Indian Economy is one of the highest-weightage sections in UPSC CSE Prelims and forms the core of Mains GS Paper III. This module covers national income accounting, RBI and monetary policy, fiscal policy and the government budget, inflation and poverty measurement, planning and international trade, and agriculture with financial inclusion and infrastructure — with every formula, committee, scheme and numeric fact carried over, plus worked examples and diagrams for each topic.
After studying this chapter you will be able to:
Indian Economy has no strict subject prerequisite, but it connects closely with other UPSC GS papers — fiscal and monetary policy feed directly into Polity's constitutional bodies (RBI, CAG) and Geography's resource economics. Once you've worked through the chapters below, head to the Indian Economy hub page to generate practice tests, or explore Study Material for other UPSC CSE subjects.
National income accounting and basic macroeconomic concepts form the foundation of UPSC Economy. GDP, GNP, NNP, and related aggregates — along with the calculation methods — are asked almost every year.
| Concept | Definition / Formula |
|---|---|
| GDP (Gross Domestic Product) | Total market value of all final goods & services produced within a country's borders in a year, regardless of who produces them |
| GNP (Gross National Product) | \(GNP = GDP + NFIA\) (NFIA = income earned by residents abroad − income earned by foreigners in India) |
| NNP (Net National Product) | \(NNP = GNP - \text{Depreciation}\) (consumption of fixed capital) |
| National Income (NI) | \(NI_{FC} = NNP_{MP} - \text{Net Indirect Taxes}\) (Indirect Taxes − Subsidies) |
| Per Capita Income | \(\text{Per Capita Income} = \dfrac{\text{National Income}}{\text{Population}}\) |
| Personal Income | \(PI = NI - \text{Undistributed corporate profits} - \text{Corporate taxes} + \text{Transfer payments}\) |
| Disposable Personal Income | \(DPI = \text{Personal Income} - \text{Personal Taxes}\) |
| Method | Approach | Avoids |
|---|---|---|
| Output / Product Method | Sum of value added at each stage of production; counts only final goods (avoids double counting) | Double counting via value added |
| Income Method | Sum of all factor incomes: wages + rent + interest + profit | Transfer payments (pensions, scholarships) excluded |
| Expenditure Method | \(GDP = C + I + G + (X - M)\); C=consumption, I=investment, G=govt. expenditure, X−M=net exports | Intermediate goods expenditure |
| Type | Features | Example |
|---|---|---|
| Capitalist / Market Economy | Private ownership; price mechanism; profit motive; minimal govt. intervention | USA |
| Socialist Economy | State ownership of means of production; central planning; equality focus | Former USSR, Cuba |
| Mixed Economy | Both public and private sectors; market + planning; India's model | India, France |
| Closed Economy | No foreign trade; self-sufficient; theoretical concept | — |
| Open Economy | International trade; FDI allowed; most modern economies | Most countries |
\( GNP = GDP + NFIA \)
\( NNP = GNP - \text{Depreciation} \)
\( NI_{FC} = NNP_{MP} - \text{Net Indirect Taxes} \)
\( \dfrac{\text{National Income}}{\text{Population}} \)
\( PI = NI - \text{Undist. profits} - \text{Corp. taxes} + \text{Transfers} \)
\( DPI = PI - \text{Personal Taxes} \)
\( GDP = C + I + G + (X-M) \)
\( \dfrac{\text{Nominal GDP}}{\text{Real GDP}} \times 100 \)
Given: India's GDP = ₹190 lakh crore; NFIA = −₹3 lakh crore (Indians earn less abroad than foreigners earn in India). Find GNP.
Solution:
\( GNP = GDP + NFIA = 190 + (-3) = 187 \) lakh crore
Answer: ₹187 lakh crore — GNP is lower than GDP here because NFIA is negative.
Given: Nominal GDP = ₹220 lakh crore; Real GDP = ₹200 lakh crore. Find the GDP Deflator.
Solution:
\( \text{GDP Deflator} = \dfrac{220}{200}\times100 = 110 \)
Answer: 110 — meaning the general price level has risen 10% relative to the base year.
Given: National Income = ₹140 lakh crore; Population = 140 crore. Find the per capita income.
Solution:
\( \text{Per Capita Income} = \dfrac{140\ \text{lakh crore}}{140\ \text{crore}} = ₹1\ \text{lakh} \)
Answer: ₹1,00,000 per person per year.
Fig. 1.1 — National income chain: GDP adjusted for net factor income from abroad gives GNP, minus depreciation gives NNP, minus net indirect taxes gives National Income.
