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 INDIA 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 TRADE AND ORGANISATION
CHAPTER 15 : FOREIGN TRADE OF INDIA 317 CHAPTER 16 : WORLD TRADE ORGANIZATION 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 Poverty in India 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 Export 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 Narasimham Committee 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 INTERNATIONAL TRADE 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 Balance of Trade 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 Import 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