SSC CGL Preparation – Day 6

Indian Economy Overview

1. Introduction to Indian Economy

• The Indian economy is a mixed economy, combining features of both capitalism and socialism.
• It is developing, characterized by large-scale poverty, unemployment, and income inequality.
• India has the fifth-largest economy in the world by nominal GDP (as of 2024).
• Governed by both market forces and government intervention.

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2. Sectors of Indian Economy

The Indian economy is divided into three major sectors:

a. Primary Sector:

• Involves extraction of natural resources (e.g., agriculture, mining, fishing).
• Largest employment provider but low in terms of contribution to GDP.

b. Secondary Sector:

• Involves manufacturing and industrial production (e.g., textiles, cement, steel).
• Plays a vital role in employment generation and value addition.

c. Tertiary Sector:

• Involves services (e.g., banking, education, tourism, IT).
• Fastest-growing sector and highest contributor to GDP.

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3. Economic Planning in India

• Introduced in 1951 with the First Five-Year Plan.
• Planning Commission replaced by NITI Aayog in 2015.
• Focus: Inclusive growth, sustainable development, poverty reduction.

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4. Features of Indian Economy

• Demographic dividend: Large working-age population.
• Agriculture-dependent: Although declining in GDP contribution, still a large employment base.
• Service-driven growth: IT and services are major contributors.
• High population growth: Creates pressure on resources and employment.
• Uneven distribution of income: High levels of economic inequality.

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5. GDP and National Income

• Gross Domestic Product (GDP): Total value of goods and services produced within India in a year.
• GNP (Gross National Product): GDP + income from abroad.
• Per Capita Income: National income divided by population.
• Measured by Central Statistical Organisation (CSO) under Ministry of Statistics and Programme Implementation (MoSPI).

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6. Economic Liberalization (1991 Reforms)

• Shift from license raj to market-friendly economy.
• Key reforms:
  • Deregulation
  • Privatization
  • Globalization
• Led to:
  • Higher foreign investment
  • Private sector growth
  • Increased competition and efficiency

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7. Important Sectors and Programs

• Agriculture: PM-KISAN, MSP, Kisan Credit Card.
• Industry: Make in India, Start-up India.
• Services: Digital India, UPI, IT exports.
• Infrastructure: PM Gati Shakti, Bharatmala, Sagarmala.
• Social Schemes: MNREGA, Ayushman Bharat, Ujjwala Yojana.

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8. Role of Public and Private Sector

• Public Sector: Plays a role in infrastructure, defense, heavy industries.
• Private Sector: Drives consumer goods, IT, telecom, finance.

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9. Foreign Trade and Investment

• India trades mainly with USA, China, UAE, etc.
• Balance of Trade: Difference between exports and imports.
• FDI (Foreign Direct Investment) and FII (Foreign Institutional Investment) play key roles.

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10. Current Trends (as of 2024–25)

• Rising digital economy and fintech ecosystem.
• Focus on self-reliance (Aatmanirbhar Bharat).
• Renewable energy push and green economy.
• Government’s emphasis on fiscal discipline and capital expenditure.

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🔹 Important Bodies in Indian Economy

• RBI – Monetary authority, regulates banking.
• NITI Aayog – Policy think tank replacing Planning Commission.
• SEBI – Regulates capital markets.
• GST Council – Manages Goods and Services Tax framework.
• Ministry of Finance – Handles fiscal policy, taxation, expenditure.

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✅ Conclusion

The Indian economy is transitioning towards a more inclusive, innovative, and service-driven model. Understanding its structure, sectors, reforms, and planning mechanisms is essential for cracking SSC CGL General Awareness section.