CPT Chapter Nature of Indian Economy

CA CPT Exam  

With Jaya.Duration: 1hrs 35 mins

Nature of Indian EconomyDuration (min:sec)
Overview of Macro Economics in India 
What is Economics02:48
Micro vs. Macro Economics03:41
How Economist Look at World Map03:37
Overview of India02:02
Role of Planning Commission & Census03:06
India -Underdeveloped Economy 
Features of Underdeveloped Economy01:46
India Underdeveloped Country- Part120:40
India Underdeveloped Country- Part2( HDI & Gini Index)06:35
Conclusion India Undeveloped Country01:23
India -Developing Economy 
India a Developing Economy- Rise in Income04:49
India a Developing Economy-Change in Occupational Workforce14:35
India a Developing Economy-Other Reasons14:31
Conclusion India Developing Economy02:43
India - Mixed Economy03:01


Micro Economics vs Macro Economics

Micro Economics:
a.Individual Consumption pattern
b.Production pattern of a Firm
c.Pricing Policy of any product

Macro Economics:
a.Government / Foreign Sector

Key Statistics About India

Population : India 1.25 Billion (World Population 7 Billion)
Diverse Country, Rich Heritage
Run by Plans
Census done every 10 year

Features of an Underdeveloped Economy

Agriculture -main occupation
Population- high growth rate
Standard of living- low
Production techniques- backward
Unemployment - high
Human well being - low
Income Inequalities - widespread
Low participation - foreign trade,social life traditional & orthodox

India’s Case

Dependency on Agriculture :
Main occupation. Independence 72% to 49%. increase in absolute no.

Poverty :
Very high.Every 3rd Poor person in World is Indian.22%

Growth rate @2%, death rate have fallen.population on rise.
Dependency ratio 57.5% (below 15 + above 64)

India - A developing Economy
i.Rise in National Income
1950-1991 - @3.5%p.a
1991- 2011- @6.8%p.a
2012-13 <5%
2nd fastest growing economies only after china

ii.Rise in per capita Income
1950-51=₹ 7114
2013-14=₹ 39,904
1950 to 1991=@1.6%p.a
From 1991 till date=@5.5%p.a

iii.Change in Occupational distribution of population:
Primary sector(Natural Resources): Agriculture, Mining, Poultry, Forestry, Fishing.
Secondary sector (Finished usable products): Manufacturing including Construction,Electricity, Gas & Water supply.
Tertiary sector(Services): Trade, Transport, Communication, Banking, Hotels, Restaurants, Storage, Financial Institutions, Insurance, Real Estate, Social & Personal services.

iii.Change in Occupational Sector

iv. Changes in GDP Distribution

v.Growing capital base

vi.Improvement in Social overhead capital
- Indian railways :65000 km.World’s 4th largest.
- Indian road network:One of the largest in world.4.86 million km.
- Electricity generation capacity:243,000 MW against 2,300 MW in 1950-51
- Irrigation facility: Increased from 22.6 M ha 1950-51 to 63 M ha in 12-13
- No. of colleges: increases 23 times,35,000 colleges, 642 universities
- Literacy rate:73% in 2011 from 18.33% to 1951
- No of doctors: increased 14 times from 61,800 to 9 lakh in 2012.
- Bed- population ratio :1.03/1000 from 0.32/1000 in 1950-51

India - A Mixed Economy
Private ownership of means of production
Important role of Market mechanism
Growth of monopoly houses
Presence of large public sector along with free enterprise
Economic planning for realising national economics goals

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