3. INTRODUCTION: INDIAN ECONOMY THE THIRD LARGEST ECONOMY IN
THE WORLD. THE RBI HAS EASED THE NORMS FOR BANKS BORROWING THROUGH
FOREIGN CURRENCY. THE SEBI OF INDIA HAS ALLOWED FII TO GET DIRECTLY
IN THE DEBT MARKET,
4. NATURE OF INDIAN ECONOMY: LOW PER CAPITA INCOME. DISPARITIES
IN INCOME DISTRIBUTION. DOMINANCE OF AGRICULTURE. OVER POPULATION.
UNBALANCED ECONOMIC DEVELOPMENT. LACK OF CAPITAL. LACK OF
INDUSTRIALIZATION. OPERATION OF ECONOMIC VICIOUS CIRCLES. MARKET
IMPERFECTIONS LIMITED AVAILABILITY OF TRANSPORT AND COMMUNICATION
FACILITIES. EXISTENCE OF TRADITIONAL SOCIETY.
5. STRUCTURE OF INDIAN ECONOMY: STRUCTURE OF INDIAN ECONOMY
PRIMARY SECTOR SECONDARY SECTOR TERTIARY SECTOR
6. PRIMARY SECTOR AGRICULTURE FISHING MINING
7. INDUSTRY CONSTRUCTION SECONDARY SECTOR
8. INSURANCE BANKING TRANSPORT TERTIARY SECTOR
9. SIGNIFICANCE OF INDIAN ECONOMY: FASTEST GROWING ECONOMY.
HIGH DEMOGRAPHIC DIVIDEND STRONG CONSUMER MARKET RISING TRENDS IN
FDI FLOW
10. CHALLENGES OF INDIAN ECONOMY: POPULATION EXPLOSION POVERTY
UNEMPLOYMENT RURAL URBAN DIVIDE LOW RATE OF ECONOMIC GROWTH
MALNUTRITION INEQUITABLE DISTRIBUTION OF INCOME PREDOMINANCE OF
AGRICULTURE LOW LEVEL OF HUMAN DEVELOPMENT SCARCITY OF CAPITAL
TECHNOLOGY BACKWARDNESS LACK OF ENTREPRENEURS
11. MEANING OF ECONOMIC SYSTEMS : IS A SYSTEM DESIGNED BY A
NATION TO UTILIZE HER RESOURCES FOR THE PURPOSE OF SATISFYING THE
NEEDS AND WANTS OF PEOPLE.
12. DEFINITION OF ECONOMIC SYSTEM: ACCORDING TO CARL LANDAUER
AN ECONOMIC SYSTEM IS THE SUM TOTAL OF THE DEVICES BY WHICH
PREFERENCES AMONG ALTERNATIVE PURPOSES OF ECONOMIC ACTIVITY IS
DETERMINED AND BY WHICH INDIVIDUAL ACTIVITIES ARE COORDINATED FOR
THE ACHIEVEMENT OF THESE PURPOSE.
13. FUNCTIONS OF ECONOMIC SYSTEMS: DETERMINATION OF PRODUCTION
AND ALLOCATION OF RESOURCES ORGANIZATION OF THE PRODUCTION PROCESS.
INCOME DISTRIBUTION. PROVISION FOR THE FUTURE AND POSTERITY.
ECONOMIC GROWTH AND DYNAMISM.
14. TYPES OF ECONOMIC SYSTEMS: TYPES OF ECONOMIC SYSTEM
CAPITALISM SOCIALISM MIXED ECONOMY
15. INTRODUCTION: DEFINED AS AN ECONOMIC ACTIVITY WHERE THE
MEANS OF PRODUCTION ARE PRIVATELY OWNED ALSO CALLED FREE ENTERPRISE
OR MARKET ECONOMY. THERE IS NO GOVERNMENT INTERFERENCE. BASIC
PRODUCTION UNITS ARE 1)HOUSEHOLD 2)FIRMS
16. ACCORDING TO KARL MARX, CAPITALISM IS A PARTICULAR MODE OF
ORGANIZATION OF PRODUCTION WHICH IS CHARACTERISED BY WAGE, SLAVERY
PRODUCTION OF PROFIT AND CREATION OF SURPLUS VALUE.