The RBI and its monetary policy tools are among the most frequently tested topics in UPSC Economy. Repo rate, CRR, SLR, and the functions of various banking institutions appear every year.
| Aspect | Details |
|---|---|
| Established | 1 April 1935 (RBI Act 1934); nationalised in 1949 |
| Headquarters | Mumbai |
| Governor | Appointed by Government for 3 years (renewable); currently Sanjay Malhotra (2024) |
| Primary functions | Issue of currency notes (except ₹1 coin/note — MoF); banker to banks; banker to govt.; monetary policy; foreign exchange management; regulator of banks |
| Monetary Policy Committee (MPC) | 6 members — 3 from RBI (incl. Governor), 3 govt. nominees; decides Repo rate; inflation target: 4% ± 2% (2–6%) |
| Tool | Definition | Effect when increased |
|---|---|---|
| Repo Rate | Rate at which RBI lends short-term to commercial banks against government securities | Costlier borrowing → less money supply → reduces inflation |
| Reverse Repo Rate | Rate at which RBI borrows from commercial banks (absorbs liquidity); always lower than Repo | Banks park more with RBI → reduces money in market |
| CRR (Cash Reserve Ratio) | % of net demand and time liabilities (NDTL) banks must keep as cash with RBI; no interest paid | Less money available for lending → reduces credit creation |
| SLR (Statutory Liquidity Ratio) | % of NDTL banks must maintain in liquid assets (cash, gold, govt. securities) | Less funds for lending → reduces money supply |
| Bank Rate | Rate at which RBI lends long-term; always higher than Repo rate; used for refinancing | Costlier long-term funds |
| OMO (Open Market Operations) | RBI buys/sells govt. securities in open market to inject/absorb liquidity | Selling OMO → absorbs liquidity; Buying OMO → injects liquidity |
| MSF (Marginal Standing Facility) | Overnight borrowing by banks from RBI at rate above Repo (penal rate); emergency window | Higher cost; last resort |
| Type | Key Features | Examples |
|---|---|---|
| Scheduled Commercial Banks | Listed in 2nd Schedule of RBI Act; include PSBs, private banks, foreign banks | SBI, HDFC, ICICI |
| Public Sector Banks (PSBs) | Govt. stake >50%; nationalised: 14 in 1969, 6 in 1980; currently 12 PSBs after mergers | SBI, PNB, BOB |
| Regional Rural Banks (RRBs) | Est. 1975 (Narasimham Committee); serve rural areas; sponsored by PSBs; capital: 50% Central + 15% State + 35% Sponsor bank | — |
| Small Finance Banks | Serve unserved/underserved; minimum capital ₹200 crore; 75% lending to priority sector | AU Small Finance Bank |
| Payments Banks | Cannot give loans; accept deposits up to ₹2 lakh; facilitate digital payments; est. 2014 (Nachiket Mor Committee) | Airtel, Paytm, India Post |
| Cooperative Banks | Serve agriculture; three-tier: state → district → primary | NABARD apex institution |
\( \dfrac{1}{CRR} \)
Initial Deposit × Money Multiplier
Reverse Repo < Repo < Bank Rate
4% ± 2% (2%–6%)
Given: CRR = 5%. An initial deposit of ₹50,000 enters the banking system. Find the money multiplier and total credit creation.
Solution:
\( \text{Money Multiplier} = \dfrac{1}{0.05} = 20 \)
\( \text{Credit Creation} = 50{,}000 \times 20 = ₹10{,}00{,}000 \)
Answer: Money multiplier = 20; total credit creation = ₹10 lakh from the initial ₹50,000 deposit.
Given: RBI raises the Repo Rate from 6.5% to 6.75%. What is the likely effect on money supply and inflation?
Solution: A higher Repo Rate makes it costlier for banks to borrow from RBI, so banks raise their own lending rates, credit demand falls, and money supply in the economy contracts.
Answer: Contractionary effect — reduces money supply and helps ease inflation, with a transmission lag.
Given: Repo Rate = 6.5%, Bank Rate = 6.75%. Explain why the Bank Rate is higher.
Solution: Repo lending is short-term and fully secured against government securities (low risk); Bank Rate lending is typically longer-term and used for refinancing without the same repo-style collateral structure, carrying a higher risk premium.
Answer: Bank Rate > Repo Rate due to differences in tenor and collateral/risk profile.
Fig. 2.1 — Monetary policy transmission: a Repo Rate hike raises bank lending rates, which reduces credit demand and money supply, ultimately easing inflation with a lag.
