Indian Economy 2 in 1

Special Thanks to
• Ashok Sir
Author
• Ramana Reddy sir (AMIGOS)
Prabakar Chouti • M.C.Reddy sir
Prabakar Chouti • Suresh sir
• M.D. Riyaz sir
Editor : Batti Sreelatha
• Egurum Naresh sir
• ICON Raj Kumar sir
• ICON Ganesh sir
Choutis Economy,
Osmania university, Hyderabad-500013.
Ph: 630 174 1992

First Edition : October 2023 (1000 Copies)

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Chouti’s Economy
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
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 Foreword...
Dear aspirants,

I would like to express my appreciation for your unwavering dedication and con-
sistent efforts in preparing for the Group 2, 3, and Group 1 exams. I understand that many of

you have faced challenges such as paper leakage, cancelled exams, and a lack of com-
prehensive material, yet you have continued to persevere.

I am aware that the economy subject can be daunting, as it carries a weightage

of 150+ marks and requires a deep understanding of complex concepts. Remembering

data and grasping the concepts can be a difficult task for aspirants.

Recognizing the obstacles that you face, I am pleased to present this Comprehen-
sive and Standardized Indian Economy book, designed specifically for aspirants like you.
Despite the limited time remaining for the exams, I am confident that with proper utiliza-
tion, you can achieve your goals.

Since this is the first English medium book from Choutis Economy, I encourage you
to bring any typo errors, doubts, or suggestions to our attention. We value your feedback

and sincerely strive to improve this book for your benefit.

I extend my best wishes to all of you

for your Group 2 and Group 3 exams.

Best regards,

Yours Chouti sir

 Index
Chapter 0 : Fundamentals of Economy (must study) 01
to
 Concept of economics  Concept of economy
24
 Concept of economic system  Relationship between Economics and Economy
 Definition of Economics by Various Economics
 Central Problems of Economy  Various Economic systems
 Capitalistic, Socialistic and Mixed Economic systems
 Micro vs Macro Economy  Sectors of Economy
 Primary, Secondary, Tertiary Quaternary and Quinary sectors
 Concept of Circular flow of income and expenditure
 2 sector, 3 Sector and 4 Sector Economy model
 Types of Good and services in economy
 Wealth, Income, Utility, Welfare concepts of economy.

Part I. Indian Economy : Issues and Challenges

Chapter 1: Demography: Demographic Features of Indian Population – Size and Growth Rate of
Population – Demographic Dividend – Sectoral Distribution of Population – Population Policies of
India 25
to
 Concept of Population, Concept of Demography & Census
67
 History of Census in India  Population Theories
 Malthusian Theory, Optimum Theory etc.  Demographic Transition Theory
 Methods of calculating population  Malthus 4 Stages of demographic transition
 UNPF World Population Estimates April 2023
 Changes in population trends in india-1901 to 2011
 Demographic Characters of india
 Birth Rate, Death Rate, Regional variations, Population density, Sex Ratio, Child sex ratio and
statewide variations
 Religious demography  Linguistic Demographics
 Caste Demographics  SC,ST Population Trends
 Literacy Rates and Trends  Urban and Rural Demographics
 Age Wise composition of population  Demographic Dividend
 Occupational structure  PLFS -2020-21
 Salient Features of Indian Demography
 IMR, MMR, CMR, NMR, Early and Late Neonatal mortality
 TFR, CBR, CDR, ASFR, GFR -SRS Data 2022
 Telangana Health Indicators
 Population policies of india
Chapter 2: National Income: Concepts & Components of National Income – Measurement Methods
– National Income Estimates in India and its Trends – Sectoral Contribution – Per Capita Income
 Concept of national income 68
to
 Definition of national income  Importance of national income
93
 Various concepts of national income(GDP,GNP,NNP)
 Gross Domestic product (GDP)  Gross National Product (GNP)
 Net National Product (NNP)  GDP, GNP, NNP at factor cost and Market price
 NNP at Market price = National Income Definition
 Real and Nominal national income  GDP Deflator
 Various other concepts of national income
 Personal income, Private income, Per capita and PDI
 Methods of calculating national income  Income, Expenditure and Product method
 New methdos of calculating national income
 GVA and Basic Prices
 Estimates of national income in pre independence
 Estimates of national income in post independence
 CSO, NSO & National statistical commission (NSC)
 Growth trends of india since independence
 Present Growth trends and GVA Shares of India
 Growth Trends of GDP, GNP, NNP at Current and Constant Prices (2014-15 to 2022-23)

