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PAPER IV
GENE RAL STUDIES-III

Unit1

Tec hnology, Economic

Development, Bio divers ity,
Environment, Security and
Dis aster Management.

LECTURE 1

INDIAN ECONOMY

Unit 1
Indian Economy and issues
relating to planning, mobilization
of res ourc es , gr owth,
development and employment.

r Character, Size and Structure of the Indian Economy

1.1 Characteristics of the Indian Economy

Indiaisamixedeconomy.Inamixedeconomy,publicsector(governmentowned)businessenterprisesexistalongsidethe
private sector to achieve a socialistic pattern of society, in a welfare state. Ever since independence, Indias economic
developmenthasbeenguidedbythetwinobjectivesofdeveloping:(a)arapidlyandtechnologicallyprogressiveeconomy
bydemocraticmeansand (b)a socialorderbased onjustice, offeringequalopportunity toevery citizenof thecountry.
India is afederal economy. It has strong powersinvested in the Centre withfinancialindependence andadequacy, thus
creatingafederalfinancesystem.Money,currency,banking,andsourcesofrevenuewhichareexclusiveandhighyielding
areundercentraljurisdiction.ConcurrenttaxationisavoidedandefficientfinancialpowersvestwithboththeCentreand
the State Governments.
TheIndianeconomyalsodisplaysthecharacteristicfeaturesofatypicalunderdevelopedeconomy.Theseare:morethan
onethird of the population below poverty line, very low per capita income, low life expectancy,agriculture as the chief
occupation ofthe economy, swift population growth, high dietary deficiencies and mortality rates, and so on.

r Size of the Indian Economy

Sincetheadventofeconomicplanningin1950to1951,theGrossDomesticProduct(GDP)ofIndiahasgrownalittleover
eighttimes.GDPgrowthrates,whichusedtobequitelow(barringafewexceptionallygoodyears)till1991to1992,have
been reasonably respectable thereafter. Since then, with the implementation of economic reforms from 1991 to 1992
onwards, growth rates have stabilized around 56 per cent. However, if one looks at India in a global scenario, India
accounts for hardly 1.0 per cent of the total world GDP.

Table1:SizeoftheIndianEconomy
GDPatFactorCost(Rs000cr)

PercentageofChangeOver

(at20042005Prices

PreviousPeriod(at20042005)

200506

3,249

9.5

200607

3,564

9.6

200708

3,896

9.3

200809

4,158

6.7

200910
(ProvisionalEstimates

4,507

8.4

201011(QuickEstimates)

4,885

8.4

201112
(AdvanceEstimates)

5,222

6.9

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India'sGDPatPPPisestimatedatUS$5.16trillionorUS$3.19trillion,dependinguponwhethertheoldornewconversion
is used. In the formercase, India is the third largest economy in the world,behind the United States and China,while
in the latter it is the fifth largest, behind Japan and Germany.
Table2:SectoralStructureofIndianEconomy(at200405prices)
Sectors/
Year

1950
1990
2002
2003
1951(%) 1991(%) 2003(%) 2004(%)

2004
2005(%)

2005
2006(%)

2006
2007(%)

2007
2008
2009
2010
2011
2008(%) 2009(%) 2010(%) 2011(%) 2012*(%)

Agriculture
andallied

55.80%

31.00%

25.1%

25.8%

24.3%

19.7%

18.5%

17.9%

15.7%

14.6%

14.5%

13.9%

Industry

15.20%

29.30%

29.3%

29.4%

25.9%

26.2%

26.7%

29.1%

28.1%

28.1%

30.4%

27.1%

Services

29.00%

39.70%

45.6%

44.8%

49.8%

54.1%

54.8%

53.0%

56.2%

57.3%

55.1%

59.0%

*Advancedestimates

r NATIONALINCOMEANDSTRUCTURALCHANGES
2.1 Definition
National Incomeis thesum of domesticoutput andnet income earnedfrom abroad.As per theofficial statementof the
NationalIncomeCommittee,NationalIncomestatisticsprovideawideviewofthecountrysentireeconomy,aswellasthe
variousgroupsinthepopulationwhoparticipateasproducersandincomereceivers,andthat,ifavailableoverasubstantial
period,theyrevealclearlythebasicchangesinthecountryseconomyinthepastandsuggest,ifnotfullyreveal,trends
forthefuture.AscomparedtoNationalWealth,whichmeasuresthestockofcommoditiesheldbythenationalsofacountry
atapointoftime,NationalIncomemeasurestheproductivepowerofaneconomyinagivenperiodtoconvertcommodities
or National Wealth into goodsand services for final consumption.

