ECONOMICS
Economics is the social science that analyses the production, distribution and consumption of goods and services. The origin of term 'Economics' is from the greek word 'Oikonomia', which has the meaning 'Home Administration'. The study of economics is known as 'Aphnology/Plutology'. It has the meaning of 'The Science of Wealth'. Adam Smith is the father of Modern Economics. He laid the clear foundation of Modern Economics. He is the pioneer of political economy. He wrote the first modern book on economics - 'Wealth of Nations'. Economics has two branches - Micro Economics and Macro Economics.
Open Economy and Closed Economy
Indian Economy before Independence
Rural Development Programmes in India Before Independence
Indian Economy after Independence
History of Economic Thought in India
Evolution of Economic Planning in India
Objectives and Achievements of Five Year Plans
Models of Economic Development
Economic Sectors of Production
Various Concepts of National Income
Measurement of National Income
Gross Domestic Product and Welfare
Economic Growth andDevelopment
Human Resource Development in India
■ Features of Human Resource
■ Quantitative Features
■ Qualitative Features
■ Education and Human Resources Development
■ Healthcare and Human Resource Development
■ Challenges of Development in India (Inequality and Poverty)
■ Policies and Programmes of Poverty Eradication in India
■ Food Production
■ National Multidimensional Poverty Index 2021
■ Indian Census 2011
■ Registrar General and Census Commissioner of India
Eight censuses were conducted in India before independence. Censuses were conducted in British India in 1872, 1881, 1891, 1901, 1911, 1921, 1931, and 1941 respectively. The eighth and last census in British India was conducted in 1941. The census after 1949 was conducted under the leadership of the Registrar General & Census Commissioner of India under the Union Home Ministry. The first census was conducted in post-independence India in 1951. It also collected information for economic development. Censuses were conducted in India in 1961, 1971, 1981, 1991, 2001, and 2011 by the Registrar General & Census Commissioner of India.
■ Population
■ Population Density
■ Female - Male Ratio
■ Unemployment
■ Literacy Rate
■ Economic Committees
New Economic Reforms (Liberalisation, Privatisation, Globalisation)
The new economic reforms were launched in 1991 during the period of P.V. Narasimha Rao government. The Father of Indian Economic Reforms is P.V. Narasimha Rao. The main reason to start new economic policy is Gulf War and problem of balance of payment in India. First Generation Reforms were aimed at Stabilisation of Indian economy and were macro level in nature. It includes liberalisation and deregulation of industry; financial sector reforms, taxation reforms etc. Second Generation Reforms aimed at structural changes and are micro level in nature. It includes labour reforms, land reform, capital market reforms, expenditure reforms and power sector reforms etc. Three main objectives of new economic policy were: 1. Liberalisation, 2. Privatisation & 3. Globalisation.
■ Deregulation of Industrial Sector
■ Financial Sector Reforms
■ Tax Reforms
■ Foreign Exchange Reforms
■ Trade and Investment Policy Reforms
■ Privatisation
To increase participation of private sector in the public sector companies by capital investment or by management or both 3r to hand over a public sector unit to a private company is called Privatisation.
■ Globalisation
The process of amalgamation of an economy with world economy is called Globalisation. It is signified by lower duties on import and export. By doing so, that sector will also get private capital and foreign technology.
■ Disinvestment Commission
Disinvestment means to decrease the share of government in the industries. Disinvestment Commission was established in 1996. It was constituted to review, give suggestions and make regulations on the issue of disinvestment. The first Chairman of Disinvestment Commission is G.V. Ramakrishna. Disinvestment Commission was aimed to reduce or mitigate fiscal deficit, bring about a measure of economic stabilisation or to improve efficiency in public enterprises through structural adjustments initiated to improve their efficiency and productivity. The Commission was reconstituted for a period of two years under R.H. Patel in 2001. The commission was wound up in October 2004.
■ National Renewal Fund
National Renewal Fund was established on February 3rd 1992. It was constituted for rehabilitation of displaced labourers of sick industrial units affected due to industrial modernization, technological development etc.
■ Causes and backwardness of Economy
INDIAN CURRENCY SYSTEM
■ Barter System
The barter system was a method of human exchange of Commodities before the invention of money. It was a system in which goods were exchanged for goods. Another name for the economy in which goods were exchanged is C-C economy (Commodities are exchanged for Commodities). Money emerged to overcome the limitations of the barter system.