Chapter 3. Primary and Secondary Sectors: Agriculture and Allied Sectors – Contribution to National
Income – Cropping Pattern – Agricultural Production and Productivity – Green Revelation – Irrigation
– Agricultural Finance and Marketing – Agricultural Pricing – Agricultural Subsidies and Food Security
– Agricultural Labour – Growth and Performance of Allied Sectors 94
 Introduction to Agriculture and Allied sectors to
168
 Role of agriculture in Indian economy  Present position of agriculture in india
 Growth patterns of agriculture in india  Agriculture and Employment
 Agriculture finance-Agri Credit  Primary and cooperative societies
 NABARD -Aim, Vision,Functions  Rural indebtedness-77thRound of NSCO-2019
 Remedial measures to reduce rural indebtedness
 Economic survey 2023-Rural Credit
 Sarangi committee, Service area approach, RRB, Leadbank
 Agriculture price policy  Instability and impact and need of agri prices
 Instruments of agriculture price policy in india
 FCI,MSP and CACP  Fixation, Grounds and Crops of MSP
 Present MSP of india  Fair and remunerative price (Sugar)
 Food Stocking norms (Buffer stocks, Issue price, Operational price)
 PM AASHA
 Important committess of agri Prices-LK Jha, SR Sen, Hanmantharao, YK alag)
 Food Safety and PDS system
 State of food security and nutrition in the world 2023
 Food security -Stages, Systems, Management, Measures in india
 National food security mission  National food security act
 Anthodaya ann yojana  Public distribution system, TPDS, APDS
 Food grain production of india  PM Garib kalyan ann yojana
 Fortification of rice program  One ration and one nation
 Sanksham Anganwadi and poshan 2.0  Poshan Abhiyan
 International year of millets 2023  Food processing sectors of india
 PM Kisan sampada yojana and its 7 components
 Agriculture Marketing in india
 Defects of traditional agri markets and remedial measures
 Regulated markets in india - Concept, advantages and vision
 Co-operative societies - orgin, history and survey 2023
 Muslti state cooperatives societies amendment bill 2022
 NAFED, NSDC, eNAM, NAIM, FPOS, AIF  Agri Export policy of india 2018
 Agriculture Bills 2020-Vision-Doubts, clarification, SC committee and repeal
 Agriculture committes / policies of india : swaminathan, Ramesh Chandra,Ashok dalwai
 Agarmarketent, Kisan rail, NCDEX, PKVY, Jaivik Bharath
 Cropping pattern and productivity of india
 Types of cultivation-subsistence, shifting, mixed, mono, sequential and inter cropping
 Agriculture crop year  Production and area trends of major crops
 Cropping intensity  Land holding pattern of india
 Agriculture infrastructure and production
 Irrigation and Minor irrigation census(6th) September 2023
 Irrigation schemes In india  Allied sectors -Production patterns
 National 20th livestock population  National livestock mission
 Green revolution -orgin, vision, components, Weaknesses & achievements
 2nd Green revolution  Ever green revolution
 Bringing green revolution to eastern india National saffron mission
 Tricolor revolution  Various revolutions in india
 Land Use pattern of india  Sustainable agriculture
 Organic farming -initiatives  Zero budget natural farming
 ZBNF and Organic farming  Various agriculture activities and names
 Agriculture insurance -Crop insurance schemes in india
 Agriculture research and development institutions
  important initiatives and schemes of agriculture
 Agriculture and international organizations and reports
 Global food security index report 2022
 State food safety index 2023  World food safety day
 Food waste index latest report  Food loss index

