Subscribe channel: Deepak Mulchandani...CA. Deepak Mulchandani, NPA,Indore Population Facts India is Second in the world after china in world population , Indiahas only 2.4% of theworld

CA. Deepak Mulchandani, NPA,Indore

Subscribe channel:

Deepak Mulchandani

Are you

ready for

mega

Revision

of Macro

EcoCA. Deepak Mulchandani, NPA,Indore

Indian Economy Profile –Agriculture 60 to 80 % population is dependent on agriculture

48.9% Primary sector

24.3% Secondary sector

26.9% Tertiary sector

Indian railway has been ASIA’S LARGEST and world’s FOURTH largest rail network under a single management

Dependency ratio is high i.e.57.5% (people below 15 & above 64)

The bed-population ratio is now 1.03 per 1,000 population increasing from 0.32 per 1,000 in 1950-51

There are 9 lakh Lakh Doctors in India

As per NSSO 5.6% of labour force is unemployed


Indian Economy Profile

Sector Contribution

to GDP

Population

Employed

Agriculture 13.9% 48.9%

Industry 26.1% 24.3%

Service 59.9% 26.9%


Indian Economy Profile –Agriculture

HYVP ( also called as green revolution)

5 crops were covered wheat, rice, bajra, jawar, maize, but wheat got promoted and it is also called as wheat revolution.

Covers only 44% of gross cropped area

55% net sown area is rain fed

45% of gross cropped area has irrigation facilities

Land reforms include : Abolition of intermediaries

Tenancy reforms

Re- organization of agriculture

FCI –food corporation of India is responsible procurement storage and distribution of food grains in India


Agriculture -Continued Measures for tenancy reforms were

Regulation of rent

Security of tenure

Giving ownership rights to tenants

SJGSY&MGNREGS programs are for rural employment

NFSM-national food security mission

India has largest area in rice but rank is 52nd and largest area in wheat but rank is 38th

NABARD-Estd. 1982 based on Shivraman Committee

National Mission for Sustainable Agriculture (NMSA)

forecasting Agricultural Output using Space, Agro-meteorology and Land-based Observations (FASAL) and Extended Range Forecasting System (ERFS

Agri Clinics and Agri Business Centre (ACABC)


Gives employment to 24.3% of working population and contributes 26% to GDP

Average under utilization is in the range of 40-50 % Contribution to exports: more than 2/3rd of total exports

of India i.e. around 65%

Regional Imbalance: Maharashtra, West Bengal, Tamilnadu and Gujrat. These

four States account for 50% of total factories and 50% of productive capital.

In March 2009, there were 2.5 lakh sick units out of which more than 90% were small units. (Large Units are 10%)

Only 2 industry reserved for public sector

MSME contributes 40% of total exports

Indian Economy –Industry


Basic goods

(mineral , fretilizers , cement , iron , electricity etc.)

Capital goods

(machine tools , rail road equipments etc)

Intermediate goods

(chemicals, rubber , plastic etc)

Consumer Goods

(man made fibres, beverages, watches ,cosmetics,perfumes )

Retrogression and Deceleration period was 1965-

1980

Mahalanobis Model : 2nd FYP with focus on basic

and capital goods industry

Indian Economy Profile-Industry


Indian Economy Profile- Service

Share in GDP: In 2013-14, its share in the GDP

was more than 60 %.

Providing Employment -2010-11, around 27 % of

working population was dependent on service

sector.

Contribution to Exports:one third of total

exports in India (2012-13) i.e. 33% of total

exports

Actual growth of the service sector during 2012-

13 and 2013-14 has been around 7% p.a.


Infrastructure Challenges- electricity

India ranks as 6th largest energy producer India is also worlds 4th largest energy user Growing oil and Import :Petroleum, oil and Lubricants

(POL) constitute around 37% of our import bill. The Transmission & Distribution (T&D) losses

are 20 % The production of electricity has increased 100 times

to 2,36,000 MW NTPC- National Thermal Power Corporation

NHPC- National Hydroelectric Power Corporation

NPCIL- Nuclear Power Corporation of INDIA Limited

SEB-State Electricity Board


PLF ( efficiency of thermal plant) was 65% in SEBs,79% in central sector and 79% percent in the private sector in 2012-13.

All India power grid also called as National Grid has been established to use excess electricity of one state for a state which has power shortage

'Rajiv Gandhi Grameen Vidhyutikaran, programmewas started in 2005.

Rural Electrification Corporation(REC) is the nodal agency for 'Rajiv Gandhi Grameen Vidhyutikaran, programme.

The scheme provides for free electricity connections to below poverty line (BPL) households

Infrastructure Challenges- electricity


Railways

Indian railway has become Asia's largest &

World's FOURTH largest rail network under

single management.

There are two main segments of railways-

○ The freight segment accounts for about 70% of

revenues

○ passenger contributes 30% of revenues.

There will be no separate railway

budget from year 2016


Roads – Chak De phaatteee.!

