Indian Economy Overview

According to the estimates by the Ministry of Statistics and Programme Implementation, the Indian economy has registered a growth of 7.4 per cent in 2009-10, with 8.6 per cent year-on-year (y-o-y) growth in its fourth quarter. The growth is driven by robust performance of the manufacturing sector on the back of government and consumer spending. GDP growth rate of 7.4 per cent in 2009-10 has exceeded the government forecast of 7.2 per cent for the full year. According to government data, the manufacturing sector witnessed a growth of 16.3 per cent in January-March 2010, from a year earlier.

Economic activities which showed significant growth rates in 2009-10 over the corresponding period last year were mining and quarrying (10.6 per cent), manufacturing (10.8 per cent), electricity, gas and water supply (6.5 per cent), construction (6.5 per cent), trade, hotels, transport and communications (9.3 per cent), financing, insurance, real estate and business services (9.7 per cent), community, social and personal services (5.6 per cent). The Gross National Income is estimated to rise by 7.3 per cent in 2009-10 as compared to 6.8 per cent in 2008-09. The per capita income is estimated to grow at 5.6 per cent in 2009-10.

India’s industrial output grew by 17.6 per cent in April 2010. The manufacturing sector that accounts for 80 per cent of the index of industrial production (IIP) grew 19.4 per cent in April 2010, as against 0.4 per cent a year-ago.

Capital goods production grew by 72.8 per cent against a contraction of 5.9 per cent a yearago. Consumer durables output continued to grow at a fast pace of 37 per cent, mirroring higher purchase of goods such as televisions and refrigerators.

The Economic scenario

The number of registered foreign institutional investors (FIIs) was 1710 as on May 31, 2010 and the total FII inflow in equity during January to May 2010 was US$ 4606.50 million while it was US$ 5931.80 million in debt.

Net investment made by FIIs in equity between June 1, 2010 and June 14, 2010 was US$ 530.05 million while it was US$ 875.73 million in debt.

As on June 4, 2010, India's foreign exchange reserves totalled US$ 271.09 billion, an increase of US$ 9.88 billion over the same period last year, according to the Reserve Bank of India's (RBI) Weekly Statistical Supplement.

Moreover, India received foreign direct investment (FDI) worth US$ 25,888 million during April-March, 2009-10, taking the cumulative amount of FDI inflows during August 1991 - March 2010 to US$ 1, 32,428 million, according to the Department of Industrial Policy and Promotion (DIPP).The services sector comprising financial and non-financial services attracted 21 per cent of the total FDI equity inflow into India, with FDI worth US$ 4,392 million during April-March 2009-10, while construction activities including roadways and highways attracted second largest amount of FDI worth US$ 2,868 million during the same period. Housing and real estate was the third highest sector attracting FDI worth US$ 2,844 million followed by telecommunications which garnered US$ 2,554 million during the financial year 2009-10.