Chapter 4. Industry and Services Sectors: Growth and Structure of Industry in India – Contribution to
National Income –Industrial Policies – Large Scale Industries – MSMEs – Industrial Finance –
Contribution of Services Sector to National Income – Importance of Services Sector – Sub Sectors of
Services – Economic Infrastructure – India’s Foreign Trade
169
 Introduction to industry and development  Significance & structure of industry to
 Classification of industries  Growth structure of industry -2023 259
 Index of industrial production IIP -Trends  Annual survey of industries -ASI
 Patterns of industrial development in FY Plans
 Major industries In india  Pande committee on industrial backwardness
 Industrial policy resolutions -1948, 1951, 1956, 1970, 1977, 1980, 1991
 LPG reforms In india (New economic policy )
 Navaratna, Maharatna, Miniratna companies
 Ranga rajan committee on disinvestment  National monetization pipeline -NMP
 Manational manufacturing policy (NMP)  Demonetization
 Industrial corridors of india  EPZ’s, SEZ’s, CEZ’s, NIMZ, Industrial parks
 Make in india 1 & 2.0  E-Biz portal, Start up india & stand up india
 Industrial finance -Developmental banks, Investment institutions, NBFID
 Initiatives of govt for industrial finance  India’s major ports
 Service sector-Introduction and importance
 FDI and FII’s of India’s Trade  Central bank digital currency (CBDC)
 Growth trends and Share of Service sector  Tourism sector india
 PRASAD, Swadesh, Panchteertha, Tourism circuits
 National infrastructure pipeline(NIP)  National logistics index 2022
 LEADS Index 2022
 Civil aviation, Roads,Railways, Ports, Inland waterways Electricity and communications
 MSME-Origin, Importance, Definition and Scope
 Statutory bodies of MSME  Schemes of MSME Sector
 Committees of MSME – Karve, PR Nayak, Abid hussain, SS Kohli and S P Gupta committee
 Formalization of informal sector  Sick industries and remedies
 Udyog aadhara, akhulam mitra, Hackthon 3.0,
 PMEGP, Samabadh, Sampark and Champions & 2.0 portal
 External sector-significance, Trade, BOP and BOT
  Economic integration -PTA, FTA, CEPA, CECA, CU, CM, EU, MU & EMU
 BOP-Current and capital aaccount trends of india 2023
 Global scenario of india 2023  Major imports and exports-FDI sources of india
 LPG and Foreign investments -till present  FDI-2.0, FII, Aravind mayaram committee
 Foreign trade policy-FTP- 2023  SCOMET 2023
 Industrial revolution 4.0  International organizations -origin and objectives

Chapter 5. Planning, NITI Aayog and Public Finance: Objectives of India’s Five-Year Plans – Targets,
Achievements and Failures of Five Year Plans – NITI Aayog – Budget in India – Concepts of Budget
Deficits – FRBM – Recent Union Budgets – Public Revenue, Public Expenditure and Public Debt –
Finance Commissions :
260
to
 Concept of Plan, Planning
349
 Types of Planning and India’s Initiatives
 History of Indian planning
 Before 1947-DD Nouroji, Visweswaraya Plan, NPC, Bombay plan, Ghandian plan, Sarvodaya
plan
 Planning commission of india (NCI) – Origin, Objectives, Structure, Functions
 NDC-Origin, Structure, Functions
 Indian FYP’s -1st FYP to 12th FYP-Model, Objectives, Schemes, Review
 Significance and achievements of FYP’s
 Failure of FYP’s and review  Origin of NITI Aayog - Cooperative federalism
 NITI Ayog-vision, Structure, Pillars and Functions
 Initiatives of NITI Ayog till now  Difference among PCI,NITI Aayog and NDC

Chapter 5- Part 2: Budget in India – Concepts of Budget Deficits – FRBM – Recent Union Budgets –
Public Revenue, Public Expenditure and Public Debt – Finance
 Concept of Public finance, Fiscal economics and Fiscal policy
 Fiscal policy-Concept, Scope, Objectives
 Difference bw Fiscal Policy and Monetary Policy
 Budget -Concept, Types & Functions  Enactment procedure of budget
 History of Indian budget  Revenue and Capital Budget
 Technical Keywords of Budget  Amrith kal budget Part A and Part B
 Center State Financial relations  14th & 15th Finance commission
 Tax structure of India  Budget 2023-24-Objectives and Allocations
 Deficit Trends and FRBM Act
 Part III. Issues of Development and Change
Chapter 6 : Growth and Development: Concepts of Growth and Development – Characteristics of
Development and Underdevelopment – Measurement of Economic Growth and Development –
Human Development – Human Development Indices – Human Development Reports
350
 Concept of Economic Growth and Development to
384
 Economic Growth -Definition by Various Economists
 Determinants of Economic Growth  Features and characteristics of Economic Growth
 Concept of Economic Development
 Definition of development by various economists
 Components of Economic Development  Characteristics of Economic Development
 Obstacles of Economic Development  Drivers of economic development
 Difference bw Growth & Development  World bank classification of countries -FY 2023
 UN Classification of countries -1 world, 2 , 3rd and 4th world countries
st nd