Fiscal policy — government spending, taxation, and borrowing — and budget concepts like fiscal deficit and the FRBM Act are regularly tested. The distinction between revenue and capital accounts is foundational.
| Account | Receipts | Expenditure |
|---|---|---|
| Revenue Account | Tax revenue (direct + indirect), non-tax revenue (dividends, fees), grants | Subsidies, salaries, interest payments, grants to states — do NOT create assets |
| Capital Account | Market borrowings, disinvestment proceeds, loans repaid to Centre | Capital expenditure — create assets: roads, dams, defence equipment; loan repayments |
| Deficit | Formula | Significance |
|---|---|---|
| Revenue Deficit | \(\text{Revenue Expenditure} - \text{Revenue Receipts}\) | Govt. spending more than it earns on day-to-day; must be reduced |
| Fiscal Deficit | \(\text{Total Expenditure} - \text{Total Receipts (excl. borrowings)} = \text{Net borrowing requirement}\) | Most important deficit indicator; RBI & markets track closely |
| Primary Deficit | \(\text{Fiscal Deficit} - \text{Interest Payments}\) | Shows borrowing for current operations excluding past debt service |
| Effective Revenue Deficit | \(\text{Revenue Deficit} - \text{Grants for capital asset creation}\) | Introduced in the 2011-12 budget |
| Type | Definition | Examples |
|---|---|---|
| Direct Tax | Paid directly by the person on whom it is levied; incidence and impact on same person; progressive | Income Tax, Corporate Tax, Capital Gains Tax |
| Indirect Tax | Levied on goods/services; incidence and impact on different persons; regressive | GST, Customs Duty, Excise Duty |
| Progressive Tax | Higher income → higher rate (Income tax slabs) | Income Tax |
| Regressive Tax | Higher burden on lower income groups proportionally | Flat rate taxes |
\( \text{Revenue Expenditure} - \text{Revenue Receipts} \)
\( \text{Total Expenditure} - (\text{Revenue Receipts} + \text{Non-debt Capital Receipts}) \)
\( \text{Fiscal Deficit} - \text{Interest Payments} \)
\( \text{Revenue Deficit} - \text{Grants for capital assets} \)
Fiscal Deficit ≤ 3% of GDP
Given: Total Expenditure = ₹40 lakh crore; Revenue Receipts = ₹22 lakh crore; Non-debt Capital Receipts = ₹2 lakh crore. Find the Fiscal Deficit.
Solution:
\( FD = 40 - (22+2) = 40 - 24 = 16 \) lakh crore
Answer: ₹16 lakh crore — the government's net borrowing requirement for the year.
Given: Revenue Expenditure = ₹30 lakh crore; Revenue Receipts = ₹24 lakh crore. Find the Revenue Deficit.
Solution:
\( RD = 30-24 = 6 \) lakh crore
Answer: ₹6 lakh crore — the government is borrowing to fund day-to-day (non-asset-creating) expenditure.
Given: Fiscal Deficit = ₹17 lakh crore; Interest Payments = ₹9 lakh crore. Find the Primary Deficit.
Solution:
\( PD = 17-9 = 8 \) lakh crore
Answer: ₹8 lakh crore — this is the borrowing needed for current-year operations, excluding the burden of past debt service.
Fig. 3.1 — Fiscal deficit as the gap between total expenditure and total receipts (excluding borrowings): this shortfall must be financed through borrowing.
Inflation measures (CPI vs WPI), poverty measurement committees, and flagship schemes for the poor are heavily tested. The Tendulkar and Rangarajan committees, HDI, and social sector programmes are UPSC staples.
