भारतीय अर्थव्यवस्था (Indian Economy)

 Indian Economy

Sectors of Indian Economy

Primary sector - This includes agriculture, animal husbandry, fisheries, obtaining goods from the forests, etc.

Secondary sector - includes industry, mineral business, construction work etc.

Tertiary Sector - This is called service sector. It includes activities like bank, insurance, transport communication and trade.

Type of economy

There are three types of economies in the world

Capitalist Economy - It is owned by private individuals over the means of production which they use for their own personal gain. Such as - America, France, Japan etc.

Socialist Economy - In this the government owns and controls the means of production which are used for social welfare. Countries like China, Cuba etc.

Mixed economy - where the means of production are owned by the government and private individuals. The Indian economy is a mixed economy.

Economic planning in india

The Planning Commission was established on 15 March 1950 on the recommendation of the Niyogi Committee. It was a non-constitutional body. It was formed by the government's proposal. On 1 January 2015, the Planning Commission was abolished and replaced by the Policy Commission (NITI).

The National Development Council (NDC) was formed on 6 August 1952. It used to approve the five-year plans final.

Characteristics of Indian economy

Low income per capita;

Engaging a large segment of the population in the primary sector;

Technical backwardness;

Lack of capital;

Defective asset distribution;

Unemployment;

Large population.

National income

National income is the sum of the net worth of final goods and services produced by a country's economy over a period of one year.

National income counts the income earned by citizens abroad but excludes income earned by foreign nationals within the country.

Dada Bhai Naoroji first estimated national income in India. According to his assessment, the per capita income in the country was Rs 20 in 1867-68.

The National Income Committee was formed in 1949 to estimate the national income after independence.

PC Mahalanovis was made the chairman of the National Income Committee.

The concept of Hindu growth rate in the context of national income in India was presented by Prof. Raj Krishna.

National income is represented in four ways- GDP, NDP, GNP, NNP.

Gross Domestic Product (GDP): The total monetary value of final goods and services produced in a financial year within a certain geographical range is called GDP.

Gross domestic product also calculates the income of foreign nationals residing in the country but the income earned by the citizens of the country abroad is not included.

Net Domestic Product, (Net Domestic Product, NDP): The balance that is left in the economy of a country after deducting depreciation from the GDP of a financial year is called net domestic product.

NDP = GDP - Depreciation.

Gross National Product, GNP: is the total monetary value of goods and services produced by citizens in a financial year.

GNP = GDP + Income of overseas citizens - Income of foreign nationals in the country.

Net National Product (NNP): The net national product remaining after subtracting depreciation from the gross national product of a financial year in a country's economy is called net national product.

NNP = GNP - Depreciation.

Gross National Product - Depreciation = Net National Product.

National Income (NI): When the net national income (NNP) is estimated on the basis of instrument cost, it is national income.

If assessed at market price, national income = net national excise - indirect tax + subsidy.

Per Capita Income, (Per Capita Income, PCI) = National Income कुल Total population of the nation.

When the per capita income is calculated in the context of the current year, it is called per capita income based on the current value.

Per capita income at constant value is calculated with reference to a given base year. At present, the base year has been extended from 2004-05 to 2011-12.

National income in India is calculated during the period from April 1 to March 31 of the financial year.

National income in India is calculated by the Central Statistical Organization (CSO).

The Central Statistical Organization was formed on 02 May 1951. It has its headquarters in New Delhi and its sub-headquarters in Kolkata.

The contribution of tertiary sector to national income in India is maximum, followed by secondary and tertiary sector respectively.

India is on course to become a major economic power in the world.

India ranks third after the US and China in terms of purchasing power.

India is the seventh largest economy in the world by GDP.

Devaluation of currency

When the value of a country's currency is deliberately reduced relative to the value of another country's currency, that process is called the devaluation of the currency. Devaluation increases exports and reduces imports, ie devaluation increases the balance of foreign trade. The Indian currency has been devalued three times in 1948, 1966 and 1991.

Demonetization:

When a denomination of a denomination is abolished, the process is called demonetisation. Demonetization aims to make black money economical.

In 1946, notes of 1000 rupees and 10000 rupees were abolished.

In 1978, notes of 1000,5000 and 10000 rupees were dropped.

The circulation of 500 rupees and 1000 rupee notes was discontinued on 08 November 2016.

The one rupee note is signed by the Finance Secretary of India.

Notes worth more than one rupee are signed by the Governor of the Reserve Bank of India.

There are three Security Presses in India:

National Security Press - Nashik,

Indian Security Press - Hyderabad and

Currency Paper Mill - Hoshangabad.

Note Press:

Currency Note Press - Nashik,

Bank Note Press - Dewas (Madhya Pradesh), Salwani (West Bengal), Mysore (Karnataka).

Inflation:

When the value of currency decreases and the prices of goods increase.

Inflation Inflation: -

In this, the value of currency decreases.

Decreased purchasing power leads to an increase in the value of goods and services

The exchange rate decreases thus reducing imports and increasing exports.

Producers and investors benefit.

Employees and workers are at a disadvantage.

The debtor gains but the debtors lose.

Mild inflation is beneficial for the economy.

Currency contraction:

When the value of currency increases and the prices of goods decrease. This is the exact opposite of inflation.

Stagflation:

When both inflation and unemployment are simultaneously at high rates, the AC situation is called inflationary slowdown, which is a very dangerous situation for any economy.