UNIT 6 ­ INDIAN INTRODUCTION

ECONOMY
S NO Chapters
1 Introduction / அ"#க%

2 Planning & NITI Aayog / &'ட)ட* ம,-% .& ஆேயா3

3 National Income / ேத5ய வ7மான%

4 Inflation / பண;3க%

5 Money & Banking – RBI / பண% ம,-% வ<=>ய*

6 Monetary Policy / பண?ய* ெகாAைக

7 Fiscal Policy & Source of Revenue / .&3 ெகாAைக & வ7வாC ஆதார%

8 Finance Commission & GST / .& ஆைணய% & EஎGH

9 External Sector / ெவIJறLM Nைற

10 Poverty / வ-ைம

11 Unemployment / ேவைல>Pைம

12 Agriculture / ேவளாRைம

13 Industrial Policy / ெதாS* ெகாAைக

14 Rural Growth / ஊரக வளUV5

15 Social Problems / சXகY ZரVசைனகA

UNIT 6 – Indian Economy - Syllabus
UNIT 6 – Indian Economy - Syllabus
UNIT 6 – Indian Economy – Trend Analysis
Year Number of Topic 2022 2021 2019
Questions
RBI 3 2 1
2022 21
Monetary Policy 2 2 2
2021 20
Fiscal Policy & Revenue 1 4 2
2019 19
GST 1 1 1
Planning & NITI Aayog 4 2
Agriculture 2 2 3
Nature & Structure 1 3 1
Schemes 2 1
Industrial Growth 4 1
Employment 2 1
Rural Welfare 1 1
Social Problems 1
Others 1 2 3
What is Economics?

• Production, distribution and consumption of Goods & Services

• ப"ட$க& ம()* ப+க,- உ(ப/0, ப123 ம()* 4க23
Macro vs Micro Economy -
Macro Economics vs Micro Economics
Macro Economics – Scope ேப#ய% ெபா)ளாதார-தி/ பர0ெப%ைல

• ேத7ய வ:வா< (National Income)

• பண >?க* (Inflation)
• வா+ப@ Aழ(7 (Business Cycle)
• வ)ைம ம()* ேவைலE-ைம (Poverty and
Unemployment)
• வள2@7 (Economic Growth)
• ெபா:ளாதார ெகா&ைகக& (Economic Policies)
Macro Economics – Problems - !ைற
Types - வைகக$
 •
• Who owns factors of production? •
உ"ப$% கார)க* யா,-. ெசா1தமான5?
எ7ன ெபா,8க* ம"9: ேசைவக* உ"ப$%
• What goods and Services produced? ெச>ய?ப@A7றன?
• How they are distributed? • அைவ எDவா9 EFேயாA-க?ப@A7றன?
• Eைலக* எDவா9 FHணJ-க?ப@A7றன?
• How the prices are fixed?
STRUCTURE OF INDIAN ECONOMY
இ"திய ெபா*ளாதார-தி. க0டைம45

Economy is broadly divided into • ெமா$த உ(நா*+ உ,ப$திய01

இைய4
three sectors which contribute to
• இ5திய ெபா6ளாதார9 பரவலாக
the GDP namely =1> ?ைறகளாகA ப0BCகAப+கிற?.

1. Primary or Agriculture and • 1. !த#ைம&'ைற(ேவளா.'ைற)

allied activity, • 2. இர.டா4 'ைற(ெதாழி8'ைற)

2.Secondary or Industry • 3. ;#றா4 'ைற(பண>க@ 'ைற)

3.Tertiary or Services.
STRUCTURE OF INDIAN ECONOMY
இ"திய ெபா*ளாதார-தி. க0டைம45
Primary Sector
• Activities undertaken by directly
using natural resources.
• Example—Agriculture, Mining,
Fishing, Forestry, Dairy etc.
• It is called primary sector because
it forms the base for all other
products that we subsequently
make.
Eத1ைம$ ?ைற
• இய,ைக வளFகைள ேநரHயாகA
பய1ப+$தி ேம,ெகா(ளAப+9
நடவHCைகக(.
• உதாரண9-வ0வசாய9, NரFக9,
மO 1ப0H$தP, கா+க(, பாPபQைண
ேபா1றைவ.இ?
• Eத1ைம$ ?ைற எ1>
அைழCகAப+கிற?, ஏெனனWP இ?
நா9 ப0,பா+ ெசXY9 ம,ற
அைன$? தயாBA4கZC[9
அHAபைடயாக அைமகிற?.
STRUCTURE OF INDIAN ECONOMY
இ"திய ெபா*ளாதார-தி. க0டைம45

