Indian Economy

Cover
Copyright
Brief Contents
Contents
Preface
About the Author
CHAPTER 01  Few Basic Concepts andNature of Indian Economy
	Introduction
	What Is Economics?
	The Two Branches of Economics: Microeconomics and Macroeconomics
	Capitalism, Socialism, and Mixed Economies
	Inputs and Outputs
	Economic Growth and Development
	Types of Economies
	Nature of Indian Economy
		India—A Lower Middle-income Country
		Third Largest and Fastest Growing Economy
		Higher Population Growth and High Dependency Ratio
		Wide Scale Poverty and Unemployment
		Low Level of Savings and Investment
		Low Level of Human Development
		From Agriculture Predominance to Service Led Growth
	Summary
	Multiple-choice Questions
	Endnotes
CHAPTER 02  National Income, Savings, and Capital Formation
	Introduction
	What is National Income?
		National Income Indicators
		National Income at Current Prices and Constant Prices
			National Income at Constant Prices
		Per Capita Income
		Circular Flow of National Income
		Methods of Measuring National Income in India
		Characteristic Features of National Income in India
			India: Among the Largest Economies of the World
			Sectoral Change in National Income
			Steep Increase in Per Capita National Income
			Fast Growing Economy
		Trends of National Income in India
			1951–1980: The Phase of Modest Growth Rate
			1980–90: The Phase of Economic Buoyancy and Recovery
			1992 Onwards: Post-Reform Period
	State Domestic Product: Features and Trends
	Savings and Capital Formation in India
		Domestic Saving
			Reasons for Low Savings in India
		Capital Formation in India
			Few Concerns Related to Capital Formation in India
			Suggestions to Raise Capital Formation in India
	Summary
	Multiple-choice Questions
	Endnotes
CHAPTER
 03  Human Development and Happiness Economics
	Introduction
	Human Development
		Human Development Index
			Why the Concept of HDI Is superior to GNP?
	Other Human Development Indices
		Inequality Adjusted Human Development Index
		The Gender Inequality Index
		Gender Development Index
		Multi-dimensional Poverty Index
	World Happiness Index
		Importance/Merits of Happiness Index
			Useful Policy Tool
			An alternate to Other Measures of Development
			Lifestyle Problems and Happiness
		Demerits/Drawbacks of Happiness Index
			It Is Not Easy to Measure Subjective Well-Being
			The Statistics Problem
			Making Happiness Index More Comprehensive
			Beyond Happiness Index
	Summary
	Multiple-choice Questions
	Endnotes
CHAPTER
 04  Natural Resources, Environment, and Sustainable Development
	Introduction
	Natural Resources in India
		Land
		Soil
			Soil Erosion
			Soil Conservation
		Water
			Surface Water Resources
			Groundwater Resources
			Some Concerns Related With Water Resource
			National Water Policy, 2012
			Composite Water Management Index
		Forests
			Draft National Forest Policy, 2018
		Minerals
	Sustainable Development
		Sustainable Development Goals
		Global Awakening Toward Sustainable Environment
		Paris Agreement
		Why Is Sustainable Environment Important for Us?
