MPPCS Paper III- Economy

Development Experience and Development Planning of India

Development Experience and Development Planning of India Poverty, low per capita income, under-development, unemployment, prompted the newly established Indian polity to adopt economic planning for the development of the country. The idea of economic planning can be traced to 1934, when M. Visvesverayya in his book ‘Planned Economy of India’, advocated for planning to increase the national income. It was taken up by the Indian National Congress in 1938 when it formed the National Planning Committee under the chairmanship of Jawaharlal Nehru. The Bombay Plan, the People’s Plan and Gandhian Plan, provided further impetus in the direction of economic planning. ... Read more

Causes of low industrialization in Madhya Pradesh

Causes of low industrialization in Madhya Pradesh Madhya Pradesh (MP) has predominantly been an agrarian state economy which shows co-existence of poverty and prosperity in the state. The state’s economic and demographic profile describes an economy of rural mass, poverty and growth led by agriculture. Despite five decades of planned economic development, MP continues to be in the BIMARU state group Madhya Pradesh (MP) has predominantly been an agrarian state economy which shows co-existence of poverty and prosperity in the state. The state’s economic and demographic profile describes an economy of rural mass, poverty and growth led by agriculture. Despite ... Read more

Economic reforms in india

Economic reforms in india New Industrial Policy Under Industrial Policy, keeping in view the priorities of the country and its economic development, the roles of the public and private sectors are clearly decided. Under the New Industrial Policy, the industries have been freed to a large extent from the licenses and other controls. In order to encourage modernisation, stress has been laid upon the use of latest technology. A great reduction has been effected in the role of the public sector.  Efforts have been made to encourage foreign investment. Investment decision by companies has been facilitated by ending restrictions imposed ... Read more

Industrial development and Economic reforms in India : Major changes in industrial policy, its impact on industrial growth

The Indian Government had undertaken industrial policy reforms since 1980, but the most radical reforms have occurred since 1991, after the severe economic crisis in fiscal year 1990-91. These reforms mainly aim  at enhancing the efficiency and international competitiveness in Indian industry. India’s industrial policy of 1991 towards liberalisation, deregulation, market orientation has been hailed as ushering in a new era of freedom from government controls, licence raj and red carpetism and one which promises greater prosperity for the Indian people.   Main Objectives of the Industrial Policy of the Government are – to maintain a sustained growth in productivity; ... Read more

Financial and Banking sector reforms

The Banking System at the time of independence was largely urban oriented and remained out of reach of rural population. Commercial Banks mostly confined their lending to trade, commerce and industry and treated agriculture as a non priority. Security- oriented lending was the order of the day. Banks did not pay any attention to the farming community, the Agriculturist was forced to borrow from money lenders, who charged exorbitant rates of interest and imposed onerous conditions.To overcome these issues, ‘Social Control measures’ were initiated by then Prime Minister Smt. Indira Gandhi in 1968 to help the Indian masses in poverty ... Read more

Liberalization

The leading economists of the country differ in their opinion about the socioeconomic and ecological consequences of the policy of liberalisation.Liberalization has led to several positive and negative effects on Indian economy and society. Some of the consequences of liberalisation have been briefly described here: 1. Increase in the Direct Foreign Investment: The policy of liberalisation has resulted in a tremendous increase in the direct foreign investment in the industrial and infrastructural sector (roads and electricity). 2. Enhancement in the Growth of GDP: There is a significant growth in the Gross Domestic Product (GDP). Prior to the liberalisation, the growth rate of ... Read more

Impacts of Privatization

Privatization in generic terms refers to the process of transfer of ownership, can be of both permanent or long term lease in nature, of a once upon a time state-owned or public owned property to individuals or groups that intend to utilize it for private benefits and run the entity with the aim of profit maximization. ADVANTAGES OF PRIVATIZATION Privatization indeed is beneficial for the growth and sustainability of the state-owned enterprises. • State owned enterprises usually are outdone by the private enterprises competitively. When compared the latter show better results in terms of revenues and efficiency and productivity. Hence, privatization can provide the necessary impetus to the ... Read more

Impacts of Globalisation:-

Definition of Globalization :- Its a process(not an outcome) characterized by increasing global Interconnections by gradual removal of barriers to trade and investment between nation and higher economic efficiency through competitiveness. Various economic, political, social and cultural effects of globalization are as follows:- Economic:- Breaking down of national economic barriers International spread of Trade, Financial and productive activities Growing power of transnational cooperation and International financial Institutions(WTO, IMF)Through the process of:- 1- Liberalization- relaxation of restrictions, reduction in role of state in economic activities,decline in role of govt in key industries, social and infrastructural sector. 2- Privatization- Public offering of ... Read more

Current trends and challenges in the Indian Economy

Current trends and challenges in the Indian Economy Good news is underway for India as its economy is poised to win back its tag of the fastest growing economy in the world. The recent upgrade of India’s rating by the US based credit rating agency Moody’s (Baa2 from Baa3) in recognition of the reforms agenda pursued by the Government is a major boost to investor confidence. Further, as the short term disruptions caused by major reforms such as the Goods and Services Tax (GST) and demonetization recede, the economy is on the rebound and is likely to achieve higher growth ... Read more

NATIONAL INCOME

National Income The study of National Income is important because of the following reasons: To see the economic development of the country. To assess the developmental objectives. To know the contribution of the various sectors to National Income. Internationally some countries are wealthy, some countries are not wealthy and some countries are in-between. Under such circumstances, it would be difficult to evaluate the performance of an economy. Performance of an economy is directly proportionate to the amount of goods and services produced in an economy. Measuring national income is also important to chalk out the future course of the economy. ... Read more