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Showing posts with label Important questions asked in bank exams. Show all posts
Showing posts with label Important questions asked in bank exams. Show all posts

History of General Insurance in India


This sector covers almost everything related to property, vehicle, cash, household goods, health and also one's liability towards others.

The history of general insurance business in India can be traced back to Triton Insurance Company Ltd. (the first general insurance company) which was formed in the year 1850 in Kolkata by the British.

The major segments covered under general Insurance Policy India are:
a. Home Insurance
b. Health Insurance
c. Motor Insurance
d. Travel Insurance

Important timelines in the Indian General insurance :

1850 : General Insurance in India has its roots in the establishment of Triton Insurance Company Ltd., in Calcutta by the British.
1907 : Indian Mercantile Insurance Ltd, was set up. This was the first company to transact all classes of general insurance business.
1957 : the formation of the General Insurance Council, a wing of the Insurance Association of India. It framed a code of conduct for ensuring fair conduct and sound business practices.
1968 : the Insurance Act was amended to regulate investments and set minimum solvency margins. The Tariff Advisory Committee was also set up then.
1971 : The General Insurance Corporation of India was incorporated as a company and it commence business on January 1st 1973.
1972 : General Insurance Business (Nationalization) Act was passed and general insurance business was nationalized with effect from 1st January, 1973.

107 insurers were grouped into four companies, namely :
1.) National Insurance Company Ltd.,
2.) The New India Assurance Company Ltd.,
3.) The Oriental Insurance Company Ltd and
4.) The United India Insurance Company Ltd.
1990s: The process of re-opening of the sector had began and the last decade and more has seen it been opened up substantially.
1993 : the Government set up a committee under the chairmanship of RN Malhotra, former Governor of RBI, to propose recommendations for reforms in the insurance sector.

The objective of Malhotra committee was to complement the reforms initiated in the financial sector.

The committee submitted its report in 1994 and recommended that the private sector be permitted to enter the insurance industry, preferably in a joint venture with Indian partners.
1999 : Following the recommendations of the Malhotra Committee report, in 1999, the Insurance Regulatory and Development Authority (IRDA) was constituted.
2000 : IRDA opened up the market with the invitation for application for registrations. Foreign companies were allowed ownership of up to 26% .
2000 : Subsidiaries of the General Insurance Corporation of India were restructured as independent companies and GIC was converted into a national re-insurer.
2002 : Parliament passed a bill de-linking the four subsidiaries from GIC.


Last updated on: 02/10/2019

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2011 Population Census of India



The 15th Indian National census was conducted in two phases, houselisting and population enumeration. Houselisting phase began on April 1, 2010 and involved collection of information about all buildings.

The second population enumeration phase was conducted between 9 to 28 February 2011. Census has been conducted in India since 1872 and 2011 marks the first time biometric information was collected.

According to the provisional reports released on March 31, 2011, the Indian population increased to 1.21 billion with a decadal growth of 17.64%.

Adult literacy rate increased to 74.04% with a decadal growth of 9.21%.

The cost of the was in the region of 2,200 crore (US$490.6 million) – this comes to less than $ 0.5 per person, well below the estimated world average of $4.6 per person.

Important Points
Population Growth Rate for period(2001 - 11) - 17.64%

Density of Population - 382 / sqKm

Most Populous State - Uttar Pradesh.

Least Populous State - Sikkim

Most Populous Union Territory - Delhi.

Least Populous Union Territory - Lakshadweep

Most Densely Populated State - Bihar ( 1102 / Square Kilometer )

Least Densely Populated State - Arunachal Pradesh ( 17 / Square Kilometer )

India's Sex Ratio - 940

State with highest sex ratio  - Kerala.

State with Lowest sex ratio State - Haryana. 

Literacy Rate - 74.04%

State with highest Literacy Rate - Kerala. ( 93.91% )

State with Lowest Literacy Rate - Bihar ( 63.82%)

Census report

Population
Total 1,210,193,422
Males 623,724,248
Females 586,469,174

Literacy
Total 74.04%
Males 82.14%
Females 65.46%
Density of population per km2 382
Sex ratio per 1000 males 940 females
Child Sex ratio (0-6 age group) per 1000 males 914 females

Literacy
Any one above age 7 who can read and write in any language with an ability to understand was considered a literate. In censuses before 1991, children below the age 5 were treated as illiterates.

Effective literacy rate increased to a total of 74.04% with 82.14% of the males and 65.46% of the females being literate.

Census year Total (%) Male (%) Female (%)
1901 5.35 9.83 0.60
1911 5.92 10.56 1.05
1921 7.16 12.21 1.81
1931 9.5 15.59 2.93
1941 16.1 24.9 7.3
1951 16.67 24.95 7.93
1961 24.02 34.44 12.95
1971 29.45 39.45 18.69
1981 36.23 46.89 24.82
1991 42.84 52.74 32.17
2001 64.83 75.26 53.67
2011 74.04 82.14 65.46
  • The table lists the "crude literacy rate" in India from 1901 to 2011.

Last updated on: 30/09/2019

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Poverty


Poverty is the lack of basic human needs, such as clean and fresh water, nutrition, health care, education, clothing and shelter, because of the inability to afford them

Poverty is widespread in India, with the nation estimated to have a third of the world's poor.

According to a 2005 World Bank estimate, 41% of India falls below the international poverty line of US$ 1.25 a day (PPP, in nominal terms Indian Rupee 21.6 a day in urban areas and Indian Rupee 14.3 in rural areas) having reduced from 60% in 1981.

Since the 1950s, the Indian government and non-governmental organizations have initiated several programs to alleviate poverty, including subsidizing food and other necessities, increased access to loans, improving agricultural techniques and price supports, and promoting education and family planning.



Poverty Line:
The poverty threshold, or poverty line, is the minimum level of income deemed necessary to achieve an adequate standard of living in a given country

Determining the poverty line is usually done by finding the total cost of all the essential resources that an average human adult consumes in one year.