* Exports from India were worth US$ 16,887 million in April 2010, 36.2 per cent higher than the level in April 2009, which touched US$ 12,397 million, according to the Ministry of Commerce and Industry. India's imports during April 2010 were valued at US$ 27,307 million representing a growth of 43.3 per cent over April 2009.
* India's logistics sector is witnessing increased activity—the country's major ports handled 560,968 metric tonnes (MT) of cargo during April-March 2009-10, an increase of 5.74 per cent over previous year traffic, according to revised estimates released by the Ministry of Shipping.
* Foreign tourist arrivals in India during the month of May 2010 were 345,000, an increase of 15.5 per cent over May 2009. Foreign tourist arrivals during January-May 2010 were 2.263 million, an increase of 11.3 per cent over the corresponding period last year. Foreign exchange earnings during May 2010 were US$ 951 million, an increase of 42.2 per cent over May 2009. Foreign exchange earnings during January-May 2010 were US$ 5822 million, an increase of 38.3 per cent over the corresponding period last year, according to data released by the Ministry of Tourism.
* The total telephone subscriber base in the country reached 638.05 million in April 2010, taking the overall tele-density to 54.10, according to the figures released by the Telecom Regulatory Authority of India (TRAI). Also the wireless subscriber base increased to 601.22 million.
* According to the latest statistics from the Association of Mutual Funds in India (AMFI), the assets under management (AUM) of mutual funds were worth US$ 170.46 billion in May 2010 as compared to US$ 135.58 billion in May 2009.
* As per NASSCOM’s Strategic Review 2010, the BPO sector continues to be the fastest growing segment of the industry and is expected to reach US$ 12.4 billion in 2009-10, growing at 6 per cent.
* According to data released by Society of Indian Automobile Manufacturers (SIAM), the total number of vehicles including passenger cars, commercial vehicles, two wheelers and three wheelers produced in 2009-10 was 14,049,830, as compared to 11,172,275 produced in 2008-09.
* According to the Gem and Jewellery Export Promotion Council, the exports of gems and jewellery from India including rough diamonds, rose by 57.08 per cent during April-May 2010 to touch US$ 5551.24 million.
* According to the Ministry of Civil Aviation, domestic airlines carried 211,380 passengers between January-May 2010, an increase of 21.95 per cent over 173,340 passengers carried in the same period last year.
* The number of corporate merger & acquisitions (M&As) and private equity (PE) transactions, have more than doubled during January-May 2010. 439 M&A and PE deals valuing over US$ 30 billion took place between January-May 2010 as compared to 179 deals worth US$ 8.1 billion in the corresponding period in 2009.
* The HSBC Markit Business Activity Index, which measures business activity among Indian services companies, based on a survey of 400 firms, rose to 62.1 in April 2010, its highest since July 2008, and compared with 58.1 in March 2010.

Agriculture

Agriculture is one of the strongholds of the Indian economy and accounted for 15.7 per cent of the country's gross domestic product (GDP) in 2008-09, and 10.23 per cent of the total exports. Moreover, it provided employment to 58.2 per cent of the work force.

Production of foodgrains during 2009-10 is estimated at 216.85 million as per second Advance Estimates.In the Union Budget 2010-11, the Finance Minister, Mr Pranab Mukherjee made the following announcements for the agriculture sector.

* US$ 86.89 million is provided to increase the Green Revolution to the eastern region of the country comprising Bihar, Chattisgarh, Jharkhand, Eastern up, West Bengal and Orissa.
* US$ 65.17 million has been provided to organise 60,000 pulses and oil-seed villages in rain-fed areas in 2010-11 and provide an integrated intervention for water harvesting, watershed management and soil health to improve productivitiy of the dry land farming areas.
* Banks have been consistently meeting the targets set for agricultural credit flow in the past few years. For the year 2010-11, the target has been set at US$ 81.47 billion.
* In addition to the 10 mega food park projects already being set up, the government has decided to set up five more such parks.
* External commercial borrowings are available for cold storage for preservation or storage of agricultural and allied products, marine products and meat.

Growth potential story

* The data centre services market in the country is forecast to grow at a compound annual growth rate (CAGR) of 22.7 per cent between 2009 and 2011, to touch close to US$ 2.2 billion by the end of 2011, according to research firm IDC India’s report published in March 2010. The report further stated that the overall India data centre services market in 2009 was estimated at US$ 1.39 billion.
* According to a report by research and advisory firm Gartner published in March 2010, the domestic BPO market is expected to grow at 25 per cent in 2010 to touch US$ 1.2 billion by 2011. Further, the BPO market in India is estimated to grow 19 per cent through 2013 and grow to US$ 1.8 billion by 2013. According to the report, the domestic India BPO services market grew by 7.3 per cent year-on-year in 2009.
* The BMI India Retail Report Quarter 3, 2010 released in May 2010, forecasts that total retail sales will grow from US$ 353.0 billion in 2010 to US$ 543.2 billion by 2014.
* According to a report titled 'India 2020: Seeing, Beyond', published by domestic broking major, Edelweiss Capital in March 2010, stated that India's GDP is set to quadruple over the next ten years and the country is likely to become an over US$ 4 trillion economy by 2020.
* India will overtake China to become the world's fastest growing economy by 2018, according to the Economist Intelligence Unit (EIU), the research arm of London-based Economist magazine.

