Indian Economy

 NDC (National Development Council) was constituted in (August 6, 1952) and it work under chairmanship of PM (Prime Minister) of India 

NDC also called as Rastriya Vikash Parisada 

NDC 1st meeting chaired by Nehru 

NDC - It is a advisory body / executive body 

NDC ❌not a constitutional or statutory body 

NDC (National Development Council)  is a advisory body to planning commissions 

National Economic Council (NEC)-25 January 1993 

National planning Council (NPC) - 1965

Planning Commissions set up - 15th March 1950

Planning Commissions replaced by (Niti Ayoga in 2015)

Bank of the bank, king of the Banker - RBI (Reserve Bank of India) 

The monetary policy is formulated by( RBI )

Governor of RBI is the ex - Offico chairman of MPC (Monetary Policy Committee) 

Current Governor of RBI -Sanjay Malhotra

MPC report issue - CRR, Repo Rate 

Green revolution in India was launched in  (1965 -1968)

Father of Green Revolution in India - M. S. Swaminathan 

Father of Green Revolution in World - Norman Borlaug

Yellow Revolution = Oil seeds Production 

Father of yellow revolution -Sam pitroda 

White Revolution = Dairy milk product 

Father of White Revolution /milkman  - Dr. Verghese Kurien

Economics survey of India is published by - Finance ministry 

Finance Commission is a constitutional body

Current finance minister - Nirmala Sitharaman

1st finance commission chairman - K C Niyogi 

1st finance commission appointed in 1951

Time period (1952 - 1957)

Formation of Finance Commission a period of 5 years 

16th finance commission chairman is - Dr. Arvind Panagariya

Current finance secretary - Ajay Seth 

VAT (Value added Tax) has been introduced on the recommendation of (LK Jha Committee) on (1April 2005) in India 

VAT - Indirect tax 

Service Tax introduced on recommendation of Raja J Chelliah Committee 

GST (goods and services tax)  - started on 1st July 2017

GST - Indirect Tax 

GST tax slab - 0%,5%,12%,18%,28%

4 type of GST 

IGST - Integrated goods and services tax 

Cgst -Central goods and services tax 

Sgst - State goods and services tax 

UTgst - Union territory goods and services tax 

Fiscal Policy in India is formulated by Finance ministry 

Finance ministry is authorised to issued coin in India 

Coinage Act -2011

1rupee of India bear the sign of finance secretary 

(IRDA) - Insurance regulatory Development authority of India regulate insurance sector 

IRDA is a statutory body 

IRDA introduced on recommendation of Malhotra Committee 

IRDA headquarter - Hyderabad 

(SEBI)  Security exchange board of India 

Current chairman of SEBI - Shri Tuhin Kanta Pandey

Headquarter - Mumbai 

SEBI establish -April 12, 1988, as a non-statutory body but subsequently acquired statutory status on January 30, 1992

SEBI regulate security market 

Income and Consumption are directly related

(NIIF) National Investment and Infrastructure Fund establish by (GOI) govt of India in 2015

The corpus fund of NIIF - Rs.40,000 crore 

8th pay commissions announced by Aswini Vaishnav 

Aswini Vaishnav - railway ministry 

1st Pay Commissions was set up in India - 1946

1st pay commissions chairmanship - Shrinivasa Vardha Charya 

1st Pay Commissions report summit-1947

(NPCI) National Payment Corporation of India

developed (UPI) Unified Payment Interface in India 

BHIM UPI - (Bharata Interface for money )

Unified payment Interface 

(NPCI) launched repay payment scheme 

(IMF) International Monetary Fund headquarter - Washington D.C

IMF founded/established in 1944 July 

IMF publishes (World Economic Outlook) 

Amnesty International headquarter - London 

(IMO) International Maritime organisation headquarter - London 

Common Wealth Nation headquarter - London 

World Trade organisation headquarter -Geneva

World Health organisation headquarter - Geneva 

International Organisation for standardization headquarter - Geneva 

International Committee of Red Cross headquarter - Geneva 

Food and Agriculture Organisation headquarter - Rome 

Gini Coefficient measure - Inequality and Gini Coefficient developed by the (Corrado Gini) 