17. ABOUT PRODUCTION: PRODUCTION SUPPLY DEMAND PRICE
SYSTEMS
18. DEMAND SUPPLY PRICES PRODU CES
19. SUPPL Y DEMAN D PRICES PRODU CES
20. FEATURES OF CAPITALISM: FREE ENTERPRISE PRIVATE OWNERSHIP
LIMITED ROLE OF GOVERNEMENT ABSENCE OF A CENTRAL PLAN CONSUMERS
SOVEREIGNTY COMPETITION MARKET SYSTEM
21. MERITS OF CAPITALISM: DEMOCRATIC NATURE RAPID ECONOMIC
GROWTH INCENTIVES INNOVATION EFFICENT UTILISATIONOF RESOURCES
CAPITAL FORMATION FLEXIBILITY AND ADAPTABILITY
22. DEMERITS OF CAPITALISM LACK OF MAXIMUM SOCIAL SATISFACTION
AT MINIMUM SOCIAL COST SOCIAL WASTE CONCENTRATION OF ECONOMIC POWER
SOCIAL DISCRIMINATION ECONOMIC INSTABILITY LOSS OF HUMAN VALUES
RISE OF MONOPOLY
23. INTRODUCTION: SOCIALISM IS AN ECONOMIC SYSTEM WHERE THE
MEANS OF PRODUCTION ARE EITH OWNEDOR CONTROLLED BY THE STATE. ALSO
CALLED AS COMMAND ECONOMY. NO PLACE FOR PRIVATE. STATE ITSELF
DECIDES -WHAT TO PRODUCE - HOW TO PRODUCE -HOW TO DISTRIBUTE
24. ACCORDING TO LEFT WITCH IN SOCIALISM THE ROLE OF THE STATE
IS CENTRAL IT OWNS THE MEANS OF PRODUCTION AND DIRECTS ECONOMIC
ACTIVITY
25. FEATURES OF SOCIALISM: GOVERNMENT OWNERSHIP DISTRIBUTION OF
INCOME RESTRICTION OF OCCUPATION CENTRAL AUTHORITY RESTRICTION ON
CONSUMPTION SOCIAL WELFARE PEACEFUL AND DEMOCRATIC EVALUATION
ABSENCE OF COMPETITION EQUALITY OF OPPURTUNITY CLASSLESS
SOCIETY
26. MERITS OF SOCIALISM: ABSENCE OF CLASS STRUGGLE ECONOMIC
STABILITY SOCIAL JUSTICE HIGHER ECONOMIC GROWTH RATIONAL ALLOCATION
OF RESOURCES
27. DEMERITS OF SOCIALISM: CORRUPTION LOSS OF CONSUMER
SOVEREIGNITY CONCENTRATION OF ECONOMIC POWER IN THE STATE
INEFFIENCY AND LOW PRODUCTIVITY LOSS OF OCCUPATIONAL FREEDOM
28. MIXED ECONOMY
29. INTRODUCTION: THE MIXED ECONOMY SHARRES FEATURES OF
CAPTALISM AND STATE CAPITALISM IT IS CHARACTERISED BY THE
CO-EXISTANCE OF PUBLIC AND PRIVATE SECTORS AND THE OVER ALL
GOVERNMENT REGULATIONS OF THE ECONOMY AIMS TO BLENDING TOGETHER THE
BEST CONTROL SOCIALIST OR COMMUNISTY ECONOMY WITH THE BEST OF FREE
ENTERPRISE IN A CAPITALIST ECONOMY.
30. ACCORDING TO SAMUEL SON, MIXED ECONOMY IS THAT ECONOMY IN
WHICH BOTH PUBLIC AND PRIVATE INSTITUTIONS EXERCISE ECONOMIC
CONTROL.
