دانلود کتاب Indian Economy

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Cover
Copyright
Brief Contents
Contents
Preface
About the Author
CHAPTER 01 Few Basic Concepts andNature of Indian Economy
Introduction
What Is Economics?
The Two Branches of Economics: Microeconomics and Macroeconomics
Capitalism, Socialism, and Mixed Economies
Inputs and Outputs
Economic Growth and Development
Types of Economies
Nature of Indian Economy
India—A Lower Middle-income Country
Third Largest and Fastest Growing Economy
Higher Population Growth and High Dependency Ratio
Wide Scale Poverty and Unemployment
Low Level of Savings and Investment
Low Level of Human Development
From Agriculture Predominance to Service Led Growth
Summary
Multiple-choice Questions
Endnotes
CHAPTER 02 National Income, Savings, and Capital Formation
Introduction
What is National Income?
National Income Indicators
National Income at Current Prices and Constant Prices
National Income at Constant Prices
Per Capita Income
Circular Flow of National Income
Methods of Measuring National Income in India
Characteristic Features of National Income in India
India: Among the Largest Economies of the World
Sectoral Change in National Income
Steep Increase in Per Capita National Income
Fast Growing Economy
Trends of National Income in India
1951–1980: The Phase of Modest Growth Rate
1980–90: The Phase of Economic Buoyancy and Recovery
1992 Onwards: Post-Reform Period
State Domestic Product: Features and Trends
Savings and Capital Formation in India
Domestic Saving
Reasons for Low Savings in India
Capital Formation in India
Few Concerns Related to Capital Formation in India
Suggestions to Raise Capital Formation in India
Summary
Multiple-choice Questions
Endnotes
CHAPTER
03 Human Development and Happiness Economics
Introduction
Human Development
Human Development Index
Why the Concept of HDI Is superior to GNP?
Other Human Development Indices
Inequality Adjusted Human Development Index
The Gender Inequality Index
Gender Development Index
Multi-dimensional Poverty Index
World Happiness Index
Importance/Merits of Happiness Index
Useful Policy Tool
An alternate to Other Measures of Development
Lifestyle Problems and Happiness
Demerits/Drawbacks of Happiness Index
It Is Not Easy to Measure Subjective Well-Being
The Statistics Problem
Making Happiness Index More Comprehensive
Beyond Happiness Index
Summary
Multiple-choice Questions
Endnotes
CHAPTER
04 Natural Resources, Environment, and Sustainable Development
Introduction
Natural Resources in India
Land
Soil
Soil Erosion
Soil Conservation
Water
Surface Water Resources
Groundwater Resources
Some Concerns Related With Water Resource
National Water Policy, 2012
Composite Water Management Index
Forests
Draft National Forest Policy, 2018
Minerals
Sustainable Development
Sustainable Development Goals
Global Awakening Toward Sustainable Environment
Paris Agreement
Why Is Sustainable Environment Important for Us?
