PA

RM
A
R
SS
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Indian Economy
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Macroeconomics
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Microeconomics
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Focused with the action of individuals/

Focused on the action of govt./

...

C
businesses
countries take to influence broader
Individuals, firm
economies
Father: Adam Smith “The wealth of

SS
GDP, NI, Inflation nation”
Father: J. M. Keynes (England)
Demand and Supply
Classifications

-
3 types of economic systems
1. Capitalist
2. Socialist
3. Mixed R
Govt. has no
share holding
private has no
ownership
Both
eg: India
A
Capatalist Socialist Mixed

Public+Private
RM

Ownership Private ownership Public ownership

Economic motive Profit Social welfare Both

Govt. role No role Complete involvement Limited role

Income distribution Unequal Equal Less unequal

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Economic freedom Complete Lack of freedom Limited freedom

eg: USA eg: USSR, North Korea eg: India

1991: Licence Raj -
Disinvestment: Govt. sell it’s shareholdings

↓
x LPG
Balance of payment

C
Sectors of Economy

..
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-
Backbone on
of Indian Economy: Agriculture

1. Primary

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2. Secondary
3. Tertiary

Primary Sector
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Directly dependent on environment, also called
agriculture sector
A
In India primary sector seen mostly in agriculture
Activities:
↑

Agriculture
RM

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Fishing red collar jobs
/
Hunting and gathering I
- Forestry
Ghar se bahar
↑
Mining
nikalna padega
to perform such
All sectors are interlinked
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jobs I

Secondary Sector
. . .

↑
Also called manufacturing sector
↑
These add value to natural resources by transforming raw materials into valuable
products
Activities:
I Manufacturing
Processing

i
Blue collar jobs, not developed in India properly, we have
Building/Construction work
-

leaped to tertiary sector directly

Secondary sector is called backbone of a country, helps in industrialisation of a country

eg: China
24-25%

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Tertiary Sector
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Also known as service sector

It is that part of economy where business produce *
services
services
eg: teaching, transport, advertising, retail
It is always intangible in nature
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which cannot be Tangible: that which can be

touched touched
Also, known as White collar jobs
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I -

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Thermal energy
Coal

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Decision making activity
-
eg: Activity of Politicians
This sector is known as
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Gold collar jobs -> Scientists that are highly qualified

Also known as knowledge sector
eg: Senior business executive
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~ Highest contribution in our economy:

Tertiary sector (India+other countries)

I
Primary sector employs more no. of people,
least contribution in GDP⑳(21-22%)
(14.39%)
#

-
Least no of people employed in Tertiary
-
GDP contribution: 31.46% sector and contributes s
more
most in GDP (54.15%)
(54%)
⑳
C
competition in goods

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-- making

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A
I
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RM

Transport
Banking Facilitates trade
Advertisement
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> Employees’ Provident Fund

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1- India is no. 1
Season based employment
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Investment Turnover

Micro Less than Rs 1 Cr Less than Rs 5 Cr

Less than Rs 50 Cr
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Small Less than Rs 10 Cr

Medium Less than Rs 20 Cr Less than Rs 100 Cr

W
r Stock: variables is measured over a specific period of time
eg: Inventory, cash, machinery, tools

- Flow: variable is measured over a defined period of time

eg: expenditure, savings, depreciation

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SS
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