31. FEATURES OF MIXED ECONOMY CO-EXISTANCE OF PRIVATE AND
PUBLIC SECTORS NATIONALISATION OF BASIC INDUSTRIES REDUCTION OF
INEQUALITIES OF INCOME PROMOTION OF ECONOMICDEVELOPMENT THROUGH
PLANNED EFFORTS RESOURCES ALLOCATION THROUGH THE PRICE SYSTEM AND
GOVERNEMENT DIRECTIONS GOVERNEMENT CONTROL AND REGULATIONS OF THE
PRIVATE SECTOR CONTOL OF MOMOPOLY CONSUMER SOVEREIGNITY IS
PROTECTED BUT GOVERNEMENT CONTROLS PRODUCTION,CONSUMPTION AND
DISTRIBUTION
32. MERITS OF MIXED ECONOMY: ACIVEMENT OF FASTER ECONOMIC BEST
ALLCATION OF RESOURCES BALANCE BETWEEN THE PRIVATE AND PUBLIC
SECTORS ESTABLISHMENT OF WELFARE STATE HEAVY CAPITAL INVESTMENT
THROUGH PLANNED EFFORT
33. DEMERITS OF MIXED ECONOMY UNDUE EMPHASIS ON THE GROWTH OF
PUBLIC SECTOR INEFFICIENCY OF BOTH THE SECTORS INEFFECTIVE CONTROL
OF PRIVATE SECTOR ECONOMIC FLUCTUAIONS FAILURE TO SOLVE DEMOGRAPHIC
AND UNEMPLOYMENT PROBLEMS AND INFLATION EXTENSIVE BEUAROCACY AND
CORRUPTION
34. STRUCTURE OF INDIAN ECONOMY
35. INDUSTRY: MEANS PRODUCTION OF GOODS FOR SALE BY THE
APPLICATION OF HUMAN OR MECHANICAL POWER. REFERS TO ECONOMIC
ACTIVITIES WHICH ARE CONNECTED WITH RAISING,PRODUCING AND
PROCESSING OF GOODS AND SERVICES. USED TO REPRESENT A GROUP OF
BUSINESS ENTERPRISES ENGAGED IN PRODUCING SIMILAR PRODUCTS OR
SERVICES
36. INDUSTRIAL DEVELOPMENT: FIRST STAGE PROCESSING OF PRIMARY
PRODUCTS SECOND STAGE TRANSFORMATION OF MATERIALS THIRD STAGE
FACILITATE THE FUTURE PROCESS OF PRODUCTION
37. ACCORDING TO W.G.HOFFMAN OPERATIONAL CRITERIA OF THE DEGREE
OF INDUSTRIAL DEVELOPMENT HE CLASSIFIED ALL INDUSTRIAL OUTPUT INTO
TWO CATEGORIES -CONSUMERS GOODS -CAPITAL GOODS
38. CLASSIFICATION OF INDUSTRIES: CLASSIFICATION OF INDUSTRIES
BASED ON RAW MATERIALS AGRO-BASED MINERAL BASED FOREST BASED MARINE
BASED BASED ON SIZE SMALL SCALE MEDIUM SCALE LARGE SCALE BASED ON
OWNERSHIP PRIVATE PUBLIC JOINT
39. ROLE OF INDUSTRY IN ECONOMIC DEVELOPMENT: INCREASE IN
NATIONAL INCOME HIGHER STANDARD OF LIVING ECONOMIC STABILITY
IMPROVEMENT IN BALANCE OF PAYMENTS RISE IN AGRICULTURAL PRODUCTION
REDUCTION IN THE RATE OF POPULATIO GROWTH INCREASED SAVING AND
IVESTMENT INCREASE IN THE GOVERNMENT REVENUE
40. EMERGING INDUSTRIES T E X T I L E S E L E C T R O N I C S A
U T O M O B I L E S F M C G T E L E C O M P H A R M A
41. MARKETS: TEXTILES COMPOSITE MILLS SPINNING MILLS WEAVING
AND KNITTING FABRIC FINISHING CLOTHING ELECTRONICS CONSUMER
INDUSTRIAL COMPUTERS STRATEGIC ELECTRONICS COMMUNICATION AND BROAD
CASTIONG EQUIPMENTS ELECTRONIC COMPONENTS AUTOMOBILE PASSENGER
COMMERCIAL THREE WHEELER TWO WHEELERS FMCG HOUSE HOLD CARE PERSONAL