■ Paper Currency and Coins
Monetary unit of India is Rupee. It is based on the decimal system. The Decimal Coin system introduced in India was in April 1957. The rupee coin is a coin finished of nickel. Its cost is higher than its metallic value. The act which gave the Government the monopoly of note issue in India is Paper Currency Act of 1861. The Rupee was first minted in India by Sher Shah Suri. The First Paper Currency circulated in India is in 1882. Indian rupee turns out to be an independent currency with the founding of RBI in 1935. The Exchange value of the rupee came to be fixed by IMF standards in 1947. The First devaluation of Indian Currency is in 1949 June. Since independence, India has faced two major financial crises and two consequent devaluations of the rupee. These crises were in 1966 and 1991.
■ Indian Currency Printing
Paper for creating currencies and further security papers are made by Security Paper Mill (Hoshangabad, Madhya Pradesh).
Indian Security Press, Nasik (Maharashtra) prints Postal-non-Postal, Judicial-non Judicial stamps, Cheques and Bonds
Security Printing Press, Hyderabad is established in 1982 for printing postal material for southern states.
Currency Note Press (Nasik) : Rs. 5, Rs. 10, Rs 20, Rs. 50 & Rs. 100 are printed here. The notes in the denominations of Re. 1 and Rs. 2 have been terminated as it is coinised.
Bank Notes Press (Dewas) : Rs. 20, Rs. 50, Rs 100 and Rs. 500 are printed here.
Coins : Coins are minted at four places in India. They are Mumbai, Kolkata, Hyderabad and Noida.
Modernised Currency Note Press is located at Mysore (Karnataka) and Salboni (West Bengal).
Pictures in Indian Currency
• Rs. 1 - Image of an oil exploration site
• Rs. 2 - India’s first satellite “Aryabhatta"
• Rs. 5 - Tractor, Farmer
• Rs. 10 - Konark Sun Temple (new), Wild Animals (old)
• Rs. 20 - Ellora Caves (new). Mount Harriet Light House in Port Blair (old)
• Rs. 50 - Hampi with Chariot
• Rs. 100 - Rani ki Vav (new), Mount Kanchenjunga (old)
• Rs. 200 - Structure of Sanchi Stupa
• Rs. 500 - Historical Red Fort building
• Rs. 2000 - Mangalyaan space mission
Note issue is based on Minimum Reserve System, since 1957. Under this scheme RBI has to preserve the lowest amount of gold and foreign exchange against note issue. Under this system, minimum reserves required for RBI is Rs.200 crores. Out of which Rs.115 crores should be in gold and Rs.85 crores as Foreign Exchange Reserves. Foreign countries which accept Indian Rupee as legal tender is Nepal and Zimbabwe. The countries, Nepal and Bhutan were peg their currencies to the Rupee. Only one foreign language that is printed in Indian Currency is Nepali. The First Indian language which is recorded on the basis of the Indian rupee is Assamese and the Last Indian language is Urdu. Malayalam is in 7th position. Polymer Bank notes often ruppes implemented in Mysore, Jaipur, Shimla, Bhubaneshwar, Kochi. The first Malayalee to be portrayed in a coin is Sree Narayana Guru. The first Malayalee woman is Alphonsamma.
RBI withdrew Coins of 25 Paise and below on 2011 June 30. Rs. 1000 Series Currency Note was issued lastly by RBI in 2000. It was first introduced in 1954. It was reintroduced in 2000. 1000 rupee coin was introduced in 2012 to commemorate 1,000 years of the Brihadeeswara temple in Thanjavur. The Brihadeeswara temple had observed 1,000 years of its subsistence in 2010. It was printed by Mumbai Mint. 150 rupee coin was issued in 2011 to celebrate the Rabindranath Tagore's 150th birth anniversary. The Commemorative coin introduced in 2010 to mark the centenary birth celebrations of Mother Teresa is 5 rupee coin. Plastic Money is known as Credit Card.
■ Withdrawl of Currency
RBI withdrew the currency note printed from 8 November 2016 to 30 December 2016 take the existing 500 and 1000 rupee notes out of circulation.