	Sustainable Development and India
		India’s Actions on Sustainable Development and Climate Change
		Air Pollution and Control Measures in India
		Waste Management in India
		India’s Post-2020 Climate Goals
	Summary
	Multiple-choice Questions
	Endnotes
CHAPTER
 05  Indian Infrastructure
	Introduction
	Economic and Social Infrastructure
	Transport
		Indian Railways
			Features of Indian Railways
			Problems of Indian Railways
			Government Policy with Regard to Railways
		Road Transport
			Problems of Indian Road Sector
		Water Transport: Maritime & Inland Waterways
			Inland Water Transport
		Air Transport
		Problems of Indian Air Transport Sector
		Government Policies With Regard to Air Transport Sector
			Airport Authority of India (AAI)
			Regional Connectivity Scheme—“Ude Desh ka Aam Naagrik” (RCS-UDAN)
			Airport Development
			Investment Initiatives
			National Civil Aviation Policy, 2016
	Energy
		Characteristic Features of Energy in India
	Conventional Energy
		Coal
			Features of Coal Energy Resource
		Problems in the Coal Sector
			Supply Constraints
			Corruption and Scams
			Environmental Challenges
			Social Challenges
			Policy Issues in the Coal Sector
		Hydroelectricity
			Features of Hydroelectric Power in India
			Challenges and Problems of Hydropower Projects
			Small Hydropower Programs
			Natural Gas
			Features of Natural Gas in India
			Challenges of Natural Gas in India and Policy Implications
	Oil/Petroleum
		Features of Petroleum Energy
		Government Policy Regarding Petroleum Sector
	Nuclear Energy
	Renewable Energy in India
		Wind Energy
		Policy Initiatives
			Draft Wind-Solar Hybrid Policy
			Competitive Bidding
			Incentives by the Government
		Solar Energy
			Policy Action for the Development of Solar Energy
		Biomass Power
		Biofuel
			Benefits/Features of Biofuels
			National Policy on Biofuels–2018
		Biogas
	Communication
		Postal Services
		Telecommunication
			Telephony
	Summary
	Multiple-choice Questions
	Endnotes
Chapter 06 India’s Population and Demographic Dividend
	Introduction
	Demographic Transition Theory
	World Population Trends
	Characteristic Features of Indian Population
		Size and Growth of Population
		Density of Population
		Age Composition of Indian Population
		Sex Composition of Indian Population
		Life Expectancy and Mortality Rates
		Religious Composition of Population
		State-wise Distribution of Population
	Population Policies in India
		Background
		National Population Policy 2000
	Is India’s Huge Population a Demographic Disaster or Demographic Dividend?
		Population as a Demographic Disaster
			Adverse Land–Man Ratio
			Environmental and Ecological Consequences
			Urbanization
			Food Security
		Population as a Demographic Dividend
			Lessons from China and East Asia
			Demographic Dividend: Challenges and Road Ahead
	Summary
	Multiple-choice Questions
	Endnotes
CHAPTER 07  Poverty and Inequality in India
	Introduction
	Estimation of Povertyby International Agencies
		World Bank’s Estimates of Poverty
		Multi-dimensional Poverty Index
		Extreme Poverty in India as per World Poverty Clock
	Incidence of Poverty in India
		Planning Commission Working Group (1962)
		Task Force Under the Chairmanship of Dr Y.K. Alagh (1977)
		Expert Group Under the Chairmanship of Prof. D.T. Lakdawala (1989)
		Expert Group—Tendulkar (2005)
		Expert Group—Rangarajan (2012)
	Critical Evaluation of Poverty Alleviation Measures in India
		Pre-reform Phase (1947–1990)
		Post-reform Phase (1991 Onward)
		Qualitative Aspects of Poverty
	Universal Basic Income
		Arguments in Favor of UBI
			Optimum Allocation and Efficient Welfare Solution
			Reducing Income Inequality
			Gender Equality
			Increase in Financial Inclusion
		Arguments in Disfavor of UBI
			The Costing Problem
			Other Problems
		UBI Experiments Around the World
		Guiding Principles for Setting Up a UBI in India
			Gradualism
	Inequality in India
		Extent of Income Inequality During Pre-reform India
			Causes of Inequality in India
				The March of Billionaires
				Monopolies and Crony Capitalism
				Inherited Wealth
				Gender Bias
				Unequal Distribution of the Gains From Growth
				Inequality in Wages
			Measures to Address the Problems of Inequality
				Tax Policies
				Redistributive Policies
				Addressing Human Development Issues
				Land Reforms
	Summary
	Multiple-choice Questions
	Endnotes
CHAPTER 08  
Labor Force, Occupational Pattern, and Unemploymentin India
	Introduction
	Activity Status of Population
	Characterstics of Labor Force Growth in India
	Occupational Structure in India
		Agriculture: The Mainstay of Indian Workforce
		Proportion of Workforce in Industrial Sector
		Proportion of Workforce in Service Sector
	Unemployment
		Concept of Unemployment in India
			Usual Principal Status (UPS)
			Current Weekly Status (CWS)
			Current Daily Status (CDS)
		Employment Structure in India
			Employment by Status, Region, and Gender
			Employment Status by Categories
		Causes of Unemployment in India
			Declining Female Employment
			Falling Employment Elasticity
			Educated Unemployment
		Government Policies for Removal of Unemployment
			Policy Action Under 5-year Plan✽
				Major Employment Generation Schemes
				Mahatma Gandhi National Rural Employment Guarantee Scheme
				Salient Features of MGNREGS
				Performance of MGNREGS
				Criticism of MGNREGS
				Skill Development Programs
	Summary
	Multiple-choice Questions
	Endnotes
CHAPTER 09  Indian Economy DuringPre-independence Period
	Introduction
	Indian Economy During Ancient and Medieval Times
	Indian Economy During British Times
		Early British Period: 1600–1757 A.D.