Poverty Types
1) Absolute Poverty
2) Relative Poverty

Absolute Poverty: Measures with the poverty line, the level of income or expenditure of the people below the poverty line.

Relative Poverty: Shows the relative levels of poverty by comparing the levels of income and expenditure of top 5 to 10% of the population.



Amartyasen prepared Povert Index to know the status of poor people ,how far from poverty line.



As per 1968 Dietitians report, the minimum required Calories for a person per day is :
2100 K.Cal in Urban areas and
2400 K.Cal in Rural areas

In 2004-05 the availability of K.Cal in Rural areas are 2047 K.Cal



According to National Sample Survey Organisation Report,

Hight Poverty is in - Odissa

Lowest povert is in - Punjab


Rural poverty


Basic reasons of rural poverty in India are:
  • Unequal distribution of income.
  • High population growth.
  • Illiteracy.
  • Large families.
  • Caste system.

Problems Of Rural Poverty:
  • Presence of malnutrition, illiteracy, diseases and long term health problems.
  • Unhygienic living conditions, lack of proper housing, high infant mortality rate, injustice to women and social ill-treatment of certain sections of society.

Steps Taken by Government to Reduce Rural Poverty:

The government of India has been trying its best to remove poverty. Some of the measures which the government has taken to remove rural poverty are:
  • Small farmer’s development Programme.
  • Drought area development Programme.
  • Minimum needs Programme.
  • National rural employment Programme.
  • Assurance on employment.
  • Causes for Urban Poverty.

Urban Poverty


Causes for Urban Poverty

The causes of urban poverty in India are:
  • Improper training
  • Slow job growth.
  • Failure of PDS system
Problems Of Urban Poverty
  • Restricted access to employment opportunities and income.
  • Lack of proper housing facilities
  • Unhygienic environments
  • No social security schemes
  • Lack of opportunity to quality health and educational services.

The steps taken by government to remove urban poverty are
  • Nehru Rozgar Yojna.
  • Prime Minister Rozgar Yojna.
  • Urban Basic services for the poor Programme.
  • National social Assistance Programme.

Poverty Eradication Programmes in India



Small farmer’s development Programme.

Drought area development Programme.

Minimum needs Programme.

National rural employment Programme.

Nehru Rozgar Yojna.

Prime Minister Rozgar Yojna.

Urban Basic services for the poor Programme.

National social Assistance Programme.

Community Development Programme - 1952 - Overall development of rural areas with people’s participation.

Intensive Agriculture Development Programme - 1960-61 - To provide loan, seeds, fertilizer, tools to the farmers.

Employment Guarantee Scheme of Maharashtra - 1972-73 - To assist the economically weaker section of the rural society.

Twenty Point Programme - 1975 - Poverty eradication and raising the standard of living.

Food for work Programme - 1977-78 - Providing food grains to labour for the work of development.

National Rural Employment Programme - 1980 - To provide profitable employment opportunities to the rural poor.

Development of women & children in Rural Areas - 1982 - To provide suitable opportunities of self-employment to the women belonging to the rural families who are living below the poverty line.

Rural Landless Employment Guarantee Programme - 1983 - For providing employment to landless farmers & labourers.

Self-employment of the Educated Unemployed Youth - 1983-84 - To provide financial and technical assistance for self-employment.

Council for Advancement of People’s Action & Rural Technology - 1986 - To provide assistance for rural prosperity.

Self-Employment programme for the Urban poor - 1986 - To provide self employment to urban poor through provision of subsidiary and bank credit.

Jawahar Rozgar Yojana - 1989 - To provide employment to rural unemployed.

Nehru Rozgar Yojana - 1989 - To provide employment to urban unemployed.

Scheme for Urban Micro Enterprises - 1990 - To assist the urban poor for small enterprises.

Scheme for Urban Wage Employment - 1990 - To provide wages employment after arranging the basic facilities for poor people in the urban areas where population is less than one lakh.

Scheme for Housing and Shelter Up-gradation - 1990 - To provide employment by means of shelter up-gradation in the urban areas where population is between 1 to 20 lakhs.

Employment Assurance Scheme - 1993 - To provide employment of at least 100 days in a year in villages.

Swaran Jayanti Shahri Rozgar Yojana - 1997 - To provide gainful employment to urban unemployed and under employed poor through self employment or wage employment.

Swarna Jayanti Gram Swarozgar Yojana - 1999 - For eliminating rural poverty and unemployment and promoting self employment.

Pradhan Mantri Gram Sadak Yojana - 2000 - To line all villages with Pacca road.

Sampurna Gramin Rojgar Yojana - 2001 - Providing employment & food security.

Jai Prakash Narain Rozgar Guarantee Yojana - 2002-3 - Employment guarantee in most poor districts.

Rural Employment Guarantee Yojana - 2005-6 - 100 days assured employment.


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Unemployment


Unemployment occurs when people are without jobs and they have actively looked for work within the past four weeks.

The unemployment rate is a measure of the prevalence of unemployment and it is calculated as a percentage by dividing the number of unemployed individuals by all individuals currently in the labor force.

The National Sample Survey Organization (NSSO) has 3 concepts of unemployment:
1. Chronic Unemployment
2. Weekly Unemployment
3. Daily Status Unemployment


Types of unemployment:
Structural unemployment – in such a situation the productive capacity is inadequate.
Seasonal unemployment - such as that affecting the rain-fed agricultural farmers who remain out of work for four to six months in a year.
Open unemployment – their is a migration of people from rural areas to urban areas in search of work.
Frictional unemployment – generation of unemployment due to change in market conditions.
Disguised unemployment – a situation in which more persons are involved in a certain job than needed in which case the marginal productivity of labour is 0.


Features of unemployment

1. The incidence of unemployment is much higher in urban areas than in rural areas.

2. Unemployment rates for women are higher than those for men.

3. The incidence of unemployment among the educated is much higher than the overall unemployment.

4. There is greater unemployment in agricultural sector than in industrial and other major sectors.


Types of Unemployment


Economists and social thinkers have classified unemployment into various types.