■ Demonetization
Indian Currency was demonetized for Three times - Rs 1,000 and Rs 10,000 bank notes, which were in circulation, were demonetized in January 1946. Rs 1,000, Rs 5,000 and Rs 10,000 were demonetized by RBI in January 1978. The third demonetization in India was in 2016. RBI demonetized 500 and 1000 rupee notes out of circulation in 2016. Demonetization is the procedure of stripping a currency of its type as legal tender. Demonetization is crucial at any time there is an alteration of national currency. The older unit of currency must be withdraw and reinstate with a new currency unit.
■ Demand of Money
■ Indian Rupee
India government officially selected the symbol created by D Udaya Kumar Dharmalingam on July 15, 2010. It is derived from the Devanagari consonant and the Latin letter "R". The first series of coins with the rupee symbol was launched on 8th July 2011. Fifth Currency with Symbol and other four currencies is Dollar, Euro, British Pound, Yen.
CAPITAL MARKET
Capital market is defined as the market for long term funds. It includes all facilities and institutional arrangements available for borrowing and lending of long term funds. It is concerned with the raising of funds for investments. The demand for long-term funds comes mainly from the private companies, agriculture and government. They need money for monetary over heads and basic industries. Supply of funds mainly comes from individual savings and insurance companies.
■ Components of Capital Market
The Components of Indian Capital Market are Gilt- Edged Market, Securities Market, Financial Institution, Financial Intermediaries.
■ Gilt - Edged Market
This is the market of government securities or the securities guaranteed by the Govt. The word 'gilt- edged' is called as 'of the best quality'.
■ Securities Market
Securities market is the market for shares and debentures of companies. It is further classified as new issue market and old issue market.
■ Financial Institutions
■ Financial Intermediaries
■ New Issue Market (NIM) (Primary Market)
It is also called primary market. It is the market for raising of new capital in the form of equity shares, preference shares or debentures. Guaranteeing purchase of a new issue at a fixed price (underwriting) has been done by ICICI, LIC, IDBI etc.
■ Old Issue Market (OIM) (Secondary Market)
This is the secondary market of securities. It deals securities already issued by companies. It aims at easy convertibility of securities into cash. It has two segments - Stock Exchange & Over the Counter Exchange
■ Foreign Trade in India
Foreign trade in India is administered by the Ministry of Commerce and Industry. Foreign Trade offers foreign exchange, which helps us to eradicate poverty and also can be used for other productive purposes.
■ Foreign Exchange Reserves
The foreign exchange reserves of India include Foreign Exchange Assets of RBI, Gold Stock of RBI, SDR (Special Drawing Right) holdings of the Government.
■ Foreign Exchange Assets of RBI
■ Gold Stock of RBI
■ Special Drawing Right (SDR)
■ EXIM Policy (Foreign Trade Policy)
EXIM Policy also known as Foreign Trade Policy. It refers to the policy measures adopted by a country with reference to its exports and imports. The Government of the country advises the EXIM Policy for a period of five years. The Export Import Policy is updated every year on 31st March. It becomes effective from 1st April of every year. The objective of Foreign Trade Policy 2015-20 is to double India's exports of goods and services by 2020. Foreign Trade Policy 2015-2020 has been considered by including the long and medium term policy to enhance the whole development of India's foreign trade by enhancing trade competitiveness. India's recent Foreign Trade Policy (FTP) covers 2020 to 2025. The FTP 2025 aims to make India a $3 trillion export economy by 2030 by promoting diversified and sustainable exports. United States of America (USA) is India's biggest export market. India's top import market is China. India's biggest import is Crude Petroleum. The largest Indian partner with their total trade (sum of imports and exports) is China. It is followed by USA and UAE. As a single economy, the EU (European Union) is the second largest trading partner of India.
■ FERA & FEMA
■ Indian Fiscal System
Indian Fiscal system includes the management of revenue sources and expenditure of the central and state governments, public debt, deficit financing, budget, tax structures etc.
■ Deficit Financing
Deficit financing is a fiscal tool in the hands of the government to bridge the gap between revenue receipt and revenue expenditure.
BUDGET
A Budget is the anticipated annual estimate of expenditure and revenue of a country or a subordinate authority like a corporation. The word Budget is originated from the French word `bougette’ had the meaning, small bag. It denotes a bag containing the financial proposals. The first Budget presented in India by Sir James Wilson during the period of Lord Caning (1860). The first Finance Minister of Free India is R.K. Shanmugham Shetty. The first Budget in Independent India was presented by R. K. Shanmukham Chetty in 1947 November 26. The first Budget of Republic India was presented by John Mathai (1950 February 28). The highest number of budget in India was presented by Morarji Desai (10 times). The first woman who presented the budget is Indira Gandhi. Nirmala Sitharaman is the second women to present budget in the Indian parliament and it was in 5 July 2019.
