Indian Economy For UPSC CSE Part-1 – Free PDF Download

Chapter 1
An Introduction

• More than a Dismal Science
• Defining Economics
• Micro and Macro
• What is an Economy?

MORE THAN A DISMAL SCIENCE

• It is called a dismal science
• Often highlighted as depressing and Poor Science
• A Failed Science (in wake of 2008 crisis)
• Yet invaluable in nature

Defining Economics

• A discourse to study economic activities of the human being
• All activities involving money are termed as economic activities
• Going temple and giving Alms

Hence

• Economics is a study of Goods and Services produced Distributed and consumed in a territory
• It works on the principle of Demand and Supply
• Societies capability of using scarce resources

Defining Economics

• So economy works upon two key ideas
• goods are scarce and society must use its resources efficiently.

A Working Definition

• All the activities concerned with profit, loss, livelihood, occupation, wage, employment, etc., are economic activities.

Micro & Macro

• After Great Depression the economics got divided into two broad branches—the micro- and macro-economics.
• Keynes is considered the father of macroeconomics
• Micro deals with bottoms-up approach
• Macro with top-down approach

Co-relation

• Micro deals with Demand & Supply, Prices and Income;
• Macro deals with its effect on Inflation, GDP, Employment

Economics and Economy

Sectors & Types of Economies

W.W. Rostow Perspective (1960)

• economies grow following five linear stages through the three main sectors i.e., agriculture, industry and services
• South East Asian countries such as Indonesia, Philippines, Thailand and Vietnam were exceptions

Primary Sector in India

• If share is more than 50% of GDP country will be agrarian economy

Secondary Sector in India

• Western countries have witnessed the industrialization phase and are now facing saturation
• The industrial sectoris at the second spot and contributing around 31% of the Indian GDP

Tertiary Sector in India

• The services sectoraccounts for 53.66%
• Maximum growth Is now being accounted from this sector
• Once heavily industrialized nations America-Europe are now witnessing growth due to 60% contribution of  service sector

Next Topic

• Economic Systems

Indian Economy | Free PDF

Sharing is caring!