		From Battle of Plassey till the Sepoy Mutiny: 1757–1857 A.D.
		British Crown Period: 1858–1947 A.D.
	Impact of Colonial Rule in India
		Impact on GDP
		Impact on Agriculture
			Land Revenue Policy and Land Settlements
			Commercialization of Indian Agriculture
		Deindustrialization
			Decay of Local Industry and Crafts
			The Demise of Textile Industry and Trade
			Attempts of Industrialization During Colonial Period
		Transport and Communication
		English Education and New Westernized Elite
		Drain of Wealth
	Summary
	Multiple-choice Questions
	Endnotes
CHAPTER 10  Indian Agriculture: Productivity, Land Reforms, and Livestock
	Introduction
	Role and Importance of Indian Agriculture
		Contribution in GDP
		Agriculture Trade
		FDI in Agriculture
		Employment in Agriculture
		Food Security
		Backward and Forward Linkages
		Capital Formation in Agriculture
		Agriculture and Poverty Reduction
		Changing Cropping Pattern
	Agricultural Production and Productivity Trends: Pre-reform Period
		Phase I (1949–1950 to 1964–1965)
		Phase II-1967–68 to 1980–81
		Phase III 1980–1981 to 1989–1990
	Agricultural Production and Productivity Trends: Post-Reform Period
		Phase I: 1990–1991 to 1999–2000
		Phase II: 2000–2001 to 2010–2011
		Phase III: 2010–2011 to 2017–2018
	Indian Agriculture and InternationalComparison
	Causes of Low Productivity of Indian Agriculture
		Small Size of Landholdings
		Population Pressure on Land
		Inadequate Irrigation Facilities
		Land Degradation
		Low Fertilizer Consumption
		Inadequate Access to Credit and Insurance
		Lower Level of Research and Development
		Lack of Technological Upgradation
	Measures to Improve Productivity in IndianAgriculture
		Adoption of HYV Seeds
		Enhancing Per Capita Fertilizer Consumption
		Spread of Irrigation
		Increase in Consumption of Power
		Agriculture Finance and Marketing
		Land Reforms
		Integrated Management of Land and Water Resources
	Land Reforms in India
		System of Land Tenure in British India
		Components of Land Reforms
			Abolition of Intermediaries
			Tenancy Reforms
			Reorganization of Agriculture
			Cooperative Farming
			Compilation and Updating of Land Records
		Critical Evaluation of Land Reforms in India
			Impact on Poverty and Productivity
			Problems in Abolishing the Intermediaries
			Problems with Tenancy Reforms
			Problems with Land Consolidation
			Lack of Political Will
		Livestock Sector in India
			Role and Importance of Livestock in India
				Contribution to GDP
				Employment
				Structural Change in Demand Pattern
				Equitable Growth
	Summary
	Multiple-choice Questions
	Endnotes
CHAPTER 11  Agriculture Inputs and Green Revolution
	Introduction
	Agriculture Inputs
		Seeds
			Policy Measures
			Policy Measures
		Fertilizers
			Important Government Schemes
		Pesticides
		Irrigation
			Importance of Irrigation
			Characteristics and Problems of Irrigation in India
			Government Policies on Irrigation
			Suggestions to Improve Irrigation in India
	Green Revolution
		Positive Impact of Green Revolution
		Drawbacks of Green Revolution
	Second Green Revolution
	Opportunities and Challenges
	Summary
	Multiple-choice Questions
	Endnotes
CHAPTER 12  Agriculture Prices and 
Food Security
	Introduction
	Agriculture Price Policy and Its Objectives
	Instruments of Agriculture Price Policy
		Minimum Support Price (MSP)
		Buffer Stock
	Advantages of MSP Policy
		Stabilizing Market Prices of Agriculture Products
		Technology Incentive
		Food Security
		Providing Certainty to Farmers’ Income
	Problems with Agriculture Price Policy
		The MSP Controversy
		MSP and the Farmers’ Distress
		Late Announcement of MSP
		Problems at the Procurement End
		Contribution to Inflationary Trend
		Bias in Favor of Surplus States and Rich Farmers
		Blow to Agriculture Diversification
	Food Security and Public Distribution System in India
		Components of Food Security
			Availability of Food
			Access to Food
			Absorption
