Indian Economy By: Deepak Singhal Sir 8:00-9:00Pm 26" July 2024Same NG) cee conned pnetg” National Income (Nl: Is also known as National income at factor cost which means total woe income earned by resources for their contribution of land, labour, capital and organisational , ability. Hence, the sum of the income received by factors of production in the form of rent, India wages, interest and proftis called National Income. Symbolically or as per the formula Corspan'& NINNP +Subsidies-Interest Taxes. or, GNP-Depreciation +Subsidies-Indirect Taxes or, NI=C+G+1+(X-M) +NFIA-Depreciation-Indirect Taxes +Subsidies With In re Counhr I 7 Fnodvction br terens og RS ete bance red = [witrin the Bondosy [er counted Prooluehon outside fre CountngWeds se (WARS): SA HH TTA W UseT se & ws A at Ge Star F former 3 8 oF, aH, Goi sik AeroncHe area & Alert & fore Harve CART Hat HA sare, Sac, org, carat 3k aret & wT A scores & at ART ict eT ar ater UST HT Age BI vata wo 8 oT a & 3a NI=NNP +Subsidies-Interest Taxes UUGNP-ACTRT +AfSTS- STAT FT UT, NIECHG+H+(X-M) +NFIA-FOARRA-HICTAT BT +a eastend Leone] 48,4804 “ “ 8 200 Per Capita Income (PCI): It is calculated by dividing the national income of the country by the 2 —— total population of a country. Jaan a Thus, PCl=Total National Income/Total National Population “ : NaHonal . * One Person = overage Hoes much in comme Mo ardia brah ferotaton[ tron ca oof fog iOS age s|PCI wher cafe are (dteftang): sehr arora er aT User Ha HY Ser Hl Hor sea a fasnisa axe Ft ond ZI su wer, Srhang=per UST aa WT TATAPeo nomié advice cureaked reo coneiiion angi” Nest By as under 3nd non-statutory body formed by resolution of the Government of India in arth 1950. tt Honad was an advisory body tothe Government of india on Roney Cemmsi ee an array of sues of economic development. twas of India Developme headed bythe Pine Minster asthe ex ofcio ae Chairman, twas dissolved in 2014 and NIT Aayog_ ( Count Composition of Planning Commission . oy ~ Prime Mins: presided over the meetings | ph, ofthe Commision ' de facto executive head (ulsime Chal nm fonetional head) any Was in charge of rating and submitting the ) draft Five-Year Panto the Cabinet of Ministers. The Centra Cabinet appointed him fra defined term and he held the postion of cabinet —— n Without the abilty to vote, he or she might attend cabinet sessions Parktime members - Some central ministers Exofficio members ~ Finance Minister and Planing MinisterArtal HTaveT Sie ee ade ee ae om ae ps rah WARE TaN FT Uh ASIA FAT eT! & ere} ro Htaaie vee staan & wo A cere a aoe of India 2) se 2014 & aiar ae Pear ae sik afer sae at ge fray ar tere of fee ‘ats araer Fr ea eae eet pt eet Yeo Sea ‘sorezrar ~ areatfeer arctan ogee (qotaarfers arate TAT): Tred aha a water dae a ate 3 afrat & afasise & waar weqa ate aT gare aT age aRasa a seh ve faa Haft a fore frye far sik segiet Sfaete aa aT We HTwatoraR Mage or go" A nd.g oo “The Aayog planed to come out with three document: 3-year action agers, 7-year mediu-term Coof ox ahi O™ strategy paper and 15 year vision document ar ‘Composition of NITI Aayog. Of) SHAKE prime taster onde the ChaltpERBh ~The Governing Council inclides Chet Ministers ofall acd States and Lt. Governors/Administrators of the Union ‘ Territories. CENEE Regional Couneiswibe crested o address parte nd pestis affecting more thon one State These wl be frmed fora fied term