2.2 Concepts of National Income

The various concepts of National Income are as follows:

(A) Gross NationalProduct (GNP): It is the money value of the total output produced or productionof finalgoods
and services by the nationals of a country during a given period of time.
(B)

GrossDomesticProduct(GDP): It isthe moneyvalue ofthe totaloutput producedor productionof finalgoods

and services within the boundaries of a nation by the nationals of the country during a given period of time.

(C) NetNationalProduct(NNP): ItisthevalueobtainedbysubtractingthedepreciationvaluefromtheGrossNational

Product ofa country.Thus, NNP= (GNP Depreciation). Itcan becalculated in twoways:(i)at themarket prices
of goods and services and (ii) at factor cost.
(D) PersonalIncome: Itisthatincomewhichisactuallyobtainedbythenationalsofacountry.Thus,PersonalIncome
=[NationalIncome(undistributedprofitsofacorporation)(paymentofthesocialsecurityprovisions)+(government
transfer payments) + (business transfer payments) + (net interest paid by the government)].
(E)

DisposablePersonalIncome: Itisobtainedbysubtractingpersonaldirecttaxesfromthepersonalincomeofthe
national of a country.

2.3 Calculation ofNational Income

1 .

GNP Method: The GNP can be obtained by adding the income earned and received by the nationals of a country
outsidetheboundariesofitscountrytotheGDP,andsubtractingtheincomereceivedbyforeignnationalsfromwithin
the country. Therefore, GNP = [GDP + (income earned by nationals outside the country) (income received by
foreignerswithinthecountry)].

2 .

NNPMethod: WhenNNPisobtainedatthefactorcost,itiscalledNationalIncome.Inotherwords,NationalIncome
is calculated by subtracting the net indirect tax from the NNP at market prices. Therefore, NNP at factor cost, or
NationalIncome=NNPatmarketprices(indirecttax)+(subsidy)(IndirectTaxesSubsidy)=NetIndirectTaxes.