A Union Budget is the complete report of the Indian Government's finances, where the income and expenses from all sources and expends to all actions are consolidated. It is known as "Annual Financial Statement". This statement is the main budget document. It has to be presented before the Parliament for each Financial Year. It was prepared under the guidelines of Articles 112 (explained below).
■ Budgeted Estimates
The Budget also contains approximation of the administration financial records for the next fiscal year. It is called Budgeted Estimates. The Budget that is presented by the way of the Financial Bill and the Estimation bill has to be approved by the Parliament House prior to come into effect on April 1, the start of India's financial year.
■ Three Heads of Indian Budget
Indian budget consists of three heads - Consolidated Fund in India, Contingency Fund and Public Account.
■ Consolidated Fund in India
It consists of all revenue and loans received by the government.
■ Contingency Fund
The fund comprises the sum placed at the disposal of the president to meet unforeseen expenditure.
■ Public Account
It consists of all receipts and payments which are in the nature of a deposit account with the government.
■ Revenue Budget and Capital Budget
The budget consist of two parts, Revenue Budget and Capital budget. Revenue Budget contains current receipts such as taxation, dividends of public sector units and expenditure of government. Capital Budget contains all the capital receipts and expenditure.
Finance Commission of India was formed to define the financial relations between the centre and the state. It was established in 1951.
■ Functions of Budget (Allocation, Redistribution and Stabilisation)
■ Railway Budget
■ General Income of Government - Tax Income and Non Tax Income
GOVERNMENT TAX INCOME
General Revenue
■ Revenue Receipts (Tax Revenue and Non Tax Revenue)
■ Capital Receipts
General Expenditure
■ Revenue Expenditure (Plan Revenue and Non Plan Revenue)
■ Capital Expenditure
BUDGET, DEFICIT and DEBT
GOVERNMENT BUDGET
■ Revenue Budget (Revenue Income & Revenue Expenditure)
■ Capital Budget (Capital Income & Capital Expenditure)
GOVERNMENT DEFICIT and DEBT
Measurement of Deficit by Government
■ Revenue Deficit
■ Fiscal Deficit
■ Primary Deficit
■ Fiscal Policy (Automatic Stabilizers & Discretionary)
■ Ricardian Equivalence
■ Deducting Deficit
■ Government Debt
■ Crouding Out
■ Fiscal Responsibility and Budget Management Act - FRBM
TAX SYSTEM
A compulsory contribution given by a citizen or organisation to the government is called Tax, which is used for meeting expenses on welfare work. Taxes in India are levied by the Central Government and the State Governments.
Types of Taxes
■ Direct Taxes
A tax which is paid by a person as shown it is legally imposed and the burden of which cannot be shifted to any other persons is called a direct tax. eg: Income tax, Wealth tax, Property tax, Estate duties, Gift Tax etc
■ Indirect Taxes
An indirect tax is levied and collected from a person who manages to pass it to some other persons to whom the real burden of the tax falls. Hence in the case of indirect taxes, the tax payer is not the tax bearer.eg: Commodity taxes or Sales tax, Excise duties, Custom’s duties etc.
■ Taxes Imposed by Central Government
Income Tax, Corporate Tax, Property Tax, Succession Tax, Wealth Tax, Gift Tax, Custom Duty, Tax on agricultural wealth, Service Tax etc
■ Taxes Imposed by State Government
Land Revenue Tax, Agricultural Income Tax, Agricultural Land Revenue, State Excise Duty, Entertainment Tax, Stamp Duty, Road Tax, Motor Vehicle Tax etc.
Important Taxes Imposed in India
■ Tax on Income and Wealth
The Central government imposes different types of tax on income and wealth, viz. corporate tax, gift tax, income tax, and wealth tax.
■ Personal Income Tax
Personal Income Tax is generally imposed on an individual combined hindu families and total income of people of other communities.
■ Corporate Tax
Corporate Tax is compulsorily charged on Registered Companies and Corporations.
■ Custom Duties
As per the constitutional provisions, the central government imposes both import duty and export duty.
