CHAPTER-HEADS PAGE  About the author I-5  Preface I-7  Contents I-11

PART 1 CONCEPTUAL FRAMEWORK OF INDIAN ECONOMY

CHAPTER 1 : CONCEPTUAL FRAMEWORK OF INDIAN ECONOMY 3 CHAPTER 2 : ECONOMIC RESOURCES OF 16 CHAPTER 3 : HUMAN DEVELOPMENT IN INDIA 62 CHAPTER 4 : INDIAN DEMOGRAPHIC STRUCTURE 97

PART 2 INDIAN PLANNING

CHAPTER 5 : ECONOMIC PLANNING IN INDIA 121 CHAPTER 6 : UNEMPLOYMENT IN INDIA 140 CHAPTER 7 : MANAGEMENT OF INDIAN AGRICULTURE 157 CHAPTER 8 : AGRICULTURE FINANCE IN INDIA 180

PART 3 INDUSTRIAL DEVELOPMENT

CHAPTER 9 : LARGE SCALE INDUSTRIES IN INDIA 191 CHAPTER 10 : SMALL SCALE AND COTTAGE INDUSTRIES 218 CHAPTER 11 : SERVICE AND ENTREPRENEURIAL SECTOR 236

PART 4 BANKING AND FINANCE

CHAPTER 12 : COMMERCIAL BANKS IN INDIA 267 CHAPTER 13 : FINANCIAL INSTITUTIONS IN INDIA 285

PART 5 TRANSPORT SERVICES

CHAPTER 14 : MANAGEMENT OF INDIAN TRANSPORT SYSTEM 299 PART 6 INTERNATIONAL AND ORGANISATION

CHAPTER 15 : FOREIGN TRADE OF INDIA 317 CHAPTER 16 : 338

CONTENTS PAGE  About the author I-5  Preface I-7  Chapter-heads I-9

PART 1 CONCEPTUAL FRAMEWORK OF INDIAN ECONOMY

1 CONCEPTUAL FRAMEWORK OF INDIAN ECONOMY

 Nature of an economy 3  Factors Affecting Economic Development 4  Structure of Indian Economy 6  Basic Features of Indian Economy 8  Emerging Features of Indian Economy 10  Economic Growth and Development 13  Nature of Economic Growth 13  Concept of Economic Development 14  Difference between Economic Growth and Economic Development 15  Practice Questions 15 LONG ANSWER QUESTIONS 15 SHORT ANSWER QUESTIONS 15

2 ECONOMIC RESOURCES OF INDIA

Nature of Economic Resources 16 Role of Economic Resources 17 Components of Economic Resources 17  Need of Land for Development Perspective 17 Land Use Strategies 18 Land Acquisition and Rehabilitation & Resettlement Bill, 2011 19 National Mining Policy Framework 20 National Mineral Policy (NMP), 1993 20 Review of National Mineral Policy of 1993 22 National Mineral Policy 2008 23 Implementation of the National Mineral Policy 24 Measure to Control Illegal Mining 26 National Mineral Scenario 27 Production Trends 29 Need for Sustainable Mining and Development 32 Emerging Scenario 32 Problems and Prospects 33 Growing Need of Water Management 34 National Water Policy 2002 35 Need for a National Water Policy 35 Components of National Water Policy 2002 36 Water Resources During Twelfth Plan (2012-2017) 44 Improving Forest Cover 46 Forest Resources in India 47 Importance of Forest Resources in India 47 National Forest Policy, 1988 47 Uses of Forest Resources in India 51 Managing the Environment 52 Factors affecting Environmental Changes 52 Environment Protection and Sustainability During Twelfth Plan (2012-2017) 54 Regulatory Framework of Environmental Management 56 Environmental Management and Entrepreneurial Behaviour 58 Practice Questions 61  SHORT ANSWER QUESTIONS 61  LONG ANSWER QUESTIONS 61