ill be convened by the Prime Minister wil east of the Che inter of Sates ond Lt, Governors of Union Terris. These willbe coited by the Chitperon of ‘the NITI Aayog or his nominee. ts, specialistSWith relevant domain knowledge, which will be nominated by the Prime Minister.afifea 3rarer aNd BOER a aa Mea, ATA ATER" Fr oRemecen & fee afer sratet at area PATI ‘Sea Ais araer wr Furet fear, SRA 1950 7 ent fra ser orl ae Haat aieit Sr TET te arepiansit at agat Sar S aT et H fare SOM FT AT arate & diet aearast at FY atstaT aes B: 3 atta art wots, 7-adia wea araft cree aearaat site 15-adfa fast craves! RUGS up & after Usal a waniea art are fate Feet ah daraensit & ware & fae ate ORES aang sTUsh| Sera root WH RIT save & feo fear sree, sah aeaere wera at, gaa Usa & Heat 3H ag enft seat & soersaare ester eet) gerr areaaraT ee ee er | fade siiffa aes: yeaa feetea, orf Shia aia ara fetes, ek were ast ZANT anfere Prat sree«<— RBI Te was pur ye chor Bank Reequbares &g = 3 ani a eg lees Topention eservelBanik 6f Wid (RBI) Is India’s CREAT BAAR, t controls the concerning the national Currency, the InillaRiFUpie. The basic functions of the RBI are thellssUsHESSPGUFFERE, to sustain monetary Stabity nna, to operate the urency, and maintain the country's ere stem, as based on the strteles ormulted byDisAmbedkarin hs book named ” This central banking institution was established based on the suggestions of the “Royal Commission on Indian Currency & Finance” in 1925. This commission was also known as Hilton Young Commission. In 1949, the Reserve Bank of India was nationalized and became a member bank of the Asian Clearing Union. RBI regulates the credit and currency system in India, “RE The Bs ented he Resene barker ngaACt | "1907 | ese Barkot nga mas pemanenty mest Mul (Gis) cect ater nepederce The brkwas he by pteRBI areata Rd ¥ (Ran ace eter BF Bl ae ese A anda waa a data atte ae at fata ater 81 ARES & A al AaT ot ater, Na A alike fear sere Teer, Fl aT Teeter Fe ZH Ser AT HSE Toe HT TAT Te FI ata Rad dH Hf gaeron st, Heder cant "s visor ain g oth - ca aia ts sca Se eae Aare mg crt rer afar Teer Fr EAT 1926 F "secs Aer sie fat oe Caer Hele" & Ysa F Sree ue A ag ahi ge one at Roca air Gone ane a tet ore eT §ot9 A, rece Resa Ser om eestor fever ae the ae wa RRaREo are AT FRET ‘wat Ta RBIS A aT Se AeT sorrel ay feraldt aa BI gee ee 1937 _ Reserve Bank of India was permanently moved to Mumbai 11949 Got nationalized after independence. The bank was held by private stakeholders before ths.5% 145% 4 Gare % andia) NATIONALIZATION OF BANKS: After Independen regulated by the Reserve Bankof indiawhich = fal authority. By ths time only the was a major government bank and the rest were prhate-guned To meet the need ofthe Indian economy, the banks were EPs sé] nationalized in the year§ 1969and 1980 : What is Nationalised epee (Pa + Endlara gandre J The nationalized banks are those banks that were ones owned by the private players but due to the financial or socio-economic exigencies, the ownership was acquired by the government. In more technical terms Nationalised Banks have such an ownership structure where the government is the majority shareholder Nationalised Banks Between 1969-1991 In 1980 ‘SBI Subsidiaries (In 11959) 1) AilabiabSdBShk 2) GankG? 