Generally unemployment can be classified in two types:

(1) Voluntary unemployment
(2) In voluntary unemployment

Voluntary unemployment
In this type of unemployment a person is out of job of his own desire doesn't work on the prevalent or prescribed wages. Either he wants higher wages or doesn't want to work at all.

It is in fact social problem leading to social disorganization. Social problems and forces such as a revolution, a social upheaval, a class struggle, a financial or economic crisis a war between nations, mental illness, political corruption mounting unemployment and crime etc. threaten the smooth working of society. Social values are often regarded as the sustaining forces of society.

They contribute to the strength and stability of social order. But due to rapid social change new values come up and some of the old values decline. At the same time, people are not is a position to reject the old completely and accept the new altogether. Here, conflict between the old and the new is the inevitable result which leads to the social disorganization in imposed situation. In economic terminology this situation is voluntary unemployment.

In voluntary unemployment
In this type of situation the person who is unemployed has no say in the matter. It means that a person is separated from remunerative work and devoid of wages although he is capable of earning his wages and is also anxious to earn them.

Forms and types of unemployment according to Hock are:

1. Cyclical unemployment - This is the result of the trade cycle which is a part of the capitalist system. In such a system, there is greater unemployment and when there is depression a large number of people are rendered unemployed. Since such an economic crisis is the result of trade cycle, the unemployment is a part of it.

2. Sudden unemployment - When at the place where workers have been employed there is some change, a large number of persons are unemployed. It all happens in the industries, trades and business where people are employed for a job and suddenly when the job has ended they are asked to go.

3. Unemployment caused by failure of Industries - In many cases, a business a factory or an industry has to close down. There may be various factors responsible for it there may be dispute amongst the partners, the business may give huge loss or the business may not turn out to be useful and so on.

4. Unemployment caused by deterioration in Industry and business - In various industries, trades or business, sometimes, there is deterioration. This deterioration may be due to various factors. In efficiency of the employers, keen competitions less profit etc. are some of the factors responsible for deterioration in the industry and the business.

5. Seasonal unemployment - Certain industries and traders engage workers for a particular season. When the season has ended the workers are rendered unemployed. Sugar industry is an example of this type of seasonal unemployment.


Employment & Development Programmes


Community Development Programme - 1952 - Overall development of rural areas with people’s participation.

Intensive Agriculture Development Programme - 1960-61 - To provide loan, seeds, fertilizer, tools to the farmers.

Employment Guarantee Scheme of Maharashtra - 1972-73 - To assist the economically weaker section of the rural society.

Twenty Point Programme - 1975 - Poverty eradication and raising the standard of living.

Food for work Programme - 1977-78 - Providing food grains to labour for the work of development.

National Rural Employment Programme - 1980 - To provide profitable employment opportunities to the rural poor.

Development of women & children in Rural Areas - 1982 - To provide suitable opportunities of self-employment to the women belonging to the rural families who are living below the poverty line.

Rural Landless Employment Guarantee Programme - 1983 - For providing employment to landless farmers & labourers.

Self-employment of the Educated Unemployed Youth - 1983-84 - To provide financial and technical assistance for self-employment.

Council for Advancement of People’s Action & Rural Technology - 1986 - To provide assistance for rural prosperity.

Self-Employment programme for the Urban poor - 1986 - To provide self employment to urban poor through provision of subsidiary and bank credit.

Jawahar Rozgar Yojana - 1989 - To provide employment to rural unemployed.

Nehru Rozgar Yojana - 1989 - To provide employment to urban unemployed.

Scheme for Urban Micro Enterprises - 1990 - To assist the urban poor for small enterprises.

Scheme for Urban Wage Employment - 1990 - To provide wages employment after arranging the basic facilities for poor people in the urban areas where population is less than one lakh.

Scheme for Housing and Shelter Up-gradation - 1990 - To provide employment by means of shelter up-gradation in the urban areas where population is between 1 to 20 lakhs.

Employment Assurance Scheme - 1993 - To provide employment of at least 100 days in a year in villages.

Swaran Jayanti Shahri Rozgar Yojana - 1997 - To provide gainful employment to urban unemployed and under employed poor through self employment or wage employment.

Swarna Jayanti Gram Swarozgar Yojana - 1999 - For eliminating rural poverty and unemployment and promoting self employment.

Pradhan Mantri Gram Sadak Yojana - 2000 - To line all villages with Pacca road.

Sampurna Gramin Rojgar Yojana - 2001 - Providing employment & food security.

Jai Prakash Narain Rozgar Guarantee Yojana - 2002-3 - Employment guarantee in most poor districts.

Rural Employment Guarantee Yojana - 2005-6 - 100 days assured employment.


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Inflation


Inflation is a rise in the general level of prices of goods and services in an economy over a period of time.

A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the Consumer Price Index) over time.

Inflation - Raising of prices 

Deflation - Decreasing of prices

Disinflation - Negative recording of Inflation

Reflation - stimulating the economy by increasing the money supply or by reducing taxes. It is the opposite of disinflation.

Stagflation - Raising of prices with unemployment

Inflationary gap - short term increasing of prices

Deflationary gap - short term decreasing of prices

Hyper Inflation - Higher Inflation

Skewflation - Both inflation and economic depression in the economy


Causes for the Inflation

  • Increasing expenditure of government
  • Increasing expenditure of people and organization
  • Increasing of exports
  • Increasing of taxes
  • Increasing of population
  • Internal debts payments
  • Black Marketing
  • Wage pull inflation
  • Income pull inflation
  • Decrease of supply of goods

Causes of Economic Inflation


The following factors can lead to inflation:
  • Printing too much money. This is called a loose or expansionary monetary policy. If there is a lot of money going around, then supply is plentiful compared to the products you can buy with that money. The law of supply and demand therefore dictates that prices will rise.
  • Increases in production costs.
  • Tax rises.
  • Declines in exchange rates.
  • Decreases in the availability of limited resources such as food or oil.
  • War or other events causing instability.
Economists generally believe that money supply is the key cause of inflation; in 2008, however, skyrocketing prices of oil, food and steel caused runaway levels of inflation in the world economy that collapsed only because of the global Financial Crisis.