Exchange rate used: 1 USD = 47.14 INR (as on June 2010)

Ist PUC Economics ....

Ist PUC- Economics
Expected Questions

One Mark
1.Who is regarded as a Father of Economics?
2. Mention any two basic problems of Economy.
3. Give the meaning of Micro Economics?
4. What is positive Economics?
5. What is equilibrium?
6.Give the meaning of Partial equilibrium?
7. What is Parameter?
8. Give the meaning of variable?
9.What is quadratic equation?
10.What are rational Numbers?
1. Give the meaning of human wants?
2. What are defence luxuries?
3. What are economic and producing goods?
4. What are public goods?
5. Define utility?
6. What is giffen paradox?
7. What is production?
8. What are factors of production?
9. What is quasi rent?
10. What is innovation?
11. What do you mean by cost of production?
12. What is fixed and variable cost?
13. What is opportunity cost?
14. What is average and marginal cost?
15. What is total revenue and Marginal revenue?
16. What is monopoly?
Two Mark
1. Define economics?
2. State welfare definition given by marshall?
3. How does the economic problem arises?
4. Mention the steps in formulation of economic theory?
5. Distinguish between micro and macro economics?
6. What are integers?
7. Define derevative?
8. Distinguish between total utility and marginal utility?
9. State the law of diminishing marginal utility?
10. What is demand function?
11. State the concept of consumer surplus?
12. What is perfect competetion?
13. What is selling cost?
14. What is oligopoly?
15. What is monopsony?
16. State supply function?
17. What is meant by increasing returns to scale?
18. What is capital formation?

Five marks
1. Describe scarcity definition and its limitations?
2. What is partial equilibrium and its limitations?
3. What are rules of diffenciation?
4. Describe scarcity definition? And its limitations?
5. What is partial equilibrium and its limitations?
6. What are various types of goods ?
7. What is consumption? What are its types?
8. What is utility and its features?
9. State law of demand?
10. Pointout various degrees of price elasticity of demand?
11. What is opportunity cost? Give a suitable example?
12. What is market? What are the features of perfect competetion/
13. What is monopoly? What are its features?

Ten marks
1. Critically examine the welfare definition of economics?
2. Discus various steps in the formulation of economic theory?
3. What is funtion? Plot Linear equation on graph?
4. Bringout chracterstics of Human wants?
5. Explain law of diminishing Marginal Utility..
6. Explain the concept of consumer surplus with diagram?
7. Explain the law of diminshing returns with the help of a schedule and diagram?
8. Explain the Malthsian Theory?
9. What is Monopolistic competetion? And its features..
10. What is oligopoly and its Features?

Expected Question for Mid term--IInd PUC .... Economics

II PUC

Expected Questions

SUB: Economics

Chapter I

BASIC CONCEPTS AND INDICATIOR OF DEVELOPMENT

One Mark Questions

1. What is Economic Growth?

2. Name the two features of developed countries?

3. What is PQLI?

4. What is Cross section data?

5. What is simple Bar Diagram?

6. What is globalization?

7. What is Privatisation?

8. What is Fiscal Policy?

Two Mark Questions

1. What is sustainable development?
2. State the characteristics of Underdeveloped Economy?
3. What is HDI?
4. Name the important sources of secondary data?

Five Mark Questions

1. Bring out the distinction between Economic growth and Economic development?
2. Bring out the features of Underdeveloped Economy?
3. Write a note of Human Development Index?
4. Distinguish between primary and secondary data?
5. What is Table? What are the different parts of table?
6. What is a Pie Diagram? Construct a Pie chart for the following?

Item	Amount in Crores
Energy resources Industry and Minerals Transport Irrigation Agriculture Rural Development Other heads Total	26,535 15,018 12,412 12,160   5,695   5,364 20,316 97,500

7. Write a note on the recent industrial sector reforms?
8. Write a note on the recent reforms in the foreign trade sector?
9. Analyze the features of the Indian Economy?