■ Excise Duties
Excise duties are service tax as it is charged on production of an product and it has no importance with its sale. It is the major source of income for the Central Government.
■ Cess
Cess is one of the tax charged by central government and it is mainly to found fund for education curriculum for the poor.
■ Service Tax
It is a type of tax charged for services conducted in India, except the union territories of Ladakh and Kashmir. The duty of collecting the tax was done by the Central Board of Excise and Customs (CBEC).
■ Value Added Tax (MODVAT, CENVAT & Direct Tax Code)
VAT is launched in India in 2005. The first state to implement VAT is Haryana. The first country to implement VAT is France and it is introduced in 1954. As of 2nd June 2014, Value Added Tax has been executed in the entire states and union territories of country. It was introduced as an indirect tax into the Indian taxation system. The existing General Sales Tax rules were changed with new Value Added Tax Acts. Value-added tax (VAT) otherwise called as Goods and Services Tax (GST) is a type of Consumption tax. VAT is a multi-point objective system of taxation. Tax is being levied on value addition at each stage of transaction in the production/ distribution chain. The expression ‘value addition' indicates the boost in the value of goods and services at every steps of production or transport of goods and services. VAT is a tax on the ultimate use of goods or services and is finally bear by the consumer. The standard rate of VAT is 12.5 percent
MODVAT: Modified Value Added Tax
It stands for Modified Value Added Tax. It is a modified form of VAT which has been in operation in many countries since long. India introduced VAT in the modified form in 1986. The inputs remain taxed. But the tax is reimbursed to the producer of the final product who uses these taxed inputs.
CENVAT: Central Value Added Tax
The government introduced CENTVAT in lieu of central excise taxes in 2000-01 budget. It plans to extend the CENVAT to the customs duties in due course. Initially the CENVAT was introduced as an experiment on a limited basis, but later it was extended to all sectors of the economy.
Direct Tax Code (DTC)
Direct Taxes Code Bill was presented in Parliament in the month of August in 2010. The new legislation replace the Income-Tax Act, 1961. It came into force only from April 2012. DTC proposes to levy 30% corporation tax on companies, including cess and surcharge, instead of the present combined levy of 33.2%. The tax rate for foreign companies would be same as the domestic companies.
■ Goods and Service Tax (GST)
Government's intent of merging all taxes including Service Tax, Excise and VAT into a common tax called Goods and Service Tax (GST). GST is a complete Value Added Tax (VAT) charged on goods and services. France was the first country to levy the GST and it was in 1954. By a tax credit system, GST is charged on value added goods and services at consecutive steps of sale or buy in the supply chain.
■ Major Taxes Merged with GST
■ GST Council
■ Rationale & Structure of GST
Benefits of GST
■ Integrated National Market
■ Elimination of Cascading Effect
■ Removal of Multiplicity of Taxes
■ Increase in GDP
■ Efficient Administration by Government
GOVERNMENT NON TAX INCOME
■ Fees
■ Penalties and Fines
■ Grant
■ Interest
■ Profit
General Debt of Government
■ Domestic Debt
■ Foreign Debt
■ Reasons of increase of General Debt of Government
INDIAN FINANCIAL SYSTEM
The Indian Financial System carries out a vital role in economic development of the country through saving and investment method. It is known as Capital formation. The Indian financial system consists of two parts, the Indian money market and the Indian Capital market.
Market in which short-term funds are borrowed and lent. Indian money market is classified into Organised sector & Unorganised sector. The Organised sector consists of the Central Bank of India (RBI), the Commercial banks, Co-operative Banks, Foreign banks etc. The unorganised sector consists of indigenous bankers.
The Indian capital market : Market for medium term and long term funds. The Capital market of India includes Government Securities, Industrial securities market and Development financial institutions like IDBI, ICICI, UTI etc.
■ Government Securities
■ Industrial Securities Market
■ Development Financial Institutions
■ Central Monetary Authority (RBI)
■ Monetary Policy
Monetary policy is the technique by which fiscal authority of India, particularly the RBI manage the distribution of money to the people by its control over interest rates so as to keep price constancy and accomplish high economic growth. In India, the central monetary authority is Reserve Bank of India. Major Monetary operations: Bank Rate, Open Market Operation, Statutory Liquidity Ratio, Cash Reserve Ratio.
