It is known to everyone that agriculture is the backbone of Indian economy. It provides direct employment to 53% population of the country. Currently it is contributing 14% of Indian GDP. In this article we provided the status of Indian states in terms of different crops produced by them.
The latest report on the state per capita income released by the Ministry of Statistics and Programme Implementation on 20 Aug 2015, says that Goa has highest state per capita income followed by Delhi and Sikkim respectively. While Bihar, Uttar Pradesh, Manipur, Assam, and Jharkhand are top 5 poorest states in terms of NSDP per capita.
To provide better life to rural peoples the Govt. of India launched a programme called "Bharat Nirman" on December 16, 2005. This scheme will focus on six areas i.e. Bijli, Pani Sadak, Irrigation,Telecommunication and housing in rural areas of the country.
Suresh Tendulkar panel (in 2011-12) said that those who spend Rs. 27 in rural areas and Rs. 33 in urban areas are not poor. While an expert panel headed by former RBI governor C. Rangarajan said in a report submitted to the BJP government in July, 2014 that those spending over Rs 32 a day in rural areas and Rs 47 in towns and cities should not be considered poor.
There are so many financial companies established in India to absorb the saving of household sector. Government mobilizes this small saving in the economy through these financial institutions. These major and small institutions play the same role in the economy as the blood in the human body. Some examples of these financial institutions are RBI, SEBI, IDBI, EXIM Bank and Export Credit Guarantee Corporation of India (ECGC).
Speaking at the Indian Banks’ Association’s annual general meeting, Arun Jaitley said that “The government is looking to reduce its stake in State-run banks to 52 per cent to make them more professional and independent.” At present, the government owns over 59 per cent stake in State Bank of India, the country’s largest public sector lender, 81.5 per cent in Central Bank of India, 71.7per cent in IDBI Bank.
Security Printing and Minting Corporation of India Limited (SPMCIL) is a Miniratna Category-I CPSE, and wholly owned Schedule ‘A’ Company of Government of India, is engaged in the manufacturing of security papers, minting of coins, printing of bank notes, non-judicial stamp papers, postage stamps and travel documents, etc.
Small and Medium Enterprises Development Bill 2005 (which was presented in the parliament on May 12, 2005) has been approved by the president and thus become an act. This act is named as ‘The Small And Medium Enterprises Development Act, 2006’. This act became effective from Oct. 2006.
Economic planning is the process in which the limited natural resources are used skillfully so as to achieve the desired goals. The concept of economic planning in India is derived from the Russia (then USSR). India has launched 11 five year plans so far and 12th is in progress. First five year plan was launched in 1951.
The Overall generation in the country has been increased from 1048.673 during 2014-15 to 1107.386 BU* during the year 2015-16. The Category wise generation performance is as follows:- Thermal Increased by 7.45 %, Hydro Reduced by 6.09 %, Nuclear Increased by 3.63 %. Overall leader of electricity generation in India is thermal power (68%) of total power generation in India.
PSUs may be classified as Central Public Sector Enterprises (CPSEs), public sector banks (PSBs) or State Level Public Enterprises (SLPEs). CPSEs are administered by the Ministry of Heavy Industries and Public Enterprises. As on 26 October, 2014, there are 7 Maharatnas and 17 Navratnas in India.
Indian economy is termed as the developing economy of the world. Some features like low per capita income, higher population below poverty line, poor infrastructure, agriculture based economy and lower rate of capital formation, tagged it as a developing economy in the world.
The Complete Study Material of “Indian Economy” is segmented into 5 Sections to streamline the learning process for all students who are at a learning stage with the reference of NCERT economics book and some other academic books.
The finance commission is constituted by the president of India under the provision of article 280 of the Indian constitution for five years. It decides the share of states in the total tax collection of the centre government. The 14th finance commission is headed by the former RBI governor Mr. Y.V. Reddy.
The Group of Eight (G-8) refers to the group of eight highly industrialized nations—France, Germany, Italy, the United Kingdom, Japan, the United States, Canada, and Russia—that hold an annual meeting to foster consensus on global issues like economic growth and crisis management, global security, energy, and terrorism. The G6 was made up of France, Germany, Italy, Japan, the UK and America. It then changed to G7 when Canada joined in 1976 and G8 with Russia in 1998.
South Asian Preferential Trade Agreement (SAPTA- 1993) was envisaged primarily as the first step towards the transition to a South Asian Free Trade Area (SAFTA) leading subsequently towards a Customs Union, Common Market and Economic Union. In 1995, the Sixteenth session of the Council of Ministers (New Delhi, 18-19 December 1995) agreed on the need to strive for the realization of SAFTA. At the12th SAARC Summit (Jan. 4-6, 2004) at Islamabad, the Capital City of Pakistan, SAPTA became SAFTA. ASEAN (1967) is a union of South-East Asian Nations.
The World Bank Group (WBG) is a family of five international organizations that are the International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA), The International Finance Corporation (IFC), The Multilateral Investment Guarantee Agency (MIGA) and the International Centre for Settlement of Investment Disputes (ICSID). IFC was established in July 1956 that provides loans to private industries for developing nations without any government guarantee and also promotes the additional capital investment in these countries. MIGA came into existence on April 1988.