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IC : PTias(IVIII11) E

2.4 India's National Income Estimates for 201011 (at 200405 Prices)
The gross national income (GNI) at factor cost: Rs. 4834759 crores.
GNI is estimated to rise by 8.3% during 201011 in comparision to the growth rate of 7.9% in 200910.
The Per capita Net National Income (NNI) at factor cost: Rs. 35,917 only.
The growth rate in per capita income is estimated at 6.5% during 201011, as against 6.1% during 200910.
New Series of National Statistics (Base Year 200405)
Historical Background
Thedevelopmentofofficialestimatesofnationalincomeandrelatedaggregatestomeettherequirementsofplanningand
policypurposesbeganafterIndependence.Recognizingtheneedforprovidingestimatesofnationalincomeonaregular
basis,GovernmentofIndiasetupaHighPoweredExpertCommitteein1949knownas'NationalIncomeCommitteeunder
theChairmanshipofProf.P.C.Mahalanobis.ItwasforthefirsttimethatthisCommitteeprovidedtheestimatesofnational
incomefortheentireIndianUnion.TheestimatesofnationalincomeanddetailsofmethodologyadoptedbytheCommittee
werepublished in the First and Final reports of the National Income Committee brought out inApril 1951 and February
1954 respectively. Following the methodology recommended by the National Income Committee, the Central Statistical
Organisation(CSO)preparedthefirstofficialestimatesofnationalincomewithbaseyear194849atconstantprices.The
CSOpublishedtheseestimatesatconstant(194849)pricesalongwiththecorrespondingestimatesatcurrentpricesand
the accounts of the Public Authorities in the publication, "Estimates of National Income" in 1956. With the gradual
improvementintheavailabilityofbasicdataovertheyears,acomprehensivereviewofmethodologyfornationalaccounts
statistics has constantly been undertaken by the CSO with a view to updating the data base and shifting the base year
to a more recent year. As a result, base years of the National Accounts Statistics series were shifted from 194849 to
196061inAugust1967,from196061to197071inJanuary1978,from197071to198081inFebruary1988,from1980
81 to 199394 in February 1999, from 199394 to 19992000 in January 2006 and from 19992000 to 200405 on 29th
January2010.Alongwiththeshiftingofbaseyearsofnationalaccountsseries,theCSOalsohadbeenmakingimprovements
inthecompilationofnationalaccountsseries,intermsofcoverageofactivities,incorporationoflatestdatasetsandlatest
internationalguidelines.
Why Change in the Base Year is Needed?
Thereasonforperiodicallychangingthebaseyearofthenationalaccountsistotakeintoaccountthestructuralchanges
whichhave takenplacein theeconomyand todepicta truepictureoftheeconomy throughmacroaggregates likeGDP,
consumptionexpenditure,capitalformationetc.Forexaminingtheperformanceoftheeconomyinrealtermsthroughthe
macroeconomicaggregateslikeGrossDomesticProduct(GDP),nationalincome,consumptionexpenditure,capitalformation
etc., estimates of these aggregates are prepared at the prices of selected year known as base year. The estimates at
the prevailing prices of the current yearare termed as"atcurrent prices", while those prepared at base year prices are
termed "at constant prices". The comparison of the estimates at constant prices, which means "in real terms", over the
years gives the measure of real growth.
Guiding Principles for New Series
The three major components influencing the present revision exerciseinclude (i) revision of base year to a more recent
year(formeaningfulanalysisofstructuralchangesintheeconomyinrealterms),(ii)completereviewoftheexistingdata
baseandmethodologyemployedintheestimationofvariousmacroeconomicaggregatesincludingchoiceofthealternative
databases on individual subjects and (iii) to the extent feasible, implementing the recommendations of the System of
NationalAccounts(SNA),1993and2008preparedundertheauspicesoftheInterSecretariatWorkingGrouponNational
Accounts comprising of the European Communities (EUROSTAT), International Monetary Fund (IMF), Organisation for
EconomicCooperationandDevelopment(OECD),United NationsandtheWorldBank.
Choice of 200405 as the Base Year
Inthepast,NationalAccountsStatisticswerereviseddecenniallychangingthebasetoayear,whichendswith1.Itwas
primarily because in the base year estimates of national accounts aggregates, the information on work force plays an
important role and work force estimates were obtained from the Population Census conducted decennially in the years
endingwith1.Thispracticecontinueduptotheserieswithbaseyear198081.Sincethen,theCSOstartedusingthework
force estimates from the results of Quinquennial Employment and Unemployment Surveys of National Sample Survey
Organisation(NSSO), whichare conductedonce inevery fiveyears, andconsequently startedrevising thebase yearsof
nationalaccountsstatisticsonceineveryfiveyearscoincidingwiththeyearsforwhichtheNSSOconductstheQuinquennial
EmploymentandUnemploymentSurveys.Incontinuationwiththispractice,thenewseriesofnationalaccountshasbeen
released with base year 200405 on 29 January, 2010 using the work 3 force data from the results of NSS 61st round
(200405)onEmploymentandUnemploymentSurvey.

IC : PTias(IVIII11) E

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Table3:GrossNationalProductandNetNationalProduct(20042005Series)
Indexnumbers(195051=100)

Year

GrossNationalProduct
atFactorCost
(Rs.Crore)

NetNationalProduct
atFactorCost
(Rs.Crore)

PerCapita
NetNationalProduct
(Rs.)