Secondary Sector இர.டா4 'ைற(ெதாழி8'ைற)

• It covers activities in which • ெதாழிP?ைறைய இரQடா9 ?ைற
natural products are changed என\9 அைழCகலா9.
into other forms through ways =லAெபா6(கைள
மா,றியைமAபத1 =ல9 பQடFக(
of manufacturing that we ம,>9 பண0க( உ,ப$தி
associate with industrial activity. ெசXயAப+கி1றன.
• It is a next step after primary, • எ.கா. இ694 ம,>9 எஃ[ ெதாழிP,
where the product is not ஜ\ளW$ெதாழிP, சணP, ச_Cகைர,
produced by nature but has to be சிெமQ*, காகித9, ெப*ேராலிய9,
made. ஆ*ேடாெமாைபPa ம,>9 ப0ற
சி>ெதாழிPக( ஆ[9.
STRUCTURE OF INDIAN ECONOMY
இ"திய ெபா*ளாதார-தி. க0டைம45

Tertiary Sector
• These are the activities that help in the development of
the primary & secondary sector.
• These activities by themselves do not produce good but
they are an aid and support to the production process.
Example:
a)Transportation--Goods that are produced in the
primary sector need to be transported by trucks or
trains and than sold in the wholesale and retail shops;
b) Storage--at times it is necessary to store these
products in godowns, which is also a service made
available.
c)Communication --talking to others on telephone);
d) Banking--borrowing money from the banks.
• Since these activities generate services rather than goods
it is also called Service sector.
STRUCTURE OF INDIAN ECONOMY
இ"திய ெபா*ளாதார-தி. க0டைம45
Nature of INDIAN ECONOMY
இ"திய4 ெபா*ளாதார-தி. இய65
State of Economy

Agri: 20.95%

Services: 53.41%
Industry: 25.63%
Nature of INDIAN ECONOMY
இ"திய4 ெபா*ளாதார-தி. இய65
1. India has a mixed economy
1. இ"தியா ஒ(கல+, ெபா(ளாதார1
ØMixed economy = Public + Private ெபா$% $ைற + தன+யா- $ைற

2. Agriculture plays the key role: 2. ேவளா4ைம 78கிய ப9: வகி8கிற<

ØAgricultural depended population – 49% • வ/வசாய1 சா-2த ம4க6 ெதாைக - 49%
ØContribution to GDP – 20% • ெமா%த உ6நா;< உ=ப%திய/? ப@கள+BC
- 20%

3. An emerging market: 3. வள="< வ(1 ச"ைத

ØStable GDP growth
4. ேவகமாக வள(1 பண@கA <ைற
4. Emerging Economy: • ெபயரளவ/லான ெமா%த உ6நா;<
Ø5th position in nominal GDP உ=ப%திய/? 5வ$ இட1

Ø3rd position in PPP • வா@J1 திறK சமநிைலய/? 3வ$ இட1

Nature of INDIAN ECONOMY
இ"திய4 ெபா*ளாதார-தி. இய65
5. Fast Growing Economy 5. ேவகமாக வளB4 ெபாBளாதார4
Øworld’s fastest growing economy • இ5தியா ேதாராயமாக 7% உலகி1
approximately 7% ேவகமாக வள69 ெபா6ளாதாரமாக
உ(ள?.

