Sunday, 23 March 2014

INDIAN ECONOMY

INDIAN ECONOMY 
    Wow !! Indian Got freedom On 15 august 1947 , after Then various challenges are in front of leaders on indian government are to decidibf various economic system so fo that some question put forward are
- What goods and services should be produced
- What type of technology should be used
- How good and services should be distributed
   1) Economy :-
           it is type of organisation of economic activities which provides people with the mean to work and earn a living
  2) Economic system :-
              it is type of arrangement by which central problem related to economy solved , Types of economic System are
- Capitalist economy
- socialist economy
- mixed economy
@ Capitalist Economy :-
        Capitalism is a political Economic system Based On private property and private Profit , some feature of these are :-
i) private owner of property in which all infrastructure are owned by private firms
ii) Freedom Of enterprises which allow indivisual to choose job what they want
iii) Profit motive in which firms have only motive that they earn profit
iv) Consumer is supreme by which consumer free to consume whatever they like
v) Right to inheritance by which all legal heir replace their ancestor on their death
vi) Less Government role
# Merits :-
* High economic activities
* Maximum effeciency
* Dynamic Economy
* Rapid growth
# Cons :-
* Business instability
* Consumer exploitation
* Unequal Distribution
@ Socialist Economy :-
 Socialist Economy is planned or Command economy based on public ownership of property and social welfare
i) Public ownership of property by which profit earned by company directly goes to state where they are utilized for social motives
ii) State government can decide how, when,what and to whom to produce production to achieve social and economic goal
iii) Replacing of price mechanism to central planning authority and government have poer top enforce decision
iv ) No incentive Compititon Are done in these system
v) Absence of consumer choice and have to consume that products which produced by government
vi) Equal Work oppurtunities to every indivisual
# pros :-
 - Optimum utilization of resources and production take place according to social welfare motive
- Satisfaction to Consumer for getting essential products at reasonable prices
- Equal distribution means comparative equality
# Cons :-
- Corruption
- Inaccurate Calculation of cost
@ Mixed Economy :-
     As names suggest , it totally mean aboved two Economy mixed feature , which defined as " Mixed elements which Contain Capitalist and socialist economies"
# features :-
* freedom to enterprise in private sector only
* Competition exist which confined only in some private sector
* Ownership Of property to both private and public sector
* Freedom of occupation
* government guides production decision
# Pros :'-
- Compitition b/w private and public sector
-  Presence of both private and public sector
- Maximum productivity
- Freedom of enterprise
# Cons :-
- Nationalism Fears
- Corruption
- Ineffecienty by waste ful economic activities
- only Concentration economic power
@ Economic Planning :-
        Co-ordination and utilization of available resources in an economy to achieve certain pre-specified social and economic objective in a time bound programme
@ objective Of Economic planning :-
* moderation :-
     adoption of New technology, new methods of production and changes in their outlook
* Self -reliance :-
     means reducing Dependence on imports of those goods Which can be Produced Within the Country Itself
* economic growth :-
     Means increase in aggregrate output of good and servives in a country in given period of time
* Equity :-
    refer To reduction in Inequalityof in income of wealth , uplifting Waeker section of Society
@ Agriculture :-
     -  Agriculture Is Back Bone Of Indian Economy , which play very important role In share of national Income and Employement, development and etc
- Agriculture in foreign trade play also important role , estimation around earning is 12.2 % in 2008-09 mainly on tea, cotton, oil etc
- In house hold Consumption agriculture also play important role about 60% spend on food grain for main consumption
@ Green Revolution  :-
            Finally India decided After get rid of foreign Trade and Adopt An idea of Green revolution In which various bio-technological step taken in field of agriculture for development of more good quality seed , getting High yield and etc As named New Agricultural Stratergy (NAS)
# Feature :-
* Obtained Products Seed can be isolated Or Store For Unfavourable Condition
* More Yield Should be obtained
* More Nutritive food quality
# History Of achievement Of green Revolution :-
    On Agriculture :-
  - Wheat production increased From 11.1 million tonnes in the Third Plan to 80.6 million In 2008-09
- Rice production increased 35.1 million tonnes to 99.2 million tones
- Coral cereals increased 28.3 million tones in 2008-09
On Other factor :-
- Increased income
- Increase Employement
# Cons :-
* Create Imbalance in states , because these biotechnology are only restricted or proof good only in some selective states
* Partial Removal Of Poverty not fully are held by green revolution
* Create danger On pure variety of plant
* Ecological Degradation
@ Subsidies :-
    Subsidies is an economic benefit, direct or indirect, Granted by a government domestic producers of goods or services , often to strengthen their competitive position against foreign Companies , which are benefial for creating Employement, increase investment
@ Role Of Industries :-
 industrialisation Plays An Important Role in The Economic development of country for meeting increased demand , Raising people income, And Regional balance in country
@ Problem related In Industrial Sector :-
- Industries Create imbalance In Between Government policies when it's not working in co-ordinate manner
- Create Regional Imbalance , because industies developed only that state where they are set In Not all state
- Create Sickness where they are set up
- Create Poor Impression on small scale industries
@ Industrial Policy Resolution (IPR) - 1956 :-
    These is that Policy Whic act as Instrument Through Which government Regulates the industries activities
@ Public Sector :-
          These are those enterprises which are owned and managed by goverment
@ Objective :-
* Governmnt Provide Commercial surplus
* Promote rapid growth
* Provide basic infrastructure facilities
* Achieving Self Reliance
* Create employement
* Better foreign exchange earning
@ Small Scale Industries :-
          These are those industries which having small investment around under 1 crore and generally concentrated in urban area only
# Role :-
- Provide Self employement
- Less Capita Required
- Having Equal distribution of income
# Problem
* Having less stratery
* No investor ready
* Less Output
* Getting More Competition by Large industries
@ foreign Trade :-
  These trade include exporting and importing of goods for various social and economical uses are

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