NetNational
Product

PerCapitaNet
NationalProduct

AtCurrent
Prices

At2004
2005Prices

AtCurrent
Prices

At2004
2005Prices

AtCurrent
Prices

At2004
2005Prices

AtCurrent
Prices

At2004
2005Prices

AtCurrent
Prices

At2004
2005Prices

10

11

19501951

9,995

2,78,677

9,464

2,55,405

264

7,114

100

100

100

100

19511952

10,561

2,85,558

9,985

2,62,804

274

7,200

105.5

102.9

103.8

101.2

19521953

10,424

2,93,791

9,840

2,71,541

265

7,299

104

106.3

100.3

102.6

19531954

11,359

3,11,784

10,803

2,89,931

285

7,650

114.1

113.5

108.1

107.5

19541955

10,660

3,24,830

10,154

3,05,985

263

7,927

107.3

119.8

99.8

111.4

19551956

10,851

3,33,542

10,309

3,14,238

262

7,996

108.9

123

99.5

112.4

19561957

12,948

3,52,418

12,362

3,32,192

308

8,284

130.6

130.1

116.9

116.4

19571958

13,235

3,47,970

12,581

3,26,992

308

7,995

132.9

128

116.7

112.4

19581959

14,792

3,74,219

14,078

3,52,054

337

8,422

148.8

137.8

127.8

118.4

19591960

15,517

3,81,864

14,754

3,58,913

346

8,425

155.9

140.5

131.4

118.4

19601961

16,977

4,08,739

16,169

3,85,761

373

8,889

170.9

151

141.3

124.9

19611962

17,894

4,20,953

16,998

3,96,844

383

8,938

179.6

155.4

145.2

125.6

19621963

19,130

4,29,594

18,159

4,04,119

400

8,901

191.9

158.2

151.7

125.1

19631964

21,874

4,51,446

20,790

4,24,527

448

9,149

219.7

166.2

170

128.6

19641965

25,541

4,85,193

24,301

4,56,327

513

9,627

256.8

178.7

194.5

135.3

19651966

26,731

4,67,155

25,338

4,36,650

522

9,003

267.7

171

198.2

126.5

19661967

30,383

4,72,024

28,750

4,39,345

581

8,876

303.8

172

220.3

124.8

19671968

35,718

5,09,965

33,851

4,75,052

669

9,388

357.7

186

253.8

132

19681969

37,683

5,23,558

35,685

4,86,775

689

9,397

377.1

190.6

261.3

132.1

19691970

41,451

5,57,652

39,152

5,18,434

740

9,800

413.7

203

280.8

137.8

19701971

44,098

5,85,672

41,294

5,41,867

763

1,00,16

436.3

212.2

289.6

140.8

19711972

46,930

5,91,703

43,852

5,45,976

792

9,855

463.4

213.8

300.3

138.5

19721973

51,641

5,90,138

48,216

5,42,686

850

9,571

509.5

212.5

322.6

134.5

19731974

63,333

6,17,498

59,221

5,67,937

1,021

9,792

625.8

222.4

387.3

137.6

19741975

74,639

6,25,437

69,342

5,72,741

1,169

9,658

732.7

224.2

443.6

135.8

19751976

79,327

6,82,355

73,064

6,26,779

1,204

10,326

772.1

245.4

456.6

145.1

19761977

85,312

6,91,096

78,505

6,31,897

1,266

10,192

829.5

247.4

480.3

143.3

19771978

97,400

7,43,223

90,072

6,81,442

1,421

10,748

951.8

266.8

538.9

151.1

19781979

1,04,774

7,84,297

96,663

7,19,996

1,492

11,111

1021.4

281.9

565.9

156.2

19791980

1,14,653

7,44,772

1,04,766

6,77,340

1,578

10,201

1107

265.2

598.5

143.4

19801981

1,37,183

7,98,504

1,25,761

7,27,359

1,852

10,712

1328.9

284.8

702.6

150.6

19811982

1,60,253

8,42,324

1,46,332

7,67,481

2,115

11,091

1546.3

300.5

802.2

155.9

19821986

1,78,351

8,64,288

1,62,236

7,85,134

2,291

11,089

1714.3

307.4

869.3

155.9

19831984

2,08,412

9,32,051

1,90,443

8,48,950

2,634

11,742

2012.4

332.4

999.2

165

19841985

2,33,689

9,67,485

2,12,713

8,78,609

2,878

11,889

2247.7

344

1091.9

167.1

19851986

2,61,288

10,07,999

2,36,151

9,13,143

3,128

12,095

2495.3

357.5

1186.5

170

19861987

2,91,119

10,51,071

2,62,781

9,50,457

3,408

12,328

2776.7

372.1

1292.9

173.3

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IC : PTias(IVIII11) E

Indexnumbers(195051=100)
GrossNationalProduct
atFactorCost
(Rs.Crore)