Sustainable Development and India
India’s Actions on Sustainable Development and Climate Change
Air Pollution and Control Measures in India
Waste Management in India
India’s Post-2020 Climate Goals
Summary
Multiple-choice Questions
Endnotes
CHAPTER
05 Indian Infrastructure
Introduction
Economic and Social Infrastructure
Transport
Indian Railways
Features of Indian Railways
Problems of Indian Railways
Government Policy with Regard to Railways
Road Transport
Problems of Indian Road Sector
Water Transport: Maritime & Inland Waterways
Inland Water Transport
Air Transport
Problems of Indian Air Transport Sector
Government Policies With Regard to Air Transport Sector
Airport Authority of India (AAI)
Regional Connectivity Scheme—“Ude Desh ka Aam Naagrik” (RCS-UDAN)
Airport Development
Investment Initiatives
National Civil Aviation Policy, 2016
Energy
Characteristic Features of Energy in India
Conventional Energy
Coal
Features of Coal Energy Resource
Problems in the Coal Sector
Supply Constraints
Corruption and Scams
Environmental Challenges
Social Challenges
Policy Issues in the Coal Sector
Hydroelectricity
Features of Hydroelectric Power in India
Challenges and Problems of Hydropower Projects
Small Hydropower Programs
Natural Gas
Features of Natural Gas in India
Challenges of Natural Gas in India and Policy Implications
Oil/Petroleum
Features of Petroleum Energy
Government Policy Regarding Petroleum Sector
Nuclear Energy
Renewable Energy in India
Wind Energy
Policy Initiatives
Draft Wind-Solar Hybrid Policy
Competitive Bidding
Incentives by the Government
Solar Energy
Policy Action for the Development of Solar Energy
Biomass Power
Biofuel
Benefits/Features of Biofuels
National Policy on Biofuels–2018
Biogas
Communication
Postal Services
Telecommunication
Telephony
Summary
Multiple-choice Questions
Endnotes
Chapter 06 India’s Population and Demographic Dividend
Introduction
Demographic Transition Theory
World Population Trends
Characteristic Features of Indian Population
Size and Growth of Population
Density of Population
Age Composition of Indian Population
Sex Composition of Indian Population
Life Expectancy and Mortality Rates
Religious Composition of Population
State-wise Distribution of Population
Population Policies in India
Background
National Population Policy 2000
Is India’s Huge Population a Demographic Disaster or Demographic Dividend?
Population as a Demographic Disaster
Adverse Land–Man Ratio
Environmental and Ecological Consequences
Urbanization
Food Security
Population as a Demographic Dividend
Lessons from China and East Asia
Demographic Dividend: Challenges and Road Ahead
Summary
Multiple-choice Questions
Endnotes
CHAPTER 07 Poverty and Inequality in India
Introduction
Estimation of Povertyby International Agencies
World Bank’s Estimates of Poverty
Multi-dimensional Poverty Index
Extreme Poverty in India as per World Poverty Clock
Incidence of Poverty in India
Planning Commission Working Group (1962)
Task Force Under the Chairmanship of Dr Y.K. Alagh (1977)
Expert Group Under the Chairmanship of Prof. D.T. Lakdawala (1989)
Expert Group—Tendulkar (2005)
Expert Group—Rangarajan (2012)
Critical Evaluation of Poverty Alleviation Measures in India
Pre-reform Phase (1947–1990)
Post-reform Phase (1991 Onward)
Qualitative Aspects of Poverty
Universal Basic Income
Arguments in Favor of UBI
Optimum Allocation and Efficient Welfare Solution
Reducing Income Inequality
Gender Equality
Increase in Financial Inclusion
Arguments in Disfavor of UBI
The Costing Problem
Other Problems
UBI Experiments Around the World
Guiding Principles for Setting Up a UBI in India
Gradualism
Inequality in India
Extent of Income Inequality During Pre-reform India
Causes of Inequality in India
The March of Billionaires
Monopolies and Crony Capitalism
Inherited Wealth
Gender Bias
Unequal Distribution of the Gains From Growth
Inequality in Wages
Measures to Address the Problems of Inequality
Tax Policies
Redistributive Policies
Addressing Human Development Issues
Land Reforms
Summary
Multiple-choice Questions
Endnotes
CHAPTER 08
Labor Force, Occupational Pattern, and Unemploymentin India
Introduction
Activity Status of Population
Characterstics of Labor Force Growth in India
Occupational Structure in India
Agriculture: The Mainstay of Indian Workforce
Proportion of Workforce in Industrial Sector
Proportion of Workforce in Service Sector
Unemployment
Concept of Unemployment in India
Usual Principal Status (UPS)
Current Weekly Status (CWS)
Current Daily Status (CDS)
Employment Structure in India
Employment by Status, Region, and Gender
Employment Status by Categories
Causes of Unemployment in India
Declining Female Employment
Falling Employment Elasticity
Educated Unemployment
Government Policies for Removal of Unemployment
Policy Action Under 5-year Plan✽
Major Employment Generation Schemes
Mahatma Gandhi National Rural Employment Guarantee Scheme
Salient Features of MGNREGS
Performance of MGNREGS
Criticism of MGNREGS
Skill Development Programs
Summary
Multiple-choice Questions
Endnotes
CHAPTER 09 Indian Economy DuringPre-independence Period
Introduction
Indian Economy During Ancient and Medieval Times
Indian Economy During British Times
Early British Period: 1600–1757 A.D.