Economic Effects of Inflation


One of the economic effects of inflation is the change in the marginal cost of producing money. 

This involves the appropriate 'price' of money which, in this case, is the nominal rate of interest. 

This 'price' indicates the return which has to bepre-determined to hold back the printing presses, in place of some other assets which offer the market interest rate.

In addition, if a country has a higher rate of inflation than other countries, its balance of trade is likely to move in an unfavorable direction. This is because there is a decline in its price competitiveness in the global market.

A high rate of inflation can cause the following economic impediments:
  • The value of investments are destroyed over time.
  • It is economically disastrous for lenders.
  • Arbitrary governmental control of the economy to control inflation can restrain economic development of the country.
  • Non-uniform inflation can lead to heavy competition in the global market and threaten the existence of small economies.
  • High levels of inflation tend to lead to economic stagnation.

Measures to Control Inflation


The central banks, monetary authorities or finance ministries of most nations have the authority to take economic measures to control rising inflation by regulating the following factors:
  • Reducing the central bank interest rates and increasing bank interest rates.
  • Regulating fixed exchange rates of the domestic currency.
  • Controlling prices and wages.
  • Providing cost of living allowance to citizens in order to create demand in the market.
Different schools of thought emphasize different factors as the root cause of inflation. However, there is a consensus on the view that economic inflation is caused either by an increase in the money supply or a decrease in the quantity of goods being supplied, and that the effects of either high inflation or deflation are extremely damaging to the economy.


Types of Inflation


Demand pull Inflation:
If demand increases, automatically price also increase. Then Demand pull inflation occurs.

Cost pull Inflation:
If cost of productive factors increases then Cost pull Inflation occurs. It is also called "supply shock inflation"

Built-in inflation
It is induced by adaptive expectations, and is often linked to the "price/wage spiral". 
 
It involves workers trying to keep their wages up with prices (above the rate of inflation), and firms passing these higher labor costs on to their customers as higher prices, leading to a 'vicious circle'.


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Agriculture


Agriculture is the primary sector of Indian economy and agriculture along with the ancillary sectors like forestry, horticulture, and fishing employed over 50% of the country's total population. 

Although in the GDP the share of agriculture is constantly falling, still it remains the largest economic sector and plays a major role in the socio-economic development of India. 

In India the state governments are responsible for the output of agriculture and the financial policies are formulated by the central government. India is the largest producer in the world of milk, cashew nuts, coconuts, tea, ginger, turmeric and black pepper.


Agriculture in India got an impetus with the research work under the the Indian Agricultural Research Institute (IARI) established in 1905. 

The central body in agriculture and its allied fields is the Indian Council of Agricultural Research


Agriculture Sector of Indian Economy


The agriculture sector of India has occupied almost 43 percent of India's geographical area. 

Agriculture is still the only largest contributor to India's GDP even after a decline in the same in the agriculture share of India. Agriculture also plays a significant role in the growth of socio-economic sector in India.


In the earlier times, India was largely dependent upon food imports but the successive stories of the agriculture sector of Indian economy has made it self-sufficing in grain production. 

The country also has substantial reserves for the same. India depends heavily on the agriculture sector, especially on the food production unit after the 1960 crisis in food sector. Since then, India has put a lot of effort to be self-sufficient in the food production and this endeavor of India has led to the Green Revolution. The Green Revolution came into existence with the aim to improve the agriculture in India.


The services enhanced by the Green Revolution in the agriculture sector of Indian economy are as follows: 
  • Acquiring more area for cultivation purposes
  • Expanding irrigation facilities 
  • Use of improved and advanced high-yielding variety of seeds
  • Implementing better techniques that emerged from agriculture research Water management
  • Plan protection activities through prudent use of fertilizers, pesticides, and cropping applications
    All these measures taken by the Green Revolution led to an alarming rise in the wheat and rice production of India's agriculture. 

    Considering the quantum leap witnessed by the wheat and rice production unit of India's agriculture, a National Pulse Development Programme that covered almost 13 states, was set up in 1986 with the aim to introduce the improved technologies to the farmers. 

    A Technology Mission was introduced in 1986 right after the success of National Pulse Development Programme to boost the oilseeds sector in Indian economy. Pulses too came under this programme. A new seed policy was planned to provide entree to superior quality seeds and plant material for fruits, vegetables, oilseeds, pulses, and flowers.


    The Indian government also set up Ministry of Food Processing Industries to stimulate the agriculture sector of Indian economy and make it more lucrative. India's agriculture sector highly depends upon the monsoon season as heavy rainfall during the time leads to a rich harvest. But the entire year's agriculture cannot possibly depend upon only one season. 

    Taking into account this fact, a second Green Revolution is likely to be formed to overcome the such restrictions. An increase in the growth rate and irrigation area, improved water management, improving the soil quality, and diversifying into high value outputs, fruits, vegetables, herbs, flowers, medicinal plants, and bio-diesel are also on the list of the services to be taken by the Green Revolution to improve the agriculture in India.


    Revolutions in Indian Economy

    Revolution Area
    Green Revolution Agriculture
    Yellow Revolution Oil Seeds Production
    White Revolution Milk
    Blue Revolution Fish
    Pink Revolution Shrimp
    Brown Revolution Masaaley
    Grey Revolution Wool
    Golden Revolution Fruits, Apple, Horticulture
    Round Revolution Potatoes
    Silver Revolution Eggs
    Red Revolution Meet, Tomato
    Black or Brown Revolution Non Conventional Energy Resources


    Agriculture in India Planning


    Agriculture in India Planning is one of the major factors for the growth of the Indian economy which is still primarily agrarian.