BRICS (Brazil, Russia, India and China, South Africa) was initially formulated in 2001 by economist Jim O'Neill, of Goldman Sachs, in a report on growth prospects for the economies of Brazil, Russia, India and China – which together represented a significant share of the world's production and population. In 2006, the four countries initiated a regular informal diplomatic coordination, with annual meetings of Foreign Ministers at the margins of the General Debate of the UN General Assembly (UNGA).
The European Union (EU) is a unique economic and political partnership between 28 European countries that together cover much of the continent. It was created in the aftermath of the Second World War. The first steps were to foster economic cooperation: the idea being that countries that trade with one another become economically interdependent and so more likely to avoid conflict. It is based on the rule of law: everything that it does is founded on treaties, voluntarily and democratically agreed by all members.
IBSA was Established in June 2003,as a coordinating mechanism amongst three emerging countries(India, Brazil, South Africa), three multi ethnic and multicultural democracies, which are determined to: contribute to the construction of a new international architecture, bring their voice together on global issues, deepen their ties in various areas. Trade between IBSA partners has increased significantly since the Forum's inception and indications are that the target of US$ 25 billion by 2015 will be readily achieved.
The International Bank for Reconstruction and Development (IBRD) was created in 1944 to help Europe rebuild after World War II. Today, IBRD provides loans and other assistance primarily to middle income countries. IBRD is the original World Bank institution. It works closely with the rest of the World Bank Group (IBRD, IDA, IFC, MIGA) to help developing countries reduce poverty, promote economic growth, and build prosperity. IBRD is owned by the governments of its 188 member countries.
The World Trade Organisation (WTO) is an international organisation which sets the rules for global trade. This organisation was set up in 1995 as the successor to the General Agreement on Trade and Tariffs (GATT) created after the Second World War. It has 153 members. All decisions are taken unanimously but the major economic powers such as the US, EU and Japan has managed to use the WTO to frame rules of trade to advance their own interests.
The International Monetary Fund (IMF) is the inter-governmental organisation established to stabilize the exchange rate in the international trade. It helps the member countries to improve their Balance of Payment (BOP) condition thorough the adequate liquidity in the international market, promote the growth of global monetary cooperation, secure financial stability, facilitate international trade. It is one of the Bretton woods twins, which came into existence in 1945, is governed by and accountable to the 188 countries that make up its near-global membership.
Trade-Related Aspects of Intellectual Property Rights (TRIPS) is arguably the most important and comprehensive international agreement on intellectual property rights. Member countries of the WTO are automatically bound by the agreement. The Agreement covers most forms of intellectual property including patents, copyright, trademarks, geographical indications, industrial designs, trade secrets, and exclusionary rights over new plant varieties. It came into force on 1 January 1995 and is binding on all members of the World Trade Organization (WTO).
The Foreign Direct Investment (FDI) means “cross border investment made by a resident in one economy OR in an enterprise in another economy, with the aim of earning profits in the targeted country. Mostly the investment is into production by either buying a company in the targeted country or by expanding operations of an existing business in that country”. These investments can be made for many reasons, i.e. to take advantage of cheaper wage rate, special investment facilities offered by the country or the conducive atmosphere in the country.
The government of India has liberalized the schemes for the export oriented units and export processing zones, agriculture, horticulture, poultry, fisheries and dairying have been included in the export oriented units. Export promotion capital goods schemes (EPCGS) has been started to permit the exporters to import capital goods on concessional import duties. Under the EPCGS scheme, such importers of capital goods have to export goods of 4 times values of import within next five years. Establishment of the EXIM bank and SEZs promoted the export from country.
In 1950 the Indian share in the world trade was 1.78% which came down to 0.6% in 1995. Currently it is 2.07% ($779 bn.) of the total world trade. The percentage of non traditional goods in total exports has increased the exports of chemical and engineering goods have shown a high growth rate. The manufactured goods constitute the bulk of export over 64% in recent years, followed by crude and petroleum products (including coal) with a 20% share and agriculture & allied with just 13% share.
Under the Agreement on Trade-Related Investment Measures of the World Trade Organization (WTO), commonly known as the TRIMs Agreement, WTO members have agreed not to apply certain investment measures related to trade in goods that restrict or distort trade. The TRIMs Agreement prohibits certain measures that violate the national treatment and quantitative restrictions requirements of the General Agreement on Tariffs and Trade (GATT).
Foreign exchange market is the market in which foreign currencies are bought and sold. Being a member of IMF, India followed the par value system of pegged exchange rate system. But when the Breton Woods system collapsed in 1971, the rupee was pegged to pound sterling for four years after which it was initially linked to the basket of 14 currencies but later reduced to 5 currencies of India’s major trading partners. Currently India has adopted the managed exchange rate system.
In the budget of 1997-98, the government had proposed to replace FERA-1973, by FEMA (Foreign Exchange management act). FEMA was proposed by the both house of the parliament in Dec. 1999. After the approval of president, FEMA 1999 has come into force w.e.f. June, 2000. Under the FEMA, provisions related to foreign exchange have been modified and liberalized so as to simplify foreign trade. Government hopes that the FEMA will make favourable development in the foreign money market.