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    You stuay For civit Services SCSGYAN, ‘Glee studyforcivitservices MPILATION - 47TH EDITION (2023) ENGLISH-MEDIUM The subject wise compilation + listing PDF released by Study for Civil Services is updated regularly with relevant additions of all the important facts and requisite fine details, the latest pattern, which is guided by trends of examinations conducted by the Civil Services Commissions, SCSGYAN PVT. LTD. 1*Edition: 2020 |For paid Group Call or WhatsApp only on 24 Edition: 2021 7523864455, 8564880530 or 9696066089. Gyan 3! Edition: 2022 _|Sir WhatsApp - 7838692618 4'» Edition: 2023 You stuay For civit Services SCSGYAN, ‘Glee studyforcivitservices Important terms and definitions related to Economy ‘Informal Sector Enterprises: Those private sector enterprises, which employ less than 10 workers on a regular basis. ‘Invisibles: Various items enter in the current account ofthe balance of payments, some of which are not visible goods. Invisibles are mainly services, like tourism, wansport by shipping or by airways, and financial services such as Insurance and banking, They also include gifts sent abroad or received from abroad and private transfer of funds, government grants and interests, profits and dividends. ‘+ Devaluation: A fallin the exchange rate which reduces the value of a currency in terms of other currencies + Opportunity Cost: It is defined with respect to a particular value or action and is equal to the value of the foregone alternative choice or action. + Casual Wage Labourer: A person who is casually engaged in others’ farm or non- receives wages according to the terms of the dally or periodic work contract. + Integration of Domestic Economy: A situation where the policies of government facilitate free trade and investment ‘with other countries making the domestic economy work together with other economies in an efficient and mutually interdependent way. + Import Substitution: A policy of the state for development of economy in which import of goods is generally substituted by domestic production (through import controls, tariffs and other restrictions) with a view to encourage domestic industry on grounds of self-sufficiency and domestic employment, + Import Duty (Tariff): Import tax isa tax that is determined per unit or value ‘Tariff Barriers: All the restrictions on imports by a government + Import Licensing: Permission required from the government to import goods into a country. ‘+ Productivity: An increase in the efficiency of labor or capital leads to an increase in their productivity. The terms often used in reference to the productivity of the input of labour, + Colonialism: The practice of acquiring colonies by conquest or other means and making them dependent It also means extending power, control or rule by a country over the political and economic life of areas outside its borders, The main feature of colonialism is exploitation. + Consumption Basket: Group of goods and services consumed by a household, In order to estimate the consumption pattern of people, statistical agencies identify such items. For instance NSSO has identied 19 groups of items in the consumption basket. Some of them are (i) cereals (i) pulses (it) milk and milk products (iv) edible ofl (v) vegetables (vi fuel and light and (vil) clothing + Enterprise: An undertaking owned and operated by an individual or by group of individuals to produce and/or distribute goods and/or services mainly for the purpose of sale, whether fully or partly + Bureau of Energy Efficiency (BEE)-Itis a government organisation that aims to develop policies and strategies with a thrust on self regulation and market principles. It promotes energy conservation in different sectors of the economy and undertakes measures against the wasteful uses of electricity. ‘+ MRTP Act: An Act (Monopolies Restrictive Trade Practices Act) framed to prevent monopolistic practices and regulate the conduct or business practices of firms that are not in public interest. + Equities: Shares in the paid up capltal or stock of a company whose holders are conside with voting rights and dividends in the profit. + Cascading Effect: When tax imposition leads to a disproportionate rise in prices, Le. by an extent more than the the tax itis known as cascading effec. + Commercialization of Agriculture: Commercialization of agriculture, not for self-consumption or family consumption, bbut mainly for sale in the market, had taken a different form. The British started paying high prices to encourage the cultivation of cash crops in place of food craps. They needed cash crops as raw material for their country's industries, + Non-tariff Barriers: All the restrictions on imports by a government in the form other than taxes. They mainly include restrictions on quantity and quality of goods imported. + Deficit Financing: A situation where the expenditure ofthe government exceeds its revenue. ‘© Demographic Transition: It is a concept developed by demographer Frank Notestein in 1945 to describe the typical pattern of falling death and birth rates in response to better living conditions associated with economic development. Notestein identified three phases of demographic transition, pre-industrial, developing and modern industrialised societies. Later another phase, post-industrial was also included. ‘+ New Economic Policy: To deal with the troubled economic conditions of 1990-91, India decided to implement economic reforms seriously, Since the beginning of the Seventh Plan, many important changes have been brought in the economic sector of the country, which are related to different parts of the economy. These changes were implemented in such a large and effective manner in the economic field that they are called new economic policy and economic enterprises and, in return, the form of taxes. sd a8 owners of the company You stuay For civit Services SCSGYAN, ‘Glee studyforcivitservices reforms, In the policies announced in 1991 for economic reforms, importance was given to two major economic elements - macroeconomic stabilization and structural reform, ‘+ Export Duties: A tax imposed on the export of goods from a country. + Export Promotion : A set of measures (including fiscal and commercial support measures and steps almed at removal of trade barriers) taken by a government to promote the export of goods with a view to achieve higher economic growth and accumulation of foreign exchange earnings + Employers: Those self-employed who run their business either by themselves or with the help of a few partners and often employ labor for the operation ofthat enterprise + Quantitative Restrictions : Restrictions in the form of total quantities or quotas imposed on imports to reduce balance of payments (BOP) deficit and protect domestic industry. ‘+ Family labour/worker: A member who works without receiving wages in cash or in kind in a farm, an industry, business or trade conducted by the members ofthe familly + Establishment: Such enterprises in which wage labor must work for mast of the year. «Foreign Direct Investment: Investment of foreign assets into domestic structures, equipment and organisations. It does not include foreign investment into the stock markets. Foreign direct investment is thought to be more useful toa country than investments in the equity of its companies because equity investments are potentially ‘hot money’ which can leave atthe first sign of trouble, whereas FDI is durable and generally useful whether things go well or badly. + Per Capita Income: Total national income of a country divided by its population ina specific period, + Barriers to Entry ; This refers to the factors which make it disadvantageous for new entrants to enter an industry as compared with the firms already established within the industry. ‘+ Maternal Mortality Rate : It is the relationship between the number of maternal deaths due to childbearing by the ‘number of live births or by the sum of live births and foetal deaths ina given year. ‘© Budgetary Deficit: A situation when the governments income and tax receipts fail to cover its expenditures. ‘+ Brundtland Commission: A Commission established by United Nations