Major Monetary Operations (Bank)
■ Bank Rate
Bank Rate is the rate at which central bank of the country (In India, it is RBI) allows finance to commercial banks. Bank Rate is a tool, which central bank uses for short-term purposes.
■ Cash Reserve Ratio (CRR)
Cash Reserve Ratio is the Certain percentage of the total bank deposits has to be kept in the current account with RBI.
■ Open Market Operation
The Central Bank buys or sells the government securities in the open market to permanently inject or absorb systemic liquidity.
■ Sterilization
Sterilization is the action taken by RBI to offset the impact of its foreign exchange operations on the domestic money supply.
■ Statutory Liquidity Ratio
SLR refers to that portion of total deposits of a commercial bank which it has to keep with itself in the form of cash reserves. SLR is an effective instrument of credit control with Reserve Bank of India. By varying the SLR, the RBI controls the expansion and contraction of credit. If SLR is reduced, the lendable resource with the scheduled commercial banks gets correspondingly increased and vice-versa.
■ Repo and Reverse Repo Rate
Repo rate is the rate at which the RBI lends short-term money to the banks against securities. When the repo rate increases borrowing from RBI becomes more expensive. Reverse Repo Rate is the rate at which banks park their shortterm excess liquidity with the RBI. The banks use this tool when they feel that they are stuck with excess funds and are not able to invest anywhere for reasonable returns.
■ Banking Institutions
■ Non Banking Institutions
■ Acts related to Financial Institutions
BANKS
■ Scheduled and Non Scheduled Banks
■ Reserve Bank of India, Duties
Major Duties of Central Bank
■ Issue of Currency
■ Banker to the Government
■ Bankers Bank
■ Custodian of Foreign Exchange
■ Lender of last resort
■ Controller of Money Supply
■ Publication of Reports
■ Moral Suation
■ Direct Action
Supply of Money
■ Unit of Money Supply in India
■ Factors influencing Money Supply
■ Minimum Reserve System
NON BANKING FINANCIAL INSTITUTIONS
■ Mutual Fund Institutions
■ Microfinance
■ Insurance Companies
■ Life Insurance Corporation of India (LIC)
■ General Insurance
■ Insurance Regulatory Development Authority of India (IRDAI)
STOCK EXCHANGES IN INDIA
A Stock exchange is an organised market for buying and selling shares and other securities. There are 23 stock exchanges in India are established. 21 are regional and two are national. Bombay Stock Exchange and National Stock Exchange (NSE) are the two national stock exchanges in India. SEBI is the regulatory and coordinating body for the functioning of the stock markets in India. Presently there are seven stock exchanges in india and the remaining stock exchanges are closed. Present Stock Exchanges are
1. Bombay Stock Exchange
2. National Stock Exchange
3. Calcutta Stock Exchange Ltd.
4. National Commodity & Derivatives Exchange Ltd.
5. Metropolitan Stock Exchange of India Ltd
6. Indian Commodity Exchange Limited
7. Multi Commodity Exchange of India Ltd.
■ OTCEI (Over the Counter Exchange of India)
Over the Counter Exchange of India was incorporated under the provisions of the Companies Act 1956 as a public limited company. It is a recognised stock exchange under the Securities Contracts (Regulation) Act, 1956. OTCEI is promoted by the Unit Trust of India, Industrial Credit & Investment Corporation of India, the Industrial Development Bank of India and the Industrial Finance Corporation of India and others. OTCEI closed in 2015.
■ National Stock Exchange (NSE)
The National Stock Exchange of India came into existence in 1992. The National Stock Exchange was approved in April 1993. In 1995, NSE became the largest stock exchange in India. It is located in Mumbai. The market index of the National Stock Exchange is known as Nifty. It is determined based on the market value of the shares of 50 companies listed on the NSE. On 1998 June 15, National Stock Exchange was launched two new Reference Rates for the loans of Inter-Bank Call Money Market. These rates are MIBOR (Mumbai Inter-Bank Offer Rate) and MIBID (Mumbai Inter-Bank Bid Rate). MIBOR will be the indicator of Lending Rate for loans while MIBID will be the lending rate of receipts.