1) AiginFaTIESAR 2) 12) State Bank of Patiala 3) Bank of Baroda 4) Scorn rt 2) State Bank of Secs en 3 Hyderabad 3) State Bank se. of Bikaner & Jaipur 4) eS\aNG *T Fadtal & ara, afar ata a ada Rad dH cant faferaiaa fear ar yer at at Har WALT Fl SA AAS TH Hao sca Tee dH St UH TT AEN aH aT ae arr fersit carfttca ater 1 anxcirer arleraeer Fr sragaar HY ET axed aw few ay 1969 six 1980 A dat ar aegrrner Par are pa ach FATS? usdapa dn dda ¢ foeret Faratca fetch faonfsat & ore an, etferer facta ar aansH-31ie HeaaaHast PROT, Tater GLA GaN ela wt fea war aml afta ceneitcht erect A useage dot Fr Cet EafAca Bae stl F Tet AHR ager derune ach & aril >50%! Nationalised Banks Between 1969-1991 In 1980 ‘SBI Subsidiaries (In 1959) 2) Allahabad Bank 2) Bank of 2) Andhra Bank 2) 2) State Bank of Patiala India 3) Bank of Baroda 4) Corporation Bank 2) State Bank of Central Bank of India 5) Bank 3) New Bank of Hyderabad 3) State Bank of Maharashtra 6) Canara India 4) Oriental of Bikaner & Jaipur 4) Bank 7) Dena Bank 8) Indian Bank of Commerce State Bank of Mysore 5) Overseas Bank 9) Indian 5) Punjab & Sind State Bank of Travancore Bank 10) Punjab National Bank 6) Vijaya 6) State Bank of Bank 11) Syndicate Bank 12) Bank Saurashtra 7) State Bank Union Bank of India 23) of indore United Bank 14) UCO BankThe Five Year Plans List of Five Year Plans in IndiaFocuses L First Five Year Plan; [ 12"? v \gntcutrane ] \n of 19511 to 1956, under the leadership of Jawaharlal Nehru. Domar model with a few modifications. |. twas launched for the dur nee ba on rea ORL _— ‘Ads by Jagran.TV wre A i RsemetaEREENs on the aguntimabmlemeiomTenbof the country. an opts IV. This plan was successful and achieved a growth rate of 3.6% (more than its target of 2.1%] V. Atthe end of this plan, five lTs were set up in the country. bb pre Per GS “hon Seo madras, Kanpur, Bom S — . voelne ; in? is] 2. Second Five Year Plan: | “i Fa duakn |. Itwas made for the duration of 1956 to 1961, under the leadership of Jawaharlal <—~"Il, twas based on the P.C. Mahalanobis Model made in the year 1953. model I tts main focus was on the industrial development of the country. — IV. This plan lags behind its target growth rate of 4.5% and achieved a growth rate of n V. However, this plan was criticized by many experts and as a result, Indiafaceda 7 ex payment crisis in the year 1957. tn bom (P.C. Mahalanobis) C5 Bas we faced snontage i os1. 9a daasia ater: Lge TaeteTe aw F agra FH 1951 AF 1956 Ar grater a few ciea Far war aT aacdta. ag po sealer & are Ris-slax Hise we Hen aT sraror.état garer Ferarset Gana. Saar Fea THe aah HAY fear Ww aT Se. easter Font eet BAC 3.6% (SEMY wT 2.1% & AR) A fae ze Mr n far ahaa & sig a ber a oer a sSal At Tae AY aTS| 2. afadra saad ater: hh tlh Si ak ah ll aaa, ag ah. We arena al Agrees Alsat TT 1953 A sere ara al qeaa. saa Aer Hla eer & stasis fears we al aga. UE Asien area ae ar ax 4.5% B ores F I 4.27% H fears a afte & 81 a. geil, sa ator Fr as Paeteat a area Fr sik GRoraeawy, RA at af 1957 A spicier Hehe HT AAA AE TST (Stat, areroreit fae)3. Third Five Year Plan: |. It was made for the duration of 1961 to 1966, under the leadership of Jawaharlal Nehru. Il. This plan is also called ‘Gadgil Yojna’, after the Deputy Chairman of Planning Commissior{D.R. Gadgi +4 + lll. The main target of this plan was to make the economy independent. The stress was laid on agriculture and the improvement in the production of wheat. IV. During the execution of this plan, India was engaged in two wars: (1) the Sino- India war of 1962 and (2) the Indo-Pakistani war of 1965. These wars exposed the weakness in our economy and shifted the focus to the defence industry, the Indian Army, and the stabilization of the price (India witnessed inflation). V. The plan was a flop due to wars and drought. The target growth w: while the achieved growth wa: roa3. dhet caasfa aterm: 3a Hate alee & aged A 1961 A 1966 Ar arate & fore serar Tat al afadta. aoa arater & sorewat Sait. & aA OT Se Aste HY “TSheT Qo’ aft Her stat B1 asterer. dae. sa Borel HT AGT aes sega HY Lada Tala ATI ry 3st ag & seme A gut oe ae ar ae ade. $a ase & areieaaa & chia, aa et yeut A seen B37 Mt: (1) 1962 ar sirge-xitt qu iq (2) 1965 ar sa-areeaTeT Fae sen Bent sekenaear Hae ay some fen aN camer Sioa ae ee 3 eae: ada Gen, atk Brera ar Rater (Na eae I a. geu sit Ge & HoT Alor Heer TEN TEA Fale 5.6% wt ates vite qafer 2.4% eft!|. Due to the failure of the previous plan, the government announced three annual plans called Plan Holidays from 1966 to 1969. Il. The main reason behind the plan holidays was the Indo-Pakistani war and the to the failure of the third Five Year Plan. : Ill. During this plat ind equal priority was given to 4 bb s allied sectors and the 4 \4 V. In a bid to increase the exports in the country, the government 1qot © declared devaluation of the rupee. [40e- 64"4. Beta TTT: |. recht Storer Fr fatrorar a HRT, ACHR at 1966 S 1969 aw coat Betset are Aer after atorenait Ft arsor Fr afadta. aterm or gcfeat & drs Aer SNOT aaa taesT Fae HT dhe-aa gee an, Taras aero Aaet Gaavta atstar fame a 2181 aa. sa Bort & cha, ate atsrent sans ag 3k HT ah Beart eat ae segher @a at Bare Mais at 7S v.ae a fata sert & fae aan a eat Hager At ateur Ar!7 5. Fourth Five Year Plan = |. Its duration was from 1969 to 1974, under the leadership of Indira Gandhi. py. II. There were two main objectives of this plan i.e. growth with stability and 5 Swami progressive achievement of self-reliance. al n marran Ill, During this time, 14 major indian banks were nationalized and the Gréen ——— Revolution was started, Indo-Pakistani War of 1972 and the Bangladesh Liberation War took place. IV. Implementation of Family Planning Programmes was amongst major targets of the Plan V. This plan failed and could achieve a growth rate of 3.3% only against the target of5. abet taadia atern: Lge aie & agqca A sar staf 1969 & 1974 aw el afadta. sa aise & at Fer sages & zara Peat & are faare se areata &r varfeelter Srerfeer gate. ge dhoet 14 va ania dat ar asgtrencor fear aren 3k eat write A esa el 1971 ar sia-TRREaTAT yeu sie sisoreer afer qer gr ada. GRax feats arinat a arated oot & wa cea A a we aT V.4e Brora farmer Ter SH 5.7% & ae H AHI Hac 3.3% Ar faaray at sitet we TAT!£—~ 6. Fifth Five Year Plan: an |. Its duration was 1974 to 1978. te IL This plan focussed on Garibi Hatao, employment, justice, agricultural production _ 3 wa and defence. ar fon Ill. The Electricity Supply Act was amended in 1975, a Twenty-point program was 7 © 100! launched in 1975, the Minimum Needs Programme (MNP) and the Indian National Highway System was introduced. lov ore ars IV. Overall this plan was successful which achieved a growth of 4.8% against the — target of V. This plan was terminated in 1978 by the newly elected Moraji Desai government. [lant Lox Gabka erection] 7 Tsk nos Long ne SS nn’ od6. oredt daasfa ater: |. gach