Indian Road Network is the Second largest road network in the World

All major cities will be connected by Pradhan MantriBharat Jodo Pariyojana”

Rural connectivity by Pradhan Mantri Gram SadakYojana

NHDP - National Highway Development Program is responsible for Golden Quadrilateral

Road occupy a crucial position in the transportation matrix of India as they carry nearly 65% of freight and 80% of passenger traffic.


Water transport

India has about 14500 km of navigable waterways

India has long coastline of 7,517 kms, 12 major ports

and 200 minor ports

Almost 95 percent of India's global merchandise

trade is carried through the sea route

The country has largest shipping fleet among

developing countries

The 12 major ports carry about 57% of the total

traffic, with KANDLA as the top traffic handler in

each of the last five years.

There are five NATIONAL waterways and XI plan

aimed at adding 3 more CA. Deepak Mulchandani, NPA,Indore

AIR WAYS 10 scheduled passenger operators and TWO cargo operation with

total 413 aircraft

Indian Airlines and Air India were amalgamated with National aviation Company Ltd.(NACIL), the name of co. has been changed to AIR India Ltd

Modernization Steps taken for development

Restructuring of Delhi and Mumbai airports

Greenfield air-ports at Bangalore Hyderabad Kochi and Goa

FDI limit up to 100% through automatic route for setting up Greenfield airports

AERA-Airport Economic Regulatory Authority

CAEAC-Civil Aviation Economic Advisory Council

Indian civil aviation is 9th largest market in world

49% FDI in domestic airline companies

GAGAN ( GPS Aided Geo Augmented Navigation)

India has become 9th largest Civil Aviation Market in world


Communication-Postal Network India’s Postal system dates back to 1837

Our postal network is the largest network in the world.

we have more than 1.55 lakh post office out of which 90% in rural areas

one post office serves 7175 persons and 21.21sq. km area.

VSATs (very small Aperture Terminals)

EMO (electronic money order), IMO (Instant Money Order)

PIN was introduced on 15-Aug-1972

“Project Arrow” with the aim of providing fast and reliable postal service to the consumers


Telecommunications Thus, 98% percent of villages in India have been covered

by the VPTs

By March 2014 India had more than 935 million connections

(wire line and wireless)

India’s telephone network is SECOND largest in the world○ While tele density in rural areas is 40.44 %,

○ the urban tele density shot up to 145 %

Telecom Regulatory Authority of India (TRAI) is the

regulatory body of telecom

National Internet Exchange of India (NIXI)

FDI ceiling has been raised to 100 percent from 74 percent

earlier.

National Telecom Policy announced in 2012

NOFN-National Optical Fibre Network CA. Deepak Mulchandani, NPA,Indore

Education

Education should be free for children below 14 years of age.

Largest education system in the world

84% of rural habitation in India now have a primary school located with in a distance of 1 kilometer.

Sarva Shiksha Abhiyan (SSA) Launched in 2001-02

Education guarantee Scheme (EGS) + Alternative and Innovative Education (AIE).This is specially designed to provide access to elementary education to children in school-less habitations and out of school children in 04-05


Education

A part from the above, Mid-day meal scheme, Kasturba Gandhi Balika Vidyalaya (KGBV)

RMSA-Rasthriya Madhyamik ShikshaAbhiyaan launched in 2009

NLM-National Literacy Mission launched in 1988- NLM renamed to Saakshar Bharat

NPE had set a goal of expenditure on education at 6% of the GDP.

As against this target, the actual expenditure of central and state governments was just 3.3% of GDP in 2013-14.


HEALTH

NRHM-National Rural Health Mission

ASHA’s- Accredited Social Health Activists

JSY-Janani Suraksha Yojana

PMSY-Pradhan Mantri Swasthya Yojana

JSSK-Janani Shishu Suraksha Karyakram

Doctors available 45 per lakh required are 85

Nurses and Midwifes available are 75, required

are 255

XII-FYP aims at Universal Health Coverage


Poverty – URP/MRP Methods

Two methods by NSSO to calculate poverty in rural and urban areas

URP – Uniform recall period

○ It uses 30 day period for all items of consumption

MRP – Mixed Recall Period

○ It uses 365 days recall period for infrequently purchased items (clothing , footwear, durable goods, education, medicine)

In India absolute poverty is used

GINI coefficient uses poverty in relative sense, that’s not relevant for India

Below Poverty Line – 2400 Calories- Rural & 2100 Calories – Urban


Poverty-Contd…

As per Tendulkar Committee Recommendations the poverty line at all India level as monthly per capita expenditure (MPCE) of Rs 816 for rural area and Rs 1000 for urban area .