| Concept | Details |
|---|---|
| CPI (Consumer Price Index) | Measures retail price changes; official inflation indicator in India; base year 2012; released monthly by MoSPI; used by MPC for inflation targeting (4% ± 2%) |
| WPI (Wholesale Price Index) | Measures wholesale price changes; base year 2011–12; released by DPIIT; no services component; covers 697 commodities |
| Core Inflation | CPI excluding food and fuel; reflects underlying demand pressures |
| Stagflation | High inflation + high unemployment + stagnant growth; worst combination |
| Deflation | Sustained fall in price levels; can be more dangerous than inflation (spiral) |
| Disinflation | Falling rate of inflation (not negative prices); policy success indicator |
| Demand-Pull Inflation | Too much money chasing too few goods; demand > supply |
| Cost-Push Inflation | Rising input costs (oil, wages) push prices up |
| Committee / Index | Methodology / Key Numbers |
|---|---|
| Lakdawala Committee (1993) | Calorie-based (2400 kcal rural, 2100 kcal urban); used for decades |
| Tendulkar Committee (2009) | Mixed reference period; ₹816/month (rural), ₹1000/month (urban) at 2011-12 prices; 21.9% poor in 2011-12 |
| Rangarajan Committee (2014) | Higher thresholds; ₹972/month (rural), ₹1407/month (urban); 29.5% poor in 2011-12 |
| MPI (Multidimensional Poverty Index) | OPHI + UNDP; 10 indicators across Health (nutrition, child mortality), Education (years of schooling, attendance), Standard of Living (6 indicators); India: 11.28% MPI poor (NFHS-5 data) |
| Scheme | Key Facts |
|---|---|
| MGNREGS (2005) | Mahatma Gandhi National Rural Employment Guarantee; 100 days guaranteed wage employment; legal right; Rs. 267/day (2023-24); covers 150+ days in notified drought areas |
| PM Jan Dhan Yojana (2014) | Financial inclusion; zero-balance bank accounts; ₹10,000 overdraft; ₹2 lakh accident insurance; >52 crore accounts opened |
| PM Kisan Samman Nidhi (2018) | ₹6,000/year in 3 instalments to small/marginal farmers (<2 hectares); DBT; covers ~11 crore farmers |
| PM Garib Kalyan Anna Yojana | Free food grain to NFSA beneficiaries; 5 kg per person per month; extended indefinitely 2023 |
| Ayushman Bharat – PM-JAY (2018) | ₹5 lakh/year health coverage per family; 55 crore beneficiaries; cashless treatment; world's largest health insurance scheme |
4% ± 2% (2%–6%) CPI
₹816/month rural; ₹1000/month urban
₹972/month rural; ₹1407/month urban
0–1: >0.8 Very High, 0.7–0.8 High, 0.55–0.7 Medium, <0.55 Low
Given: Global oil supply cuts sharply raise fuel prices, pushing up transportation and production costs across sectors. Classify this type of inflation.
Solution: The rise originates from higher input costs (fuel), not from a surge in aggregate demand — prices rise even without any increase in consumer demand.
Answer: Cost-Push Inflation — driven by rising input costs, not demand.
Given: During a festival season, consumer demand for goods surges faster than supply can expand, and prices rise broadly. Classify this inflation.
Solution: Here, demand outpaces supply directly — "too much money chasing too few goods" — rather than being driven by rising production costs.
Answer: Demand-Pull Inflation.
Given: Tendulkar rural poverty line = ₹816/month; Rangarajan rural poverty line = ₹972/month. Find the percentage increase in the threshold.
Solution:
\( \%\ \text{increase} = \dfrac{972-816}{816}\times100 \approx 19.1\% \)
Answer: ≈19.1% higher — the Rangarajan Committee set a notably stricter (higher) poverty threshold than Tendulkar.
Fig. 4.1 — Demand-Pull inflation arises when demand outpaces supply; Cost-Push inflation arises when rising input costs push prices up regardless of demand.
NITI Aayog vs Planning Commission, Five Year Plans, Balance of Payments, FDI/FII, and WTO are all regularly examined. The 1991 LPG reforms and their architects are important for Mains too.
