Economy Notes For SSC IBPS RBI SBI PO and Other Competitive Examinations
Introduction
- Economy is the study of production, distribution, trade and consumption of goods and services in a geographical region.
- Indian Economy is the 7th largest in world on the basis of nominal GDP.
- Indian Economy is the 3rd largest on the basis of PPP( Purchasing Power Parity).
- Indian Economy is a developing economy.
- Indian Economy is complex, diverse and quickly varying in nature.
- As per the World development report(2015), India possess the following-
- Discrepancy in income distribution
- Dominance of agriculture
- Burden on agriculture
- Overpopulation
- Lack of capital
- Unbalanced economic Development
- Market imperfections
- Constraint Availability of transport and communication
- Low pace of development
Important Facts of Indian Economy
- Population
- The Total Population is about 121.0854 crore as per the census 2011.
- The Total rural population is 83.37 crore.
- The Total urban population is about 37.71 crore.
- Sex ratio ( Male to Female ratio) i.e no. of females per 1000 males is 943.
- Child sex ratio i.e children between 0 to 6 years is 919.
- State with highest sex ratio is Kerala.The sex ratio in Kerala is 1084 as per the census 2011.
- According to world bank the total labour force in india is 48.43 crore.
- Population Density is 382 per sq km ( Census 2011).
- Birth Rate(BR) is 21.3 per thousand population( upto year 2013).
- Death Rate(DR) is 7 per thousand (upto 2013).
- The Maternal Mortality Rate ( MMR) is 167 per 100000 live births (2011-13)
- The overall literacy rate of persons is 73% (2011)-
Rural Female- 57.9%
Rural Male – 77.2%
Urban Female- 79.1%
Urban Male- 88.8% - Infant mortality rate is 40 per thousand live births (2013).
- Child Mortality rate is 49 per thousand Children (between 0 to 5 yrs).
- The Life expectancy is 68.13 years at the time of birth.
- National Income Estimates
- The Gross Domestic Product (GDP) at constant prices 2015-16 is 113.51 lakh crore
(Actual Estimates ). - The Gross National Product (GNP) at constant prices (2011-12) for the year 2015-16 is 112.14 lakh crore(AE).
- The GNP at current price for the year 2015-16 is 134.10 lakh crore(AE).
- The Net National Product (NNP) at constant prices( 2011-12) for the year 2015 -16 is 99.34 lakh crore(AE).
- The NNP at current price for year 2015-16 is 119.61 lakh crore(AE).
- Per Capita income (Average income of a country) at constant prices (2011-12) for the year 2015-16 is 77431.
- Per capita income at current prices for the year 2015-16 is 93231.
| Year | Agriculture | Industry | Service |
| 2013-14 | 4.2 | 5.0 | 7.8 |
| 2014-15 | (-)0.2 | 5.9 | 10.3 |
| 2015-16 | 1.1 | 7.3 | 9.2 |
Table showing GDP Growth in major sectors
- Main Production
| Cement (2013-14) | 303 million tonnes |
| Coal (2014-15) | 447.5 million tonnes |
| Crude oil (2013-14) | 37.77 million tonnes |
| Electricity generated (2014-15) | 1256 billion kwh |
| Raw Steel (2014-15) | 86.5 million tonnes |
| Food grains( 2014-15) | 252.68 million tonnes |
Table showing Main production of different commodities
Highest Production States
Highest production of Wheat Uttar Pradesh
Highest production of Rice West Bengal
Highest production of Pulses Madhya Pradesh
Highest production of Coarse Cereals Rajasthan
Highest production of Total Foodgrains Uttar pradesh
Highest production of Oilseeds Madhya Pradesh
Highest production of Sugarcane Uttar Pradesh
Highest production of Cotton Gujarat
Highest production of Onion Maharashtra
Highest production of Potato West Bengal
Highest production of Jute and Mesta West Bengal
Monetary and Credit Policy
Bank rate 7%
Marginal standing facility rate (MSFR) 7%
Repo Rate (RR) 6.5%
Reverse repo rate(RRR) 6%
Statutory Liquidity Ratio(SLR) 21.25%
Cash Reserve Ratio (CRR) 4%
Sectors of Indian economy
- Primary Sector
- Activities are associated with production of goods by exploitation of the natural resources.
- This sector forms the basis for all other products.
- Since most of the natural products we get are from agriculture, Dairy, fishing, Forestry etc so this sector is also called “Agriculture” sector.
- For instance-cotton cultivation, Wheat cultivation, Sugarcane cultivation
- Secondary Sector
- Activities in which natural products are converted into the usable forms through the ways of manufacturing comes under secondary sector.
- It is also called “Industrial sector” or “Manufacturing sector”.
- For example using cotton fibre from the plant we spin,yarn and weave cloth.
- Also using sugarcane as raw material we make ‘sugar’ or ‘gur’(Jaggery).
- Tertiary Sector
- These are the activities that help in the development of the primary sector and the secondary sector.
- They are the support or aid for the production processes.
- Also known as “Service Sector” as they generate services.
- E.g Transportation, Storage, Communication, Banking & trade.
- Some services that do not aid production also comes under this category like teachers, doctors, administrators, cobbler, lawyers etc.
Note- We need not count individual goods and services to know the total production in each sector. We only count final goods and services because the value of the final goods already include the value of all the intermediate goods that are used in making the final good. - The value the final goods and services produced in each sector during a particular year provides the total production of the sector for that year.
- The sum of production in the 3 sectors gives Gross Domestic Product (GDP) .
- It is the value of final goods and services produced within our country during the year.
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