RPSC RAS Mains Exam Paper-I:Unit II-Part A- Indian Economy: Rajasthan Administrative Services Mains Exams Indian Economy Study Material. RAS Mains Indian Economy
- Major Sectors of Economy: Agriculture, Industry & Service- Current Status, Issues and Initiatives
- Banking: Concept of Money supply & High Powered Money. Role and Functions of Central Bank & Commercial Banks, issues of NPA, Financial Inclusion. Monetary Policy- Concept, objectives & Instruments
- Public Finance: Tax reforms in India- Direct & Indirect, subsidies- Cash Transfer and other related issues. Recent Fiscal Policy of India
- Recent Trends in Indian Economy: Role of Foreign Capital, MNCs, PDS, FDI, Exim Policy, 12th Finance Commission, Poverty alleviation schemes.
The Indian economy was in distress at the brink of the country’s independence. Being a colony, she was fulfilling the development needs not of herself, but of a foreign land. The state, that should have been responsible for breakthroughs in agriculture and industry, refused to play even a minor role in this regard. On the other hand, during the half century before India’s independence, the world was seeing accelerated development and expansion in agriculture and industry – on the behest of an active role being played by the states.
India has the world’s sixth largest economy in measures of GDP. It has the third largest purchasing power in the world. When we talk about the global economy, India is one of its fastest emerging players. Since our liberalization in 1991, the economy has opened up and given us plenty of opportunities to succeed. RAS Mains Indian Economy
In the Indian economy, both private sector and public sector companies co-exist in perfect harmony. The big industries, especially those for vast public use, are public sector companies. Some examples are MTNL, Mahanagar Gas etc. And the economy has seen a huge boost in the private sector as well since the liberalization in 1991. Hence India is the perfect example of a mixed economy.
One major advantage of India’s vast population is within the scope of human capital. And most of these human resources are youths. They are educated and skilled, giving India a huge advantage in the global market. They now need adequate employment opportunities to be successful.
British rulers never made any significant changes for the benefit of the social sector, and this hampered the productive capacity of the economy. During independence, India’s literacy was only 17 percent, with a life expectancy of 32.5 years. Therefore, once India became independent, systematic organisation of the economy was a real challenge for the government of that time. The need for delivering growth and development was in huge demand in front of the political leadership – as the country was riding on the promises and vibes of national fervour. Many important and strategic decisions were taken by 1956, which are still shaping India’s economic journey.
One of the most important sectors of the Indian economy remains Agriculture. Its share in the GDP of the country has declined and is currently at 14%. However, more than 50% of the total population of the country is still dependent on agriculture. Keeping this in mind, the Union Budget 2017 – 18 gave high priority to the agricultural sector and aimed to double farmers’ incomes by 2022. RAS Mains Indian Economy
Besides these developments and reforms, it is imperative to bear in mind that in order to tap the highest potential of the economy and ensure good governance, an optimal level of synergy is required between the central and state government. This will not only add strength to our cooperative federal structure but will also strengthen India’s economy. Initiatives such as –
• Goods and Services Tax (GST)
• Insolvency and Bankruptcy Code (IBC)
• Startup India
• Digital India