■ Bombay Stock Exchange (BSE)
The Bombay Stock Exchange, the first stock exchange in India, was established in 1875. The Bombay Stock Exchange is located on Dalal Street in Mumbai. The institution operates in the 'Firoz Jijabai Towers'. The original name of BSE was The Native Share and Stock Brokers Association. It received permanent recognition from the Central Government in 1956. D.S. Prabhudas and Company (DSP) was the first company to be registered on the Bombay Stock Exchange. It also has the distinction of being the first stock exchange in Asia. The BSE stock index is known as the Sensex (since 1986). Sensex is an abbreviation of Sensitive Index. The term Sensex was coined by Deepak Mohoni. Sensex is determined based on the change in the market value of shares of 30 companies listed on the exchange. BSE introduced computer online trading named BOLT - BSE Online Trading in May 1995.
■ India INX
India International Exchange (IFSC) Limited, also known as India INX, is a stock exchange market which is a subsidiary of BSE (Bombay Stock Exchange) Ltd. It is India's first international exchange and is located at the Gujarat International Finance Tec-City (GIFT City) of Gandhi Nagar, Gujarat.
■ Cochin Stock Exchange (CSE)
Cochin Stock Exchange was an Indian stock exchange in Kerala fully owned by the Government of India. Cochin Stock Exchange (CSE) was established in 1978. Cochin Stock Exchange have membership in National Stock Exchange and Bombay Stock Exchange. Cochin Stock exchange stopped its trade in 2005 and closed in 2014.
■ Delhi Stock Exchange (DSE)
Delhi Stock Exchange (DSE), one of the oldest Stock Exchanges in india was established in the year 1947. Delhi Stock Exchange adopted computer online trading named DOTS (Delhi Online Trading System) from January 29, 1996. Delhi Stock exchange closed in 2017.
■ Securities and Exchange Board of India (SEBI)
The Securities and Exchange Board of India (SEBI) is the regulatory and coordinating body for the functioning of the stock markets in India. SEBI was established in 1988. It became a statutory body under the Securities and Exchange Board of India Act, 1992. SEBI came into existence on the recommendation of the G.S. Patel Committee. In India, SEBI is known as the "Regulator of Credit Rating Agencies". SEBI is headquartered in Mumbai.
CO-OPERATIVE SECTOR
Co-operative Bank Organisation
■ State Co-operative Bank (SCB)
■ Central or District Co-operative Banks (CCBs)
■ Primary Agricultural Credit Societies (PACs)
Co-operative Marketing
■ Primary Marketing Societies
■ Central Federations
■ National Agricultural Co-operative Marketing Federation
Co-operative Banks
■ Land Development Banks
■ NAFED
■ Co-operative Farming (Dairy Co-operatives)
INSURANCE SECTOR
Insurance industry includes two sectors Life Insurance & General Insurance. The Indian insurance industry has around 52 insurance companies. The 28 of them is non-life insurance and 24 of them is life insurance.
India's life insurance sector is the leading insurance industry in the world having covered 36 crore policies. Insurance sector is listed in the Seventh Schedule of the Constitution. It can only be legislated by the central government.
The First Insurance Company Oriental Insurance Company started by Anita Bhavsar in Kolkata. It is established in 1818. The First Indian insurer is Bombay Mutual Life Assurance Society. It is started in 1870. The First General Insurance Company in India is Triton Insurance Company. It was started by British (1850).
Life Insurance Companies Act and the Provident Fund Act was implemented in 1912 to regulate the insurance business. The oldest insurance company in the country which is still running is National Insurance Company Ltd. It was started in 1906 and is still in the industry. Government of India undertook all General Insurance Companies in 1917.
Nationalisation of the Life Insurance sector is based on the Government of India Ordinance on 19th January 1956. Nationalisation of General Insurance is based on General Insurance Business (Nationalisation) Act 1972. Union Cabinet in July 2014 approved a proposal to relax Foreign Direct investment (FDI) limit in the domestic insurance sector to 49 percent from the previous 26 percent to bring capital and investment.
IRDA (Insurance Regulatory and Development Authority)
The Insurance Regulatory and Development Authority were established on April 19 2000. The Headquarters is at Hyderabad. IRDA Act came into effect on the basis of Malhothra Committee. IRDA was established in place of Insurance Regulatory Authority. IRDA protect the interest of the insurance policy holders and regulate, promote and ensure orderly growth of the Insurance industry.
Life Insurance Corporation (LIC)
LIC is the major state-owned and is the leading life insurance company in India. Life Insurance Corporation of India (LIC) is also the country's largest investor. It is set up in September 1, 1956. The Headquarters is at Mumbai. It is the biggest insurance company around the globe with respect to the number of policies covered. The first woman Managing Director of LIC is Usha Sangwan.