 IMF Classification of countries  Diversity of Developed countries

 Characteristics of Developing nations -ref to india
 Deprivation and underdevelopment  Measurement of Development
 PQLI, PCCE, SEI  Human Development Index 2022
 IHDI, PHDI 2022
 Gender inequality index -GII, Gender Development index, GEI
 Global Gender Gap index 2023  Various Development Indexes
 Growth Models/Theories
 Balanced Growth Theories -Big Push, Ragnar Nurks, Lewis
 Unbalanced Growth theories  Rostow Growth Stages

Chapter 7 : Social Development: Social Infrastructure – Health and Education – Social Sector – Social
Inequalities – Caste – Gender – Religion – Social Transformation – Social Security
 Concept, Significance of Social Development 385
to
 Social development in india 440
 Social Expenditure Trends in india -2023-24 Budgetary allocations
 Education and Skill Development-Concept and scope
 Initiatives of Education and Skill Development by govt
 Right to Education 2009  New Education Policy 2020
 SSA, Samagra siksha Abhiyan, Mid Meal scheme
 PMKVY, NATS, NAPS, IISC
 PM SHRI, Balvatika, PRASHAST, NCrF, StarS, Vidyanjali, HEI’s
 Health Sector-Scope and importance  India’s Progress in Health Sector
 Trends in Mortality Indicators of India  National Health Mission 2017
  Health Initiatives - JSSK, JSY, PMMVY, NNM, NPHs, PMSSY
 Ayushman Bharath, PM Atma nirbhar swasth yojana, PMNDP
 Social Transformation and Social Security  Quality of Life Initiatives by Govt
 IRDP, SGSY, SGRY, NREGS Initiatives
 Insurance and self employment programmes for unorganized sectors
 Social Safety Nets  Social Inequalities in india -Concept
 Vulnerable People in india  Caste system -Origin, Characters and Scope
 Constitutional and statutory measures to Safeguard Sc’s
 Concept of Tribe, Aadivasi, PVTG’s  Characteristics and identification of Tribes
 Constitutional and statutory measures to Safeguard ST’s
 Differece between caste and Varna system
 Concept Gender inequality, Sensitivity and Empowerment
 Constitutional and statutory measures to Safeguard Women
 Women Reservation Bill 2023-concept

Chapter 8 : Poverty and Unemployment: Concepts of Poverty – Measurement of Poverty – Income

Inequalities - Concepts of Unemployment – Poverty, Unemployment and Welfare Programmes
 Concept of Poverty and its scope 441
to
 Definition of Poverty -UNDP, World Bank
499
 Types of Poverty – Absolute and Relative Poverty
 Concept of Poverty line (PL) and Poverty Line Basket
 Augmented Poverty line (APL)
 Poverty estimates in india-Pre and Post independence
 Dadabai Nouroji, NPC, Bombay Planning and Poverty Estimates
 Post independence estimates of poverty  Planning Commission & Poverty Estimates
 Dandekar and Rath committee-1962, 1971  Y K Alag Committee -1979
 DT Lakdawala -1989  Suresh Tendulkar committee-2005
 Rangarajan committee -2012  Saxena Committee and Poverty Estimates
 SR Hasim Committee  Socio Economic Caste Census -2011
 Multidimensional Poverty (MPI) Estimates -2022
 Latest NITI Ayog MPI Report-2023  3 Methods to Estimate poverty
 Head count Ratio,Poverty Gap index and Sen’s Index
 Larenz curve and GINI Coefficient  Income inequalities
 Causes of Poverty  Vicious Circle of Poverty
 Universal Basic Income  SDG and Poverty Eradication
 Remedial measures to alleviate poverty in India (1950-2023)
 Concept of Unemployment  Definition Of Unemployment
 Standard Person, Workforce, Woker types
  Demographic Dividend of india -Children and Old population
 PLFS Latest Survey 2021-22 : LFPR, WPR concepts and formula
 Types of Unemployment -Concept
 Cyclical, Frictional, Structural, Open, Disguised, Seasonal & Educated Unemployment
 Under employment, Rural and Urban Unemployment
 Unemployment estimates india -Bhagavati, Anup Satpati Committee
 NSSO,NSO Estimates & Usual Status, PS+SS, CWS, CDS
 PLFS Unemployment Latest Statistics  Causes of unemployment
 Restructiong central govt schemes  JAM Trinity-Leakages, Financial inclusion
 Skill Development schemes  Labour Codes-Restructuring Labour laws
 E-Shram portal, Gig Economy  Sectorial unemployment Trends -PLFS 2021-22