Gini Coefficient - 0 is perfect equality 

                               1 is high inequality 

Global gender gap report published by (World Economic Forum) 

Global competitiveness report published by - WEF (world economic forum 

World development report published by - World Bank 

Each of Doniy business report - World Bank 

Global environment Outlook published by _(UNEP)the United Nations Environment Programme

Head MD of (IMF) International monetary Fund is (Kristalina Georgieva)

Ajay Banga is the President of the World Bank 

MD of World Bank is Anshula Kant 

Human Development Report published by -(UNDP) United Nations Development Program 

National Anti - Profiteering Authority is related to (GST) Goods and Services Tax 

RBI Reserve Bank of India introduced (Lead Bank Scheme) in 1969

The headquarter of (AIIB )Asian Infrastructure Investment Bank is (Beijing city of China) 

In 1938 INC (Indian National Congress) set up a National planning committee to draw a blueprint for India's Economic Development at that time chairman was Jawaharlal Nehru 

Blueprint was initiative of INC at that time president - Subash Chandra Bose but set up during chairmanship of Nehru 

(NEP) New Economic Policy was introduced in (24 July 1991) in India 

MSP (Minimum Support Price)  - It is the rate at which the government buys the grain from farmer 

When bank take loan from RBI the of interest on it called Repo Rate

When RBI take loan from bank is called Reverse Repo Rate 

Reverse Repo Rate is less than Repo Rate 

TRIMs - Trade related Investment Measures 

Macro economics is also called Theory of Income 

Macro economics focus on Unemployment, GDP, Growth Rate, Inflation 

Micro economics is also called Theory of Price 

Kautilya (also known as Chanakya) is generally regarded as the "Father of Indian Economics"

Author of the book (Das Capital) - Karl Marx 

Tertiary sector highest employment in any developed economy 

Income tax in India was introduced by -James  Will

Tax will apply after 12,00,000 income on year 

MRTP act was passed in 1969

MRTP - Monopolies and Restrictive Trade Practices 

First made economic planning for India/ 1st attempt to initiate economic planning in India  is - M Vishveshvarya

Dada bhai Narogi estimated National Income for 1st time

( Planned economy for India) book written by - M Vishveshvarya

1st finance minister of Independent India was - RK Sunmukham Chetty 

(15 March 1950) Planning Commissions of India was establish 

Chairman of Planning Commissions was PM of India at that time and he was Jawaharlal Nehru 

Planning Commissions is a( non Statutory body and also advisory body) 

Planning Commissions was abolished on (13 August 2014)

Planning Commissions replaced by NITI Ayoga 

Jai Prakash Narayan was named as (Lok Nayak) 

Bal Gangadhar Tilak, commonly known as Lokmanya Tilak, And Bal Gangadhar Tilak Or 

Lok Manya Tilak famous book is - Gita Rahasya 

People's plan was prepared by - M N Roy in 1945

Planning Commissions of India is A non statutory body / Advisory body 

And also non constitutional body 

Indian Constitution is lengthiest Constitution

2 Popular National level Stock exchange are -

BSE  (Bombay Stock Exchange) and NSE (National Stock Exchange) 

Headquarter of BSE and NSE is Mumbai 

Mumbai is also called as (financial capital) 

BSE - Oldest stock Exchange (1875)

NSE - Largest Stock Exchange (1992)

Stock Exchange - It is a platform where buyers and sellers can come together to trade security such as stock, bond etc 

Stock Exchange regulated by - SEBI (Security Exchange Board of India )

SEBI establish in 1988 as a non statutory body but in 30 January 1992 when NSE came SEBI named as a statutory body 

SEBI headquarter - Mumbai 

Chairman of SEBI is - Tuhin Kanta Pandey and he replaced (Madhabi Puri Buch) a woman

Central Bank of India is - RBI (Reserve Bank of India) 

RBI establish - (1 April 1935)

RBI recommendations of the Hilton Young Commission (also known as the Royal Commission on Indian Currency and Finance).