From Battle of Plassey till the Sepoy Mutiny: 1757–1857 A.D.
British Crown Period: 1858–1947 A.D.
Impact of Colonial Rule in India
Impact on GDP
Impact on Agriculture
Land Revenue Policy and Land Settlements
Commercialization of Indian Agriculture
Deindustrialization
Decay of Local Industry and Crafts
The Demise of Textile Industry and Trade
Attempts of Industrialization During Colonial Period
Transport and Communication
English Education and New Westernized Elite
Drain of Wealth
Summary
Multiple-choice Questions
Endnotes
CHAPTER 10 Indian Agriculture: Productivity, Land Reforms, and Livestock
Introduction
Role and Importance of Indian Agriculture
Contribution in GDP
Agriculture Trade
FDI in Agriculture
Employment in Agriculture
Food Security
Backward and Forward Linkages
Capital Formation in Agriculture
Agriculture and Poverty Reduction
Changing Cropping Pattern
Agricultural Production and Productivity Trends: Pre-reform Period
Phase I (1949–1950 to 1964–1965)
Phase II-1967–68 to 1980–81
Phase III 1980–1981 to 1989–1990
Agricultural Production and Productivity Trends: Post-Reform Period
Phase I: 1990–1991 to 1999–2000
Phase II: 2000–2001 to 2010–2011
Phase III: 2010–2011 to 2017–2018
Indian Agriculture and InternationalComparison
Causes of Low Productivity of Indian Agriculture
Small Size of Landholdings
Population Pressure on Land
Inadequate Irrigation Facilities
Land Degradation
Low Fertilizer Consumption
Inadequate Access to Credit and Insurance
Lower Level of Research and Development
Lack of Technological Upgradation
Measures to Improve Productivity in IndianAgriculture
Adoption of HYV Seeds
Enhancing Per Capita Fertilizer Consumption
Spread of Irrigation
Increase in Consumption of Power
Agriculture Finance and Marketing
Land Reforms
Integrated Management of Land and Water Resources
Land Reforms in India
System of Land Tenure in British India
Components of Land Reforms
Abolition of Intermediaries
Tenancy Reforms
Reorganization of Agriculture
Cooperative Farming
Compilation and Updating of Land Records
Critical Evaluation of Land Reforms in India
Impact on Poverty and Productivity
Problems in Abolishing the Intermediaries
Problems with Tenancy Reforms
Problems with Land Consolidation
Lack of Political Will
Livestock Sector in India
Role and Importance of Livestock in India
Contribution to GDP
Employment
Structural Change in Demand Pattern
Equitable Growth
Summary
Multiple-choice Questions
Endnotes
CHAPTER 11 Agriculture Inputs and Green Revolution
Introduction
Agriculture Inputs
Seeds
Policy Measures
Policy Measures
Fertilizers
Important Government Schemes
Pesticides
Irrigation
Importance of Irrigation
Characteristics and Problems of Irrigation in India
Government Policies on Irrigation
Suggestions to Improve Irrigation in India
Green Revolution
Positive Impact of Green Revolution
Drawbacks of Green Revolution
Second Green Revolution
Opportunities and Challenges
Summary
Multiple-choice Questions
Endnotes
CHAPTER 12 Agriculture Prices and
Food Security
Introduction
Agriculture Price Policy and Its Objectives
Instruments of Agriculture Price Policy
Minimum Support Price (MSP)
Buffer Stock
Advantages of MSP Policy
Stabilizing Market Prices of Agriculture Products
Technology Incentive
Food Security
Providing Certainty to Farmers’ Income
Problems with Agriculture Price Policy
The MSP Controversy
MSP and the Farmers’ Distress
Late Announcement of MSP
Problems at the Procurement End
Contribution to Inflationary Trend
Bias in Favor of Surplus States and Rich Farmers
Blow to Agriculture Diversification
Food Security and Public Distribution System in India
Components of Food Security
Availability of Food
Access to Food
Absorption
Government Measures to Ensure Food Security