		Government Measures to Ensure Food Security
			Public Distribution System
			Antyodaya Anna Yojana (AAY)
			Mid-Day Meal Scheme
			National Food Security Act, 2013 (NFSA)
		Critical Appraisal of Food Security Measures in India and Policy Implications
			Wrongful Identification of Poor
			Double Disadvantage to the Homeless
			PDS Leakages
			Issues Regarding Procurement and Storage of Foodgrains
			Rising Food Subsidy Bill
	Summary
	Multiple-choice Questions
	Endnotes
CHAPTER 13
  Agriculture Finance in India
	Introduction
	Sources of Agriculture Finance in India
		Non-institutional Credit
		Institutional Credit
			National Bank for Agriculture and Rural Development (NABARD)
			Cooperative Credit Societies
			Regional Rural Banks
			Commercial Banks
	Agriculture Insurance in India
		Pradhan Mantri Fasal Bima Yojana
		Restructured Weather Based Crop Insurance Scheme (RWBCIS)
		Unified Package Insurance Scheme (UPIS)
		Coconut Palm Insurance Scheme (CPIS)
	Debt Burden and Farmers’ Suicides in India
	Credit Subsidy in India
		Types of Credit Subsidy
			Interest Subvention
			Farm Loan Waiver
	M.S. Swaminathan Report on Farmers’ Distress
		Land Reforms
		Increasing Irrigation Potential
		Adequate Supply of Funds
		Increase in Agriculture Production and Productivity
		Providing Food Security
		Arresting Farmers’ Suicides
		Making Agriculture Competitive and Remunerative
		Increasing Employment Opportunities of Rural Community
		Preservation of Biosecurity
	Summary
	Multiple-choice Questions
	Endnotes
CHAPTER 14  Agriculture Marketing in India
	Introduction
	Types of Agriculture Markets
		Rural Primary Markets
		The Wholesale/Assembling Markets
		Terminal Markets
		Retail Markets
	Characteristic Features of Agriculture Marketing in India
		Agricultural Produce Market Committee
		Grading and Standardization
		Changes in Standard Weights and Measures
		Godown and Storage Facility
		Development of Market Information Infrastructure
		Agriculture Price Policy
		Institutional Support
			Small Farmers’ Agribusiness Consortium
			Agricultural Marketing Infrastructure
	Reforms in Agriculture Marketing
		Agricultural Produce and Livestock Marketing (Promotion & Facilitation) Act, 2017
			Contract Farming
			Direct Marketing
			Establishment of e-Markets
			Deregulation of Marketing of Fruits and Vegetables
			Ranking States in Terms of Marketing Reforms
	Co-operative Agriculture Marketing
		Structure and Progress of Co-operativeMarketing in India
	Summary
	Multiple-choice Questions
	Endnotes
CHAPTER 15  Industrial Development and Policies
	Introduction
	Characteristic Features of Indian Industry
	Journey of Indian Industry Since Independence: Trends in Production and Growth
	Industrial Policy
		Industrial Policies During Pre-reform Period
		New Industrial Policy of 1991
	Impact of New Economic Policy on Indian Industry
	Why Is Manufacturing Sector Significant for India?
		Problems of Manufacturing Sector
		Recent Policy Initiatives in Manufacturing Sector17
	National Manufacturing Policy, 2011
		Objectives of NMP20
		Policy Instruments
	Make in India
		New Processes
		New Infrastructure
		New Sectors
		New Mindset
	New Industrial Initiatives
		Startup India
		Standup India
		Skill India
		Digital India
		Mudra Scheme
		Smart City
		Atal Innovation Mission (AIM)
	Summary
	Multiple-choice Questions
	Endnotes
CHAPTER 16  Public, Private, and Small  Sector in Indian Economy
	Introduction
	Public Sector Enterprises
		Central Public Sector Enterprises (CPSEs)
		Performance of Public Sector
		Problems of Public Sector
	Disinvestment
		Types of Disinvestment
		Methods of Privatization
		Objectives/Merits of Disinvestment in India
		Disadvantages of Disinvestment
		Journey of Disinvestment in India
	Private Sector in Indian Economy
		Role of Private Sector in Indian Economy
		Problems of Private Sector
	The Twin Balance Sheet Problem
		Causes of Twin Balancesheet Problem
		Why TBS Did Not Cause Economic Crisis in India?