Organisation in 1983 to study the world’s environmental problems and propose agenda for addressing them. It came out with a report. The definition provided by the Commission for the term, ‘sustainable development, is very popular and widely ited all aver the world ‘+ Unemployment: A situation in wich all those who, owing to lack of work, are not working but either seek work through employment exchanges, intermediaries, friends or relatives or by making applications to prospective employers or express thelr willingness or availability for work under the prevailing condition of work and remunerations. + Balance of Payments (BOP); It is a statistical statement summarising all the external transactions (receipts and payments) on current and capital account in which a country is involved over a period of time, say, a year. As the BOP shows the total assets and obligations aver a time-period, it always balances, ‘+ Land/Revenue Settlement: With the British acquiring territorial rights in different parts of India, administration of territories was formulated on the basis of survey of land, It was decided in the interests of government in terms of. be collected from each parcel of land in possession of either a ryot (means peasant) or a mahal (revenue village) or a zamindar (a proprietary land kalder). Decision in each of these cases was meant for the rights of the latter over land for the purposes of either ownership of land or rights to cultivation, This system is known as land/revenue settlement. There were different land settlements formulated in India. They are (i) system of permanent settlement, Which is also known as the zamindari system (ji) ryotwari system (a system of revenue settlement entered into by the government with individual tenants) (iil) mahalwari system (a system of revenue settlement entered into by the government with a mabal) ‘+ Provident Fund: A savings fund in which both employer and employee contribute regularly in the interest of the employee, It is maintained by the government and given to the employee when he or she resigns or retires from work, ‘+ Mortality Rate: This word is based on ‘death’ only. It is expressed by the number of deaths per thousand population uring the year, Whether this death is normal or due to disease etc, both types are included in the calculation, It is, different from the morbidity rate. Morbidity rate refers to the absence of work due to illness. + Inflation : A sustained rise in the general price level. + National Product/Income : Total value of goods and services produced in a country plus income from abroad. + Morbidity; It is the propensity to fall il It affects a person's work by making him or her temporarily disabled. Prolonged morbidity may lead to mortality. In our country, acute respiratory infections and diarthoea are two major causes of morbidity. + Carrying Capacity: It is the measure of habitat to indefinitely sustain a population al a particular density. A more technical definition for carrying capacity isthe largest size of a density-dependent population for which the population growth rate is zero, Hence, below carrying capacity, populations will tend to increase, while they will decrease above carrying capacity, Population size decreases above carrying capacity due to either reduced survivorship (eg, due to 1S) You stuay For civit Services SCSGYAN, ‘Glee studyforcivitservices insufficient space or food) or reproductive success (eg, due to insufficient food, or behavioural interactions), or both, The carrying capacity of an environment will vary for different species in different habitats, and can change over time due to a variety factors, including trends in food avallability, al conditions and space. * Goods and Services Tax :It isa single indirect tax on the supply of goods and services, It was introduced in July 2017 by abolishing a variety of taxes, such as sales tax and excise that prevailed in India. Under GST, tax is imposed on the basis of value addition at each stage of the movement of goods and services. Different slabs of tax rates, such as O per cent, 5 per cent, 12 per cent, 18 per cent and 28 per cent, are imposed on almost all goods and services. This slab is same throughout the country. ‘+ Gross Domestic Product : The total value of final goods and services produced within a country’s borders in a year, regardless of ownership. It is used as one of many indicators of the standard of living in a country, but there are Limitations with this view, + Gross Values Added: Gross Value Added is calculated by deducting the amount of indirect tax from gross domestic product and subsidies. (Gross Value Added (GVA) = Gross Domestic Product (GDP) + Subsidies - Indirect Taxes). Merchant Bankers ; Banks or financial institutions, also known as investment bankers, that specialise in advising the companies and managing their equity and debt requirement (often referred to as portfolio management) through floatation and sale/purchase of stocks and bonds. ‘Default : Failure to make repayment of the principal and interest on a debt eg, sovereign debt (loan obtained by the government) to the lenders, say, international financial institutions, on the scheduled date, causing loss of credibility as a debtor. + Financtal Institutions : Institutions that engage in mobilisation and allocation of savings. They include commercial banks, cooperative banks, developmental banks and investment institutions. + Fiscal Policy : All the planned actions of a government in mobilising financial resources for meeting its expenditure and regulating the economic activities in a country. Foreign Exchange : Foreign investment through currency or bonds or other financial assets of other countries. With this type of investment, there is no interference of the investing firms/individuals in the management and control of firm, + Foreign Exchange Markets : A market in which currencies are hought and sold at rates of exchany delivery at specified dates in the future, + Special Economic Zone (SEZ) : It is 2 geographical region that has economic laws different from a country’s typical economic laws. Usually the goal Is to increase foreign investment. Special Economic Zones have been established In several countries, including the People's Republic of China, India, Jordan, Poland, Kazakhstan, the Philippines and Russia + Disinvestment : A deliberate sale of a part of the capital stock of a company to raise reso and/or management structure of a company. ‘+ Statutory Liquidity Ratio (SLR) : A minimum proportion of the total deposits and reserves to be maintained by the banks in liquid form as per the regulations of the central bank (RBI), Maintenance of SLR, in addition to the Cash Reserve Ratio (CRR), is an obligation of the banks. + Communes: Known as people's communes, or renmin gongshe in China, were formerly the highest of three administrative levels in rural areas in the period from 1958 to 1982-85, when they were replaced by townships. Communes, the largest collective units, were divided in turn Into production brigades and production teams. The ‘communes had governmental, political, and economic functions. + Foreign Institutional Investors (Fils): Banking and non-banking financial institutions of foreign origin eg. commercial banks, investment banks, mutual funds, pension funds or other such institutional investors (as distinct from the domestic financial institutions investing) whose investment in stocks and bonds in the country through stock markets have significant influence, * Self-employed : Those who operate their own farm or non-farm enterprises or are engaged independently in a profession or trade with one or a few partners. They have freedom to decide how, where and when to produce and sell or carry out thelr operation. Thelr earning is determined wholly or mainly by sales or profits from their enterprises. ‘Stabilization Measures: Fiscal and monetary policy measures adopted to regulate balance of payments fluctuations and high inflation rates Gratuity : An amount of money given by the employer to the employee at the time of retirement for services rendered by the employee, ‘© Stock Exchange : A market in which the securities of governments and public companies