Public Distribution System
Antyodaya Anna Yojana (AAY)
Mid-Day Meal Scheme
National Food Security Act, 2013 (NFSA)
Critical Appraisal of Food Security Measures in India and Policy Implications
Wrongful Identification of Poor
Double Disadvantage to the Homeless
PDS Leakages
Issues Regarding Procurement and Storage of Foodgrains
Rising Food Subsidy Bill
Summary
Multiple-choice Questions
Endnotes
CHAPTER 13
Agriculture Finance in India
Introduction
Sources of Agriculture Finance in India
Non-institutional Credit
Institutional Credit
National Bank for Agriculture and Rural Development (NABARD)
Cooperative Credit Societies
Regional Rural Banks
Commercial Banks
Agriculture Insurance in India
Pradhan Mantri Fasal Bima Yojana
Restructured Weather Based Crop Insurance Scheme (RWBCIS)
Unified Package Insurance Scheme (UPIS)
Coconut Palm Insurance Scheme (CPIS)
Debt Burden and Farmers’ Suicides in India
Credit Subsidy in India
Types of Credit Subsidy
Interest Subvention
Farm Loan Waiver
M.S. Swaminathan Report on Farmers’ Distress
Land Reforms
Increasing Irrigation Potential
Adequate Supply of Funds
Increase in Agriculture Production and Productivity
Providing Food Security
Arresting Farmers’ Suicides
Making Agriculture Competitive and Remunerative
Increasing Employment Opportunities of Rural Community
Preservation of Biosecurity
Summary
Multiple-choice Questions
Endnotes
CHAPTER 14 Agriculture Marketing in India
Introduction
Types of Agriculture Markets
Rural Primary Markets
The Wholesale/Assembling Markets
Terminal Markets
Retail Markets
Characteristic Features of Agriculture Marketing in India
Agricultural Produce Market Committee
Grading and Standardization
Changes in Standard Weights and Measures
Godown and Storage Facility
Development of Market Information Infrastructure
Agriculture Price Policy
Institutional Support
Small Farmers’ Agribusiness Consortium
Agricultural Marketing Infrastructure
Reforms in Agriculture Marketing
Agricultural Produce and Livestock Marketing (Promotion & Facilitation) Act, 2017
Contract Farming
Direct Marketing
Establishment of e-Markets
Deregulation of Marketing of Fruits and Vegetables
Ranking States in Terms of Marketing Reforms
Co-operative Agriculture Marketing
Structure and Progress of Co-operativeMarketing in India
Summary
Multiple-choice Questions
Endnotes
CHAPTER 15 Industrial Development and Policies
Introduction
Characteristic Features of Indian Industry
Journey of Indian Industry Since Independence: Trends in Production and Growth
Industrial Policy
Industrial Policies During Pre-reform Period
New Industrial Policy of 1991
Impact of New Economic Policy on Indian Industry
Why Is Manufacturing Sector Significant for India?
Problems of Manufacturing Sector
Recent Policy Initiatives in Manufacturing Sector17
National Manufacturing Policy, 2011
Objectives of NMP20
Policy Instruments
Make in India
New Processes
New Infrastructure
New Sectors
New Mindset
New Industrial Initiatives
Startup India
Standup India
Skill India
Digital India
Mudra Scheme
Smart City
Atal Innovation Mission (AIM)
Summary
Multiple-choice Questions
Endnotes
CHAPTER 16 Public, Private, and Small Sector in Indian Economy
Introduction
Public Sector Enterprises
Central Public Sector Enterprises (CPSEs)
Performance of Public Sector
Problems of Public Sector
Disinvestment
Types of Disinvestment
Methods of Privatization
Objectives/Merits of Disinvestment in India
Disadvantages of Disinvestment
Journey of Disinvestment in India
Private Sector in Indian Economy
Role of Private Sector in Indian Economy
Problems of Private Sector
The Twin Balance Sheet Problem
Causes of Twin Balancesheet Problem
Why TBS Did Not Cause Economic Crisis in India?