RBI 1st headquarter was - Calcutta but later shifted to Bombay (Mumbai) in 1937

RBI nationalized in (1 Jan 1949)

26th Current Governor of RBI is Sanjay Malhotra 

Shaktikanta Das is the 25th Governor of the Reserve Bank of India (RBI)

1st Governor of RBI - non Indian (Sir OS borne Smith) 

1st Governor of RBI Indian - Sir C. D Deshmukh 

RBI - Bank of the Bank, King of the Bank,Bankers of Bank 

National Income estimation in India is made by (CSO) central statistical organization 

CSO) central statistical organization  - It is a wing of (NSO)  National Statistical Office) 

(NSO )National Statistical Office- calculate GDP in India 

(V. K.R.V Rao ) scientifically determine National Income in India 

National Income estimate by Dada bhai Narogi 

National Income means (NNP) Net National Product at factor cost 

Fixed capital - Building, Machinery, Tools,Property,equipment,Land 

Not a fixed capital - Money, Bank Balance 

Mutual Funds are regulated in the country by -(SEBI)  security exchange board of India 

3 Digits are there in CIBIL score from 300 - 900 

CIBIL - Credit Information Bureau India Ltd. 

Poor - (300 -550)

Average  - (550 - 650)

Good - (650 - 750)

Excellent - (750 - 900)

Never take loan (-1)

CIBIL - Credit Information Bureau India Ltd. Prepare by CIR (Credit Information Report) 

(1 January 1995) WTO World Trade  Organisation come into force 

WTO regulate international trade 

Headquarter of WTO - Geneva, Switzerland 

WTO replaced GATT (General Agreement on Tariff and Trades) 

Director General of WTO - Dr Ngozi Okonjo Iweala

WTO member countries -166

Courier Service come under Tertiary / Service sector 

Primary Sector - Red Collar Worker 

Ex - Agricultural sector, Forestry ,Fishing 

Fuel, Metal, Mineral,Mining,Polutry,Raw Material 

Secondary Sector /Industrial sector - Blue Collar Worker 

Industry, Textile Production, Automobile production, manufacturing product 

Tertiary /Service Sector -Education, Banking, Insurance,Transportation,Tourism,Hospital,

Trade

CTS in a new cheque system is online cheque system - (Cheque Truncation System)

Zero Based Budgeting first time used in USA

ZBB In 1960 and 1st introduced by ( Peter Pyhrr) also called as Father of ZBB (Zero Based Budgeting)

ZBB (Zero Based Budgeting) experimented in India from (April 1987)

World Development Report published by World Bank

Global Competitiveness Report published by - (WEF)  World Economic Forum 

Ease of Doing Business Index report published by - World Bank 

World Bank establish date -4th July 1944

World Bank total members country -189

Head of World Bank - Ajaya Banga 14th and current President of the World Bank Group

Global Financial Stability Report published by - IMF 

IMF establish date - December 27, 1945,

IMF total members country -191

Head of IMF -  Kristalina Georgieva 

Cheque - Open Cheque /Bearer Cheque ,Blank Cheque ,Crossed Cheque ,Order Cheque ,Anticiated Cheque ,Post dated Cheque Truncated cheque  ,Mutilated Cheque 

NABARD - National Bank for Agricultural and Rural Development established in 1982

NABARD set up on recommendation of B. Sivaraman Committee 

NABARD headquarter - Mumbai 

Adam Smith write - Wealth of Nations 

RBI has power to issued all note except 1rupee notes bcoz 1rupee note issued by Ministry of Finance 

R. C Dutt wrote economic history of India 

STT security Transaction Tax introduced in India - 2004

VAT value added tax introduced in India -2005 is indirect tax 

Lorenz Curve measure Inequality of Income 

Philips Curve measure relation between Income and Unemployment 

Gini Coefficient - Income Inequality derive from Lorenz Curve 

Sun rising Industry - Information Technology / IT industry 

Monopoly - Single Seller 

Fifth five year plan/ D.P Dhar Model - The Call For Garibi Hatao 

Fifth five year plan Duration - 1974 to 1978

Objective of fifth five year plan - Garibi hatao 

1975 - RRB set up (Regional Rural Bank) 

8th five year plan 

----------------------

Prime Minister - P. V Narashiman Rao 

At the time of LPG Model Development finance minister was - Manmohan Singh 

LPG - Liberalisation Privatisation Globalisation 

LPG model developed in 8th five year plan (1992 - 1997)

