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Indian Economy Overview India has a mixed economy system.

In a mixed economy system the public sector (Governed-owned) enterprises exist, along with private sector enterprises to achieve a socialistic pattern of society. Planning In India: After independence India adopted a planned system of economy. Government of India constituted a Planning Commission in March 1950 with the Prime Minister of India as its chairman. Planning Commission is a statutory body. National Development CouncilChief Ministers of all the states of the country and the members of the Planning Commission of India constitute the National Development Council. The Prime Minister of India presides over the council. Five Year Plans in IndiaIndia after independence adopted the five year plans concept for the planned economic development of the country. The idea of five year plans in India was mooted by the great Indian engineer M. Visvesvarayya. This five year plan concept has been taken from the erstwhile U.S.S.R. First five year planFirst five year plan in India was launched in 1951-52. The period of this plan was 195152 to 1955-56. This plan gave the priority to the development of agriculture, irrigation, power and transport in order to create a base for rapid industrial growth of the country. Second five year planThe period of second five year plan I was 1956-57 to 1960-61. The main emphasis in second five year plan was laid on the industrial development.

Periods Covered By Different Plans: 1.First five year plan 1951-56 2.Second five year plan 1956-61 3.Third five year plan 1961-66 4.Annual plan 1966-67 5. Annual plan 1967-68 6.Annual plan 1968-69 7. Fourth five year plan 1969-1974 8.Fifth five year plan 1974-78 9.Sixth five year plan 1980-85 10. Seventh five year plan 1985-90 1. Twenty Point Programme 2. Food for Work Programme 3. Minimum Needs Programme 4. Integrated Rural Development Programme (IRDP) 5. National Rural Employment Programme 6. Rural Labourers Employment Guarantee Programme 7. Jawahar Rozgar Yojna 8. Pradhan Mantri Grammoday Yojna 9. Self Employment to the Educated Urban Youth

Indian Banking System'Bank of Hindustan' was the first bank of India which was opened in Kolkata in 1770. Again in 1806 AD, British government established Bank of Bengal, in 1840 Bank of liable exports and visible imports of two countries in trade with each Bombay and in 1843 Bank of Madras. Ml three banks were known as is called balance of payment. If the difference is positive the Presidency banks. In 1921 Imperial Bank of India was established payment (B.O.P.) is called favourable and if negative it is amalgamation of the three Imperial banks. In 1955 after nationalisation Med unfavorable. of the Imperial Bank of India it was renamed as State Bank of India At present State Bank of India is the biggest commercial bank of India In April 1, 1935 Reserve Bank of India was established Mumbai' as its headquarters. It is the Central Bank of India. It was nationalist on January 1, 1949. Again on July 19, 1969 fourteen big commerce banks were nationalised. Export-Import Bank (Exim Bank) was established in 1982 to provide funds to exporters and importers. The one rupee note bears signature of the Secretary, Ministry of Finance Govt, of India, whereas the remaining notes bear the signature of the Governor of the Reserve Bank of India (RBI). The main function of Reserve Bank of India is to control the monetary policy of the country and exchange rate of Indian currency. Awadh Commercial Bank was the first wholly nutritional standards of daily caloric intake of 2400 calories. Timercial bank which was established in 1880. The Punjab National in rural e a 2100 calories per person in urban areas are said to H bank was established in 1894. Indian Life Insurance Corporation was living below the poverty line. TaxesTaxes can be levied either directly or indirectly. Direct TaxesIncome tax and corporation tax are two main direct taxes. Indirect Taxes-

Central excise duty and customs duty are two I main indirect taxes. Bank RateIt is the rate of interest charged by the Reserve bank of India for lending money to commercial banks. DeflationA state of decrease in money circulation resulting ir Prices and unemployment. Black MoneyIt means unaccounted money, concealed income undisclosed wealth. In order to evade taxes some people falsify their accounts and do not record all transactions in their books. The lonely which thus remains unaccounted for and is illegally accumulated DevaluationDevaluation is a term indicating a definite officer downward valuation of country's currency in terms of its eucharis. value with other currencies, Hard CurrencyHard currency is hard or difficult to secure Hot MoneyIt describes money or currency which everybody), anxious to drop for fear of a fall in its exchange rate. InflationIt is an increase in the amount of paper money which tends to raise general price level of commodities.