HERE’s the new, 18th Edition of the widely accepted textbook (Indian economy paper) for B.Com (Hons.) based on new guidelines (restructured course), incorporating the latest readings recommened by the Department of Economics, University of Delhi. The book provides a comprehensive coverage of Indian economy under five sections: I.Basic Issues in economic development: institutional framework and policy regimes; II.Growth and distributional issues: poverty, inequality and employment; III.Current perspectives in Indian agriculture: growth, productivity, constraints and pricing; IV.Industry and services sector; V.Financial sector and the external sector. The author Dr. Uma Kapila has specially designed this book based on the original readings recommended for the new course, some of these being available in her edited books: Indian Economy Since Indepen-dence, 26th Ed. 2015-16 and Two Decades of Economic Reforms, 2012. In the present volume, the author has made an effort to keep the language simple without compromising the effectiveness of the argument or diluting the analyses. The book also carries a comprehensive Glossary. Apart from undergraduate students, the book is widely used by students preparing for the IAS and other competitive examinations.
Additional Info
  • Publisher: Academic Foundation
  • Language: English
  • Chapter 1

    Economic Development and Underdevelopment Price 3.99  |  3.99 Rewards Points

    The world today presents a picture of sharp contrasts between developed/advanced and backward/underdeveloped/developing countries. At one extreme, there are countries like Norway with per
    capita GNI (gross national income) of $102700 (2013) and on the other extreme are countries like Malawi with per capita GNI of $270.

  • Chapter 2

    Human Development Price 3.99  |  3.99 Rewards Points

    The first Human Development Report (HDR) published by the United Nations Development Programme (UNDP) focused on the new paradigm of development that puts people at the centre of development.
    The concept, developed by Mahbub ul Haq and Amartya Sen, is defined as ‘the process of enlarging people’s choices,’ emphasising the freedom to be healthy, to be educated and to enjoy a decent standard of living.

  • Chapter 3

    India’s Economy at Independence Price 3.99  |  3.99 Rewards Points

    The pre-Independence period was a period of near stagnation for the Indian economy. At the time of Independence, Indian economy was caught up in a vicious circle of poverty characterised by one of the
    lowest per capita consumption and income levels among the countries of the world.

  • Chapter 4

    Economic Planning Evolution and Strategy Price 3.99  |  3.99 Rewards Points

    Just after the attainment of Independence, the Government of India set up the Planning Commission in 1950 to make an assessment of the material, capital and human resources of the country and to formulate
    a plan for its most effective and balanced utilisation of the country’s resources.

  • Chapter 5

    Economic Reforms and Liberalisation Price 3.99  |  3.99 Rewards Points

    The most common connotation of the term liberalisation when used in the context of economic policy is that of reducing government regulation of economic activity and the space for state intervention (except in the all-important matter of guaranteeing private property rights) and allowing for the unfettered operation of market forces in determining economic processes.

  • Chapter 6

    Demography and Development Price 3.99  |  3.99 Rewards Points

    IN recent years, there has been an increasing focus on the relationship between population growth and economic development. The most difficult problem for such an analysis is to be able to separate cause
    from effect. Does economic development accelerate or retard population growth or does population growth contribute to or retard economic development? What are the linkages and how strong they are and in what direction do they operate?

  • Chapter 7

    Land Reforms Price 3.99  |  3.99 Rewards Points

    AT the time of Independence, India inherited a semi-feudal agrarian structure with onerous tenure arrangements over substantial areas. The ownership and control of land was highly concentrated in a relatively few landlords and intermediaries. The principal interest of this controlling group in agriculture was to extract maximum rental from tenants, either in cash or in kind.

  • Chapter 8

    Growth and Structural Changes since 1951 Price 3.99  |  3.99 Rewards Points

    IN this chapter,1 we analyse the performance of Indian economy since Independence, with reference to the experience of growth, development and structural change in different phases of growth and policy regimes across sectors and regions.

  • Chapter 9

    Poverty in India Price 3.99  |  3.99 Rewards Points

    THE problem of poverty and unemployment is considered as the biggest challenge to development planning in India. High poverty levels are synonymous with poor quality of life, deprivation, malnutrition, illiteracy and low human resource development. The slogan of poverty eradication has been adopted by all political parties in one form or another, and there is a national agreement for the goal of poverty alleviation.


  • Chapter 10

    Unemployment and Employment Perspective Price 3.99  |  3.99 Rewards Points

    TO understand the concept of unemployment, it is necessary to understand the concept of labour force, for by definition, one who is not in the labour force cannot be unemployed. By the internationally accepted definitions, all persons who are working (have a job) and though not working, but are seeking and are available for work, are deemed to be in the labour force. Correspondingly, all those who are not working and are neither seeking nor available for work are considered outside the labour force and hence do not figure in employment or unemployment statistics.1

  • Chapter 11

    Economic Inequality in India Price 3.99  |  3.99 Rewards Points

    INDIAN economy has experienced high growth rates in GDP during the past two and a half decades, particularly during the period 2003-04 to 2010-11 when growth rates was hovering around 9 per cent except in two years 2004-05 when it was 7.1 per cent and 2008-09 when it declined to 6.7 per cent after three year of continuous above 9 per cent between 2005-06 to 2007-08. This has meant the creation of very substantial wealth.