CARE FOOD AND BEVERAGES TELECOM PUBLIC SECTOR PRIVATE SECTOR PHARMA
ORGANISED UN- ORGANISED
42. INTRODUCTION: ECONOMIC REFORMS WERE INITIATED IN 1991. A
SIGNIFICANT OBJECIVE OF THIS LIBERALISATION HAS BEEN ACHIEVING
GREATER EFFICIENCY IN RESOURCE ALLOCATION
43. NATURE OF ECONOMIC REFORMS REMOVAL OF INDUSRIAL LICENSING
DE-RESERVATION OF SSI ITEMS WITHDRAWING MRTP RESTRICTIONS
LIBERALISATION OF THE ECONOMY ENTRY OF PRIVATE PLAYERS NO BUDGET
SUPPORT DISINVESTMENT PRIVATISATION OF THE ECONOMY AUTOMATIC
APPROVAL FOR FDI AUTOMATIC APPROVAL FOR FOREIGN TECHNOLOGY
AGREEMENTS ALLOWANCE OF FOREIGN EQUITY HOLDINGS REDUCED TARIFF
RATES GLOBALISATION OF THE ECONOMY
44. OBJECTIVES OF ECONOMIC REFORMS LIBERALISATION AND
OPENING-UP OF THE ECONOMY IMPROVING THE AVAILABILITY BALANCE
BETWEEN DIFFERENT SECTORS OF THE ECONOMY MAKING THE CORPORATE AND
THE PUBLIC SECTOR MORE EFFECTIVE MINIMISING POVERTY BY REDCING THE
RATE OF UNEMPLOYMENT MINIMISING BUDGET DEFICITS BY GENERATING MORE
REVENUE TO REMOVE THE RESTRICTIONS ON FOREIGN DIRECT INVESTMENT TO
REMOVE THE RESTRICTIONS OF MRTP ACT
45. ECONIMIC REFORMS IN VARIOUS SECTORS: FISCAL REFORMS
FINANCIAL/MONETARY SECTOR REFORMS INTERNATIONAL TRADE AND
INVESTMENT REFORMS INDUSTRIAL SECTOR REFORMS INFRASTRUCTURE REFORMS
LABOUR REFORMS AGRICULTURAL SECTOR REFORMS PRIVATISATION
REFORMS
46. CHALLENGES FACED BY ECONOMIC REFORMS: ABSENCE OF A BROADER
DEVELOPMENT STRATEGY WRONG SEQUENCING OF REFORMS HASTY PACE OF
REFORMS PREREQUISITES OF REFORM IGNORED ABSENCE OF HUMAN DEVELOPMET
GOALS AS AN INTEGRAL PART OF THE STRATEGY
47. INTRODUCTION: DENOTES THE EQUAL TREATMENT OF ALL CITIZENS.
MEANS ABSENCE OF PRIVILEGES BEING EXTENDED TO ANY PARTICULAR
SECTION. GENERAL DEFINITION- HARD TO ARRIVE AT AND EVEN HARDER TO
IMPLEMENT
48. ACCORDING TO CHIEF JUSTICE - GAJENDRA GADKAR IN THIS SENSE
SOCIAL JUSTICE HOLDS THE AIMS OF EQUALITY OPPURTUNITY TO EVERY
CITIZEN IN THE MATTER OF SOCIAL AND ECONOMICAL ACTIVITIES AND TO
PREVENT INEQUALITIES
49. PRINCIPLES OF SOCIAL JUSTICE HUMAN DIGNITY DIGNITY OF WORK
AND THE IGHTS WORKERS COMMUNITY AND THE COMMON GOOD SOLIDARITY
RIGHTS AND RESPONSIBILITIES STEWARDSHIP PRIORITY FOR THE POOR AND
VULNERABLE GOVERNANCE/PRINCIPLE OF SUBSIDARITY PARTICIPATION
50. ACTIVITES RELATED TO SOCIAL JUSTICE RAISING AWARENESS
RESEARCHING THE ROOT CAUSES OF INJUSTICES DISSEMINATING FINDINGS
CREATING CAPACITY BUILDING NETWORKS AND PATNERSHIPS INFLUENCING
DECISIONS MONITORING OUTCOMES
51. CHALLENGES IN SOCIAL JUSTICES SOCIAL POLICY ECONOMIC POLICY
TRIBALS BACKWARD CASTES WOMEN FARMERS LABOURERS LANDLESS
PEOPLE