Introduction
Indian Economy is a dynamic subject in WBCS Prelims, contributing around 10–12 marks. The questions cover basic economic concepts, budgeting, policies, and current affairs related to the economy.
1. Nature of Indian Economy
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Mixed Economy: Co-existence of private & public sectors
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Agriculture-based economy but growing industrial and service sectors
2. Economic Sectors
| Sector | Examples |
|---|---|
| Primary | Agriculture, Mining |
| Secondary | Manufacturing, Construction |
| Tertiary | Banking, Education, Services |
3. National Income
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GDP (Gross Domestic Product): Total value of goods & services produced.
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GNP (Gross National Product): GDP + Income from abroad.
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Per Capita Income: Average income per person.
4. Planning in India
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Planning Commission: Replaced by NITI Aayog (2015)
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Five-Year Plans: Started in 1951, discontinued in 2017.
5. Agriculture in Indian Economy
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Contributes ~17% of GDP
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Major Crops: Rice, Wheat, Cotton, Jute
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Green Revolution: Increased food grain production
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Government Schemes: PM-KISAN, PM Fasal Bima Yojana
6. Industries & Services
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Industrial Policy: Encourages small-scale and large-scale industries
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MSME Sector: Backbone of employment
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IT Sector: Major contributor to exports and services
7. Banking & Finance
Reserve Bank of India (RBI)
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Central Bank of India
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Controls inflation, issues currency, manages foreign exchange
Monetary Policy Tools
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Repo Rate
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Reverse Repo Rate
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Cash Reserve Ratio (CRR)
8. Budget & Taxation
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Union Budget: Presented by Finance Minister every February
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GST (Goods & Services Tax): Introduced in 2017, replaced indirect taxes.
9. Poverty & Unemployment
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Poverty Line: Determined by consumption of calories & income level
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Types of Unemployment:
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Seasonal
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Structural
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Frictional
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Disguised
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10. Inflation
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Meaning: Rise in the prices of goods and services
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Measured by:
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Consumer Price Index (CPI)
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Wholesale Price Index (WPI)
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11. Government Schemes & Social Welfare
| Scheme | Purpose |
|---|---|
| MGNREGA | Rural Employment |
| PMAY | Housing for all |
| Ayushman Bharat | Health Insurance |
| Ujjwala Yojana | LPG Connection |
12. International Organizations
| Organization | Role |
|---|---|
| IMF | International Monetary Fund |
| World Bank | Development Loans |
| WTO | World Trade Organization |
13. Recent Economic Developments
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Digital India & UPI Growth
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Startup India & Ease of Doing Business
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Make in India Initiative
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Atmanirbhar Bharat (Self-Reliant India)
Preparation Tips for Polity & Economy
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NCERT Books (Class 9–12)
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M. Laxmikanth’s Indian Polity (for Polity)
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Ramesh Singh’s Indian Economy (for Economy Basics)
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Regular Current Affairs Updates
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Government Websites (pib.gov.in, indiabudget.gov.in)