		Solution to TBS Problem
	Insolvency and Bankruptcy Code (IBC), 2016
		Why Was IBC Needed?
		The IBC Ecosystem and Its Functioning
		Key Advantages of IBC
		Challenges for IBC
	Micro, Small, and Medium Enterprises (MSMEs)
		Performance of MSMEs in Indian Economy
		Problems of MSMEs in India
		Government Schemes for the Development of MSMEs
	Summary
	Multiple-choice Questions
	Endnotes
CHAPTER 17  Service Sector in India—Characteristics, Growth, and Sustainability
	Introduction
	Characteristic Features of India’s Service Sector
		Increasing Share of Services in GDP
		Higher Growth Rate as Compared to Other Sectors
		FDI Inflows in Service Sector
		Trade in Services
		Indian Service Sector and Global Comparisons
	Reasons for Growth in Service Sector
		Splintering
		Spurt in Domestic Demand
		Technology, Transportability, and Tradability
		Globalization of Services
	Is Service-led Growth Sustainable?
		The Case for Service-led Growth
			Services Growth and Job Creation
			Trading in Services
		The Case Against Service-led Growth
	Summary
	Multiple-choice Questions
	Endnotes
CHAPTER 18  Foreign Trade and Policy
	Introduction
	Why Nations’ Trade?
	Characterstics of India’s Foreign Trade
		Value of Trade
		Composition of Trade
		Direction of Trade
			Direction of Imports
			Diversification or Concentration?
	Foreign Trade Policy (FTP) of India
		FTP in Pre-reform Period
			Policy of Import Restriction
			Policy of Import Substitution
			Export Policy During the Pre-reform Period
		FTP in Post-reform Period
			Decanalization of Trade
			The Managed Float System of Exchange Rate
			Establishment of Special Economic Zones
			Establishment of Agriculture Export Zones
			Establishment of Export-Oriented Units
			Export Houses and Trading Houses
			Market Access Initiative Scheme
		Foreign Trade Policy (2015–2020)
			Simplification & Merger of Reward Schemes
			Boost to “Make in India”
			Trade Facilitation & Ease of Doing Business
			Other New Initiatives
	Special Economic Zones (SEZs) in India
		Facilities and Incentives Extended to SEZs20
		Objectives/Benefits of SEZs
			Contribution to GDP
			Contribution to Exports
			Increase in Investment
			Creation of Employment Opportunities
			Development of Infrastructure Facilities
		Demerits of SEZs
			Usurping the Prime Agricultural Lands
			The Problem of Displacement of Local Population
			Tax Exemptions and Revenue Foregone
			Generation of Inequity
			Underperformance
		Summary
		Multiple-choice Questions
		Endnotes
		CHAPTER 19  Balance of Payments, Foreign Exchange, and Investment
			Introduction
			Balance of Payment
				Trends in India’s BOP
					India’s Current Account
					India’s Capital Account
			India’s Foreign Exchange Rate System
				Types of Exchange Rate System
			Evolution of Indian Exchange Rate System
				Phase I: The Par value System (1947–1971)
				Phase II: The Pegged Regime (1971–1992)
				Phase III: Post-Reform Period (1991 Onward)
					Liberalized Exchange Rate Management System (1992–93)
					Managed Float System (1993 Onward)
			Foreign Exchange Reserves and Its Management
				Objectives of Holding Foreign Exchange Reserves
					What Should be Ideal Size of FERs?
				The Indian Case
				What Is RBI Doing With Its Foreign Exchange Reserves?