| Aspect | Planning Commission (1950–2014) | NITI Aayog (est. Jan 1, 2015) |
|---|---|---|
| Nature | Extra-constitutional; advisory + resource allocation | Think-tank / advisory only; no fund allocation |
| Fund powers | Could allocate funds to states (Gross Budgetary Support) | No fund allocation; Finance Ministry handles this |
| Planning type | Five Year Plans (centralized, top-down) | 3-year action plan + 7-year strategy + 15-year vision |
| State role | States had limited say | States represented via Governing Council (CMs); competitive federalism |
| Chair | Prime Minister | Prime Minister |
| Key initiatives | 12 Five Year Plans | Atal Innovation Mission, SATH, India Innovation Index |
| Plan | Period | Focus/Model |
|---|---|---|
| 1st Plan | 1951–56 | Agriculture; Harrod-Domar model; focused on Bhakra-Nangal |
| 2nd Plan | 1956–61 | Heavy industry; Mahalanobis model (steel plants: Bhilai, Durgapur, Rourkela) |
| 3rd Plan | 1961–66 | Agriculture + industry; failed due to China war 1962, Pakistan war 1965 |
| Plan holiday | 1966–69 | Three Annual Plans; Green Revolution, devaluation of rupee 1966 |
| 5th Plan | 1974–79 | Poverty eradication (Garibi Hatao); Minimum Needs Programme; ended early by Janata govt. |
| 8th Plan | 1992–97 | LPG reforms; human development; Narasimha Rao + Manmohan Singh |
| 12th Plan (last) | 2012–17 | "Faster, More Inclusive and Sustainable Growth"; 8% growth target |
| Aspect | FDI (Foreign Direct Investment) | FII / FPI (Foreign Portfolio Investment) |
|---|---|---|
| Nature | Long-term; acquires significant control (≥10% stake); builds production capacity | Short-term; stocks, bonds, debentures; no control over management |
| Stability | More stable; hot money concern minimal | Volatile; "hot money" — can exit quickly |
| Route | Automatic route or Govt. approval route; DPIIT tracks | Registered with SEBI; FPI route |
| Impact | Technology transfer, employment, infrastructure | Capital market liquidity |
1 January 2015
12th Plan (2012–2017)
≥10% equity stake
1 January 1995; HQ Geneva; 164 members
Current Account + Capital Account = Overall BoP
Given: India receives $30 billion in FDI and separately runs a $70 billion trade deficit in goods during the year. Classify each item under the Current or Capital Account.
Solution: FDI is a long-term financial inflow used to build production capacity — it belongs to the Capital Account. The trade deficit in goods is part of the visible trade balance, which sits within the Current Account.
Answer: FDI → Capital Account; Trade deficit in goods → Current Account.
Given: (a) A foreign company buys a 15% equity stake in an Indian manufacturing firm and builds a new plant. (b) A foreign fund buys ₹500 crore of Indian government bonds. Classify both.
Solution: (a) exceeds the 10% control threshold and builds real production capacity — this is FDI. (b) is a portfolio holding in debt securities with no management control and can be exited quickly — this is FII/FPI.
Answer: (a) FDI; (b) FII/FPI.
Given: Which Five Year Plan focused on heavy industry using the Mahalanobis model, and which steel plants were established under it?
Solution: The Mahalanobis model prioritised capital goods and heavy industry, characteristic of India's Second Plan.
Answer: 2nd Plan (1956–61); Bhilai, Durgapur, and Rourkela steel plants were established under it.
Fig. 5.1 — Balance of Payments: the Current Account (trade, services, income, transfers) and Capital Account (FDI, FII, ECBs, NRI deposits) together determine the overall BoP.
Agriculture, MSP, food security, financial inclusion, and infrastructure financing are critical for both Prelims and Mains GS-III. Green and White Revolutions, MUDRA, and NPA issues in banking are regular topics.
| Revolution | Period | Architect | Focus |
|---|---|---|---|
| Green Revolution | 1960s–70s | M.S. Swaminathan (Father, India); Norman Borlaug (global) | High Yielding Variety (HYV) seeds for wheat & rice; Punjab, Haryana, western UP; increased food production |
| White Revolution (Operation Flood) | 1970–1996 | Verghese Kurien (Father of White Revolution) | Dairy development; NDDB; Amul model; India → world's largest milk producer |
| Blue Revolution | 1980s– | Hiralal Chaudhari | Fish production; fisheries development |
| Yellow Revolution | 1986–1990 | Sam Pitroda | Oilseeds production (mustard, soybean) |
| Pink Revolution | — | — | Meat & poultry production |
| Initiative | Launch | Key Feature |
|---|---|---|
| PM Jan Dhan Yojana | 2014 | Zero-balance accounts; RuPay debit card; ₹2 lakh insurance; >52 crore accounts |
| MUDRA Bank / PM MUDRA Yojana | 2015 | Micro-loans to non-farm small businesses: Shishu (<₹50k), Kishore (₹50k–₹5L), Tarun (₹5L–₹10L) |
| Stand Up India | 2016 | Loans ₹10L–₹1 Cr to SC/ST and women entrepreneurs for greenfield enterprises |
| Sukanya Samriddhi Yojana | 2015 | Savings scheme for girl child; high interest rate (currently ~8%); part of Beti Bachao Beti Padhao |
| Atal Pension Yojana (APY) | 2015 | Pension for unorganised sector; ₹1,000–5,000/month on retirement; PFRDA administered |
Post-independence measures to restructure agrarian relations and improve equity and productivity — a core GS-III topic:
Outcomes were uneven across states (most successful in Kerala and West Bengal) — limited by poor land records, litigation and weak implementation; digitisation of records (DILRMP) is the modern follow-up.
