The study on highlight of Indian econmy at present menario

Sisu pon amirthan.T

BCA LLB (HONS)-I YEAR ‘C’ SECTION

SCHOOL OF EXCELLENCE IN LAW UNIVERSITY

CHENNAI-600113

EMAIL ID:[email protected]

Abstract:

This study is based on highlight of Indian economy at present menoria the Department of
Economic affairs, Ministry of Finance presents the Economic Survey of India in Parliament
every year, just before the Union Budget. This document is submitted to both houses of
Parliament during the Budget Session. The Economic Survey reviews the developments in
the Indian economy over the previous 12 months. It highlights the policy initiatives of the
government, summarizes the performance on major development programs, and shows the
growth prospects of the economy. It is generally presented by the Chief Economic Advisor
(CEA). However, this year (2022), it has been prepared by the Principal Economic
Advisor Sanjeev Sanyal .1

Keywords:

1. GDP

2. Chief Economic Advisor(CEA)

3. Demand and Supply

4. Direct Benefit of Transfer (DBT)

1
https://byjus.com/free-ias-prep/economic-survey/

1
Introduction:

The Indian economy has fully recovered to the pre-pandemic real GDP level of 2019-20,
according to the provisional estimates of GDP released on May 31, 2022. Real GDP growth
in FY 2021-22 stands at 8.7%, which is 1.5% higher than the real GDP in FY 2019-20. These
figures are associated with stronger growth momentum, indicating increased economic
demand. The investment rate in the fourth quarter increased to its highest level in the
previous nine quarters. Moreover, capacity utilisation in the manufacturing sector rose in the
fourth quarter, as against the third quarter, implying a build-up in demand, which is
consistent with the growth objectives of the Indian economy.

Future capital spending of the government in the Indian economy is expected to be supported
by factors such as tax buoyancy, streamlined tax system, thorough assessment and
rationalisation of the tariff structure and digitisation of tax filing. In the medium term, an
increase in capital spending on infrastructure and asset-building projects is set to increase
growth multipliers. Furthermore, revival in monsoon and Kharif sowing helped the
agriculture sector gain momentum. As of July 11, 2022, the South-West monsoon has
covered the entire country, resulting in 7% higher rainfall than the normal level. India has
emerged as the fastest-growing major economy in the world, and is expected to be one of the
top three economic powers globally over the next 10-15 years, backed by its robust
democracy and strong partnerships.2

Statement of problem:

1. What are the main features of India's economy?

2. What is the importance of Indian economy?

3. What are the main features of India's economy?

4. What is the main history of Indian economy?

5. What is the problem with Indian economy?

Review of literature:

Paper reviews India's growth performance since independence. Phrases suchas "Hindu Rate
of Growth," sometimes make a telling comment and expose obscure economic data to a wider
audience, but they can just as readily obscure reality by focussing attention on the wrong
issue. There is nothing in the literature that suggests that this period of the "Hindu Rate of
Growth" had anything to do with Hinduism perse. This paper shows that had a lot to do with
the Indian version of Socialism. The 30-yearperiod from 1950-51 to 1979-80 is therefore
better described as the "Indian-socialist" orperhaps "Hindu-socialist" period. The paper also
identifies a truly disastrous 15-yearsub-period within this Indian-socialist period, the negative

2
https://www.ibef.org/economy/indian-economy-overview

2
lessons of which have still not been fully understood or absorbed by academics, policy
makers and political parties.3

Objectives:

1. To low per capita income.

2. To heavy population pressure.
3. To dependence on Agriculture.
4. To poverty and inequality.
5. To higher rate of capital formation or investment.

Methodology:

Researcher made based on secondary data, sourced are collected from various book, media,

Journals, websites ect.

Concepts:

Economic concepts refer to the collection of basic ideas that explain various occurrences in
the economy, like the actions and choices of economic agents. Therefore, a basic
understanding of the concepts is important in studying and analyzing the decisions and
behavior of economic agents. For example, it includes the producers’ and consumers’.4

decisions on producing and buying..

1. Scarcity:

Scarcity is one of the key economic concepts. In economics, it refers to the limited
availability of resources for human consumption. The world population needs are unlimited,
whereas the resources to meet the needs are limited. The limited feature of resources makes it
more valuable and expensive. Effective resource allocation techniques and integration of
alternatives confront the scarcity issues. Examples of scarce resources are oil and gold. Its
scarcity will limit the human want for it.

2. Supply demand:

Another important economic concept is supply-demand. Supply refers to the number of

goods and services available for consumers. The law of supply states that as price increases,
also supply increases and vice versa. Hence the supply curve is upward sloping. If the price
of a chocolate brand increases, its demand decreases and vice versa. When the price of cocoa
rises in the global market, chocolate price increases, and producers increase the supply to
obtain the advantage.