are traded. It provides the facilities for stock brokers to trade company stocks and other securities. fixed now, for ies and change the equity You stuay For civit Services SCSGYAN, ‘Glee studyforcivitservices ‘© Urbanisation : Expansion of a metropolitan area, namely the proportion of total population or area in urban localities co areas (cities and towns), or the increase of this proportion over time. It can thus represent a level of urban population relative to total population of the area, or the rate at which the urban proportion is increasing. Both can be expressed in percentage terms, the rate of change expressed as a percentage per year, decade or period between ‘+ Stock Market : An institution where stocks and shares are traded, + Infant Mortality Rate: The ratio of the number of infants born before the age of one year to the number of infants born In that year multiplied by 1000 + ‘Trade Union : An organisation of workers formed for the purpose of addressing its members’ interests in respect of ‘wages, benefits, and working conditions + Worker-Population Ratio : Total number of workers divided by the population. tis expressed in percentage. Labour Laws: All the rules and regulations framed by the government to protect the interests of the workers, + Poverty Line : The per capita expenditure on certain minimum needs of a person including food intake of a daily average of 2,400 calories in rural areas and 2,100 calories in urban areas. + Export Duties : Taxes imposed on goods exported from a country. + Export-Import Policy : The economic policies ofthe government relating to its exports and imports. ‘Fiscal Management : The use of taxation and government expenditure to regulate the economic activities, + Infant Mortality Rate : Infant mortality is the death of an infant before his or her first birthday. The infant mortality rate is the number of infant deaths for every 1,000 live births. + Maternal Mortality Rate - The maternal mortality ratio (MMR) is defined as the number of maternal deaths during a given time period per 100,000 live births during the same time period. + Total Fertility Rate - The average number of children a hypothetical cohort of women would have at the end of thelr reproductive period if they were subject during thelr whole lives to the fertility rates of a given period and if they were not subject to mortality. It is expressed as children per woman. The total fertility rate is the sum of the age-specific fertility rates for all women multiplied by five. The age-specific fertility rates are those for the seven five-year age groups from 15-19 to 45-49, + Gender Parity Index (GPI) - The gender parity index in primary education is the ratio of the number of female students enrolled at the prim population structure regarding the appropriate age groups, the gross enrolment ratio for each level of education is used, ‘Sex ratio - Sex ratio (also known as Gender Ratio) is the ratio of males to females in a population, That is, itis the proportion of males ina population. As per Fisher's principle this ratio is 1:1 for most sexually reproducing species. The sex ratio at birth for the world is 107100. Economics: ‘+ Economics is the study of the concept that describes how society uses scarce resources to produce valuable products and distribute them among different people. ry level of education to the number of male students, To standardize the effects of the ‘+ Economics is the study of how individuals, firms, governments and other institutions choose their choices in society and how this choice affects society in the use of resources: ‘+ The word ‘Arthashastra’ is derived from the combination of the Sanskrit words Artha (wealth) and Shastra, which literally means ‘the study of wealth’. The literal meaning of Arthashastra is the science of money, that is, the study of ‘money is called economics. ‘+ One of the earliest recorded economic thinkers was the 8th century BCE Greek farmer/poet Hesiod, who wrote that labor, material and time needed to be efficiently allocated to address scarcity, But modern Western economics was founded much later, generally attributed to the publication of Scottish philosopher Adam Smith's 1776 book, An Inquiry into the Nature and Cause of the Wealth of Natlons. Adam Smith in his book considers economies as the science of money. ‘© Dr, Marshall made it popular by giving a welfare-related definition of economics in his book Principles of Economics published in 1890. ‘+ The famous British economist Lord Robbins in his book, “An Essay on the Nature and Significance of Economic Science’ published in 1932, has considered economics as the principle of rarity. In this + needs are unlimited and the means of fulfilling them are limited, ‘egard, he is of the opinion that human ‘+ Modern economist Samuelson has called economics as the science of growth, You stuay For civit Services SCSGYAN, ‘Glee studyforcivitservices ‘+ Modern economist Kapil Arya in his book "Arthmed ‘Now three systems of organizing the economy have emerged ~ + Capitalist Economy - Adam Smith's book "The Wealth of Nations’ published in 1776 is considered to be the origin of capitalist economy. Adam Smith (1723-1790) was a Scottish-born philosopher-economist. When the United States became independent, it incorporated the ideas of Adam Smith into its policies. This happened just a year after Adam Smith's "The Wealth of Nations" was published. After this Smith’s ideas spread to other European and American countries. By 1800, the economy there started being called capitalist economy, later many other names also became popular ~ Private Enterprises System, Free Enterprises System and Market Economy, ‘+ State economy ~ State economy was first theorized by the German philosopher Karl Marx (1818-1883), which as a system first appeared in the Soviet Union after the Bolshevik Revolution of 1917 and its ideal form appeared in China (1949) . This economy became prevalent in many countries of Eastern Europe. Two different styles of state economy are seen, the Soviet Union's economy is called a socialist economy while China's economy before 1985 is called a communist economy. + Mixed economy - The self-correcting nature of the market and the invisible hand of Adam Smith, the economy suffered ‘a major setback in the Great Depression of 1929. A mixed economy combines the best features of socialism and capitalism, Thus, they combine some elements of capitalist free enterprise and socialist government controls, Ina mixed economy, private and public sectors co-exist. Therefore, in a mixed economy, both individual freedom and support are available by the government in promoting the interests of the general public and the weaker sections of the society. Indian economy is considered a mixed economy because here along with economic planning, the economic work areas of private and public sectors are clearly defined. has considered economics as the science of means of happiness: Economics is divided into two parts: 1. Microeconomics 2, Macroeconomics + Micro-economics- Microeconomics isa field which analyzes what's viewed as basic elements in the economy, including individual agents and markets, their interactions, and the outcomes of interactions. Individual agents may include, for example, households, firms, buyers, and sellers. ‘+ Macro-economics- Macroeconomics analyzes the economy as a system where production, consumption, saving, and investment interact, and factors affecting it: employment of the resources of labour, capital, and land, currency inflation, economic growth, and public policies that have impact on these elements. Micro Economics Macro Economics Economic activities are studied at the individual level, a] All economic activities are studied, such as national Income, consumer, a firma producer, {otal consumption, general price level The study of individual and individual behaviour, ‘The study of society and the behavior of society The study of determination of the price ofa commadi [The general price level is studied. In the solution of microeconomic problems, the action of the [Government's role is crucial in solving macroeconomic price mechanism ie. the forces of demand and supply is | problems