			Foreign Direct Investment
				Types of FDI
				Routes of FDI in India
					Automatic Route of RBI
					Government Route
				Characteristic Features of FDI in India
				Advantages of Foreign Direct Investment
					FDI and the Technology Transfer
					Efficiency-Seeking FDI
					FDI Leads to Human Capital Enrichment
					FDI and Competition Enhancement
					FDI Ensures Consumer Sovereignty
				Disadvantages of Foreign Direct Investment
					The March of Oligopolies
					Capturing the Host Country’s Market
					The Question of Access to Technology
					The Threat to Sovereignty
			Capital Account Convertibility
				Case for Capital Account Convertibility
				Case Against Capital Account Convertibility
				India’s Approach Toward Capital Account Convertibility
			Summary
			Multiple-choice Questions
			Endnotes
		CHAPTER 20  WTO, International Economic Institutions and Regional Trade Blocks
			Introduction
			World Trade Organization
				Difference Between GATT and WTO
				Functions of WTO
			The WTO Agreements
				General Agreement on Tariff and Trade
				Agreement on Agriculture
					The Case for AOA
					The Case Against AOA
				Trade-Related Aspects of Intellectual Property Rights System (TRIPS)
					Case for TRIPS
					Case Against TRIPS
				General Agreement on Trade in Services (GATS)
					Case for GATS
					Case Against GATS
				Standard and Safety
				Agreement on Textile and Clothing (ATC)
				Anti-Dumping, Countervailing Duties, and Safeguards
				Non-Tariff Barriers (NTBs)
				Trade-Related Investment Measures
				Plurilateral Agreements
				Trade Policy Review Mechanism
			International Monetary Fund
				Functions of IMF
				India’s Economic Relationships with IMF
			World Bank Group
				India and Its Relationship with World Bank
			Regional Trade Blocs
				Pre-requisites of a Successful Regional Trade Block
		Summary
		Multiple-choice Questions
		Endnotes
		CHAPTER 21  Indian Monetary System: Banking, RBI, and Money Market
			Introduction
			Evolution of Indian Banking
				Phase I (1786–1947): The Colonial Period
				Phase II (1947–1991): The Period of Nationalization and Social Control
				Phase III (1991 Onward): The Period of Banking Sector Reforms
			Structure of Commercial Banking in India
				State Bank of India
				Nationalized Banks
				Private Sector Banks
				Foreign Banks
				Regional Rural Banks
				Local Area Banks
				Small Finance Banks
				Payment Banks
				Cooperative Banking
					Urban Cooperative Banks (UCBs)
			Non-Performing Assets of Commercial Banks in India
				Causes of NPAs During Recent Years
				Recent Steps taken by Government to Resolve Problem of NPAs
			Banking Sector Reforms
			Reserve Bank of India
				Functions of RBI
					Currency Issuing Authority
					Banker and Debt Manager to the Government
					Formulation of Monetary Policy
					Regulatory and Supervisory Functions
					Banker to Banks
					Foreign Exchange and Reserve Management
					Developmental and Promotional Functions
			Monetary and Liquidity Aggregates
			Monetary Policy
				Objectives of Monetary Policy
				Analytics of Monetary Policy
				Instruments of Monetary Policy
					Indirect Instruments of Monetary Policy
				Monetary Policy Reforms
					Background
					Reform Measures
			Money Market
				Characteristics/Problems of Indian Money Market
				Reforms in Money Market
			Non-banking Financial Institutions (NBFIs)
			Financial Inclusion
			Summary
			Multiple-choice Questions
			Endnotes
		CHAPTER 22  Indian Capital Market
			Introduction
			Structure of Capital Market in India
				Security Market
					Gilt-Edged Market
					Corporate Security Market
			Stock Exchanges in India
			Development Financial Institutions
				All India Development Financial Institutions
				Specialized Financial Institutions
				Investment Institutions
				Refinance Institutions
				State-Level Institutions
			Evolution and Growth of Indian Capital Market
				Phase 1 (1947–1973): The Period of Institution-Building and Legal Framework
				Phase 2 (1973–1980): The Period of Foreign Exchange Regulation
				Phase 3 (1980–1992): The Broadening and Deepening of Capital Market
				Phase 4 (1992 to Till Date): The Phase of Turbulence and Reforms
			Capital Market Reforms in India
				Establishment of SEBI
				Strengthening the Government Security Market
				Establishing the National Security Clearing Corporation Ltd
				Reforms in the Bombay Stock Exchange
				Exit of De-recognized/Non-Operational Stock Exchanges
				Establishment of NSE
				Development of Corporate Bond Market
			Securities and Exchange Board of India
			Summary
			Multiple-choice Questions
			Endnotes
		CHAPTER 23  Inflation in India
			Introduction
			Inflation and Its Types
			Wholesale Price Index
			Consumer Price Index
			Causes of Inflation
