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DAILY
CLASS NOTES
Indian Economy

Lecture – 01
Introduction and Basics
of Economy
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Introduction and Basics of Economy

Introduction to the Indian Economy:

❖ Basics of Economy
❖ Concept of GDP and GNP, National Income, Growth and Development
❖ Banking and Finance- Monetary Policy, Priority sector
❖ Fiscal Policy, Government Budgeting, and Planning- Niti Ayog
❖ Public debt
❖ Inflation, Demand, and Supply
❖ Capital Market
❖ Foreign Trade, Foreign Investment
❖ Foreign Exchange Management
❖ Convertibility of Currency
❖ International Organisations
❖ Poverty and Unemployment
❖ Land Reform
❖ Agriculture
❖ Industry
❖ Investment Models
❖ Subsidies and Food Security (Food Processing Industries)
❖ Infrastructure
❖ Miscellaneous
What to Read?
❖ NCERT books need to be covered before watching lectures.
❖ Daily Newspaper and Magazine (The Hindu, The Indian Express).
❖ Class material Theoretical part and topics not covered in the classes).
❖ Before the next class, revise the previous class.
Introduction:
❖ Economics is the study of how people, businesses, society, and nations deal with resources (Land, Labour,
Capital, and Entrepreneur) in an efficient or economical way. In other words, it helps in the optimal
utilization of resources.
❖ ‘Economy’ is the practical implementation of economics. Example: Indian Economy, US Economy, etc.
❖ The people who study Economy are known as Economists. Economists are those who study how and why
societies, nations, businesses, and people distribute resources and their associated implications on human
well-being.
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❖ Household provides people and businessmen to the entrepreneur and in return, it provides various goods and
services back to them, and with the help of money paid by the entrepreneur to these people, they demand
various goods and services.
Branches of Economics:
❖ Microeconomics: It is the study of individual tastes and preferences.
❖ Macroeconomics: It is the study of society or tastes and preferences of all.
❖ Behavioral economics: When the behavior of an individual is impacting the decision/demand for a good.
Concept of GDP and GNP:
❖ Gross Domestic Product (GDP) means the total amount of goods and services made within the boundary of
a country and it doesn't matter who made it, but it has to be within the boundary.
❖ In India, the Ministry of Statistics and Program Implementation (MoSPI) calculates GDP quarterly.
❖ Gross National Product (GNP) means the total monetary value of goods and services made by the nationals
or citizens of a country anywhere on this globe.
❖ GNP = GDP + Net Factor income from abroad
❖ Net Factor income from abroad is the difference between the factor income of Indians from abroad and the
factor income of foreigners from India.

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