Chapter 9 : Regional Inequalities: Urbanization – Migration – Land Acquisition – Resettlement and

Rehabilitation
 Concept of Regionalism in india  Reasons behind regional inequalities
500
to
 Measurement of regionalism -PCI,GSDP’s, Poverty and Urbanization Comparisons 542
 History of regionalism in india  Emergence of Regional parties
 Constitution and federalism  Regional imbalance and remedial measures
 Pandey and Wanchoo Working Groups  Backward Regions Grant Fund
 Special Category Status States  Raghuram Rajan Committee
 BIMARU States  Concept of Urbanisation
 Urban Population Trends -Urban Types, Urbanization Consequences
 Concept of Migration  Types of Migrations
 Causes of Migration -Push and Pull Factors Migration in india Report -2021
 Schemes and Programms to reduce urban- rural divide
 Schemes of government to safeguard migrants
 Concept of Land Acquisition  History of land acquisition
 Land Acquisition Act 1894  Land Acquisition Act 2013
 Land Acquisition Ordinance 2015
 Difference bw Land Acquisition 1894 and 2013 Acts
 Difference bw 2013 Act and 2015 Ordinance
 Homelessness and Displacement  Famous judgments on Displacement

Chapter 10 : Environment and Sustainable Development: Concepts of Environment – Environmental

Protection and Sustainable Development – Types of Pollution – Pollution Control – Effects of
Environment – Environmental Policies of India
543
 Concept of Environment  Types of environment to
 Ecology, Eco system, Ecotone, Niche and Biosphere 630
  Concept of Environment Degradation & Pollution
 Air, Noise, Water Pollution -Causes, Consequences and Measures by govt
 E-Waste Management, Biodegrades, Plastic Pollution
 Need for environment protection  United nations environment programme (UNEP)
 Sustainable Development-Concept, History,Definition
 UN Earth Summit -1992 -Concept and Conventions
 Agenda 21 , Rio+5 ,Rio+10 and Rio+20  Millennium Development Goals (MDG)
 Difference bw MDG and SDG  Sustainable Development Goals- SDG 1 to 17
 Climate Change -Concept -Qyoto Protocol and Paris Agreement
 Biodiversity -Concept and Conservation
 In situ and Ex situ Conservation  National parks, WLS,Reserved Foresters’
 Project Tiger, Elephant, Renho etc.  Environmental Legislation In india
 Water Act, Forest Act, Environment Protection Act
 National action Plan for environmental protection
 International Agreements and Ratifications
 Schemes and Programs of government to Achieve SDG
 Measurement of Sustainable Development
 SDG Baseline Index 2023  National footprint accounts
 Ecological Balance sheet  Earth Overshoot Day 2023

Economic Survey 2022-23, Latest GDP Estimates, Budget 2023-24, PLFS Survey 2021-22, NITI Ayog MPI
2023, World Development report 2023, SDG Baseline report 2023, Migration report 2021 ,SRS Data
2022 , NFHS 4 and 5 Data , World Population estimates 2023, NITI Ayog Latest Reports, Latest Agriculture
Census 2019, 6th Minor Irrigation Report 2023, Food Related index 2023, MSP 2023 ,NITI ayog NMP,
NIP, etc are included as per demand of the topics