    Agriculture is the most important sector in India. As the Indian economy is mainly based on agriculture, the annual output of products from the agricultural sector is an important factor in the growth of the economy. Agriculture also has a crucial role to play in Indian exports, where it has a significant contribution. 

    Many of the industries in India are dependent on agriculture for raw materials. So, without agriculture and agriculture-based products, the Indian economy cannot sustain or accelerate its growth rate.


    Agriculture Planning in India is a very important tool to enhance and maximize the total agriculture based produce. The planning in agriculture is mainly looked after by the Planning Commission of India which operates and executes under the aegis of the government of India. 

    Agriculture in India planning takes into account all factors that are related to the rural sector where most of Indian agriculture originates. The sole objective of the Planning Commission in terms of Agriculture Planning in India is to enhance the total output of agriculture and boost the economic growth of the country.

    The major objectives under Agriculture in India Planning:
    • Wastelands and underutilized lands to be utilized 
    • Development and reclamation of problematic lands
    • Harvesting the abundant rainwater for the purpose of irrigation
    • Irrigation development
    • Utility and conservation of natural resources
    • The activities to be diversified to high value crops
    • The intensity of cropping to be increased
    • To have adequate inputs on time
    Area of expansion under Agriculture in India Planning:
    • Improvement in production
    • Improvement in productivity
    • Reduction in the cost of production
    • Improvement in quality of the produce
    • Value additions
    • Promoting marketing and exports of the produce
    • Development in Human resource
    • Provision of proper storage facilities like store houses and warehouses

    The projections under the Agriculture in India Planning:
    • Growth in the Indian Agriculture is based on resources being used efficiently and conservation of natural resources
    • Growth must be equal in all the levels of the society including the farmers
    • Growth will be demand and export oriented
    • Growth will be due to the technological advancements
    • Growth rate is projected to be more than 4% 

    Agriculture in Different States of India


    The fertility of the soil has augmented agriculture in different states of India. Further, agriculture in different states of India played an important role towards the economic growth and social structure of each and every individual Indian states. 

    The produce and system of agriculture in different states of India are varied and thus offers a wide online agricultural products portfolio.

    The rural India is wholly agriculture based and it is of tremendous importance because it has vital supply and demand links with the Indian manufacturing sector. Agriculture is the main stay of the Indian economy as it constitutes the backbone of rural India which inhabitants more than 70% of total Indian population. 

    The main agricultural food products of different states of India are


  • Food Grains - Rice, Wheat, Pulses, Cereals, Corn, Maize, Rice Bran Extractions, Sorghum, Soy meal, Suji, Parmal, Lentils, Jowar, Bajra, Chick pea, 




  • Fruits & Nuts - Cashew Kernels, Cashew Nut, Cashews, Almonds, Roasted Dry Fruits, Peanuts, Groundnut, Walnut Kernels, Walnuts, Indian Peanuts, HPS Groundnuts




  • Fruits - Bananas, Beans, Cherry, Cucumbers, Dried Fruits, Dried Truffles, Carrots, Lemon, Mandarins, Mango steens, Meslin, Shallots, Apples, Asparagus, Grapes, Oranges, Gherkins, Turnips, Oranges, Papaya, Pineapple,

  • Vegetables – Potatoes, Bitter gourd, Stripe Gourd, Pumpkin, cauliflower, Cabbage, Tomato, Onion, Green Pepper, Drum Sticks, Lady's finger, Banana, Papaya, Spinach, Cucumber, Mushroom, Mushroom Spawn, Radiata,

  • Seeds, Buds, Plantation & Related Products - Basil Seed, Cumin seeds, Dill Seed, Buds, Celery Seed, Hybrid Seeds, Sesame Seeds, Sesbania Seed, Sunflower Seeds, Mustard Seeds, Oil Seeds, Plant Products, Plantation, Plants, Psyllium Seed, Fennel Seed, Fenugreek Seed, Herb Seeds, Tamarind Seed, Vegetable Seeds

  • Spices - Black Pepper, Chilli Powder, Chillies, Cinnamon, Cloves, Coriander Powder, Cumin, Curry Powders, Dry Ginger, Dry Red Chilly, Cardamom, Anise, Salt, Onion Powder, Pepper, Fenugreek, Clove, Ginger, Turmeric, Turmeric Powder,

  • Tea & Coffee - Black Tea, Coffee, Coffee Beans, Darjeeling Teas, Assam Teas, Instant Coffee, Leaf Coffee, Leaf Tea, Packaged Tea, Green Tea, CTC Teas,

  • Tobacco & Tobacco Products - Beedi, Betel nut Leaves, Betel nut, Bidi Leaves, Chewing Tobacco, Cigarettes, Arecanut, Jarda, Scented Tobacco, Smoking Tobbacco, Snuff, Opium, Pan, Chatni, Pan Masala, Gutkazarda, Zafrani Zarda,



  • Important Points


    Green Revolution :
    - introduced in India with the name of HYVP - High Yielding Varieties Program, 1966 - 67.
    - started by Norman Borlaug of Mexico
    - In India, Green Revolution was introduced by M.S. Swaminathan and Agricultural Minister Mr. Subrahmanyam.

    White Revolution:
    - started in 1970
    - started in name of Operation Flood.
    - Father of  White Revolution is Vargis - Kuriyan
    - conducted by National Dairy Development Board

    NAFED :
    - National Agricultural Cooperative Marketing Development Federation of India Limited.
    - main function is marketing the agricultural products.

    MSP: Minimum Support Price :
    - Government announces MSP before cultivation
    - suggested by Agricultural Cost Price Commission
    - support price announced to 24 crops in India.

    Procuring Price:
    - Food Corporation of India announces it.
    - The price at which govt. procures grains per public distribution systems and buffer stocks is called procuring price

    Issue Price:
    The price at which the govt. of India issue goods to public distribution system is called Issue Price.