Year

NetNationalProduct
atFactorCost
(Rs.Crore)

PerCapita
NetNationalProduct
(Rs.)

NetNational
Product

PerCapitaNet
NationalProduct

AtCurrent
Prices

At2004
2005Prices

AtCurrent
Prices

At2004
2005Prices

AtCurrent
Prices

At2004
2005Prices

AtCurrent
Prices

At2004
2005Prices

AtCurrent
Prices

At2004
2005Prices

10

11

19871988

3,29,449

10,86,209

2,96,257

9,78,464

3,760

12,417

3130.5

383.1

1426.2

174.5

19881989

3,91,799

11,93,697

3,52,948

10,80,137

4,384

13,418

3729.5

422.9

1663.2

188.6

19891990

4,50,809

12,66,767

4,05,561

11,46,446

4,934

13,947

4285.5

448.9

1871.6

196

19901991

5,24,268

13,31,040

4,71,618

12,02,305

5,621

14,330

4983.5

470.7

2132.4

201.4

19911992

6,03,451

13,49,541

5,38,824

12,11,877

6,295

14,157

5693.6

474.5

2387.9

199

19921993

6,92,078

14,22,692

6,17,940

12,76,845

7,086

14,643

6529.6

499.9

2688.2

205.8

19931994

8,05,881

15,06,138

7,23,024

13,54,116

8,106

15,181

7640

530.2

3074.9

213.4

19941995

9,42,302

16,03,264

8,45,554

14,40,972

9,292

15,835

8934.8

564.2

3524.8

222.6

19951996

11,05,102

17,20,069

9,92,516

15,47,480

10,695

16,675

10487.7

605.9

4057.2

234.4

19961997

12,88,706

18,59,370

11,58,858

16,75,759

12,250

17,714

12245.4

656.1

4647

249

19971998

14,34,408

19,43,208

12,87,141

17,45,160

13,352

18,103

13600.9

683.3

5065.1

254.5

19981999

16,53,771

20,73,140

14,90,030

18,61,252

15,158

18,934

15744.8

728.7

5750.1

266.1

19992000

18,31,842

22,29,900

16,45,370

20,01,250

16,437

19,993

17386.2

783.6

6235.4

281

20002001

19,69,249

23,18,974

17,62,358

20,74,858

17,295

20,362

18622.4

812.4

6560.8

286.2

20012002

21,47,677

24,50,681

19,18,827

21,90,737

18,450

21,065

20275.8

857.7

6999

296.1

20022003

23,21,510

25,51,730

20,75,329

22,78,363

19,653

21,575

21929.5

892.1

7455.2

303.3

20032004

26,01,508

27,57,120

23,29,354

24,66,093

21,729

23,005

24613.7

965.6

8242.8

323.4

20042005

29,49,089

29,49,089

26,29,198

26,29,198

24,143

24,143

27782.1

1029.4

9158.6

339.4

20052006

33,64,387

32,28,177

30,00,666

28,77,284

27,131

26,015

31707.3

1126.6

10292.1

365.7

20062007

39,20,042

35,34,849

35,01,313

31,49,149

31,206

28,067

36997.5

1233

11837.9

394.5

20072008

45,61,574

38,79,457

40,76,878

34,51,829

35,825

30,332

43079.4

1351.5

13590.1

426.3

20082009

52,70,644

41,33,292

47,05,447

36,64,388

40,775

31,754

49721.3

1434.7

15467.9

446.3

20092010

60,53,585

44,79,973

53,95,687

39,59,653

46,117

33,843

57014.9

1550.3

17494.3

475.7

20102011(Q)