3 HUMAN DEVELOPMENT IN INDIA

Concept of Human Development 62 Rationale of Human Development 63 Components of Human Development 64 Human Development Index 65 Principles of Human Development Index (HDI) 66 Measurement of Human Development Index 66 Human Development Report, 2011 66 HDI perspectives in India 67 HDI performance in terms of Social Indices 68 Patterns and Trends, Progress and Prospects 69 Relationship between environmental risks and HDI 69 Effectiveness of Environmental Sustainability 70 Environmental Threats to Human Development 70 Equity Based Green Economic Policies 72 Financing Investments 72 Education 73 Education Policy 73 Levels of Education System 75 Elementary Education 75 The Right of Children to Free & Compulsory Education 75 Salient Features of the RTE Act, 2009 75 Concept of Sarva Shiksha Abhiyan 77 Aims of Sarva Shiksha Abhiyan 77 Revision of SSA norms 78 Eleventh Plan Targets for Elementary Education 79 Secondary education 79 Rashtriya Madhyamik Shiksha Abhiyan 80 Targets 80 Components 80 Targets for the Eleventh Plan 81 Higher Education 81 University Grants Commission 81 Growth of Higher Education 81 Enhancing and Sustaining Access to Higher Education 82 Policy Initiatives 83 Inclusive Education 84 Quality Improvement 85 Technical Education 85 Targets in Eleventh Plan 87 Health 87 Major Achievements 88 Objectives of Health Sector during 11th Plan 90 Strengthening Existing Health System 91 Social Welfare 91 Features of Indian Social Welfare System 92 Special Schemes for Social Welfare 92 Components of Rehabilitation of Persons with Disabilities 93 Major Schemes for Rehabilitation 93 Women Related Schemes 95 Practice Questions 96  SHORT ANSWER QUESTIONS 96  LONG ANSWER QUESTIONS 96 4 INDIAN DEMOGRAPHIC STRUCTURE

Promotional and Motivational Measures for Adoption of the Small Family Norm 98 Hurdles created by Rapid Growth of Population 99 Population Explosion in India 100 Concept of Population Explosion 100 Effects of Population Explosion 102 Actions and Strategies for Controlling Population Explosion 104 Concept of Migration 104 Indian Scenario 105 Causes of Migration in India 105 Census of India, 2011 107 Process of Census of India, 2011 108 Scope and process 109 Inclusion of caste 109 House listing 109 Population enumeration 110 National Population Register 111 Population 111 Growing importance of census 112 Major highlights of the Census, 2011 112 Practice Questions 117  LONG ANSWER QUESTIONS 117  SHORT ANSWER QUESTIONS 118

PART 2 INDIAN PLANNING

5 ECONOMIC PLANNING IN INDIA

Nature of Economic Planning 121 Features of Economic Planning 121 Types of Planning 122 Objectives of Indian Planning 123 Planning Commission 124 Functions 124 Organization 125 National Development Council 125 Indian Planning Process 126 Tenth Five-Year Plan (2002-2007) 127 Objectives of the Tenth Plan 127 The Development Strategy 127 Targets of the Tenth Plan 128 The Eleventh Plan (2007-2012) 129 Vision 129 Issues Covered in Eleventh Five Year Plan 129 Strategy for the Eleventh Plan : Policies for Inclusive Growth 131 National Targets 132 States - Specific Targets 133 Overall Financial Pattern 134 Critical Evaluation of Current Five-Year Plan (Eleventh Five-Year Plan) 135 Approaches of Twelfth Five-Year Plan (2012-2017) 136 Practice Questions 139  SHORT ANSWER QUESTIONS 139  LONG ANSWER QUESTIONS 139

6 UNEMPLOYMENT IN INDIA

Nature of unemployment 140 Approaches to Unemployment 141 The Approach to the Eleventh Plan 141 Types of Unemployment 142 Causes of unemployment 143 Remedial Measures 144 Guaranteed Wage Employment - Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) 145 Funding 146 Employment Generation During Twelfth Plan (2012-2017) 146 Skill Development During Twelfth Plan (2012-2017) 147 Poverty 148 Composition of the Poor 149 Nature of Poverty 149 Types of Poverty 149 Causes of 150 Measures to Reduce Poverty 152 Perspectives of Indian Poverty 154 Poverty Reduction Programmes 155 Practice Questions 156  LONG ANSWER QUESTIONS 156  SHORT ANSWER QUESTIONS 156

7 MANAGEMENT OF INDIAN AGRICULTURE

Role of Agriculture in Indian Economy 157 Land Reforms 158 Nature of Land Reforms 158 Meaning of Land Tenure 159 System of Land Tenure 159 Agriculture Holdings 160 Problem of Sub-Division and Fragmentation of Holdings 160 Impact of fragmentation of land holdings 161 Co-operative Farming 162 Critical Evaluation of Co-operative Farming 163 Agricultural Marketing 164 Commission for Agricultural Costs & Prices 167 Determination of Minimum Support Price 167 New Agriculture Policy (2000) 169 Practice Questions 179  SHORT ANSWER QUESTIONS 179  LONG ANSWER QUESTIONS 179