  • Chapter 12

    Agriculture: Role and Growth Performance Price 3.99  |  3.99 Rewards Points

    Importance of Agriculture in National Economy

    Agriculture is the mainstay of Indian economy because of its high share in employment and livelihood creation, notwithstanding, its reduced contribution to the nation’s GDP (gross domestic product). It is the most important sector of the Indian economy from the perspective of poverty alleviation and employment generation. The share of agriculture in national income has been declining from 56.5 per cent in 1950-51 to 39.6 per cent in 1980-81 and 26.3 per cent in 2001-02.

  • Chapter 13

    Agriculture Price Policy, Food Management and Food Security Price 3.99  |  3.99 Rewards Points

    The government’s price policy for agricultural commodities seeks to ensure remunerative prices to the growers for their produce with a view to encouraging higher investment and production, and to safeguard the interests of consumers by making supplies available at reasonable prices. The price policy also seeks to evolve a balanced and integrated price structure in the perspective of the overall needs of the economy.

  • Chapter 14

    Industrial Policy Price 3.99  |  3.99 Rewards Points

    There was the preponderance of consumer goods industries vis-à-vis producer goods industries resulting in lopsided industrial development. In 1953, the ratio of consumer goods to producer goods worked out to be 62:38.

  • Chapter 15

    Industrial Growth and Structure since 1951 Price 3.99  |  3.99 Rewards Points

    Having looked into the industrial control regime and the performance of the industrial licensing system under different policy regimes and the trade liberalisation and industrialisation policy reforms of the 1990s in the previous chapter, let us now look at the industrial growth since Independence—the rate and pattern of growth and the structural changes.

  • Chapter 16

    Micro, Small and Medium Enterprises (MSMEs) Price 3.99  |  3.99 Rewards Points

    THE micro, small and medium enterprises (MSME) sector has emerged as a highly vibrant and dynamic sector of the Indian economy over the last few decades. It is estimated that this sector contributes about 45 per cent of manufacturing output and 40 per cent of total exports of the country and employs about 69 million persons in over 29 million units throughout the country.

  • Chapter 17

    Public Sector in the Indian Economy Price 3.99  |  3.99 Rewards Points

    THE declared social objective of the Indian development strategy since Independence has been growth with social justice which was sought to be achieved within the democratic political framework and for which India adopted the concept of mixed economy. The expansion of the public sector was considered to be a major instrument with which the state in a mixed economy can influence the pace as well as the composition of economic activity with a view to pursuing the social objective.

  • Chapter 18

    Services in the Indian Growth Process Price 3.99  |  3.99 Rewards Points

    The services sector has emerged as the most dynamic sector of the world economy, contributing almost one-third of world gross value added, half of world employment, one-fifth of global trade and more than half of the world foreign direct investment flows. It remains the key driver of India’s economic growth, contributing almost 66.1 per cent of its gross value added growth in 2015-16, important net foreign exchange earner and the most attractive sector for foreign direct investment inflows. However, the global slowdown has cast a shadow even on this promising sector (Economic  Survey 2015-16).

  • Chapter 19

    Foreign Direct Investment Price 3.99  |  3.99 Rewards Points

    Foreign direct investment (FDI), being a non-debt capital flow, is a leading source of external financing, especially for the developing economies. It not only brings in capital and technical know-how, but also increases the competitiveness of the economy. Overall it supplements domestic investment, much required for sustaining the high growth rate of the country. Since 2000, significant changes have been made in the FDI policy regime by the government to ensure that India becomes an increasingly attractive and investor friendly destination.

  • Chapter 20

    The Financial Sector Structure, Performance and Reforms Price 3.99  |  3.99 Rewards Points

    THE financial sector plays a major role in the mobilisation and allocation of savings. Financial institutions, instruments and markets which constitute the financial sector act as a conduit for the transfer of financial resources from net savers to net borrowers, i.e., from those who spend less than they earn to those who earn less than they spend. The gains to the real sector, therefore, depend on how efficiently the financial sector performs this function of intermediation.

  • Chapter 21

    Foreign Trade and Trade Policy Price 3.99  |  3.99 Rewards Points

    Indian economic development strategy, particularly relating to industrialisation, had been driven by perceived foreign exchange scarcities and the desire to ensure that scarce foreign exchange is used only for purposes deemed ‘essential’ from the perspective of development. Industrialisation and self-sufficiency in essential commodities have been important objectives of policy because of the fear that dependence on other, more powerful countries, for imports of essential commodities would lead to political dependence on them as well.

  • Chapter 22

    Balance of Payments Price 3.99  |  3.99 Rewards Points

    Balance of payments (BoP) is a systematic record of all economic transactions between the residents of a country and the rest of the world. Like all double-entry book keeping accounts, it always balances i.e., Sum of credit entries = Sum of debit entries.

  • Chapter 23

    India and the WTO Price 3.99  |  3.99 Rewards Points

    The World Trade Organization (WTO) is an international organisation that oversees the operation of the rules-based multilateral trading system. The WTO is based on a series of trade agreements negotiated during the Uruguay Round (UR) (1986-1994), the eighth and final trade round conducted under the General Agreement on Tariffs and Trade (GATT). The Treaty of Marrakesh established the WTO at the close of the Uruguay Round in 1994. The WTO began operations on 1 January 1995, it was comprised of 148 members.

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