3
https://www.econstor.eu/handle/10419/176144
4
https://www.wallstreetmojo.com/economic-concepts/

3
3. Incentive:

Incentive refers to the factor that influences the consumer in the decision-making process.
Two types of incentives are intrinsic and extrinsic incentives. Intrinsic incentives originated
in the consumer without any outside pressure, whereas extrinsic incentives developed due to
external rewards. For example, the decrease in the price of a discretionary item is an
incentive to purchase that item.

4. Economic system :

An economic system comprises various entities forming a social structure that enables a
production system, allocation of resources, and exchange of products and services within a
community Capitalism, communism, socialism, and market economy are types of economy
system.

5. Factors of protection:

Another important economic concept is factors of production. It refers to inputs applied to the
production process to create output: the goods and services produced in an economy. The
essential factors of protection forming the building blocks of an economy include land, labor,
capital, and entrepreneurship. For example, consider a manufacturing entity, where factors of
products are land representing the natural resources used, labor represents the work done by
workers, capital represents the building, machinery, equipment, and tools involved in the
production, and finally, the entrepreneur aligns other factors of production to create the
output.

6. Protection possibility:

In economics, protection possibility frontier is a curve in which each point represents the
combination of two goods that can be produced using the given finite resources. For example,
a farmer can produce 20,000 apples and 30,000 apricots in his fixed land so that the trees are
placed to have adequate space to develop a healthy root system and receive enough sunlight.
However, if he intends to produce 50,000 apricots, he will make only 10,000 apples on his
farm.

7. Marginal analysis

The marginal analysis compares the additional cost incurred and the corresponding additional
benefit obtained from an activity. Usually, companies planning to expand their business by
adding another production line or increasing volumes perform this analysis. For example, if a
company has enough capacity to increase production but improves the warehouse facility, a
marginal analysis indicates that expanding the warehouse capacity will not affect the
marginal benefit. In other words, the ability to produce more products outweighs the increase
in cost.

4
Significance:

1. The Economic Survey discusses all the major government initiatives with explanations. All
the dynamic and theoretical questions can be traced to this.

2. As per the new trend, the economy and the environment are going hand in hand. So
questions can come from that perspective also.

3. Students can imbibe actual phrases used in the Economic Survey to frame answers
for UPSC mains Examination.

4. The Survey analyses and gives reasons for many issues happening around. Deep
knowledge of the current policies and programs of the government also helps an aspirant to
write meaningful essays.

5. Furthermore, the issues appraised in the Economic Survey and reforms suggested are often
implemented by the government in future initiatives. A good example of this would be
the Direct Benefit of Transfer (DBT), which was suggested in previous Economic Surveys
and has been implemented by the government.5

Limitation :
The exclusion of non-market transactions.
The failure to account for or represent the degree of income inequality in society.
The failure to indicate whether the nation's rate of growth is sustainable or not.

Result and Discussion:

Statement of problem:

1. What are the main features of India's economy?

Indian economy is totally agro-based economy. Near about 14.2 % of Indian GDP is
contributed by agriculture and allied sectors while 53% of the total population of the country
depends upon the agriculture sector.

2. What is the importance of Indian economy?

The Indian economy is where the heart of the country lies. Since the 21st-century, India has
witnessed a GDP growth rate from 6% to 7%. And after China, India is now the second-
fastest country which has been showing real signs of economic growth.

5
https://byjus.com/free-ias-prep/economic-survey/

5
3. What is the main history of Indian economy?

Between 1st and 17th centuries AD, India is estimated to have had the largest economy of the
ancient and medieval world, controlling between one third and one fourth of the world's
wealth. During the Mughal period (1526–1858 AD) India experienced unprecedeneted
prosperity in history.

4. What are the main problem of Indian economy?

Low level of national income and per capita income.

Vast inequalities in wealth and income.
The predominance of agriculture.
Tremendous population pressure.
Massive unemployment

Conclusion:

In conclusion, the Survey is quite optimistic that overall macro-economic stability indicators
suggest that the Indian Economy is well placed to take on the challenges of 2022-23 and one
of the reasons that the Indian Economy is in good position is its unique response strategy.
Economic growth is determined by the combination of production and creative innovation
brought about by utilizing allocated capital and labor. In recent years, the great influence of
institutions on this overall process has come to be actively recognized. It can increase the
employment rate and can decrease the poverty level. If the rate of employment is increased, it
positively affects the sector of economic stability of the country. It can also help to make the
people of India more self-sufficient and decrease economic inequality.

Reference:

Eresoures:

1. https://byjus.com/free-ias-prep/economic-survey/

2. https://www.ibef.org/economy/indian-economy-overview

3. https://www.econstor.eu/handle/10419/176144

4. https://www.wallstreetmojo.com/economic-concepts/

5. https://byjus.com/free-ias-prep/economic-survey/