				Demand-Pull Inflation
					Higher Fiscal Expansion
					Higher GDP Growth and Sticky Core Inflation
					Income Effect
					Black Money
				Supply-Shock or Cost-Push Inflation
					Rise in Wages
					Increase in Prices of Basic Materials
					Rise in Administered Prices
					Rise in International Prices
					Other Causes
			Consequences of Inflation in India
				Impact on Balance of Payments
				Impact on Common Man
				Impact on Investment and GDP
				Inequality
			Measures to Control Inflation in India
				Fiscal/Trade Measures
				Administrative Measures
				Monetary Measures
					Significance of Inflation Targeting
			Summary
			Multiple-choice Questions
			Endnotes
		CHAPTER 24  Indian Tax System
			Introduction
			Importance/Objectives of Taxation in India
			Classification of Taxes
				Single and Multiple Taxes
				Direct and Indirect Taxes
				Progressive, Regressive and Proportional Taxes
				Ad Valorem Versus Specific Tax
				Central Versus State Taxes
			India’s Direct Taxes
				Income Tax
				Corporation Tax
				Minimum Alternate Tax (MAT)
				Gift Tax
				Securities Transaction Tax
				Long-Term Capital Gains Tax
			India’s Indirect Taxes
				Custom Duty
				Goods and Services Tax
					Characteristics of GST
					Advantages of GST
					Disadvantages of GST
			An Assessment of Indian Tax System
				Elasticity in Indian Tax System
				Buoyancy in Indian Tax System
				Emergence of Progressive Tax Regime
				Agriculture Income Tax Is Exempted
				Tax Evasion
				Simplicity and Certainty
			Summary
			Multiple-choice Questions
			Endnotes
		CHAPTER 25  Public Expenditure, Debt Management, and Fiscal Policy
			Introduction
			India’s Budget and Its Components
			Indian Public Expenditure
				Capital Expenditure and Revenue Expenditure
				Developmental and Non-developmental Expenditure
				Plan and Non-plan Expenditure
				Causes of Increase in Public Expenditure in India
					Increase in GDP
					Size of the Country and Population
					Urbanization
					Defense
					Interest Payments
					Subsidies
			Subsidies in India
				Kinds of Subsidies
				Standard Classification of Subsidies
				Central Government Subsidies
				Critical Evaluation of Subsidies
					Merit Goods Subsidy Versus Demerit Goods Subsidy
					Subsidies and Inefficiencies
					Mounting Subsidy Burden
					Perverse Subsidies
					Implicit/Hidden Subsidies
			Public Debt in India
				Internal Debt
					Marketable Securities
					Non-Marketable Securities
				External Debt
				Public Account Liabilities
				Causes of Public Debt
				Burden of Public Debt
				Is India’s Public Debt Sustainable?
				Public Debt Management
			Fiscal Policy
				Objectives of Fiscal Policy in India
					Promoting Economic Growth
					Maintaining Price Stability in the Economy
					Mobilization of Resources
					Allocating Efficiency
					Reducing Inequality in Income and Wealth
					Promoting Private Sector Investment
				Fiscal Responsibility and Budget Management Act
					N.K. Singh Committee on FRBM
			Summary
			Multiple-choice Questions
			Endnotes
		CHAPTER 26  Center–State FinancialRelations in India
			Introduction
			Fiscal Federalism and its Principles
			Finance Commission
			Important Concepts and Definitions Relatedto Center–State Financial Relations
				Tax Devolution
				Divisible Pool
				Grants-in-aid
				Revenue Deficit
				Disaster Relief
				Local Bodies
				Sector-specific Grants
				State-specific Grants
				Fiscal Capacity
				Income Distance
				Fiscal Discipline
				Special Category States (SCS) and General Category States (GCS)
				Gadgil-Mukherjee Formula
				State Fiscal Commission
			Fourteenth Finance Commission and Its Evaluation
			Fifteenth Finance Commission
			Critical Assessment of Center–state Financial Relations
				Points in Favor
					Balanced Regional Development
				Points in Disfavor
					Vertical and Horizontal Fiscal Imbalances
					Increasing Recourse to Cess and Surcharge
					Decentralization Issues
					The Question of State Autonomy
			Summary
			Multiple-choice Questions
			Endnotes
		CHAPTER 27  Planning in India
			Introduction
			Planning Efforts in Pre-independence India
			Planning in Independent India
			Critical Assessment of India’s Five-Year Plans
				Planning and Growth
				Planning and Self-reliance
				Planning and Employment Generation
				Planning and Inequality
				Planning and Poverty Removal
				Planning and Productivity
			NITI Aayog
				Functions of NITI Aayog
				Transition from Planning Commission to NITI Aayog
				The case for NITI Aayog
				The case against NITI Aayog
			Strategy for New India @75
				Drivers
				Infrastructure
				Inclusion
				Governance
			Summary
			Multiple-choice Questions
			Endnotes
		CHAPTER 28  Black Money andDemonetization
			Introduction
			What Is Actually Black Money?