like employment, poverty, inflation etc. crucial ‘Important components of micro economics — ‘+ Consumer Behavior Theory ~ Under this, itis studied how a consumer allocates his income in various uses, so that he can get maximum satisfaction. + Producer Behavior Theory - In this itis studied that how the producer decides what to produce and how much to produce so that his profit can be maximized, + Price Theory - Price theory is the most important component of microeconomics, In the theory of prices, its studied hhow the price of goods is determined in the market. You stuay For civit Services SCSGYAN, ‘Glee studyforcivitservices Important Curve Lorenz Curve + Income disparity among the people of a country is determined by the Lorenz curve, Lorenz curve is a graphical representation of the distribution of income in a society. Max 0. It was given by Lorenz. in 1905. It is used to analyze inequality in a population, In this graph, the cumulative percentage of national income is plotted over the cumulative percentage of households. The degree of deviation of the curve from the line of perfect equality is a measure of Inequality inthe society. Itis given by the Ginl coefficient. Gini coefficient ‘The Gint coefficient was developed in the year 1912 by the Italian statistician Corrado Gini ‘The Gini coefficient is the ratio of the shaded area to the corresponding area of the perfect equality line. The higher its value, the higher will be the inequality in the saciety. ‘Gini coeMMcient = shaded area / total area below the parity line ‘The maximum value of Gini coefficient will be equal to 1 and the minimum value will be equal to zero. ‘+ The maximum value of Gini coefficient will be equal to 1 and the minimum value will be equal to zero. If we multiply the Gini coefficient by 100, we can get the Gini index. Laffer Curve: ‘Laffer curve reveals the relationship between the taxes levied by the state authorities and the taxes collected, According to this, as tax rates increase from a low level, tax collections also increase but after a critical threshold, tax collections start declining as tax rates increase. This is Iinked to having low profits due to high tax rates and making high profits through evasion, Phill ‘In the context of economics, the Phillips curve is a curve showing the relationship between the rates of unemployment and inflation in an economy, According to this, there is an inverse relationship between the rates of unemployment and inflation, ‘Phillips curve was given by New Zealand economist A, William Phillips. According to this, there is an inverse and constant relationship between inflation and unemployment ic. when one falls, the other rises. There is also a term that describes the simultaneous presence of high inflation and high unemployment, such as low growth with high Inflation, also known as deflation, Kuznets Curve ‘Environmental Kuznets Curve was put forward by Nobel laureate Simon Kuznets. According to this hypathesis, when a country grows, it initially faces economic decline. However, over lime, the environmental damage is reduced. This ‘means that rich countries that have caused environmental damage in the past actually contribute to environmental development. ‘According to this hypothesis, when a country starts developing, economic inequality increases for the first time but after a threshold, when a certain average income is attained, economic inequality starts decreasing, Environmental Kuznets Curve: + Environment The Kuznets curve shows the relationship between economic progress on the one hand and environmental damage caused by economic progress on the other, According to this, as the economy embarks on the development journey, pollution increases in the first stage, but later as the economy develops, pollution starts to decrease and eventually, economic progress and environmental maintenance go hand in hand. ‘+ When economic progress is represented on the X-axis and environmental degradation is represented on the Y-axis, the environmental Kuznets curve becomes an inverted U-shaped curve, Gresham's law: ‘© Gresham's law relates to the distribution of money which states that "bad money drives out good money”. Gresham's law states that any circulating currency contains both “good” and "bad" money, with money quickly becoming dominated by "bad" money. This means if a country has two currencies, the cheaper currency drives the costlier currency out of use, This is because people will start hoarding expensive currency and it will eventually go out of circulation. Its named after the English financier Sir Thomas Gresham (1519-1579). You stuay For civit Services SCSGYAN, ‘Glee studyforcivitservices Production possibility curve ‘+ With a given amount of resources and technology, a production possibility curve is constructed by representing various combinations of outputs from a set of two goods. It is also called production possibility frontier or transformation curve. This curve helps to determine the "choice of production’. Hence, the curve provides all avallable production possibilities, from which the economically cheapest and most naturalistic approach can be chosen that maximizes profit and the associated cost. Supply-Demand Curve Supply Curve: + The supply curve shows the relationship between the quantity and price of a manufactured product ready to be ‘supplied to the market, keeping other variables constant. Here the quantity of the product is shown on the horizontal X axis and the price is shown on the vertical Y axis + Usually, tis a straight line with a slope from let to right as shown in the diagram. This is because price and quantity of the product are proportional, ie, ifthe price of a product in the market increases, so does its consumption in the market (increased prices induce the supplier to produce more). ‘+ With a change in variables, the demand curve can bend in either direction. If i tilts to the left, it indicates a fall in product supply in the market, if t tilts to the right, it indicates an increase in product supply relative to the price of the product. Demand Curve: + Demand curve shows the relationship between price and quantity of a product demanded by the consumer, keeping all other variables constant. The reason for this is that the price ofthe product and the demand for quality have an inverse relationship, that is ifthe price ofthe product falls, then its demand increases. * Corresponding to the supply curve, ifthe curve shifts to the ef, it indicates a fall in demand and ifthe curve shifts to the right, it indicates an increase in demand for the product. Keynesian Economics + Keynesian economics is a macroeconomic theory of aggregate spending in the economy and its effects on output, employment, and inflation. ‘© Keynesian economics was developed by British economist John Maynard Keynes in an attempt to understand the Great Depression during the 1930s. ‘Keynesian economics is considered a "demand-side" theory that focuses on changes in the economy in the short run, ‘+ Keynes! theory was the first to sharply separate the study of economic behavior and markets based on individual incentives from the study of macroeconomic aggregate variables and constructs Laissez-Faire + Laissez-faire isan 18th-century economic doctrine that opposed any government interference in business matters, ‘+ The driving principle behind laissez-faire, a French word that translates to “leave alone’ (literally, “lets you do"), itis that the less government i involved in the economy, the better off businesses and by extension society as a whole. + Laissez-faire economics is an important part of free market capitalism, Keynes’ Employment Theory ‘= This theory rejected the notion of full employment and instead suggested full employment in a particular situation rather than a general situation, ‘= It explains that if the national income increases, the level of employment also increases and consequently income + According to this theory, the level of employment depends on national income and the factors of production remain ‘unchanged, determining the level of output and employment, ‘Who divided economics in two parts? Itwas John Maynard Keynes who underlined the need to divide