Indian Economy & Financial system - Mod A - Unit I - An overview of indian economy Flashcards
According to the Angus Maddison database, India and _________ contributed 50.5 per cent of global GDP in 1000 AD
China
World Bank classifies economies considering ________ income.
per capita
Per capita income classified in to four types. They are,
Low Income;
Lower Middle-Income.
Upper Middle-Income and
Higher Income.
Indian economy falls under the category of .
lower-middle income economy
Countries that have Per Capita Income (PCI) between $996 and $3895 fall in which classification
lower-middle income economy
India’s per capita income as on 2019
$1891
The government addressed the developmental issues through _________ plans by setting targets and ensuring the allocation of funds for the development in various sectors
five-year
Agriculture was a dominant sector in the Indian economy in 1950, accounting for ____ per cent of GDP.
53.1
Industry had a ___ per cent GDP share
16.6
Services had a _____ per cent GDP share.
30.3
There was a clear and significant compositional shift in favour of the services sector after ____ ?
1980
______________________ published the first estimates of national income in India in his book “Poverty and Un-British Rule in India” for the year 1867–1868.
Dadabhai Naoroji
According to the work of Cambridge economist Angus Maddison, India’s share of global income was 23 per cent in 1600 A.D., but by the time the British left in 1947, it had shrunk to only ___ per cent.
3
India accounted for ____ per cent of global trade in 1600 but fell to less than 3 per cent in 1947.
33
According to _________________, at the turn of the twentieth century, India was the brightest jewel in the British Crown and the poorest country in the world, in terms of per capita income
former Prime Minister Manmohan Singh
The British impact on the Indian economy can be discussed in _______ different phases
three
The foundation of the East India Company in 1600 A.D. marks the beginning of the first phase. The company had two goals – _________________________________ and find a market for their completed goods.
procure raw materials for their factories
The second phase began with the Battle of ________ , which marked a turning point in colonial control in India. This time was marked by blatant robbery by the East India Company, camouflaged as trade, exploitative land revenue policies, and dishonest and unscrupulous company officers accumulating vast fortunes.
Plassey
The third phase began in 1857, when the British quashed the ____________. The British crown dissolved the company and assumed exclusive control of India. This period was marked by colonial exploitation through de-industrialization, agricultural commercialization, wealth drain, and Westernization of Indian education systems.
Sepoy Mutiny
__________ introduced the Zamindari, Mahalwari, and Ryotwari systems to take excessive land tax from farmers.
The British
Transportation, trade policy, port expansion, and the opening of the ______ accelerated the commercialisation process.
Suez Canal
The fundamental goal of introducing Western education to India was to
generate a group of Indians who had a shaky grasp of English but were enough Westernized to be estranged from their own culture.
In 1783, Edmund Burke explained the mechanism of ________ and ___________ in Indian situations.
economic drain and rising poverty
In 1776, Philip Francis studied the drain economy and classified it into four broad streams: They are
The East India Company’s investment, remittances to other presidency,
transfer of private income, and
transfer of revenue from private commerce or investment.
During the time of direct British control from 1858 to 1947, the colonial government’s official transfers of monies to the United Kingdom were referred to as
“Home Charges”.
In 1978, _________________ coined the phrase “Hindu rate of growth” to describe the slow growth of the Indian economy. The term refers to India’s planned economy’s low annual growth rate, which hovered around 3.5 per cent from the 1950s to the 1980s, while per capita income growth averaged 1.3 per cent.
Professor Raj Krishna
Only during the __________ five year plan (1980–1985) India could break the curse of the ‘Hindu Rate of Growth’.
sixth
_____________________ which provided a much-needed fiscal stimulus to the economy, is one of the factors attributed to higher economic growth during
Higher government spending,
the post-reform period.
1992 to 2008
The economy grew at 6.7 per cent during the eighth five-year plan (1992–1997),
5.3 per cent during the ninth five-year plan (1997–2002), and ____ per cent during the tenth five-year plan (2002–2007).
7.6
The main reason for the high growth rate in the eighth plan was an increase in the _________________________, which was a direct result of the new economic policy implemented in 1991.
inflow of foreign capital
From 2002–03 to 2006–07, India’s GDP grew at an ____ per cent annual rate, making it the world’s second fastest growing economy after __________
8.6
China
After the Global financial crisis 2007-09, Government of India has bolstered the economy with three stimulus packages totaling Rs._________________ (3.5 per cent of GDP).
Rs. 1.86 lakh crore
After the Global financial crisis 2007-09, The RBI dramatically eased monetary conditions and injected a whopping Rs ________ (roughly 9 per cent of GDP), in domestic and external liquidity.
5.6 lakh crore
What is FRBM ?
Fiscal Responsibility and Budget Management Act.
______________ remained robust in terms of production during the pandemic since _________ activities were spared from the lockdown restrictions.
Agriculture
During the first wave of COVID-19, India had one of the world’s worst recessions, with GDP contracting by as much as ___ per cent in the first quarter of 2020-21.
23.8
A gradual recovery gained traction in the second half of the year (Q3: 0.7% & Q4: _____%), resulting in a substantially less severe contraction of ____ per cent for the entire fiscal year
2.5
6.6
Coal and _____________ shortages, followed by the third wave in January 2022, led a reduction in economic recovery momentum beginning in November 2021.
semiconductor chip
After the second wave, which demand increased and which demand decreased?
Urban demand increased
Rural demand dropped