India become a member of WTO in 8th five year plan 

1 January 1995 India become member of WTO 

In 1993 - PM RY (Pradhan Mantri Rojgar Yojona)  was introduced 

In 1995 - Mid day meal introduced

Capita market regulator is - SEBI (Security Exchange Board of India) 

SEBI form on recommendation of - Narashiman Committee 

Credit rating agency - CRISIL, CARE, ICRA 

CRISIL - Credit Rating Information Service of India Limited (Headquarter - Mumbai) 

CARE - Credit Analyse and Research (Headquarter - Mumbai) 

ICRA - Investment Information and Credit Rating Agency (Gurugram)

Not a credit rating agency - IFCI (Industrial Finance Corporation of India) 

(Headquarter - New Delhi)

Nifty is associated with -NSE Index 

(National Stock Exchange) located at Mumbai

Formation - 1992

SENSEX is associated with - BSE (Bombay stock exchange) located at Dal al Street (Kala Ghoda, Mumbai) 

Formation - 1875

Bull and Bear related to (stock market)

Bull - increase value of Stock Market 

Bear - Decrease value of stock market 

Insurance sector regulated by - IRDA (Insurance Regulatory and Development Authority of India) 

BSE SENSEX constitutes (30 number of Companies) 

NSDL - (National Securities Depository Limited) and it is the 1st and largest depository in India establish in August 1996

TRIMs - Trade Related Investment Measures 

World Economic Outlook report is published by (IMF)  International Monetary Fund 

headquarter - Washington DC 

Human Development Index(HDI) is prepared by (UNDP)United Nations Development Programme establish in (22 November 1965)

HRIDAY scheme launched by ( Urban Development Ministry) aim to development of Heritage Sites on (21 January 2015)

Blue and White revolution is related to Fish and Milk 

1966 - 1969 three year said as planning holiday for our country 

RBI decide Bank Rate in India 

RBI (Reserve Bank of India)  formed in (1April 1935) under the recommendation of Hilton Young Committee / Commission 

RBI headquarter -Mumbai 

RBI (Nationalized in 1January 1949)

CRR - Cash Reserve Ratio 

Lender of last resort is (RBI)  Reserve Bank of India 

Role of Ombudsman in Bank is - To provide quality and speedy redressal of grievances of customers 

SLR (Statutory Liquidity Ratio) determined by the RBI 

RBI provide loan to Commercial bank - Repo rate (RR )

Commercial Bank provide loan to RBI called -(Reverse RepoRate) 

RBI take cash from Commercial Bank as reserve /store purpose called(CRR) cash reserve ratio) 

The minimum of deposit that commercial bank hold as cash, gold called (SLR) 

Statutory Liquidity Ratio

IMPS - Immediate Payment System (money transfer through mobile) 

Money is a floating Capital 

Treasury bill / T-bills included in India are -

91 Days, 182 Days, 364 Days 

Money basically divided into 2types -

*Narrow Money - The sum of currency in circulation and the demand deposits in Bank  (M1,M2) easily converted to cash 

* Broad Money -Broad money includes currency in circulation + demand deposits + time/savings deposits + money market funds.   (M3,M4) Not easily converted to cash 

Bank cheque are processed by - (MICR) Magnetic Character Recognition 

Cheap Money - Low rate of Interest 

Hard Currency - A currency which is paid for loan ex - Euro Yen, Us dollar, Singapore dollar 

Budget was Introduced in India during viceroy of Canning 

Budget was introduced by James Wilson in (February 1860)

RBI formed in (1 April 1935)by the recommendation of Hilton Young Commissions 

1st RBI formation in (kolkatta) 

RBI Nationalized in (1st January 1949)

RBI headquarter - Mumbai, Maharashtra 

VAT (Value added tax was 1st introduced in India) in (1st April 2005)

Direct Tax - code - Wepro Co In 

 Wealth tax , Property Tax, Corporate Tax, Income Tax 

Indirect Tax - code - Excuse Me 

Exercise Tax, Custom Tax, Service Tax, Market Tax, Entertainment Tax 

VAT 

Finance Ministry formulated (Fiscal Policy) in India 

The best measure of economic growth of a country - GDP (gross domestic Product) 