the field of economics into two categories, He laid out a new \ay to organize the economy in his paper "The General Theory of Employment, Interest and Money. You stuay For civit Services SCSGYAN, ‘er GiaBo studyforcivitservices ‘+ Economics is especially concerned with efficiency in production and exchange and uses models and assumptions to understand how to create incentives and policies that will maximize efficiency. + Economists formulate and publish numerous economic indicators, such as gross domestic product (GDP) and the Consumer Price Index (CPI), + Capitalism, socialism, and communism are types of economic systems. Five Economic Concepts- ‘+ It'sa sad fact that despite being affected by economic and financial issues on a dally basis, the average person Is. woefully uninformed about basic financial issues. Here are five economic concepts that everybody should know: 41. Opportunity cost + Many of us have heard the phrase, "Nothing in life Is free.” While trying to understand this concept, we should also be familiar with the term “tradeoft + Tradeoff means that in order to gain something, you have to give up something else. ‘© The trick is being able to identify when you are giving up something, and remember: inaction is also a cost ‘+ For example, every time that you skip class to sleep in, your upfront, sunk costs are what you directly paid intuition for that cass, 2, Supply and demand ‘©The basic theory behind supply and demand states that there is a price point where consumers and producers both ‘match up; in essence, every good or service has a unique point at which buyers and sellers agree to make an exchange ‘© Supply and demand can be affected by factors like speculation of future developments, advances in technology and shortages and surpluses in the domestic and international markets Example- This past summer, the US. experienced one of the worst droughts in recent memory. As a consumer, your economic knowledge should lead you to the conclusion that food prices will rise in the future; so go do your grocery shopping before ‘you pay an arm and a leg for your dinner, 3. Scare ‘This concept goes hand in hand with supply and demand, Scarcity is defined as“ because people have unlimited wants but resources are limited. 1e basic economic problem that arises ‘+ Examples of scarce resources include time, money and natural resources; essentially anything that is finite falls under this category. ‘The reason that this is an important concept to understand is because it helps us place a value on a good or service, The scarcer a resource and the higher the demand for it, the more expensive itis going to be. 4, Purchasing power- ‘© Purchasing power is the value of a currency expressed in terms af the number of goods or services that one unit of ‘money can buy. Purchasing power is important because, al else being equal, inflation decreases the number of goods or services you would be able to purchase. + We have ta remember that wealth is relative to how much we ean buy with it If prices continue to increase and all else stays the same, our purchasing power decreases. 5. Tin vale of mee «this concept irs fondamental rth for any student tht wants to effectively manage thelr money. The theory behind the ime valu of money states that in purely eonomic tems, a dolar todays worth more than alla omorrow + Thisislusated by the fact thay, generally speaking investing a dolar today wil generate some srt of ners return that wil give you more hana dalla omerow + Whois the father of wellae economies? Athor Cel Pigoa + Who isthe Mother Teresa of conics? ~ Amartya Sen {Who ste Father of Modern Economics Scottish Thinker Adam Smith {Who isthe father of five-year plan ~Toseph Stalin (implemented thet fve ear plan inthe Society Union in 1928) + Who isthe father of five-year plan in Ind Parliament of nda) Pandit Jawaharlal Nehru (presented the first five year plan to the ‘+ Adam smith is often identified asthe father of modern is Poseidon, You stuay For civit Services SCSGYAN, ‘Glee studyforcivitservices + Asper Greek mythology, the father of commerce is Poseidon ‘Sectors of the Economy ~ The economic activities ofthe economy are divided into the following 3 categories — + Primary Sector - The sector of the economy where natural resources are obtained in a concrete manner, such as ‘mining, agriculture, animal husbandry, fisheries, et. This sector i also called agriculture and allied activities, + Secondary Sector - The sector of the economy which uses the products of the primary sector as raw material in its activities is called the financial sector. For example, iron and steel industry, textile industry, vehicle, biscuit cake ete. In fact, manufacturing is done inthis sector, that is why it is also called industrial sector. # Tertiary Sector - Various types of services are produced in this sector; For example - banking, insurance, education, ‘medical, tourism ete, This sector is also known as the service sector. Types of Economy= ‘+ Agricultural Economy ~ I the contribution of the primary sector in the gross production (Gross Domestic Product) of an economy is 50% or more, then itis called an agricultural economy. ‘+ Industrial Economy ~In such an economy, the share of secondary sector in Its gross income remains 50% or more and. in the same proportion the dependence of people on this sector also remains, Entire Europe-America was in this condition when they were given the name of industrial economy. This situation has not yet come in India, neither the contribution ofthe secondary sector has increased to this level, nor has the population's dependence on it increased. ‘+ Service Economy ~ An economy under which the tertiary sector contributes 50% or more to gross income is called a service economy. ‘The Idea of National income ‘+ National income is an important concept in economics. For the understanding of economies and any economy, itis necessary to be clear about the concepts related to the calculation of national income. + Statistics related to national Income and gross domestic product are important to know about the economic condition of any country, National income is a measure of the flow of goods and services in any economy. Information about national income also gives information about the size and nature ofthe country’s economy. ‘+ One person's income can be estimated, in the same way its possible to estimate the income of the whole country and it is possible to estimate the income of the whole world, although the method of measuring the income of the whole world is definitely difficult. However, there are four approaches in economics to estimate the income of any country. These four approaches are - GDP, NDP, GNP and NP. ross Domes P) ‘= Gross Domestic Product (GDP) is the final monetary value of all goods and services produced in an economy in a year. For India it is year from 1st April to 31st March, Its also assessed by the sum of national private consumption, gross investment, government and trade balance (export-import). In this method, the cast of imports produced outside the country and the value of those country-made goods and services that have not been sold in the country are added, * Gross Domestic Product (GDP) or GDP or Gross Domestic Income (GDI), isa basic measure of an economy's economic performance. ‘© GDP can be defined in three ways, all of which are conceptually similar. = IL equal to the total expenditure incurred for all final goods and services produced within a county in a given time period (usually a year of 365 days). ‘= Itis equal to the sum of the total value added at each stage (intermediate stage) of production by all industries in «period within a country and taxes on the products without subsidies. = Itis equal to the sum of the income generated by production in the country over a period-—that is, the amount of compensation to workers, taxes on production and imports without subsidies, and gross operating surplus (or profit). Product The various uses of GDP are as follows = + The annual percentage change in GDP is the growth rate of an economy. For example, the GDP of a country is Rs 107 and itis Rs 7 more than the previous year, then the growth rate of the economy of that country is 7_percentWhen we call the economy of a country as a growing economy, it means that the income of the country is increasing quantiatively. 