8 AGRICULTURE FINANCE IN INDIA

Need for Agriculture Finance 180 Sources of Agricultural Finance 181 Functions of the NABARD 183 Agricultural Financing during Plan Period 184 Rural Indebtness 185 Causes of Rural Indebtedness 186 Consequences of Rural Indebtness 187 Remedial Measures 187 Practice Questions 187  LONG ANSWER QUESTIONS 187  SHORT ANSWER QUESTIONS 188

PART 3 INDUSTRIAL DEVELOPMENT

9 LARGE SCALE INDUSTRIES IN INDIA

Iron & Steel Industry 191 Liberalisation Process in Indian Steel Sector 192 National Steel Policy-2005 192 Structure and role of Indian Steel Industry 193 Production and Consumption Scenario 194 Prospects of Iron and Steel Industry 196 Cement Industry 196 Historical Perspective 197 Growth Profile of Cement Industry 197 Cement Production and Growth 198 Technology Upgradation Programme 199 Problems of Cement Industry 199 Sugar Industry 201 Trade Policy 201 Sugarcane Production and Pricing Policy 202 Sugar Production and Marketing Policy 202 Sugar Decontrol in India 203 Present Regulatory Framework for Sugar 203 Composition of the committee 204 Prospects of Sugar Decontrol under Present Scenario 204 Problems of Sugar Industry 205 Cotton and Textiles Industry 205 Production Performance 206 Technology Upgradation Fund Scheme (TUFS) 207  Performance 208 Scheme for Integrated Textile Parks (SITP) 208 Changing Scenario of the Indian Textile Industry 209 Problems of the Cotton & Textiles Industry 210 Information Technology Industry 211 Historical Perspective 211 Post Liberalization Effect 212 The New Telecommunication Policy, 1999 (NTP 1999) 212 Development Perspective 213 Problems of IT Industry 214 Prospect of IT Industry 215 Changes in Industrial Pattern since Independence 215 Practice Questions 217  LONG ANSWER QUESTIONS 217  SHORT ANSWER QUESTIONS 217

10 SMALL SCALE AND COTTAGE INDUSTRIES

Rationale of SSIs 218 Objectives of SSIs 221 Importance of SSIs 221 Nature of SSIs 221 Historical Perspective of the Official Definition of SSIs 222 Micro, Small and Medium Enterprises 224 Micro, Small and Medium Enterprises Development Act, 2006 225 Definition of MSMEs 225 New Grouping of Micro, Small and Medium Enterprises 225 Census initiative for MSMEs 226 Performance of MSMEs 227 Problems of Small Scale Industries 229 Remedial Measures/Suggestions 231 Policy Framework for SSIs 232 Budget 2011-12 232 Foreign Trade Policy 2009-14 233 Practice Questions 234  SHORT ANSWER QUESTIONS 234  LONG ANSWER QUESTIONS 235

11 SERVICE AND ENTREPRENEURIAL SECTOR

Services sector 236 Nature of Services 237 Definitions of Services 237 Features of Services 237 Components of Services 238 Role of Services Sector in India’s GDP 239 Services Employment in India 239 FDI in Services 239 Export of Services 239 Important Services for India 240 Major Services in India 240 Challenges before Indian Services 251 Entrepreneurial Sector 251 Concept of Entrepreneur 251 Nature of Entrepreneur 252 Definitions of Entrepreneur 252 Entrepreneurial Characteristics 255 Functions of an Entrepreneur 256 Development of Business Entrepreneurship in India 258 Entrepreneurial Skills 259 Efforts of the Government to Improve Entrepreneurial Skill Development 260 Science and Technology (S&T) Entrepreneurship Development 261 Technology Business Incubators (TBIs): Coupling Knowledge to Wealth Creation 261 Establishment of new TBIs 261 Initiative on Seed Support System for Incubators and Incubatees 261 Innovation Programme in India 262 Role of Government 262 Supportive Financial System and Mentoring 262 Innovative Enterprise Development 263 Practice Questions 263  SHORT ANSWER QUESTIONS 263  LONG ANSWER QUESTIONS 264