			Causes of Black Money
				Non-Compliance of Taxes
				Money Laundering
				Political Funding
				Controls on Economic Activity
				Illicit Money Transferred Outside
				Standards of Public Morality
				Inflation
				Investment in Real Estate
			Estimation of the Size of Black Money in India
				Size of Black Money in India
				Size of Black Money Outside India
			Impact of Black money
			Government Policies to Curb Black Money
				Volunteer Disclosure Scheme (VDS)
				Prevention of Money Laundering Act
				Right to Information Act
				Tax Reforms
				Demonetization
			Demonetization in India
				Objectives of Demonetization
				The case for Demonetization
					Digitalization of Economy
					Cleansing of Real Estate
					Impact on GDP
			The case against Demonetization
				Demonetization Affected the Common Man
				The Question on Impact on Black Money
				Effect on Informal Sector
			Summary
			Multiple-choice Questions
			Endnotes
		CHAPTER 29  Economic Reforms in India
			Introduction
			The Economic Crisis of 1990s
			Economic Reforms in India
				Macroeconomic Stabilization
					Fiscal Policy Reforms
					Monetary Policy Reforms
					Control of Inflation
				Structural Adjustment Reforms
					Industrial Policy Reforms
					Financial Sector Reforms
					Agriculture Sector Reforms
					Infrastructure Sector Reforms
			Impact of Economic Reforms on Indian Economy
				Case for Economic Reforms
					The Growth Turnaround
					Industrial and Service Sector Performance
					Attitude Toward Reforms
				Case Against Economic Reforms
					Impact on Poverty and Inequality
					Jobless Growth
					Structural Bottlenecks
			Summary
			Multiple-choice Questions
			Endnotes
		CHAPTER 30  Economic Survey 2018–2019 and Budget 2019–2020
			Introduction
			Highlights of Economic Survey 2018–2019
				Shifting Gears: Private Investment as the Key Driver of Growth, Jobs, Exports, and Demand
				Policy for Real People, Not Robots: Leveraging the Behavioral Economics of “Nudge”
				Nourishing Dwarfs to Become Giants: Reorienting Policies for MSME Growth
				Data “Of the People, By the People, For the People”
				Ending Matsyanyaya: How to Ramp Up Capacity in the Lower Judiciary
				How Does Policy Uncertainty Affect Investment?
				India’s Demography at 2040: Planning Public Good Provision for the Twenty-first Century
				From Swachh Bharat to Sundar Bharat Via Swasth Bharat: An Analysis of the SBM
				Enabling Inclusive Growth Through Affordable, Reliable, and Sustainable Energy
				Effective Use of Technology for Welfare Schemes—Case of MGNREGS
				Redesigning a Minimum Wage System in India for Inclusive Growth
				State of the Economy in 2018–2019: A Macro View
				Fiscal Developments
				Money Management and Financial Intermediation
				Prices and Inflation
				Sustainable Development and Climate Change
				External Sector
				Agriculture and Food Management
				Industry and Infrastructure
				Services Sector
				Social Infrastructure, Employment, and Human Development
			Highlights of Budget 2019–2020
				Vision for the Decade
				Growth and Macro-Economic Stability: Vision for $5 Trillion Economy
					GDP
					CAD
					FDI and FPI
				Push to Investment: Infrastructure Development
					Railways
					Road
					Air
					Shipping and Inland Waterways
					Phase-II of FAME Scheme
					Connectivity
					Housing
					Infrastructure Financing
					National Common Mobility Card (NCMC) Standards
				Push to Investment: Industrial Development
					Ujjwal DISCOM Assurance Yojana (UDAY)
					Empowering MSMEs and Small Traders
					Make in India
					Start-ups
				Tax Proposals
				Reform, Perform, and Transform
					Banking and IBC
					GST
					Swachh Bharat
				Transforming Rural India
					PMAY-G
					PMGSY
					Rural Electrification
					MGNREGA
					SFURTI
					ASPIRE
				Farmer Welfare and Water Security
				Women Development
				Labor and Youth Welfare
			Interim Budget 2019–2020
			Endnotes
		Answer Keys
		Glossary
		Index