Solution to TBS Problem
Insolvency and Bankruptcy Code (IBC), 2016
Why Was IBC Needed?
The IBC Ecosystem and Its Functioning
Key Advantages of IBC
Challenges for IBC
Micro, Small, and Medium Enterprises (MSMEs)
Performance of MSMEs in Indian Economy
Problems of MSMEs in India
Government Schemes for the Development of MSMEs
Summary
Multiple-choice Questions
Endnotes
CHAPTER 17 Service Sector in India—Characteristics, Growth, and Sustainability
Introduction
Characteristic Features of India’s Service Sector
Increasing Share of Services in GDP
Higher Growth Rate as Compared to Other Sectors
FDI Inflows in Service Sector
Trade in Services
Indian Service Sector and Global Comparisons
Reasons for Growth in Service Sector
Splintering
Spurt in Domestic Demand
Technology, Transportability, and Tradability
Globalization of Services
Is Service-led Growth Sustainable?
The Case for Service-led Growth
Services Growth and Job Creation
Trading in Services
The Case Against Service-led Growth
Summary
Multiple-choice Questions
Endnotes
CHAPTER 18 Foreign Trade and Policy
Introduction
Why Nations’ Trade?
Characterstics of India’s Foreign Trade
Value of Trade
Composition of Trade
Direction of Trade
Direction of Imports
Diversification or Concentration?
Foreign Trade Policy (FTP) of India
FTP in Pre-reform Period
Policy of Import Restriction
Policy of Import Substitution
Export Policy During the Pre-reform Period
FTP in Post-reform Period
Decanalization of Trade
The Managed Float System of Exchange Rate
Establishment of Special Economic Zones
Establishment of Agriculture Export Zones
Establishment of Export-Oriented Units
Export Houses and Trading Houses
Market Access Initiative Scheme
Foreign Trade Policy (2015–2020)
Simplification & Merger of Reward Schemes
Boost to “Make in India”
Trade Facilitation & Ease of Doing Business
Other New Initiatives
Special Economic Zones (SEZs) in India
Facilities and Incentives Extended to SEZs20
Objectives/Benefits of SEZs
Contribution to GDP
Contribution to Exports
Increase in Investment
Creation of Employment Opportunities
Development of Infrastructure Facilities
Demerits of SEZs
Usurping the Prime Agricultural Lands
The Problem of Displacement of Local Population
Tax Exemptions and Revenue Foregone
Generation of Inequity
Underperformance
Summary
Multiple-choice Questions
Endnotes
CHAPTER 19 Balance of Payments, Foreign Exchange, and Investment
Introduction
Balance of Payment
Trends in India’s BOP
India’s Current Account
India’s Capital Account
India’s Foreign Exchange Rate System
Types of Exchange Rate System
Evolution of Indian Exchange Rate System
Phase I: The Par value System (1947–1971)
Phase II: The Pegged Regime (1971–1992)
Phase III: Post-Reform Period (1991 Onward)
Liberalized Exchange Rate Management System (1992–93)
Managed Float System (1993 Onward)
Foreign Exchange Reserves and Its Management
Objectives of Holding Foreign Exchange Reserves
What Should be Ideal Size of FERs?
The Indian Case
What Is RBI Doing With Its Foreign Exchange Reserves?