    > Highest Land Holding State - Rajastan , 4.34 Hectares

    > Lowest Land Holding State - Kerala, 0.36 Hectares

    > TRIFED
    - Tribal Co-operative Marketing Development Federation of India Ltd
    - Government of India set up TRIFED in 1987
    - conducts marketing of Tribal Products

    > NAIS
    - National Agricultural Insurance Scheme
    - started on June 22, 1999.

    > AGMARK
    - Agricultural Produce Grading and Marking Act
    - Made in 1937
    - main function is to know the quality of agricultural products

    > FAO
    - Food and Agriculture Organization
    - started on October 16th, 1945 at Rome in Italy.
    - UNO is subsidiary organ

    > NSC
    - National Seeds Corporation
    - started in 1963

    Research Institutes Locations:
    World Rice Research Institute - Manila, Philippines
    Central Rice Research Institute - Cuttak, Odissa.
    Asia Largest Mirchi Yard ( Y.S.R Mirchi Yard )  - Guntur, A.P
    National Dairy Research Institute - Karnal, Haryana.
    Sheep Breeding Farm Research Institute - Hissar, Haryana.
    Sugarcane Research Institute - Coimbatore, Tamil Nadu.
    Coffee Board Research Institute - Bangalore, Karnataka.


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    Fiscal policy


    Fiscal policy is an additional method to determine public revenue and public expenditure.

    In present times, every nation has become attentive to devising an effective fiscal policy to ward off troubles that are being faced due to economic uncertainties.

    It has gained immense importance in recent times. The essential components of fiscal policy are taxes, public expenditure and public debts.

    Arther Simithies, a reputed economist and budget expert, holds that fiscal policy enables government to make use of its expenses and revenue plans to create positive effects and drive away negative impacts on the national income, employment and production.

    With the help of fiscal policy, the government of any nation desires to achieve following goals:
    • Stability in price level
    • Enhanced consumption rates
    • Increased employment
    • Equitable income distribution
    • Growth in capital and resources
    • Level of inflation

    Objectives of fiscal policy


    The objectives of fiscal policy may be regarded as follows

    To achieve desirable price level:
    The stability of general prices is necessary for economic stability. The maintenance of a desirable price level has good effects on production, employment and national income. Fiscal policy should be used to remove; fluctuations in price level so that ideal level is maintained.

    To Achieve desirable consumption level:
    A desirable consumption level is important for political, social and economic consideration. Consumption can be affected by expenditure and tax policies of the government. Fiscal policy should be used to increase welfare of the economy through consumption level.

    To Achieve desirable employment level:
    The efficient employment level is most important in determining the living standardof the people. It is necessary for political stability and for maximization ofproduction. Fiscal policy should achieve this level.

    To achieve desirable income distribution:
    The distribution of income determines the type of economic activities the amount of savings. In this way, it is related to prices, consumption and employment. Income distribution should be equal to the most possible degree. Fiscal policy can achieve equality in distribution of income.

    Increase in capital formation:
    In under-developed countries deficiency of capital is the main reason for under-development. Large amounts are required for industry and economic development. Fiscal policy can divert resources and increase capital.

    Degree of inflation:
    In under-developed countries, a degree of inflation is required for economic development. After a limit, inflationary be used to get rid of this situation.


    Instruments of Fiscal Policy


    1. Public expenditure
    2. Taxes
    3. Public debts

    The above instruments are used by the public authorities to achieve desirable level of production, consumption and National Income. During inflationary trend more and more taxes are levied on the community.

    In this way, purchasing power of the people can be decreased and desirable price level is achieved. During inflation public expenditure is decreased so that all in production may decrease high prices and increase the value of money.

    During deflationary period taxes are reduced and public expenditure is increased. In this way incentives to invest are increased and national income begins to rise.

    For economic development public debts are necessary. In under developed countries, due to insufficient resources economic development is not possible. Public loans are drawn internally and externally.


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    Industry


    Many developed countries and many developing/semi-developed countries (People's Republic of China, India etc.) depend significantly on industry.

    Industry is divided into four sectors. They are:

    Sector
    Definition
    Primary

    This involves the extraction of resources directly from the Earth, this includes farming, mining and logging. They do not process the products at all. They send it off to factories to make a profit.

    Secondary

    This group is involved in the processing products from primary industries. This includes all factories—those that refine metals, produce furniture, or pack farm products such as meat.

    Tertiary

    This group is involved in the provision of services. They include teachers, managers and other service providers.

    Quaternary

    This group is involved in the research of science and technology. They include scientists.


    The productivity of the major Indian industries incorporates aircraft, vessels, automobiles, steam engines, heavy electrical equipment, construction machinery, chemicals, precision equipments, communication instrument, power generation and transmission tools and computers.


    Important Points


    First Industrial Policy
    - Announced on 6th April, 1948.
    - Declared India is a Mixed Economy.
    - Divided Indian Industries into 4 types

    Second Industrial Policy - 1956
    - Socialistic pattern society.
    - To check centralization of economic power.

    1977 Industrial Policy
    - Introduced by Janata Govt.
    - gave importance to small scale industries.

    Industrial policy - 1980
    - to increase economic efficiency of Government industries.

    Industrial policy - 1991
    - gave importance to private industries


    Classification of industries based on Management


    Single Management
    - One person starts and manages

    Partnership Management
    - 2 to 10 persons manages

    Private Limited
    - more than 10 persons and less than 50 persons manages.

    Public Limited
    - More than 100 or 1000 persons manages.
    - Eg: Railways, Telephone

    Government Industry
    - Government manages with more than 50% equity
    - Eg: ONGC, NTPC

    Private Industries
    - Private Management + Share Holders manages
    - Eg: Reliance, Tata

    Mixed Industries 
    - Both government and private industries manages
    - Eg: Cochin Refinary, Praga Tools.

    Co-operative Industries
    - Works for group of people to achieve all their goals.
    - Eg: Sugar Industries, Textile Industries


    Classification of Industries based on Investment


    Mega Industries
    - More than 100 crore investment.