710 You stuay For civit Services SCSGYAN, ‘er GiaBo studyforcivitservices ‘+ The comparative analysis of member countries by the International Monetary Fund and the World Bank is done on its basis only. Calculation of GDP: GDP = Private Consumption + Total Investment + Investment by Government + Expenditure by Government + (Import-Export) ‘Net Domestic Product (NDP) ‘+ Net Domestic Product (NDP) is the GDP of an economy after deducting value cuts during a year. Infact, the resources by ‘which they are produced lose their value during use, which means wear and tear of those goods. In this, the rate of price cet is fixed by the government. In India, this decision is taken by the Union Ministry of Commerce and Industry. Ifthe value of domestic currency is les infront of foreign currency in the market system, then its called devaluation of, domestic currency. This is determined by the fallin the domestic currency. NDP = GDP ~ Depreciation. So NDP is calculated by deducting depreciation from Gross Domestic Product (GDP). ‘= An increased NDP indicates an inerease in economic health, while a decrease would indicate slowdown of the country's economy. ‘NDP in any economy in any given year will always be less than the GDP ofthat year. There is no way to set depreciation tozero, Gross National Product (GNP) ‘Gross National Product (GNP) in an economy is called the income which is obtained by adding the income from abroad in GDP. Italso includes economic activities that take place outside the country's borders. + Gross national product is the value of manufactured goods and services owned by a country's residents over a given period of time, + Gross National Product (GNP) = Gross Domestic Product (GDP) + Net Factor Income from abroad. GNP is not always greater than GDP. + But in the case of India, there is a loss instead of income from abroad, so India's GNP is always equal to GDP income from abroad, Means India's GNP is always less than GDP. + Gross National Product (GNP) is an economic statist consisting of GDP + income earned by residents from foreign Investments income earned by forelgn residents in the domestic economy. + Therefore, net factor income from abroad can be positive or negative depending on the output in the country. ‘© Therefore, GNP can be more than GDP, or can be less than GDP. + Gross national product (GNP) is an estimate of the total value of all final products and services obtained in a given period by the means of production owned by a country's residents. Net National Product (NNP) ‘©The income that remains after deducting the price cut from the Gross National Product (GNP) is called the Net National Product (NNP) of an economy. ‘Net national product at factor cost is called national income, + Net National Product (NNP) = Gross National Produet (GNP) ~ Depreciation or NNP = GDP + Income from abroad - Depreciation ‘The various uses of NNP areas follows ~ ‘Its the national income of any economy. Although GDP, NDP and GNP are all national income but they are not written. as national income. ‘It is the best way to estimate the national Income of any country ‘When we divide the NNP by the total population of the country, then the per capita income of the country is known. ‘This is per capita annual income, Gross Value Added (GVA) ‘© Gross Value Added (GVA) calculates national income with reference to the supply side, It sums up all the value added in different sectors, + According to the Reserve Bank of India, Gross Value Added (GVA) ofa sector is defined as the value of output minus the value of intermediate inputs. This “value added” is shared among the primary factors of production, labor and capital, + Its easy to understand which sectors of the economy are strong and which are struggling by looking at Gross Value ‘Added (GVA) growth, at You stuay For civit Services SCSGYAN, ‘Glee studyforcivitservices Difference between GDP (Gross Domestic Product) and Gross Value Added (GVA) - + The main basis of Gross Domestic Product (GDP) is Gross Value Added (GVA) data. * GDP (Gross Domestic Product) and Gross Value Added (GVA) are related by (axes earned by the government) -(subsidies provided by the government). + GDP = Private Consumption + Gross Investment + Government Investment + Government Expenditure + (Export- Import) ‘Gross Value Added = GDP + Subsidies on products ~ Taxes on products ‘+ In 2015, India adopted the United Nations System of National Accounts 2008. The above definition is of SNA. Earlier India was measuring GVA at factor cost (meaning taxes and subsidies were not taken into account), then India started ‘measuring GVA at Basic Price (in which subsidies are added and taxes are deducted). The base year was also shifted from 2004-05 to 2011-12. ‘GVA gives picture of the state of economic activity from the producer side or supply side, GDP gives the picture from the consumers side or demand side. (GVA ~> producer side; GDP ~ consumer side) ‘GVA is considered a better measure of the economy. GDP fails to measure the real economic scenario as a sharp increase in output may also be due to higher tax collection and better compliance, which may not necessarily reflect the position of real output. + A sector-wise breakdown provided by the GVA measure helps policy makers decide which sectors need incentives or disincentives and formulate sector-specific policies accordingly. But GDP is an important measure when it comes to cross-country analysis and comparing the income of different economies, (GVA decides which sector needs incentive) + From the point of view of global data standards and uniformity, GVA is an integral and essential parameter in ‘measuring the economic performance of a country. Any country that wants to attract capital and investment from abroad must conform to global best practices in national income accounting, ‘+ The accuracy of the GVA{s heavily dependent on the sourcing ofthe data and the accuracy of the various data sources. ‘Like any other measure, GVA is susceptible to weaknesses from the use of inappropriate or flawed methodologies. following equation: GDP = (GVA) + Difference Between GDP, GNP. NNP + Both GDP and GNP represent the national output and income of the economy. © GDP measures all domestic production, regardless of the nationality of its producing units, and GNP (Gross National Product) measures the value of output generated by the ‘nationality’ ofa region ‘In GNP, income received from the country or abroad is added, while in NNP, the reduction in the cost incurred is subtracted ‘+ GNP includes foreign income instead of imports and exports, in general it can be said that compared to GDP, GNP Includes net foreign investment income, + GDP reflects the level of domestic production, while GNP measures the level of production corporation of country. Economic growth and Economic development Economie activities taking place in any economy give rise to twa types of changes In the long run - 1. Economie growth 2. Economic development 1. Economic Growth - Changes in aggregate variables, such as ~ national income, gross domestic product, per capita Income, which can be measured, ae called economic growth. 2. Economic Development - Along with the changes related to economic growth, when we include factors like qualitative changes in the economy and human concerns, then we cll it economic development. ay individual or ‘Sustainable Economic Growth ‘Sustainable Economic Development, a national initiative that builds on the unique assets of local economies to meet their individual challenges and deliver tangible, tangible benefits, It puts in place a practical, implementable tool that puts strategies to work for local people, businesses and institutions. + The objective of sustainable development is to balance our economic, environmental and social needs, so as to bring prosperity to present and future generations. This includes social progress and equality, environmental protection, conservation of natural resources, and sustainable economic development. ‘+ The main features of sustainable development are respect and care for al life forms, improving the quality of human life, reducing the depletion of natural resources, enabling communities to care for their own environment. ‘The concept developed in the 1960s when people became aware of the harmful effects of industrialization on the environment. 