Foreign Direct Investment
Types of FDI
Routes of FDI in India
Automatic Route of RBI
Government Route
Characteristic Features of FDI in India
Advantages of Foreign Direct Investment
FDI and the Technology Transfer
Efficiency-Seeking FDI
FDI Leads to Human Capital Enrichment
FDI and Competition Enhancement
FDI Ensures Consumer Sovereignty
Disadvantages of Foreign Direct Investment
The March of Oligopolies
Capturing the Host Country’s Market
The Question of Access to Technology
The Threat to Sovereignty
Capital Account Convertibility
Case for Capital Account Convertibility
Case Against Capital Account Convertibility
India’s Approach Toward Capital Account Convertibility
Summary
Multiple-choice Questions
Endnotes
CHAPTER 20 WTO, International Economic Institutions and Regional Trade Blocks
Introduction
World Trade Organization
Difference Between GATT and WTO
Functions of WTO
The WTO Agreements
General Agreement on Tariff and Trade
Agreement on Agriculture
The Case for AOA
The Case Against AOA
Trade-Related Aspects of Intellectual Property Rights System (TRIPS)
Case for TRIPS
Case Against TRIPS
General Agreement on Trade in Services (GATS)
Case for GATS
Case Against GATS
Standard and Safety
Agreement on Textile and Clothing (ATC)
Anti-Dumping, Countervailing Duties, and Safeguards
Non-Tariff Barriers (NTBs)
Trade-Related Investment Measures
Plurilateral Agreements
Trade Policy Review Mechanism
International Monetary Fund
Functions of IMF
India’s Economic Relationships with IMF
World Bank Group
India and Its Relationship with World Bank
Regional Trade Blocs
Pre-requisites of a Successful Regional Trade Block
Summary
Multiple-choice Questions
Endnotes
CHAPTER 21 Indian Monetary System: Banking, RBI, and Money Market
Introduction
Evolution of Indian Banking
Phase I (1786–1947): The Colonial Period
Phase II (1947–1991): The Period of Nationalization and Social Control
Phase III (1991 Onward): The Period of Banking Sector Reforms
Structure of Commercial Banking in India
State Bank of India
Nationalized Banks
Private Sector Banks
Foreign Banks
Regional Rural Banks
Local Area Banks
Small Finance Banks
Payment Banks
Cooperative Banking
Urban Cooperative Banks (UCBs)
Non-Performing Assets of Commercial Banks in India
Causes of NPAs During Recent Years
Recent Steps taken by Government to Resolve Problem of NPAs
Banking Sector Reforms
Reserve Bank of India
Functions of RBI
Currency Issuing Authority
Banker and Debt Manager to the Government
Formulation of Monetary Policy
Regulatory and Supervisory Functions
Banker to Banks
Foreign Exchange and Reserve Management
Developmental and Promotional Functions
Monetary and Liquidity Aggregates
Monetary Policy
Objectives of Monetary Policy
Analytics of Monetary Policy
Instruments of Monetary Policy
Indirect Instruments of Monetary Policy
Monetary Policy Reforms
Background
Reform Measures
Money Market
Characteristics/Problems of Indian Money Market
Reforms in Money Market
Non-banking Financial Institutions (NBFIs)
Financial Inclusion
Summary
Multiple-choice Questions
Endnotes
CHAPTER 22 Indian Capital Market
Introduction
Structure of Capital Market in India
Security Market
Gilt-Edged Market
Corporate Security Market
Stock Exchanges in India
Development Financial Institutions
All India Development Financial Institutions
Specialized Financial Institutions
Investment Institutions
Refinance Institutions
State-Level Institutions
Evolution and Growth of Indian Capital Market
Phase 1 (1947–1973): The Period of Institution-Building and Legal Framework
Phase 2 (1973–1980): The Period of Foreign Exchange Regulation
Phase 3 (1980–1992): The Broadening and Deepening of Capital Market
Phase 4 (1992 to Till Date): The Phase of Turbulence and Reforms
Capital Market Reforms in India
Establishment of SEBI
Strengthening the Government Security Market
Establishing the National Security Clearing Corporation Ltd
Reforms in the Bombay Stock Exchange
Exit of De-recognized/Non-Operational Stock Exchanges
Establishment of NSE
Development of Corporate Bond Market
Securities and Exchange Board of India
Summary
Multiple-choice Questions
Endnotes
CHAPTER 23 Inflation in India
Introduction
Inflation and Its Types
Wholesale Price Index