safer 1974 & 1978 er aad, ae stata attat serait, Vor, =a, HIT Scat FH La Ww afta af ge. 1975 & facaa arated africa A eel fear ara, 1975 awa ant at arin ae Pear FM, HIS Bawa SRA (waver) 3R andrea USER UAT ToT ee Fr ATS! aaa. Sel PAL AE Atste yet TE Bie TeT 4.4% Aaa 4.8% Fr aie after Fr 1S dt. sa ataet #1 1978 a aafeaifaa ANT eS WAN TANT AAA HL fear sar art- |. After the termination of the fifth Five Year Plan, the Rolling Plan came into effect from 1978to1996, 178° Il. In 1980, Congress rejected the Rolling Plan and a new sixth Five Year Plan was introduced. lll. Three plans were introduced under the Rolling plan: (1) For the budget of the present year (2) this plan was for a fixed number of years-- 3,4 or 5 (3) Perspective plan for long terms-- 10, 15 or 20 years. IV. The plan has several advantages as the targets could be mended and projects, allocations, etc. were variable to the country's economy. This means that if the targets can be amended each year, it would be difficult to achieve the targets and will result in destabilization in the Indian economy.7. Ofer Arete: \.oradt Gaavta aster Fr wenfea & ara, Uieer arse 1978 B 1990 aw al gl eet 1980 4, aide a Ofer Boren a aredrern ax Par sk ww as wel aaa area ter Ar aS ade. Wert atsten & 3iccta cet Bored ew Fr aS: (1) cake k aac & fae (2) ae aor fAfeaa ast & fw et - 3,4 ar 5 (3) wat wae & fore aes aster - 10, 15 a 20 ae. aga. sa aloen & as wae § saith aes wt Ye ot HaHa a sik aaa, ardeat amie eer fr areteraeer & few ofacerehter M1 sae Aaea ue ¢ fH aie aeat ar at we Bea fear at wha %, at aes Bae Her aftr gen 3ik sah cRoracaen andre aricaaear A aifeenar eri8. Sixth Five Year Pla |. Its duration was from 1980 to 1985, under the leadership of Indira Gandhi. Il. The basic objective of this plan was economic liberalization by eradicating poverty and achieving technological self-reliance. Ill. It was based on investment Yojna, infrastructural changing, and trend to the growth model. IV. Its growth target was 5.2% but it achieved 25.7% growth. 9. I. ST ee nr ie leadership of Rajiv Gandhi ll. The objectives of this plan include the establishment of a self-sufficient economy, opportunities for productive employment, and up-gradation of technology. Ill. The Plan aimed at accelerating food grain production, increasing employment opportunities & raising productivity with a focus on ‘food, ity IV. For the first time, th over thi V. Its growth target wa: % but it achiever8. wd Goats aterm: L.gfear amet & atfea A sehr staf 1980 A 1985 aa at afacdta. sa arte Hr Aer SeeVa at Seeoret HN acpelchY arcAfetsaT wicet ater afer Serta eT Geta. ag ferder ator, gferendt att A acora si faare aise At wafer uy arena aT aga. FAH HT TaT 5.2% a afer See 5.7% AT Fat eee Atl 9. aad taasfa ats: Latta are & ated A sehr safe 1985 A 1990 aw effi afadra. sa ator & segeat a arene arleraeen Fr Large, SEH Veeme H Hae 3 wear ar Seereet enferet FI gate. Storer ar seeea Tewed ScHeat A ash aren, Wore H Ha dort sik ‘sist, art 3k ScHehal W tae Aiea ata Be SMa agra Bl aga. Usel an, fest aa ar adotfets ata A afl werlAar Ach V. Seen FAST AeA 5.0% Uw Afehet Sal 6.01% Biter Fear!10. |. Eighth Five Year Plan could not take place due to the volatile political situation at the centre. Il. Two annual programmes were formed for the year 1990-918 1991-92, nan an 709 11. ai é |. Its duration was from under the leadership of PV. Narasimha