12 You stuay For civit Services SCSGYAN, ‘Glee studyforcivitservices Sustainable Development Objectives Sustainable development has some far-reaching and comprehensive objectives which are free from caste, religion, language and regional barriers, These objectives are such 2 right side for the liberation of the economy from the chains of exploitative ‘mentality, which have saved the KARR 8 6 Economic Reforms in 1991 and the Economy After The concept of sustainable development originated in the year 1962. when scientist Rockall Carson wrote a book titled “The Silent Spring’, This book proved to be a milestone in the study of interrelationships between environment, economy and social aspects. The best definition of sustainable development was given by the Brundtland Commission in its report ‘Our Common Future’ (1987), He defined sustainable development as development that meets the needs of the present without compromising on the needs of future generations. In the year 1968, biologist Paul Ehrlich published his book ‘Population Bomb’, in which he highlighted the relationship between human population, resource exploitation and environment, Neemrana is located in Alwar district of Rajasthan state, Almost all the development work done here is based on the ‘mode! of sustainable economic development, jo-wealth of the nations from being destroyed, in short these objectives are as fllows- To protect the earth’s natural resources from misuse, Discover such new scientific techniques, Those who act according to the laws of nature, protect diversity and involve local communities in development policies, To decentralize the institutions of governance and make them more flexible, transparent and accountable to the people, To plan such international institutions that understand the needs of poor countries without destroying their environment, help in their development, to make the standard of living of the majority of people equal to equality and justice Enhancing peaceful coexistence among all nations of the world, because only peace ensures the protection ofthe larger interests of humanity. Sustainable development i a value based concept, which calls for ideals like mutual co-existence and respect forall. tis a continuous development process based on harmony of cultural, social, economic, political and environmental factors, India had to go through a great economic crisis in 1991, According to many economists, this was the most serious economic crisis in India's economy after independence. In fact, the economic problems which took the form of crisis in 1991 did not appear suddenly, but were present in the economy for many years. In the year 1991, India faced a crisis in terms of external debts. The government was not ina position to pay its foreign debt. The foreign exchange reserve normally kept for imports of essential commodities like petroleum, etc, was not left even to pay for essential imports for fifteen days. The real source ofthis financial crisis was the inefficient management of the economy in the 1980s. For running the general administration and implementation of its various policies, the government raises funds through taxes and public enterprises ete, When expenditure exceeds income, the government is forced to borrow from banks, public and {international financial institutions. By the late 1980s, the government's expenditure exceeded its revenue so much that expenditure through debt was considered to exceed its holding capacity. The prices of many essential commodities started rising rapidly The 1991 reforms were a landmark moment in India's post-independence history that changed the nature of the economy in fundamental ways. The serious problem of balance of payments gave rise to the economic crisis in the year 1991. To deal with this, India's economic establishment launched a multi-pronged reform agenda to improve India's ‘macroeconomic balance sheet and accelerate the pace of development. The 1991 crisis was caused by a decrease in imports due to high domestic demand and a widening of the current account deficit (CAD) The Gulf crisis of 1990 further aggravated India's macroeconomic problems. On the other hand the Indian political situation was also unstable. Changes in the international environment due to the crisis in the Gulf countries led to a serious foreign exchange crisis. Indian exports to the Gulf countries almost came to a halt, resulting in an unprecedented reduction in foreign exchange inflows, The remittances, which used to come from the Gulf countries by non-resident Indians, were exhausted Bill of import of petroleum oll and lubricants increased, On the other hand, political instability encouraged capital outflow and eventually the combined effect ofall these factors led to the depletion of foreign exchange funds. For the first time in the history of the Indian economy, the problem of balance of payments appeared as a serious problem in June 1991. New Economic Policy (1991) - In order to deal with the troubled economic conditions of 1990-91, the Government of India decided to implement economic reforms seriously. Since the beginning of the Seventh Plan, many important 3 You stuay For civit Services SCSGYAN, ‘e" GiaBo studyforcivitservices policy changes have been brought about in the economic sector of the country, which are related to different parts of the economy. In the economic field, these changes were implemented in such a large and effective manner that they are called "New Economic Policy” oF "Economic Reforms". This new economic policy has been given a clear and concrete form in the various government policy announcements given in 1991 regarding various aspects of the national economy, ‘+ In the policies announced in 1991 for economic reforms, importance was given to two major economic elements ~ ‘macroeconomic stabilization and structural reform. + Liberalization - Although liberalization in industrial licensing system, import-export policy, technological up- gradation, fiscal and foreign investment policies were introduced in the 1980s as well, But the reformist policies Introduced in 1991 were much broader. Industrial sector, financial sector, tax reform, foreign exchange market, trade and investment sector were given special attention in 1991 and after 1991, + Reform policies that began after 1991 ended many restrictions. The licensing regime was abolished for all industries except alcohol, cigarettes, hazardous chemicals, industrial explosions, electronics, aviation and pharmaceuticals, except these six product categories. The rates of taxes levied on personal income have been continuously reduced since 1991. The main assumption behind ‘this was that high tax rates lead to tax evasion, It fs now widely accepted that if tax rates are not too high, savings are encouraged and people voluntarily report thelr income. ‘+ ‘The corporation tax rate, which was earlier very high, has been gradually reduced. Efforts are also being made to reform indirect taxes such as taxes levied on goods and services so as to create a common national level market for all goods and services. + The Goods and Services Tax Act-2016 (GST 2016) Act was passed by the Indian Parliament in the year 2016 to “unify and simplify the indirect tax system. This law came into force from July 2017, ‘+ The first reform in the foreign sector was done in the foreign exchange market. In 1991, for an immediate solution to the problem of balance of payments, the rupee was devalued in relation to the currency of other countries + Privatization - Privatization means relinquishment of ownership or management of a public undertaking by the government. Government companies are converting into private sector companies in two ways ~ 1. Government getting ‘out of the ownership and management ofa public company 2. Direct selling to public sector companies. ‘+ Privatization through the sale of equity by a public sector enterprise to the general public is called disinvestment. According ta the government, the main objective of such sales was to increase financial discipline and help in modernization. + Attempts have been made to improve the efficiency of Government PSUs by giving them autonomy in managerial decisions. For example, some PSUs have been given special status of Maharaina, Navratna and Laghar Ratna, EconomicReformsafter 2014 Labor Reforms + Second National Labor Commission was constituted to reform labor related laws. The Second National Labor Commission had suggested the integration of about 100 state laws and 40 central laws into labor related industries, professions ete. ‘+ Giving priority to the workers, when the iii Mii: =it=diSitamen|ajateGnOGelenM6M2008) while describing the workers as the builders of the nation, he said that the strength of Satyamev Jayate is as much as that of Shramev Jayate for the development ofthe nation. ‘+ Labor reforms done from the year 2014- 1, IT enabled system for transparency and accountability and mandatory authorization for oversight. 