    Large Industries
    - 10 to 100 crore investment

    Medium Industries
    - 5 to 10 crore investment
    - produces products for consumer goods

    Consumer Industries
    - produces consumer goods.
    - Eg : TV, Radio, etc.

    Small Industries
    - 25 lac to 5 crore investment

    Micro Industries
    - Less than 25 lac investment.


    PSU ( Public Sector Undertakings ) companies


    PSU companies are divided into three categories:
    • Maharatna
    • Navratna
    • Miniratna CPSEs
      • Category I
      • Category II
    1) Maharatna status:

    In 2009, the government established the Maharatna status, which raises a company's investment ceiling from Rs. 1,000 crore to Rs. 5,000 crore.

    The Maharatna firms would now be free to decide on investments up to 15 per cent of their net worth in a project.

    Earlier, the Navaratna companies could invest up to Rs 1,000 crore without government approvals.

    The 6 point criteria for eligibility as Maharatna are: 

    a) Having Navratna status;
    b) Listed on Indian stock exchange with minimum prescribed public shareholding under SEBI regulations;
    c) An average annual turnover of more than Rs.25,000 crore during the last 3 years;
    d) An average annual net worth of more than Rs.15,000 crore during the last 3 years
    e) An average annual net profit after tax of more than Rs.5,000 crore during the last 3 years
    f) Should have significant global presence/international operations

    List of Maharatna are:
    1. Coal India Limited
    2. Indian Oil Corporation Limited
    3. NTPC Limited
    4. Oil and Natural Gas Corporation Limited
    5. Steel Authority of India limited
    2) Navratna status:

    The Navratna status is offered to PSEs, which gives a company enhanced financial and operational autonomy and empowers it to invest up to Rs. 1000 crore or 15% of their net worth on a single project without seeking government approval.

    In a year, these companies can spend up to 30% of their net worth not exceeding Rs. 1000 cr. They will also have the freedom to enter joint ventures, form alliances and float subsidiaries abroad.

    To be qualified as a Navratna, the company must obtain a score of 60 (out of 100). The score is based on six parameters which include
    • net profit to net worth,
    • total manpower cost to total cost of production or cost of services,
    • PBDIT (Profit Before Depreciation, Interest and Taxes) to capital employed,
    • PBDIT to turnover, EPS (Earning Per Share) and inter-sectoral performance.
    • Additionally, a company must first be a Miniratna and have four independent directors on its board before it can be made a Navratna.
    The original list of 1997 included ECIL, BHEL, BPCL, HPCL, IOC, IPCL, NTPC, ONGC, SAIL and VSNL, of which Indian Petrochemicals Corporation Limited (IPCL) and Videsh Sanchar Nigam Ltd (VSNL) were later privatised.

    GAIL and MTNL joined the list in November 1997.[6] In June 2007 the government awarded the coveted status to three more PSEs: BEL, HAL and Power Finance Corporation (PFC).

    The incumbents of this group as of 16.11.2010 are:
    1. Bharat Electronics Limited
    2. Bharat Heavy Electricals Limited
    3. Bharat Petroleum Corporation Limited
    4. Coal India Limited
    5. GAIL (India) Limited
    6. Hindustan Aeronautics Limited
    7. Hindustan Petroleum Corporation Limited
    8. Mahanagar Telephone Nigam Limited
    9. National Aluminium Company Limited
    10. NMDC Limited
    11. Oil India Limited
    12. Power Finance Corporation Limited
    13. Power Grid Corporation of India Limited
    14. Rural Electrification Corporation Limited
    15. Shipping Corporation of India Limited
    16. Vishakapatnam Steel Plant

    Miniratnas status:
    The government created another category called Miniratna. Miniratnas can also enter into joint ventures, set subsidiary companies and overseas offices but with certain conditions.

    In 2002, there were 61 government enterprises that were awarded Miniratna status.However, at Present, there are 62 government enterprises that were awarded Miniratna status.

    Category I

    This designation applies to PSEs that have made profits continuously for the last three years or earned a net profit of Rs. 30 crore or more in one of the three years.

    These miniratnas granted certain autonomy like incurring capital expenditure without government approval up to Rs. 500 crore or equal to their net worth, whichever is lower.

    • Airport Authority of India
    • Balmer Lawrie & Co. Limited
    • Bharat Dynamics Limited
    • BEML Limited
    • Bharat Sanchar Nigam Limited
    • Bridge & Roof Company (India) Limited
    • Central Warehousing Corporation
    • Central Coalfields Limited
    • Chennai Petroleum Corporation Limited
    • Cochin Shipyard Limited
    • Container Corporation of India Limited
    • Dredging Corporation of India Limited
    • Engineers India Limited
    • Ennore Ports Limited
    • Garden Reach Shipbuilders & Engineers Limited
    • Goa Shipyard Limited
    • Hindustan Copper Limited
    • HLL Lifecare Limited
    • Hindustan Newsprint Limited
    • Hindustan Paper Corporation Limited
    • Housing and Urban Development Corporation
    • India Tourism Development Corporation
    • Indian Railway Catering and Tourism Corporation
    • IRCON International
    • Kudremukh Iron Ore Company Ltd.
    • Mazagon Dock Limited
    • Mahanadi Coalfields Limited
    • MOIL Limited
    • Mangalore Refinery and Petrochemicals Limited
    • Mishra Dhatu Nigam
    • Minerals and Metals Trading Corporation of India
    • MSTC Limited
    • National Fertilizers Limited
    • National Seeds Corporation
    • Neyveli Lignite Corporation
    • NHPC Limited
    • Northern Coalfields Limited
    • Numaligarh Refinery Limited
    • Rashtriya Chemicals & Fertilizers Limited
    • Satluj Jal Vidyut Nigam
    • Security Printing and Minting Corporation of India Limited
    • South Eastern Coalfields Limited
    • State Trading Corporation of India Limited
    • Tehri Hydro Development Corporation Limited
    • Telecommunications Consultants (India) Limited
    • Western Coalfields Limited
    • Water & Power Consultancy (India) Limited

    Category II

    This category include those PSEs which have made profits for the last three years continuously and should have a positive net worth.