Chapter II

HUMAN RESOURCE DEVELOPMENT

 One Mark Questions

1. What is density of Population?
2. What is crude birth and death rate?
3. What is open Unemployment?
4. Expand RLEGP and NREGS?
5. What is the Literacy rate? What the present literacy rate in India?
6. Give the sex composition ratio of India as per 2001 census?

Two Mark Questions

1. What are the objectives of family welfare programmes?
2. What are the birth control measures to check population growth?
3. What are the main objectives of IRDP?

Five Mark Questions

1.      Write a note on the age and sex composition of population of India?

2.      Write a note on Occupational distribution of Population of India?

3.      Discuss the different types of Unemployment?

4.      Write note on CDP in India?

5.      Write a note on Employment generation Programmes in India?

6.      Examine the Importance of Education in Economic development?

7.      State the types of bar diagram. Draw the bar diagram by using the following data?

                             

                                                     Literacy rate in Percentage

Census year	1951	1961	1971	1981	1991	2001
Literates	16.7	24.0	29.5	36.1	52.2	65.3

Chapter III  

AGRICULTURE

1. Give the meaning of Land utilization?
2. What is Net cropped Area?
3. Mention the types of Irrigation?
4. What are multipurpose river valley projects?
5. What is White Revolution?

Two Marks Questions

1.  
2. What is meant by Land Use?
3. Mention the four causes of soil erosion?
4. What is the classification of irrigation projects in India?
5. Give the meaning of Dry land farming?
6. What is Drip irrigation?
7. What is rain water harvesting?
8. Define food Security?
9. What are the objectives of Public Distribution system?
10. What are the defects of agricultural Marketing?

Five Mark Questions

1. What is soil erosion? What are its causes?
2. What is soil conservation? How can it be practiced?
3. Write a note on methods of rain water harvesting?
4. Explain the Nature of Food problem in India?
5. What is Public Distribution system? What are its objectives?

Chapter IV

INDUSTRIAL DEVELOMENT

One Mark Questions

1. What is Small Scale Industry?
2. What is Meaning of Cottage Industry?
3. What is dis investment?
4. Expand MRTP?
5. Mention any four major industries in India?

Two Marks Questions

1. Distinguish between Manufacturing and Service Industries?
2. What are the objectives of the NEP 1991?
3. What are administrated Prices?
4. What are the features of Industrial Sickness?

Five Mark Questions

1. What is small scale industry? What are its features
2. Write a note on Industrial policy 1956?
3. What are the measures undertaken by the Govt to overcome the problems of the small scale industries?

Chapter V

LABOUR POLICY

One Mark Questions

1. Give the meaning of Agricultural Labour?
2. What is Bonded Labour?
3. Name any two Labour Unions?
4. What are Money wages and real wages?

Two Marks Questions

1. What are the features of Industrial Labour?
2. Name any four Social security measures?
3. Distinguish between organized and unorganized Industrial Labour?

Five Mark Questions

1. Discuss the socio economic status of agricultural labourers?
2. Write a note on various social security schemes for agricultural workers?
3. Bring out the role of Women in Economic Development?
4. What are the recommendations made by the second National commission on Labour?
5. Briefly explain the Women empowerment programmes including self help groups?
6. Explain the social security measures of Industrial Labour?

Ten mark questions

1. Define sustainable development. Explain its objectives and features
2. Explain the features of the Indian economy.
3. Explain the various economic reforms introduced in India since 1991.
4. What is meant by occupational distribution of population?
5. Explain the poverty alleviation programmes of the government of India.
6. Describe the role of PDS in providing food security in India.
7. What is rain harvesting? Explain its different techniques.
8. Explain the new economic policy of 1991.
9. Examine the problems of small scale industries.
10. Discuss the social security measures for industrial labour.
11. Discuss the various women empowerment programmes of the government of India.
12. Explain the socio economic status of industrial workers in India.