Consumer Price Index
Causes of Inflation
Demand-Pull Inflation
Higher Fiscal Expansion
Higher GDP Growth and Sticky Core Inflation
Income Effect
Black Money
Supply-Shock or Cost-Push Inflation
Rise in Wages
Increase in Prices of Basic Materials
Rise in Administered Prices
Rise in International Prices
Other Causes
Consequences of Inflation in India
Impact on Balance of Payments
Impact on Common Man
Impact on Investment and GDP
Inequality
Measures to Control Inflation in India
Fiscal/Trade Measures
Administrative Measures
Monetary Measures
Significance of Inflation Targeting
Summary
Multiple-choice Questions
Endnotes
CHAPTER 24 Indian Tax System
Introduction
Importance/Objectives of Taxation in India
Classification of Taxes
Single and Multiple Taxes
Direct and Indirect Taxes
Progressive, Regressive and Proportional Taxes
Ad Valorem Versus Specific Tax
Central Versus State Taxes
India’s Direct Taxes
Income Tax
Corporation Tax
Minimum Alternate Tax (MAT)
Gift Tax
Securities Transaction Tax
Long-Term Capital Gains Tax
India’s Indirect Taxes
Custom Duty
Goods and Services Tax
Characteristics of GST
Advantages of GST
Disadvantages of GST
An Assessment of Indian Tax System
Elasticity in Indian Tax System
Buoyancy in Indian Tax System
Emergence of Progressive Tax Regime
Agriculture Income Tax Is Exempted
Tax Evasion
Simplicity and Certainty
Summary
Multiple-choice Questions
Endnotes
CHAPTER 25 Public Expenditure, Debt Management, and Fiscal Policy
Introduction
India’s Budget and Its Components
Indian Public Expenditure
Capital Expenditure and Revenue Expenditure
Developmental and Non-developmental Expenditure
Plan and Non-plan Expenditure
Causes of Increase in Public Expenditure in India
Increase in GDP
Size of the Country and Population
Urbanization
Defense
Interest Payments
Subsidies
Subsidies in India
Kinds of Subsidies
Standard Classification of Subsidies
Central Government Subsidies
Critical Evaluation of Subsidies
Merit Goods Subsidy Versus Demerit Goods Subsidy
Subsidies and Inefficiencies
Mounting Subsidy Burden
Perverse Subsidies
Implicit/Hidden Subsidies
Public Debt in India
Internal Debt
Marketable Securities
Non-Marketable Securities
External Debt
Public Account Liabilities
Causes of Public Debt
Burden of Public Debt
Is India’s Public Debt Sustainable?
Public Debt Management
Fiscal Policy
Objectives of Fiscal Policy in India
Promoting Economic Growth
Maintaining Price Stability in the Economy
Mobilization of Resources
Allocating Efficiency
Reducing Inequality in Income and Wealth
Promoting Private Sector Investment
Fiscal Responsibility and Budget Management Act
N.K. Singh Committee on FRBM
Summary
Multiple-choice Questions
Endnotes
CHAPTER 26 Center–State FinancialRelations in India
Introduction
Fiscal Federalism and its Principles
Finance Commission
Important Concepts and Definitions Relatedto Center–State Financial Relations
Tax Devolution
Divisible Pool
Grants-in-aid
Revenue Deficit
Disaster Relief
Local Bodies
Sector-specific Grants
State-specific Grants
Fiscal Capacity
Income Distance
Fiscal Discipline
Special Category States (SCS) and General Category States (GCS)
Gadgil-Mukherjee Formula
State Fiscal Commission
Fourteenth Finance Commission and Its Evaluation
Fifteenth Finance Commission
Critical Assessment of Center–state Financial Relations
Points in Favor
Balanced Regional Development
Points in Disfavor
Vertical and Horizontal Fiscal Imbalances
Increasing Recourse to Cess and Surcharge
Decentralization Issues
The Question of State Autonomy
Summary
Multiple-choice Questions
Endnotes
CHAPTER 27 Planning in India
Introduction
Planning Efforts in Pre-independence India
Planning in Independent India
Critical Assessment of India’s Five-Year Plans
Planning and Growth
Planning and Self-reliance
Planning and Employment Generation
Planning and Inequality
Planning and Poverty Removal
Planning and Productivity
NITI Aayog
Functions of NITI Aayog
Transition from Planning Commission to NITI Aayog
The case for NITI Aayog
The case against NITI Aayog
Strategy for New India @75
Drivers
Infrastructure
Inclusion
Governance
Summary
Multiple-choice Questions
Endnotes
CHAPTER 28 Black Money andDemonetization
Introduction
What Is Actually Black Money?