    Category II miniratnas have autonomy to incurring the capital expenditure without government approval up to Rs. 300 crore or up to 50% of their net worth whichever is lower.

    50. Bharat Pumps & Compressors Limited
    51. Broadcast Engineering Consultants (I) Limited
    52. Central Mine Planning & Design Institute Limited
    53. Educational Consultants (I) Limited
    54. Engineering Projects (I) Limited
    55. Ferro Scrap Nigam Limited
    56. HMT (International) Limited
    57. HSCC (India) Limited
    58. India Trade Promotion Organization
    59. Indian Medicines Pharmaceuticals Corporation Limited
    60. M E C O N Limited
    61. National Film Development Corporation Limited
    62. P E C Limited
    63. Rajasthan Electronics & Instruments Limited


    List of major industries in India


    Textile Industry:
    This industry covers a wide range of activities ranging from generation of raw materials such as jute, wool, silk and cotton to greater value added goods such as ready made garments prepared from different types of man made or natural fibres. Textile industry provides job opportunity to over 35 million individuals thus playing a major role in the nation's economy. It has 4 per cent share in GDP and shares 35% of the gross export income besides adding 14% of value addition in merchandizing sector.

    Food Processing Industry:
    In terms of global food business, India accounts less than 1.5% inspite of being one of the key food producing nations worldwide. But this on the other hand also indicates the enormous possibilities for the growth of this industry. Supported by the GDP estimates, the approximate expansion of this sector is between 9-12% and during the tenth plan period the growth rate was around 6-8%. Food Processing Industry provides job opportunities to 1.6 mn people and it is estimated to expand by 37 mn by 2025.

    Chemical Industry:
    Indian Chemical industry generates around 70,000 commercial goods ranging from plastic to toiletries and pesticides to beauty products. It is regarded as the oldest domestic sector in India and in terms of volume it gives a sense of pride to India by featuring as the 12 largest producer of chemicals. With an approximate cost of $28 billion, it amounts to 12.5% of the entire industrial output of India and 16.2% of its entire exports. Under Chemical industries some of the other rapidly emerging sectors are petrochemical, agrochemical, and pharmaceutical industries.

    Cement Industry:
    India has 10 large cement plants governed by the different State governments. Besides this India have 115 cement plants and around 300 small cement plants. The big cement plans have installed competence of 148.28 million tones per annum whereas the mini cement plants have the total capacity of 11.10 million tonnes per annum. This totals the capacity of Indian cement industry at 159.38 million tonnes. Ambuja cement, J K Cement, Aditya Cement and L & T Cement are some of the major steel companies in India.

    Steel Industry:
    Indian Steel Industry is a 400 years old sector which has a past record of registering 4% growth in 2005-06. The production during this period reached at 28.3 million tones. India steel industry is the 10th largest in the world which is evident from its Rs 9,000 crore of capital contribution and employment opportunities to more than 0.5 million people. The key players in Steel Industry are Steel Authority of India (SAIL), Bokaro Steel Plant, Rourkela Steel Plant, Durgapur Steel Plant and Bbilai Steel Plant.

    Software Industry:
    Software Industry registered a massive expansion in the last 10 years. This industry signifies India's position as the knowledge based economy with a Compounded Annual Growth Rate (CAGR) of 42.3%. In the year 2008, the industry grew by 7% as compared to 0.59% in 1994-95.

    Mining Industry:
    The GDP contribution of the mining industry varies from 2.2% to 2/5% only but going by the GDP of the total industrial sector it contributes around 10% to 11%. Even mining done on small scale contributes 6% to the entire cost of mineral production. Indian Mining Industry provides job opportunities to around 0.7 million individuals.

    Petroleum Industry:
    Petroleum industry started its operations in the year 1867 and is considered as the oldest Indian industry. India is one of the most flourishing oil markets in the world and in the last few decades has witnessed the expansion of top national companies like ONGC, HPCL, BPCL and IOC.


    Industrialization in India

    Since independence to 1980: During this period there was restrictive growth of private sector and government's permission was required to set up any private enterprise in India. Despite this the GDP grew at a rate of 1.4% per annum from 1940 – 1970.

    Other factors such as poverty and famine lowered India's economic growth rate during this period and with the presence of very few top producers of major industrial goods the absorption of domestic productivity was greater, which lead to monopolistic pricing.

    1980 to mid-1990s:
    Post 1980s India saw liberalization and achieved further impetus in Mid-1991. The nation witnessed historical upsurge in per capita GNP. In 1994-95 the industrial output-growth registered 8.4% growth and the exports rose by 27%. This resulted in a 10% drop in inflation in the mid-1990s

    1990s to 2000s:
    Since its liberalization policy, India has opened several public sector enterprises. The exports saw a 17% rise in 1994 and 28% in 1995-96. Over 90% of India's imports are backed by export revenues. At present the current account arrears is less than 1% of GDP and foreign-exchange profits are soaring at $20 billion. The food stocks have witnessed an all-time increase of 37m tonnes.

    The private sector, which was neglected by previous governments, contributes to two-thirds of India's GDP. The shift of the state's responsibility from a chief investor to a catalyst of private enterprise has paved way to a new accord on liberalization. Industries in India.

    Experts believe that the contribution of India in the world GDP is estimated to increase from 6% to 11% by the year 2025, while on the flip side the contribution of US in world GDP is presumed to decline from 21% to 18%. This indicates towards the emergence of India as the third biggest global economy after US and China. The evaluation is supported by the overall development in all the sectors in India, in which the key sector is the industry sector.

    Going by the past records the Industry sector in India registered a growth rate of 6.2% in October 2003 which further increased by 4% in the corresponding month of the next fiscal year.


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