical of this development.
ix. This is because USA sees HK as a bastion of liberty and democracy amidst the ocean of
communism.
x. As a result, USA has challenged China on many fronts like military (Naval), trade and
even accused it of creating Covid scenario.

E.
i. BlackLivesMatter but does that justify violence?
ii. The movement emerged when George Floyd was killed by the White Police officer.
iii. It broke into protests and street rallies where people took to streets to protest.
iv. But this was met with heavy police repression.
v. This is mainly justified to maintain public order by USA Prez Trump for destroying
public property and vandalizing public places.
vi. This reeks of Trump’s support for racist policies which have been time and again
reflected in his election manifestos.
vii. The people have the right to protest and the anger and the resentment over it was
justified.
viii. But the violence could have been avoided with political and social empathy.
ix. A leaf can be taken from Zacinda Ardern’s administration when she personally went to
console the Muslims who were killed in the Christchurch mosque shootings in NZ.
x. This reveals that political empathy plays a long role in maintaining peace and violence as
such is not justified unless it is a bigger threat.