Important Topics Basic Economic Indicators: (Statistical Data) - National Income - Production - Price Index - Foreign Trade - Population

Features of Indian Economy - Division of Economic activities - Unemployment - Types - Poverty - HDR - Measures to eliminate poverty Population - Population growth - Population policy 2000 - Census - 2001 - Consumption Pattern - Energy Consumption - Sources of energy - various programmes National Income - Methods of National Income calculation - Concepts of National Income Agriculture - Importance - Crops and seasons - Agricultural Credit agencies. NABARD, RRB. Etc., - Kisan Credit Schemes - Land Reforms - Agricultural Insurance, NAIS, Seed Crop Insurance - Green, Yellow, White, Blue revolutions - Irrigation projects - Drip irrigation - Development measures Industry - Industrial Policies - 1948,1956,1991 - Initiatives taken - Small Scale Industries - Various key industries

- Various Committees and their recommendations - Industrial sickness - Dis investment - PSE Policy - Industrial Finance Money and Banking - Aspects of money market - Credit Control - Various Rates - Commercial Banks, Co-operatives, NBFC. - Committees and recommendations - SEBI - Stock market developments - Insurance Industry - New Banking Sector reforms - Inflation, Deflation - Money supply measures Foreign Trade - Composition and direction - Exim policy and other Acts - Foreign Trade improvement measures taken - WTO - BOP International Organisation Development and employment Programmes Planning - Planning Commission - Five Year Plans and imported features Public Finance - Finance Commission - Various formulas for Plan assistance to states - Taxation - Reforms - Public spending and Debt. - Deficit financing

Distribution of Questions1. Indian Economy majority of questions are asked from this area; there are usuallyabout 40-45 questions per year from this section. 2. Statistics- there are about 7- 10 questions every year. 3. Growth and Development - about 10 questions. 4. Micro and Macro Economics - about 35 40 questions every year. 5. International Economics - about 15-20 questions every year. 6. Money, Banking & Public Finance about 10 15 questions every year.Reference / Sources1. Indian Economy - Any one good book on Indian economy, it can either be Mishra-Purior DuttSundaram. Pratiyogita Darpan special issue on economics,economic survey andbudget from news paper.2. Statistics class 11th NCERT book is more than sufficient.3. Growth andDevelopment- M L Jhingan and NCERT book of class 11th.4. International Economics - book by H.G.Mannur or Salvatoire.5. Money, Banking & Public Finance - S.B.Gupta & Pratiyogita Darpan (Special issue)for banking and H.L.Bhatia for Public Finance.6. Micro Economics - NCERT & Koutsoyyiannis or Ahuja. 7. Macro Economics NCERT & JHINGAN.8. Solved 10 years paper and any one practise book(eg.IIMS Question bank) of any

publication.Strategy1. More emphasis should be on NCERT BOOKS .Do it properly and dont underestimatethem because

many questions are asked directly from them only.2. Practise and revise diagrams regularly.3. Concentrate mainly on Micro, Macro & Indian Economy because majority of questionsare asked from these areas.4. Solve all the statistics questions from previous year papers.5. Do read economic survey properly and pay special attention to the boxes of survey.6. It is not necessary to cram all data and figures just memorize only important andrelevant ones.7. Solve previous year papers and practise book(eg.IIMS Question bank) regularly ECONOMIC GROWTH AND DEVELOPMENT Introduction Economies grow and develop, they expand and advance, and they progress and prosper.There are phases when they decline too, and there are economies that experiencecontinuous decay. If one considers long stretches of human history, one knows thateconomies (civilizations) disappeared altogether. We will not take into account such longstretches of time. We shall not consider too distant a past either. We will leave them tohistorians, may be, economic historians. (more content follows the advertisement below)A D V E R T I S E MENT Let us take a normal view. We shall then accept decline as an occasional, temporaryphenomenon. We shall, therefore, use positive terms only. Of the positive terms, whichhave been used to describe changes as well as to prescribe changes, two have survived.They are growth and development. Because we shall primarily look at nations andcountries as economies, and use terms such as economic growth and economicdevelopment. We

shall often try to distinguish economic from noneconomic thoughthere are cases where it becomes difficult to do so.In order to accommodate decline in level, we use phrase negative growth and to

describe perverse tendencies, we may use words dedevelopment or maldevelopmentthough, we will not have occasions to use them.You may find that, sometimes in many scientific treatises and very often in colloquy,words growth and development are used in interchangeable fashion. But, normally adistinction is made between the two, particularly in economics literature. It is maintainedalong the following lines. You might have noticed that the word growth is used todescribe increase in stature or size. It is used to describe a uni-dimensional change, as inthe case of stature of a child or a uniform expansion in all directions, as in the case of sizeof a balloon. Even when we refer to development of a child, we refer to variousdimensions of its personality. When we do not refer to dimensional aspects we use theword growth. Even schools and institutes, colleges and universities, hotels and hospitalsgrow. But, we are often quick to point out certain features that are not captured by wordgrowth. It is rare, if ever, that growth takes place without development or developmenttakes place without growth. In most cases, they would accompany each other. There maybe cases when one is dominant and the other is dormant. In such cases, people talk of growth without development or development without growth. It

is, therefore, good tomake an analytical distinction between the two. Economic Growth Let us take here a comprehensive view of the economy, taking all activities together, andcall its growth as economic growth.Let us look at it from the view point of production. The total quantum of goods andservices produced in an economy in a given year is referred to as Gross DomesticProduct. Let us measure it at factor cost and write it in its abbreviated form GDPFC. TheGDPFC in 2000-01 was around Rs 17,00,000 crore. This is a flow of goods and servicesproduced during the year 2000-01, measured in value terms. We may be interested inknowing whether the flow this year is larger than the flow last year. If so, we shouldknow the measure of the flow last year. In order to see that we measure the real changein flow, we should compute the magnitude of flows in both the years in the same prices.The prices may belong to 200001 or 1999-2000 or to 1993-94; the point is that the pricesshould relate to only one common year so that we measure only the change in flow of output, not a mix of change in output and change in prices. Such GDPs are said to bemeasured at constant prices. Suppose you look into a recent issue of the NationalAccounts Statistics published by the Central Statistical Organisation and find that at1993-94 prices, the GDPFC for 19992000 and 2000-01 are Rs.10,00,000 crore andRs.10,60,000 crore respectively. The growth in flow called GDPFC in absolute terms isRs.60,000 crore. In relative terms it is 6 per cent and it is called growth rate. If weprepare a whole series for 10, 20 or 50 years then we often add words per annum or per year to growth rate. The growth rate is often expressed in terms of per cent per

annum.This is a positive change; there could be a negative change also.Suppose, we look at a twenty-year period and use yearly figures for flow of output of