The food-processing sector adds value to agricultural produce, reduces post-harvest wastage and links farmers to markets (upstream = farm inputs/procurement; downstream = packaging, cold-chain, retail).
Shishu <₹50k; Kishore ₹50k–5L; Tarun ₹5L–10L
Interest/principal overdue 90+ days
180 days + 90-day extension
₹111 lakh crore (2019–2025)
Given: An entrepreneur seeks a loan of ₹3 lakh to expand a small tailoring business. Which MUDRA category applies?
Solution: ₹3 lakh falls between the Kishore tier's range of ₹50,000 to ₹5 lakh.
Answer: Kishore category.
Given: A borrower has not paid interest on a loan for 120 days. Is this loan classified as an NPA?
Solution: NPAs are classified once interest or principal remains overdue for 90 or more days; 120 days already exceeds this threshold.
Answer: Yes, it is an NPA — and at 120 days, it is progressing toward the "Doubtful" sub-category if it remains unresolved.
Given: A company enters insolvency proceedings under the IBC. What is the maximum time typically allowed for resolution?
Solution: The IBC prescribes a base resolution period of 180 days, with a one-time extension of 90 days permitted.
Answer: Up to 270 days total (180 + 90), adjudicated by the NCLT.
Fig. 6.1 — MUDRA loan tiers: Shishu (up to ₹50,000), Kishore (₹50,000–₹5 lakh), and Tarun (₹5 lakh–₹10 lakh) — increasing ceilings for growing small businesses.
2011–12 (MoSPI)
\( C + I + G + (X - M) \)
1 April 1935; nationalised 1949; HQ Mumbai
CPI inflation 4% ± 2% (2–6%)
6 members: 3 RBI + 3 Government nominees
No interest paid by RBI on CRR
Ministry of Finance (not RBI)
1 July 2017; 101st Constitutional Amendment
3% of GDP
\( \text{Total Expenditure} - \text{Total Receipts} \) (excl. borrowings)
21.9% poor; ₹816/month rural, ₹1000/month urban
UNDP; annual Human Development Report
Medium Human Development (~0.644)
1 January 2015 (replaced Planning Commission)
12th Plan (2012–2017)
1991; PM Narasimha Rao + FM Manmohan Singh
1 January 1995; HQ Geneva; 164 members
≥10% equity stake in foreign company
M.S. Swaminathan / Verghese Kurien
100 days/year guaranteed employment; legal right
₹6,000/year in 3 instalments of ₹2,000
₹5 lakh/family/year; ~55 crore beneficiaries
180 + 90 days; NCLT adjudicates
1982; apex for rural credit
1992 (SEBI Act); established 1988
| Topic | Prelims Focus | Mains GS-III Focus |
|---|---|---|
| National Income | Formula-based MCQs (GNP, NNP, NI); base year facts | Rarely directly asked; underpins growth-rate discussions |
| Money, Banking & RBI | Current rates (Repo, CRR, SLR); institution facts | Monetary policy transmission, financial inclusion debates |
| Fiscal Policy | Deficit definitions and formulas; FRBM targets | Fiscal consolidation vs growth trade-offs; Budget analysis |
| Inflation & Poverty | Committee thresholds; CPI/WPI distinctions | Poverty alleviation strategy; inflation targeting debates |
| Planning & Trade | NITI Aayog vs Planning Commission; WTO facts | 1991 reforms legacy; trade policy and BoP management |
| Agriculture & Infrastructure | Scheme facts (MUDRA tiers, NPA thresholds) | Agricultural reform debates; banking sector NPA crisis |
Q1. GDP = ₹200 lakh crore, NFIA = −₹2 lakh crore, Depreciation = ₹15 lakh crore, Net Indirect Taxes = ₹18 lakh crore. Find National Income.
Q2. If CRR = 10%, find the Money Multiplier and the credit creation from an initial deposit of ₹1,00,000.
Q3. Total Expenditure = ₹45 lakh crore; Revenue Receipts = ₹24 lakh crore; Non-debt Capital Receipts = ₹1 lakh crore. Find the Fiscal Deficit.
Q4. Fiscal Deficit = ₹17 lakh crore; Interest Payments = ₹9 lakh crore. Find the Primary Deficit.
Q5. Under MUDRA, Kishore covers ₹50,000–₹5 lakh and Tarun covers ₹5 lakh–₹10 lakh. What is the maximum loan sanctioned under MUDRA overall?