GDP = C + I + G + (X - M) 

Consumption + Investment + Government Spending + (Exports - Imports) 

Paper Currency was first started in India in - 1861

Ragnar Nurkse in (1953) Gave the concept of Vicious Circle of Poverty 

Father of Modern Economics is - Adam Smith 

Father of Green Revolution is - MS. Swaminathan 

14 Banks were Nationalized in India in (19 July 1969) during 4th five year plan and at that time Prime Minister was Indira Gandhi 

Dear money policy implies - High Interest Rate 

Mid Day meal scheme launched in 8th five year plan (15 August 1995)

8th five year plan (1992 - 1997)

Provident Funds and Small Savings are kept in (Public Account) 

India become member of IMF (International Monetary Fund)  in - (December 1945)

(Urjit Patel Committee) recommended the formation of (Monetary Policy Committee) 

Finance Secretary signature found on 1rupee notes in India 

1st Economic Survey was presented in India in (1950 -1951)under finance minister

C D Deshmukh was 1st Indian Governor of RBI 

GDP + Net Income from abroad = GNP 

RBI maintain cash balance and monitors the bank 

NSE (National Stock Exchange) in India was establish in 1992

BSE (Bombay Stock Exchange) is the oldest stock exchange in India, Asia  establish in (1875) by Premchand 

If RBI reduce CRR (cash reserve ratio) then credit creation will increase 

CRR - 3%, SLR - 18% ,RR - 5.25%

NABARD - National Bank for Agriculture and Rural Development 

Establish in July 1982

NABARD associated with Rural Development 

If a commodity has more number of Substitute the demand for this commodity will be more elastic 

Philips curve show relation between Unemployment and Inflation 

Lorenz Curve represent Income Distribution 

Lorenz curve show relation between cumulative proportion of Income and cumulative % of population 

Method to calculate National Income are - 

Income Method, Expenditure Method, Output Method ☑️

Value method ❌

WTO (World Trade Organisation) establish in the year - (1 January 1995)

WTO - headquarter - Geneva Switzerland 

RBI (Reserve Bank of India) maintain foreign exchange reserve in our country 

Formerly State Bank of India was known as - The Imperial Bank of India 

WPI (Wholesale price Index) in India Base year of construction - 2011 -2012

SEBI (Security exchange board of India) was given statutory in 1992 on recommendation of (Narsimhan Committee) 

The EXIM bank of India deals with (Export and Import of India) 

Pension Fund Regulatory and Development Authority formed in - (23 August 2003) under ministry of finance 

Cow in our Economy written by - J. C Kumarappa

The Wealth of Nation written by - Adam Smith 

Five Year Plan 

-------------------

* Planning Commissions of India is Non- Constitutional and Non- Statutory body and it was responsible to formulate India's five year plan for social and economic development in India 

* The Idea of five year plan is simple - The Government of India prepare a document with all its income and expenditure of five years

Planning Commissions is only an advisory body establish on (15 March 1950)

PM of India is the Ex- Officio Chairman 

The model of Indian Economy was premised on the concept of planning based on five year plan from - (1951 to 2017 ) 12 plans

First Deputy Chairman - Guljarilal Nanda 

3 Breaks in five year plan during -

(1966 - 69) (1978 -80 ) ( 1991 - 92 )

NITI Aayog also called (Think Tank) National Institution for Transforming India 

NITI Aayog replace planning commissions in (2015)

NITI Aayog work on 3 documents - * 3 year  action Agenda, * 7 year medium- term strategy paper , * 15 Year vision document 

Father of Indian economic planning - 

M. Vishweshwarajah

Concept of five year plan borrowed from (USSR) 

The chairman of NITI Aayog - PM Narendra Modi 

The Vice- Chairman of NITI Aayog - Shri Suman Bery 

The CEO of NITI Aayog -Nidhi Chhlbber

NITI Aayog headquarter - Sansad Marg in New Delhi 

First Five year plan (1951 -1956) Harrod Domar Model (target growth rate 2.1% and achieve growth rate 3.6%)

Priority /Objective - Agriculture and Irrigation

Prime minister at that time Jawaharlal Nehru 

Economist K N Raj is known as architect of this plan 

Family Planning programme 1952 (India 1st Nation) 