70,78,512

48,33,178

63,25,038

42,68,715

53,331

35,993

66835.2

1671.3

20230.9

505.9

20112012(A)

81,98,276

51,71,538

73,28,878

45,68,249

60,972

38,005

73402.4

1738.3

22289.3

527.8

Source:CentralStattisticsOffice(CSO)

IC : PTias(IVIII11) E

Q:QuickEstimates

A:AdvanceEstimates

(5)of(8)

DAILY PRACTICE QUIZ

Paper IV General Studies III
Unit 1 (LECTURE 1)
Indian Economy

SuggestedTime:10min
1 .

2 .

T o t a l q u e s t i o ns : 20
7.

Agrowingcountryisonewith
(1)

risingGNPatconstantprices

(2)

risingGNPatcurrentprices

(3)

constantGNPatconstantprices

(4)

noneofthethese

8 .

4 .

5 .

6 .

(1)

thebiggest

(2)

thesmallest

(3)

nil

(4)

noneoftheabove

AccordingtotheWorldBank'slatestDevelopmentReport,
thepositionoftheIndianeconomyintheworldisthe

Amajorpartofacountry'soutputisnormallyusedfor

(1)

largest

(2)

smallest

(1)

privateconsumption

(2)

publicconsumption

(3)

secondlargest

(4)

fifthlargest

(3)

investment

(4)

exports
9 .

3 .

Accordingtothe UNDPReport1994,India's purchaseof

arms,amongtheThirdWorldcountries,was

AmajortradepartnerofIndiainthepreindependenceperiod
was
(1)

USA

(2)

UK

(3)

USSR

(4)

Australia

AccordingtotheWorldDevelopmentReport(WDR)1994,
India'sGNPpercapitaisbelowthatof
(1)

Bangladesh

(2)

Pakistan

(3)

SriLanka

(4)

Alltheabove

10. Amongthenonfoodgraincrops,thelargestareaisdevoted
tocultivationof

Amarketeconomyisoneinwhich
(1)

productsaresold

(1)

jute

(2)

cotton

(2)

productsandfactorsarebought

(3)

oilseed

(4)

sugarcane

(3)

productsandfactorsareboughtandsold

(4)

alltheabove

11. Anacknowledgementunderthesealofthecompany,ofa
debtoraloanisa

About 98 per cent of coffee holdings in the country are

smallholdingsoflessthan
(1)

1hectares

(2)

8hectares

(3)

10hectares

(4)

12hectares

AccordingtotheNCAER,exportgrowthislowerandimport
growthishigherin1994to1995dueto

(1)

warrant

(2)

share

(3)

zerocouponbond

(4)

debenture

12. AsaresultoftheGreenRevolution,theyieldperhectare
ofwheattouchedarecordfigureof
(1)

1,500kg

(2)

2,000kg

(3)

2,222kg

(4)

3,000kg

(1)

higheroutputofindustries

(2)

highagriculturaloutput

(3)

exchangeratevariation

(1)

metalliccoins

(2)

papercurrency

(4)

noneoftheabove

(3)

currentdeposits

(4)

alltheabove

(6)of(8)

13. Asinothercountries,moneyinIndiaconsistsof

IC : PTias(IVIII11) E

14. AtthecommencementoftheFirstFiveYearPlan,thetotal
productionoffoodgraininIndiawas50.82milliontonnes
andittouchedarecordfigureof_______undertheSeventh
FiveYearPlan.
(1)

150milliontonnes

(2)

170milliontonnes

(3)

160milliontonnes

(4)

190milliontones

22. WhichofthesecoinshasbeenphasedoutpresentlyinIndian
currencysystem?
(1)

Paisa25

(2)

Rs.10

(3)

Rs.2

(4)

Noneoftheabove

23. Devaluationofcurrencyleadsto
15. Allthecoins,andcurrecynotesofmorethanonerupeeare
issuedby

(1)

fallindomesticprices

(2)

increaseindomesticprices

(1)