6. Fast growing Service Sector 6. ேவகமாக வளB4 ேசைவ& 'ைற

ØIT, Banking, Transportation & etc • தகவP ெதாழிPd*ப9,
ேபாC[வர$? ம,>9 பல
வFகி,

ØService sector contribution in GDP - • ெமா$த உ(நா*+ உ,ப$திய0P ேசைவ$

53% ?ைற பFகளWA4 - 53%

7. ெபFய உ@நாJK LகMN

7. Large Domestic consumption
8. நகMPQறRகளS# வ>ைரவான வளMUசி
8. Rapid growth of Urban areas:
Nature of INDIAN ECONOMY
இ"திய4 ெபா*ளாதார-தி. இய65
9. Stable macro economy: 9. நிைலயான ேபFய8
ெபாBளாதார4:
Ø1996 economic slow down • 1996 ெபா6ளாதார ம5தநிைல
Ø2008 USA financial crisis • 2008 அெமBCக நிதி ெந6CகH

ØCovid 19 • COVID-19

10. மYக@ெதாைக ஈN&ெதாைக:

10. Demographic dividend: • இ5தியாவ0P இைளஞ_க( 2022 - 15-
ØYouth in India 2022 - the youth in 29 வய?C[*ப*ட இைளஞ_க( 27.2
சதவத9
n ேப_ உ(ளன_
the age group of 15-29 years
comprise 27.2 per cent
Weakness of Indian Economy
இ"திய& ெபா+ளாதார.தி/ பலவன4
2

1. Large Population 1. அத]த மYக@ ெதாைக

• 2011 மCக( ெதாைக
ØAs per 2011 census – 1.21billion
கணCெக+Aப01பH - 1.21 ப0Pலிய1

2. Inequality and poverty 2. சம&'வமி#ைம ம_`4 வ`ைம

ØThe proportion of income and
assets owned by top 10% of
Indians goes on increasing.
Øhigher percentage of individuals
are living Below Poverty Line (BPL).
• 10% இ5திய_கZC[o ெசா5தமான
வ6மான9 ம,>9 ெசா$?CகளW1
வ0கித9 அதிகB$? வ6கிற?.
• அதிக சதவத n தனWநப_க( வ>ைமC
ேகா*H1 கீ q வாqகி1றன_.
 Weakness of Indian Economy
இ"திய& ெபா+ளாதார.தி/ பலவன4
2
3. Increasing Prices of Essential Goods: 3. அEதியாவசிய+ ெபா(FகளGH வ@ைல
அதிகI+,:
ØThe continuous rise in prices erodes the • ெதாட-Mசியான வ/ைலவாசி உய-N
purchasing power and adversely affects வா@J1 ச4திைய Jைற%$ வOமான1
the poor people, whose income is not Jைறவாக உ6ள
ேமாசமாக பாதி4கிற$.
ஏைழ ம4கைள

protected.
4. பலவ னமான
L உAகFடைம+,:
4. Weak Infrastructure: • மிKசார1, ேபா4Jவர%$, ேசமிBC
ØStill a scarcity of the basic infrastructure ேபாKற அVBபைட4 க;டைமBCகW4J
இKX1 ப=றா4Jைற உ6ள$.
like power, transport, storage etc.
5. ேபாதிய ேவைலவாQ+,
5. Inadequate Employment generation: உ(வா8கமிHைம

ØJobless growth • ேவைலய/?லா வள-Mசி

6. காலாவதியான ெதாழிTUFப1
6. Outdated technology
Types of Natural resources
இய#ைக வள)கள*+ வைகக,

1. Renewable Resources 1. C$Bப/4க%த4க வள@க6

2. Non-Renewable Resources 2. C$Bப/4க YVயாத வள@க6

Land Resources: நில வள9கA:

• It accounts for 2.42% of total area உலகிK ெமா%த பரBபளவ/? 2.42%
of the world. உ6ள$.
வன வள9கA:
Forest Resources: § ெமா%த கா< ம=\1 மர@க6 நா;VK
• The Total Forest and Tree cover is Cவ/ய/ய? பரBப/? 24.62% ஆJ1.
24.62% of the geographical area of § இ$ இ2திய வன ஆ_வ/K 17 வ$
the country. இO ஆb<கW4J ஒOYைறய/லான
• It is the 17th biennial assessment இ2தியாவ/K கா<கள+K மதிBபdடாJ1.
of India’s forests by the Forest
Survey of India.
Infrastructure:
உ$க&டைம)*:

1. Economic infrastructure - 1. ெபா6ளாதார உ(க*டைமA4 -

ேபாC[வர$?, தகவP ெதாட_4,
transport, communication,
ஆ,றP, நn_Aபாசன9, பணவ0யP
energy, irrigation, monetary and ம,>9 நிதி நி>வனFக(
financial institutions
2. ச=க உ(க*டைமA4 - கPவ0,
2. Social infrastructure - பய0,சி ம,>9 ஆராXoசி,
education, training and research, Nகாதார9, வ+n ம,>9 [Hைம
health, housing and civic வசதிக(.

amenities.
Models of Economic Development
ெபா$ளாதார வள*+சிய/0 மாதி2க4

Nehru-Mahalanobis Model: ேநB-மஹாலேனாப>c மாதிF:

• Second Five Year Plan and has continued right up • இரQடாவ? ஐ5தாQ+$ தி*ட9
to the eighties. எQப?க( வைர ெதாட_5த?.
• ச=க$திP [ைற5த சsைக ெப,ற
• Opportunities for the less privileged sections of the
ப0Bவ0ன6Cகான வாXA4க(.
society.
• ச=க ம,>9 ெபா6ளாதார
• Potential with the extension of social and வாXA4களW1 வ0BவாCக$?ட1
economic opportunities. tHய சா$திய9.
• ேந6-மஹாலேனாப0a மாதிBய0P
• In the Nehru-Mahalanobis model the State
அரN ெபா?$?ைற =ல9
controlled the commanding heights of the ெபா6ளாதார$தி1 உoசக*ட$ைத
economy through the public sector. க*+Aப+$திய?.
 காdதிய வளMUசிய># மாதிF:
The Gandhian Model of Growth:
• ஆoசா_யா எa.எ1. அக_வாலா 1944
• Acharya S.N. Agarwala in 1944 and was re-affirmed in இP ம,>9 1948 இP மO Q+9
1948 உ>திAப+$தAப*டா_
• to provide a basic standard of life. • அHAபைட வாqCைக$ தர$ைத
வழFக ேவQ+9.
• reform of agriculture. • வ0வசாய சீ_தி6$த9.
• maximum self-sufficiency in village communities. • கிராம ச=கFகளWP அதிகப*ச
த1னWைற\.
• While Nehru wanted to give prime importance to • ேந6 கனரக ெதாழிPகZC[ ECகிய
heavy industries, the Gandhian model attempts to give ECகிய$?வ9 ெகா+Cக
primacy to agriculture supported by handicrafts and வ069ப0னாs9, கா5திய மாதிB
cottage industries. ைகவ0ைனAெபா6*க( ம,>9
[Hைச$ ெதாழிPகளாP
ஆதBCகAப+9 வ0வசாய$தி,[
E1wBைம ெகா+Cக Eய,சிCகிற?.
LPG Model of Development எTப@ஜி வள=Yசி மாதிI:

• The LPG Model of development was introduced in 1991 ஆ1 ஆb< அBேபாைதய நிதி
அைமMச- டா4ட- மKேமாகK சி@கா?
1991 by the then Finance Minister Dr. Manmohan
எ?ப/ஜி மாதிh அறிYகBப<%தBப;ட$.
Singh.
தாராளமயமா4க?, தன+யா-மயமா4க?
• Liberalisation, Privatisation and Globalisation (LPG). ம=\1 உலகமயமா4க? (எ?ப/ஜி).

PURA Model of Development PURA மாதிI:

ஜனவh 20, 2004
• 20th January, 2004
கிராமBCற-நக-BCற ப/ளைவ4 JைறBபத=J1
• support for bridging the rural- urban divide and சமMசீ- சmகB ெபாOளாதார வள-Mசிைய
achieving balanced socioeconomic development. அைடவத=J1 ஆதரN.

• Dr. A.P.J. Abdul Kalam, to eradicate poverty from India. டா4ட- ஏ.ப/.ேஜ. அB$? கலா1, இ2தியாவ/?
இO2$ வ\ைமைய ஒழி4க.
 TNPSC Group 1 Prelims 2022 – Indian Economy Questions

Nature of Indian Economy