PART 4 BANKING AND FINANCE

12 COMMERCIAL BANKS IN INDIA

Definitions of Commercial Banks 267 Functions of Commercial Banks 268 Credit Creation by Commercial Bank 269 Banking Sector Reforms 270  Report (1991) 270 Recommendations of the Narasimham Committee (1998) 271 Changing Dimensions of Indian Commercial Banks 272 Present scenario of the Commercial Banks in India 274 Regional Rural Banks 276 Change in Government Policy Perspective 278 Problems of Commercial Banks 278 Central Bank 279 Credit Control Techniques 281 Difference between Bank Rate Policy and Open Market Operations 282 Reforms in the Financial Sector During Twelfth Plan (2012-2017) 282 Practice Questions 284  SHORT ANSWER QUESTIONS 284  LONG ANSWER QUESTIONS 284

13 FINANCIAL INSTITUTIONS IN INDIA

Development of Financial Institution 285 Role of Development Finance 286 Nature of Development Financial Institutions (DFIs) 286 Forms of DFIs 288 Rationale of DFIs in India 288 Challenges before DFIs 289 Major Development Financial Institutions in India 290 Plan-wise Assistance Sanctioned and Disbursed 291 Problems of Development Financial Institutions in India 293 Practice Questions 294  LONG ANSWER QUESTIONS 294  SHORT ANSWER QUESTIONS 295

PART 5 TRANSPORT SERVICES

14 MANAGEMENT OF INDIAN TRANSPORT SYSTEM

Road Transport 299 Road Network 300 National Highways Development Project 300 Public Private Participation 301 Growing Importance of Urban Transport 301 Major Strategies for Road Development 301 World Bank Support for Road Development Programme 302 Rural Roads During Twelfth Plan (2012-2017) 304 Problems 304 Rail Transport 305 Performance of Indian Railways 305 Railways During Twelfth Plan (2012-2017) 306 Problems of Indian Railways 306 Air Transport 307 Aviation as an Emerging Sector 307 Emergence of Low Cost Carrier (LCC) 308 Poor Financial Performance 308 Cost-Effectiveness of LCC’s 309 Growing Debt Burden of Full Services Carriers 309 Civil Aviation During Twelfth Plan (2012-2017) 309 Problems and Prospects 310 Water Transport 310 Inland Waterways 311 Shipping 311 Ports 311 Ports During Twelfth Plan (2012-2017) 312 Problems 312 Prospects of Water Transport 312 Practice Questions 313  LONG ANSWER QUESTIONS 313  SHORT ANSWER QUESTIONS 313

PART 6 AND ORGANISATION

15 FOREIGN TRADE OF INDIA

Trends in India’s Foreign Trade 317 Internal Trade and Inter-Regional Trade 319 Balance of Payments 319 Mechanisms of Balance of Payments 319 Components of Balance of Payments 320  and Balance of Payments 321 Disequilibrium in Balance of Payments 321 India’s Foreign Trade 321 Measures to Control Deficit 325 Challenges before Indian Foreign Trade 326 Export Promotion 327 Need for Export Promotion in India 328 Role of Government in Export Promotion 328 Obstacles in Export Promotion 330 Suggestions for Export Promotion 331  Substitution 332 Benefits of Import Substitution 332 Suggestions to Improve Import Substitution 332 Counter Trade 333 Forms of Counter Trade 333 Rationale of Counter Trade 334 Limitations of Counter Trade 334 Special Economic Zones (SEZs) 334 Performance of SEZs in India 335 Problems before SEZ Programme 336 Practice Questions 336  LONG ANSWER QUESTIONS 336  SHORT ANSWER QUESTIONS 337

16 WORLD TRADE ORGANIZATION

Objectives of World Trade Organization (WTO) 338 Difference Between the GATT and WTO 341 Trade-Related Investment Measures (TRIMs) 341 Nature of TRIMs 342 Scope of TRIMs 342 Trade Related Aspects of Intellectual Property Rights (TRIPs) 343 Indian Scenario 344 Impact on Major Sectors 345 WTO Agreements 345 Ministerial Conferences 347 WTO Negotiations and India 348 Practice Questions 349  LONG ANSWER QUESTIONS 349  SHORT ANSWER QUESTIONS 349