Rao, [Finance Il. In this plan, the top priority was given to the development of human resources i.e. | employment, education, and public health. mints ror] Ill, During this plan, Narasimha Rao Govt. launched the New Economic Policy of (aD ft Por Pol eu] IV. Some of the main economic outcomes during the eighth plan period were rapid economic growth (highest annual growth rate so far - 6.8 %), high growth of agriculture and allied sector, and manufacturing sector, growth in exports and imports, improvement in trade and current account deficit. A high growth rate was achieved even though the share of the public sector in total investment had declined considerably to about 34 % V. This plan was successful and got an annual growth rate off61808 against the target of10. arf ater: nes FH afear wore Rafe & aor srodt taavia astm orgy at a | afacta, af 1990-91 vd 1991-92 & fae at afte arden sat wal 11. sredt daadfa aterm: L.gechr arate Ghat. a aqea A 1992 A 1997 aw at aRfaeer Ua. afadtr. se aster # arta Benet areata Vorme, Pew sx ardorien rareea & fare at afer vrefernen at ag! gate. se aioen & chia aaeer Ta Wa. ane FY as anlar aia a apsrear frat! aga. atodt arsrar safer & chr He Aue ante aoa ft dia ante faare (xa ce At Seaat arte fant ex - 6.8%), aie sik dace at aity fafernter ata Ft sea gefe, frata Hk arena A gefe, cara ate actaret 4 gun Gat aren. ‘Soa Rare a aaa a aS, ate 1 Het Feraer HB adatas as A Regal art war gat aa 34% at aS a ae WHS Wr HL TET 5.6% Havad 6.8% HM ake gah ax Ud oT!12. Ninth Five Year Plan: |. Its duration was from 1997 to 2002, under the leadership of Atal Bihari Vajpayee. II. The main focus of this plan was “Growth with Social Justice and Equality”. Ill. It was launched in the ia. IV. This plan failed to achieve the growth target of and achieved a growth rate of 13. Tenth Five Year Plan: |. Its duration was from 2002'to 2007, under the leadership of Atal Bihari Vajpayee and Manmohan Singh. [" 2 09 | Il. This plan aimed to double the in the next0year: Ill Italso aimed to reduce the poverty ratio to 15% by 2012. IV. Its growth target was 8.0% but it achieved only 7.63.12. atdt caasfa aterm: |. eet faeRt arses a aca A sah safe 1997 H 2002 aw eI glace. sa ahaa ar Aer wrens “waite eae He BAteta & Bre fare" al get. sa amet Fr aronet & 50g at A ctiea Fer aa atl aga. Ue Aste 6.5% & AH sey Hl cag Heer A fawHar WET ZH 5.6% ay Peers ax afer Fr 13. aad} caasfa ats: Heat fae arte stk aetalet Ae aqea A sad Haft 2002 & 2007 ae eff aad. sa aster ar aes sere 10 ast A aa Ar wie cata ara ar Qe Axe IT adits. Sen ea 2012 aw atta Hepat Ft 15% am HA Atel AT! aga. eat FIST Ae 8.0% et aidet Sa hat 7.6% & sea gl14. Eleventh Five Year Plan: |. Its duration was from 2007 to 2012, under the leadership offfVianmOhaniSingh. Il. It was prepared by the Ill. Its main theme was “1 IV. It achieved a growth rate ora a target of 9% growth. 15. Sepia |. Its duration is from , under the leadership of Manmohan Singh. Il. Its main theme is “Faster, More Inclusive and Sustainable Growth”. Ill. Its growth rate target was 8%. Aecnieved = “Tes ]14, Tanedt Gaasfa ater: |e he ges GH ae 2007 & 2012 a eh afada. 38 a. wants F ada. saat Hee faye “dst ot bela waeeht fone” 2! aay. = 9% face ax & eT a HATA 8% At aH ax I 15. anedt taasfa ater: \-gaeht wat worries fie & Agee #2012 & 2017 aw Bl afadra. seer qa fava “dot, sf caraeft 3k Gad faa" Zz! aan. suert (ART aX TET 8% ATI