TheReserveBankofIndia

(3)

noimpactondomesticprices

(2)

FinanceMinistryofIndia

(4)

erraticfluctuationsindomesticprices

(3)

StateBankofIndia

(4)

GovernmentofIndia

24. Duringthelast4years,thegrowthofthenonagricultural
sectorhasbeen

16. Childrenbelow_____areconsideredilliterate.
(1)
(3)

3 years
5 years

(2)
(4)

4 years
6 years

(1)

fasterthantheagriculturalsector

(2)

slowerthantheagriculturalsector

(3)

equaltotheagriculturalsector

(4)

noneoftheabove

17. CommunityDevelopmentProjectswerelaunchedin
(1)

1949

(2)

1951

(3)

1952

(4)

1955

18. Currencynoteofonerupeeareissuedbythe
(1)

ReserveBankofIndia (2)

StateBankofIndia

(3)

MinistryofFinance

GovernmentofIndia

(4)

25. Economicdevelopmenthasbeenretardedmainlydueto
(1)

poorinfrastructuralfacilities

(2)

preponderanceofsmallscaleindustries

(3)

slowcapitalaccumulation

(4)

alltheabove

26. Economicinequalityleadsto
19. CurrencynotesinIndiaareprintedandsuppliedbythe
(1)

SecurityPress,Nasik

(2)

SecurityPress,Mumbai

(3)

SecurityPress,Noida

(4)

ReserveBankofIndia,NewDelhi

(1)

classconflicts

(2)

exploitation

(3)

moraldegradation

(4)

alltheabove

27. Excisedutyisataxleviedonthe
(1)

importofgoods

(2)

exportofgoods

(3)

productionofgoods

(4)

saleofgoods

20. Deficitfinancingimplies
28. FiveYearPlansarefinallyapprovedbythe

(1)

printingnewcurrencynotes

(2)

replacingnewcurrencywithwornoutcurrency

(3)

publicexpenditureinexcessofpublicrevenue

(4)

publicrevenueinexcessofpublicexpenditure

21. DeficitfinancingmeansthattheGovernmentborrowsmoney
fromthe
(1)

RBI

(2)

localbodies

(3)

bigbusinessman

(4)

IMF

IC : PTias(IVIII11) E

(1)

President

(2)

PrimeMinister

(3)

NationalDevelopmentCouncil

(4)

PlanningCommission

29. Forwhich ofthefollowing purposesare longtermloans

giveninagriculture?
(1)

purchaseofnewland

(2)

makingpermanentimprovementsonland

(3)

purchaseofcostlyfarmmachinery

(4)

alltheabove

(7)of(8)

30. Highestpercapitaincomeisinverselycorrelatedwiththe
proportionofactivepopulationengagedin

34. Ifallthebanksinaneconomyarenationalizedandconverted
intoamonopolybank,thetotaldeposits

(1)

agriculture

(2)

service

(1)

willdecrease

(3)

industry

(4)

alloftheabove

(2)

willincrease

(3)

willneitherdecreaseorincrease

(4)

noneoftheabove

31. Howmanymillionjobseekerswillseekemploymentinthe
countryattheturnofthecentury?
(1)

64

(2)

74

(3)

84

(4)

94

35. IfthecashreserveratioisloweredbytheRBI,itsimpacton
creditcreationwillbeto

32. HowmanytimeshastheIndiancurrencybeendemonetized
sofar?
(1)

once

(2)

twice

(3)

thrice

(4)

never

(1)

increaseit

(2)decreaseit

(3)

noimpact

(4)noneoftheabove

33. HowmanytimeshastheIndiancurrencybeendevaluedso
far?
(1)

once

(2)

fourtimes

(3)

twice

(4)

never

Please make sure that you m ark the answers in this scores heet with an HB pencil/pen.
The marking of answers must be done in the stipulated time for the test. Do not take extra time over and above the time limit.

S C O R E S H E E T
1

11

21

31

12

22

32

13

23

33

14

24

34

15

25

35

16

26

17

27

18

28

19

29

10

20

30

(8)of(8)

IC : PTias(IVIII11) E