2, The amount of gratuity payment increased from Rs 10 lakh to Rs 20 lakh with effect from March 29, 2018. 3. Payment of revised wages under the Payment of Wages Act will be made by check or credited to the employee's bbank account with effect from February 16, 2017, 4. The Maternity Benefit (Amendment) Act 2017 which came into force from 1st April 2017 increased the paid ‘maternity leave from 12 weeks to 26 weeks. ilthe Union Minister of Finance and Corporate Affairs, Smt, Nirmala Sitharaman, while presenting the Economic Survey. 2020-21 in Parliament on January 29, 2021, said that the years 2019 and 2020 are milestones in the history of labor reforms, in which 29 central labor laws were Incorporated. , rationalized and simplified as 4 labor codes. These are he Wage Cade 201 6) nda etn Code 220 (i the Oceana ae Heath 14 You stuay For civit Services SCSGYAN, ‘Glee studyforcivitservices Wage Code Act, 2019 Social Security Code Bill, 2020 Industrial Relations Code Bill, 2020 The Wage Code universalises minimum wages and timely payment of wages to all employees, respective of region and wage ceiling, The objective of the bill i to make the old and obsolete labor laws more accountable and transparent and to pave the ‘way for the introduction of minimum wage and labor reforms in the country. Under the Wage/Wage Code, there isa provision to bring all the workers of India within the prescribed minimum wage. Before 2019, there were different definitions of minimum wage in the labor laws present in India, but the universal definition of minimum wage has been accepted in the Wage/Wage Code. Removing the ambiguity in terms of working hours for workers in the Wage Code, these have been fixed at @ hours. ‘Work or labor more than 8 hours will be considered as overtime, In addition, it also provides that the total working hours in a working day cannot exceed 12 hours (inclusive of overtime and rest intervals) The central government has the right to fix the minimum wages keeping in mind the standard of living of the workers. It may set different minimum wages for different geographical areas, The minimum wage fixed by the central or state governments should be higher than the floor wage. The Bill simplifies the definition of salary. It provides for minimum wages and timely payment of wages in all work areas. ILprovides statutory protection for-2 minimum wage of up to 100% of the workforce. In case the employer does not provide minimum wages to the worker, the worker can appeal to the nearest Magistrate Court A separate technical committee will determine the minimum wage (or remuneration) in respect of journalists. It regulates wage and bonus payments in all employment sectors where an industry, trade, business or manufacturing is being carried on. The Wages Code Act, 2019 subsumes four labor laws: 1, Minimum Wages Act, 1948 2, Payment of Wages Act, 1936 3, Payment of Bonus Act, 1965 4. Equal Remuneration Act, 1976 The Social Security Code, 2020 amends and consolidates the laws relating to social security with the aim of providing social security to workers and workers working in the organized and unorganized sectors Employees’ Provident Fund, Employees’ State Insurance Corporation, gratuity, maternity benefits, social security and cess in respect of workers engaged in building and other construction work, social security and cess for workers in the unorganized sector, gig workers and platform workers under the Social Security Code, 2020. The draft rules related to security and employment related information were notified on 13 November 2020. 9 social security laws have been included under the Social Labor Code. The Social Security Code provides universal social security to workers working in the unorganized and gig economy. In addition, the provisions ofthis code have also been extended to agricultural workers. The Code has broadened the coverage area to include workers in the unorganized sector, fixed term employees and gig workers, platform workers, inter-state migrant workers etc Also, aggregators employing gig workers will have to contribute 1-2% of their annual turnover towards social security, the total contribution should not exceed 5% of the amount payable by the aggregator to gig and platform workers, The Industrial Relations Code, 2020 consolidates and amends the laws relating to trade unions, conditions of employment in industrial establishments or undertakings, investigation and settlement of industrial disputes, The Bill was prepared in accordance with the report and recommendations of the Second National Labor Commission, The Industrial Relations Code Bill, 2020 seeks to amalgamate, simplify and rationalize the relevant provisions ofthe three Acts (I) the Trade Union Act, 1926, (il) the Industrial Employment (Standing Orders) Act, 1946, and (ill) the Industrial Disputes Act, 1947, In the Industrial Relations Code, the provision related to the hiring and retrenchment of workers working in companies cr business establishments has been simplified Companies with up to 300 employees will not need to seek the Labor Department's permission for recruitment or retrenchment. Apart from this, the limit of employees working on contract has been increased from 20 to 50. Earlier, commercial establishments with more than 100 workers were exempted from this. Now this limit has been increased to 300 in the Industrial Relations Code. Ifworkers have to go on strike, they will have to give notice 60 days in advance. If any matter is pending inthe Tribunal, then the strike related to this matter cannot be done by the workers. There is a provision for the establishment of a skill fund to increase the skill of the workers who have been fired by the commercial establishments due to lack of skills, in which the employer's contribution and money will come from other The new provision of the Standing Order would be applicable to every industrial establishment in which 300 or more than 300 employees were employed or employed on any day of the preceding twelve months. 5 You stuay For civit Services SCSGYAN, ‘Glee studyforcivitservices ‘The Occupational Safety, Health and Working Conditions Code Bill, 2020 ‘+ ‘The Occupational Safety, Health and Working Conditions Code 2020 is a code to consolidate and amend the laws regulating occupational safety, health and working conditions for persons emplayed in an establishment. This Act replaces 13 old Central Labor Laws, Free medical check-up once a year for workers above a specified age by the employer. Through this, for the first time, the workers have been given the legal right to get appointment letters. The complex labor laws of the country have been consolidated and simplified through the four labor codes. This will increase the ease of doing business in India ‘With a universal definition of minimum wage, disputes related to itwill come down, There will bea reduction in redtapism in the business sector in ndia, this will accelerate economic activities, Planning in India + The Soviet Union Grst put forward the idea of national planning and adopted it. After long discussions and

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