Causes of Black Money
Non-Compliance of Taxes
Money Laundering
Political Funding
Controls on Economic Activity
Illicit Money Transferred Outside
Standards of Public Morality
Inflation
Investment in Real Estate
Estimation of the Size of Black Money in India
Size of Black Money in India
Size of Black Money Outside India
Impact of Black money
Government Policies to Curb Black Money
Volunteer Disclosure Scheme (VDS)
Prevention of Money Laundering Act
Right to Information Act
Tax Reforms
Demonetization
Demonetization in India
Objectives of Demonetization
The case for Demonetization
Digitalization of Economy
Cleansing of Real Estate
Impact on GDP
The case against Demonetization
Demonetization Affected the Common Man
The Question on Impact on Black Money
Effect on Informal Sector
Summary
Multiple-choice Questions
Endnotes
CHAPTER 29 Economic Reforms in India
Introduction
The Economic Crisis of 1990s
Economic Reforms in India
Macroeconomic Stabilization
Fiscal Policy Reforms
Monetary Policy Reforms
Control of Inflation
Structural Adjustment Reforms
Industrial Policy Reforms
Financial Sector Reforms
Agriculture Sector Reforms
Infrastructure Sector Reforms
Impact of Economic Reforms on Indian Economy
Case for Economic Reforms
The Growth Turnaround
Industrial and Service Sector Performance
Attitude Toward Reforms
Case Against Economic Reforms
Impact on Poverty and Inequality
Jobless Growth
Structural Bottlenecks
Summary
Multiple-choice Questions
Endnotes
CHAPTER 30 Economic Survey 2018–2019 and Budget 2019–2020
Introduction
Highlights of Economic Survey 2018–2019
Shifting Gears: Private Investment as the Key Driver of Growth, Jobs, Exports, and Demand
Policy for Real People, Not Robots: Leveraging the Behavioral Economics of “Nudge”
Nourishing Dwarfs to Become Giants: Reorienting Policies for MSME Growth
Data “Of the People, By the People, For the People”
Ending Matsyanyaya: How to Ramp Up Capacity in the Lower Judiciary
How Does Policy Uncertainty Affect Investment?
India’s Demography at 2040: Planning Public Good Provision for the Twenty-first Century
From Swachh Bharat to Sundar Bharat Via Swasth Bharat: An Analysis of the SBM
Enabling Inclusive Growth Through Affordable, Reliable, and Sustainable Energy
Effective Use of Technology for Welfare Schemes—Case of MGNREGS
Redesigning a Minimum Wage System in India for Inclusive Growth
State of the Economy in 2018–2019: A Macro View
Fiscal Developments
Money Management and Financial Intermediation
Prices and Inflation
Sustainable Development and Climate Change
External Sector
Agriculture and Food Management
Industry and Infrastructure
Services Sector
Social Infrastructure, Employment, and Human Development
Highlights of Budget 2019–2020
Vision for the Decade
Growth and Macro-Economic Stability: Vision for $5 Trillion Economy
GDP
CAD
FDI and FPI
Push to Investment: Infrastructure Development
Railways
Road
Air
Shipping and Inland Waterways
Phase-II of FAME Scheme
Connectivity
Housing
Infrastructure Financing
National Common Mobility Card (NCMC) Standards
Push to Investment: Industrial Development
Ujjwal DISCOM Assurance Yojana (UDAY)
Empowering MSMEs and Small Traders
Make in India
Start-ups
Tax Proposals
Reform, Perform, and Transform
Banking and IBC
GST
Swachh Bharat
Transforming Rural India
PMAY-G
PMGSY
Rural Electrification
MGNREGA
SFURTI
ASPIRE
Farmer Welfare and Water Security
Women Development
Labor and Youth Welfare
Interim Budget 2019–2020
Endnotes
Answer Keys
Glossary
Index