* Bhakra Nagal Dam (Sutlej - Punjab and Himachal) 

* Hirakud Dam (Mahanadi - Odisha) 

* Damodar Valley dams (West Bengal) 

Gulzarilal Nanda was the (Deputy Chairman of Planning Commissions )

1st Chairman was Jawaharlal Nehru 

Second five year plan (1956 - 1961)

Objective - Industrial development of the country based on P.C Mahalanobis

Prasanta Chandra Mahalanobis 

• Durgapur Steel Plant (W.B)West Bengal - Britain 

• Rourkela Steel Plant (Odisha) - Germany 

• Bhilai Steel Plant (Chattisgarh) - Russia 

• Khadi and Village Industries Commissions - 1957

Third five year plan (1961 -1966) Failure of Plan

Objective - To make India a self-reliant and self-generating economy based on (John Sandy and Sukhamoy Chakraborty's Model 

Known as (Gadgil Yojana)

Plan fail because -

* China and India war of 1962

* Pakistan and India war of 1965

• 1965 - Agriculture Price Commission (Commission for Agriculture cost and price) 

• 1965 - FCI 

• 1964 - The Bokaro Iron and Steel Plant (Jharkhand) was set up with the help of Russian

• 1964 - IDBI 

Plan Holidays(1966 -1969)

There were three annual plan between 1966 and 1969 

Main reason was (War India - Pakistan- China) Inflation and severe drought 

Forth five year plan (1969 -1974)

Ashok Rudra Menon Model 

Objective (Growth with Stability and Progressive achievement of self-reliance)

15 August 1969 - ISRO 

1969 - 14 Bank Nationalised

1971 - Bangladesh Independence 

1973 - Oil Crisis 

1974 - First Underground Nuclear Test (Smiling Buddha) 

Fifty Five year plan (1974 - 1978)

Model - DP Dhar 

Objective - Garibi Hatao,Employment Justice,agricultural production and defense 

1974 - The minimum Needs programme (MNP)/ (MSP) 

2nd October 1975 - Regional Rural Bank (RRB) 

(1977 -1978 ) Food for work programme 

A-352 National Emergency (International Disturbance Grounds )

Rolling Plan - (1978 to 1980)

Sixth five year plan (1980 -1985) under leadership of Indira Gandhi 

Objective - Economic liberalization by eradicating poverty and generating employment and achieving technological self-reliance 

1980 - 6 Banks Nationalised

NABARD was establish for rural development 

in (12 July 1982 ) by recommendations of  Shivaraman Committee 

1982 - EXIM bank (export Import bank) 

Seventh Five year plan (1985 -1990)

Community Wage Model 

Objective - Social Justice 

Blue Revolution/Nili Kranti mission was first launched in India 

1988 - SEBI , 1992 SEBI become Statutory 

1989 - Jawahar Rozgar Yogana 

Annual Plans -(1990 - 1992)

Eighth five year plan (1992 - 1997) during this PM take the leadership role was P. V Narasimha Rao 

Model - John W Miller 

Narasimha Rao launch new policy (LPG) 

(1991 )  new policy LPG liberalisation privatisation Globalization introduced by Manamohan Singh 

Priority /Objective - development of human resources ex - employment, education,Public health 

1993 -Pradhan Mantri Rojagar Yojana (PMRY)came 

1st January 1995 (WTO) India member 

1995 - Mid Day meal scheme 

Ninth Five year plan (1997 -2002)

Leadership/PM - Atal Bihari Vajpayee

Objective / focus - Growth with social Justice and equality 

It was launched in 50th year of Independence India 

1998 - Pokharan 2 (Nuclear Test) 

1999 - Kargil War 

Tenth five year plan (2002 -2007) under the Leadership /PM - Manmohan Singh 

Objective /Focus - Eradicate poverty and 

Unemployment 

Eleventh five year plan (2007 to 2012) under leadership of Manmohan Singh and it was prepared by the C. Rangarajan

Theme - Towards faster and more Inclusive growth 

12th five year plan (2012 -2017)

Towards faster and more Inclusive growth 

* Plan Holiday - (1966 -1969)