Poverty Alleviation Programmes in India

The MGNREGS

SGSY (Swarna Jayanti Gram swarozgarYojna): renamed to AAJEEVIKA

SJSRY( Swaran Jayanti Shahari RozgarYojana) The SJSRY is replaced by National Urban Livelihood Mission(NULM) in 2013


Criteria New Data as per Census 2011

Population 121.02 Crores

Growth rate 1.64%

Density 382 ( Delhi Highest-11297,Chandigarh 9252)

Literacy 74% ( Kerala Highest ; Bihar Lowest )

Literacy-Males 82.1%

Literacy- Females 65.4%

SEX Ratio 940 ( kerala favourable-1084, Haryana -869

Child Sex ratio No. of girls between 0-6 per 1000 boys is 914

REVISED POPULATION DATA


Population Facts

India is Second in the world after china inworld population ,

India has only 2.4% of the world area, 1.2% of the world’s income and is a home to17.5% population of the world

UP+MAHARASHTRA> USA Population(3rd largest Populated country of world),

Out of total world population a little morethan one out of six persons in the world isfrom INDIA

Year 1921 is called the year of great divide India is in 2nd Stage of DEMOGRAPHICTRANSITION


Unemployment Unemployment

Cyclical

Structural

Disguised ( agricultural sector)

Labour Force includes work force

CDS Most accurate in Unemployment

CWS Lowest estimate in unemployment

Chronic unemployment is a long term

phenomenon

Full employment means usual status

unemployment is there CA. Deepak Mulchandani, NPA,Indore

Banking

RBI-Many names

FIAT money- Money of paper with no

intrinsic value

ATM-Automated telling Machine

RTGS-Real time Gross Settlement

ECS-Electronic Clearing Services

NEFT-national electronic funds transfer

IFSC-Indian Financial System Code


RBI rates as on date As on 5

Dec 2017

Bank rate 6.25%

CRR 4%

SLR 19.50%

REPO

(Rate at which banks borrow from RBI)

6.00%

REVERSE REPO

(Rate at which RBI borrows from banks)

5.75%


International Trade BOT- Difference between the value of goods sold to foreigners

by the residents and firms of the home country and the value ofthe goods purchased by them from foreigners.

Balance of current account - It includes balance of servicesand balance of unilateral transfers (i.e., unrequited transfers)besides including balance of trade

Balance of capital account- Balance of capital accountbasically deals with debts and claims of the country in questionor we say it deals with borrowings or lending of the country inquestion.

BOP -Overall balance of payment is the sum of balance ofcurrent account and balance of capital account. It includes allinternational monetary transactions of the reporting country vis-à-vis the rest of the world.


Taxation Progressive- Direct – Applies on the principle

that the more you earn the more you pay tax.

Regressive- Indirect – Applies to all irrespectiveof the earning capacity of the person

Direct Indirect tax ratio:was 38.5 percent in 2012-13while that of indirect taxes was 61.5 %

GST –Goods and Service Tax has been passed in LokSabha and applicable from 1 July 2017

Wealth tax abolished from 1-Apr-2015

Rate of service tax in GST is 18%

All indirect taxes merged in GST except Customs

So in india today there is direct tax( Income tax) andIndirect tax (GST and Customs)


National Income

National Income

GDP

GNP

MP/FC

NNP at FC

Transfer payments

Current price and constant price


Budget

Fiscal Policy : Policy of Income

Expenditure of Government of India , made

by Ministry of Finance

Budget deficit : Difference between total

receipts and Total Expenditure of the

Government.

FRBM ( 0.5% of GDP)

Budgetary Deficit concept has become

irrelevant

Deficit on account of Capital Exp. is good


Inflation Inflation

Cost Push

Demand Pull

Stagflation

Deflation

WPI –Wholesale PRICE Index –In India the main focus is on WPI-It’s a basket of 676 items

CPI –Consumer Price Index is more related to day to day inflation

Demand pull inflation to extent of 4 % is healthy for an economy


IMF/WORLD BANK/WTO

World Bank Members

189

IMF Members

189

WTO Members 162

Earlier known as IBRD, World

bank gives loan for long term

IMF gives loans for Current

nature transactions

World bank HQ @ Washington

DC

IMF HQ @ Washington DC

WTO HQ @

Geneva


LPG

LPG

LiberalisationOpening of

areas closed till date

Privatisation

Disinvestment

Majority

Minority

Complete PvtLeasing

Franchising

Contracting

Globalisation

Integrating the domestic

Economy with world


Points to remember MDPI ( Multi Dimensional Poverty Index) new concept

Gini Coefficient (relative poverty for Developednations)

91 days treasury bills practice in Budget given up

Wrong Questions

Elasticity of a monopoly is judged by which curves

Banana equilibrium price

Data Related Matter Data related MTP will have question which will not

have the option of the data We have learnt in class

SO DATA IN NPA Notes and Study Material of ICAIwill prevail


For Any difficulties

Send an email with subject

“CPT-Dec-17 Query”

on [email protected]

Eg:“CPT-Dec-17 Query-Demand Analysis”

Whatsapp Contact no. -+91-80853-51095

CA Deepak S Mulchandani, NPA, Indore

mailto:[email protected]


Subscribe channel:

Deepak Mulchandani

All the best .. ROCK ON ...!

See you in CA- Intermediate


Documents

Subscribe channel: Deepak Mulchandani...CA. Deepak Mulchandani, NPA,Indore Population Facts India is Second in the world after china in world population , Indiahas only 2.4% of theworld