General Insurance Corporation (GIC)
General Insurance Corporation is the sole reinsurance company in the insurance sector of the country. It was formed on 22nd November 1972 and nationalised on Jan. 1, 1973. It is headquartered in Mumbai. New four companies established are National Insurance Company Ltd, New India Assurance Company Ltd, Oriental Insurance Company Ltd and United India Insurance Company Ltd.
• National Insurance Company Ltd was established in 1906 based in Mumbai and was nationalised in 1972.
• New India Assurance Company Ltd was founded by Sir Dorabji Tata in 1919. It is nationalised in 1973.
• Oriental Insurance Company Ltd is incorporated at Bombay on 12th September 1947. The Company was a supplementary of LIC of the country from the year 1956 to the year 1973 till the General Insurance Sector was nationalized in India.
• United India Insurance Company Ltd was founded in 1938. Its Headquarters is at Chennai. With effect from December 2000 these subsidiaries delinked from the parent company and were set up as independent insurance companies.
Some Important Terms
■ Inflation
■ Deflation
■ Reflation
■ Stagflation
■ Mortgage Crisis
AGRICULTURE
■ Role of Agriculture in Indian Economy
■ Programmes and law for promoting Agriculture
■ States first in Production
■ Minimum Support Price (MSP)
■ Agriculture Production (Food Grains & Non Food Grains)
Types of Cultivation
■ Sedentary Cultivation
■ Crop Rotation
■ Shifting Cultivation
■ Mixed Cropping
■ Relay Cropping
■ Terrace Cultivation
■ Mixed Farming
Cropping Seasons
■ Kharif (Rainy)
■ Rabi (Winter)
■ Zaid (Summer)
Agricultural Revolutions
■ Green Revolution
■ White Revolution
Agricultural Institutes
■ NABARD (National Bank for Agriculture and Rural Development)
■ Total Co-operative Marketing Development Federation India Ltd (TRIFED)
■ National Agricultural Co-operative Marketing Federation India Ltd (NAFED)
■ Indian Council of Agricultural Research (ICAR)
■ Indian Agricultural Research Institute (IARI)
■ Govind Ballabh Pant University of Agriculture and Technology
■ National Horticulture Mission
■ National Horticulture Board (NHB)
■ Veterinary Council of India
■ Fisheries
■ National Fisheries Development Board
■ Economic Survey on Agriculture 2014 - 15
■ Agricultural Censuses in India (1970-71 to till now)
■ Major Agricultural Methods
■ Agricultural Crops
■ Food Crops (Cereals and Pulses)
■ Cash Crops (Spices, Plantation Crops)
Certification Marks
■ Bureau of Indian Standards (BIS)
BIS is a National Standards Body of India for drawing up standards for the products of Indian industry. It is established by the Bureau of Indian Standards Act, 1986 and established in 1st April 1987. The Headquarters of BIS is at New Delhi. It allots quality marks to various products, known as ISI mark. ISI is a certification mark given for the industrial products in India since 1955. BIS is the successor of the Indian Standards Institution established in 1947.
■ Food Process Order Mark
FPO (Food Process Order) Mark is a certification mark mandatory on all processed fruit products sold in India following the Food Safety and Standards Act of 2006. The FPO mark assures that the food materials and other goods was manufactured in a hygienic 'food safe' . The Certifying Agency is Ministry of Food Processing Industries (India). The Standards have been in force since 1955.
■ AGMARK (Agricultural Mark)
AGMARK is a certification mark given on agricultural foodstuffs in India. It is legally imposed in the country by the Agricultural Produce (Grading and Marking) Act of 1937 (modified in 1986). AGMARK cover class strategy for 222 dissimilar commodities having a variety of Pulses, Spices, Essential Oils, Salt, Vegetable Oils, Cereals, Sugar, Fruits & Vegetables, and other food products. The Certifying Agency is Directorate of Marketing and Inspection, Government of India.
■ Non Polluting Vehicle Mark
Non Polluting Vehicle Mark is a compulsory certification mark necessary for all motor vehicles in the country. The mark guarantees that the motor vehicle obeys the rules to the appropriate version of the Bharat Stage emission standards. The Certifying Agency is Central Pollution Control Board of India
■ BIS Hallmark
BIS hallmark is a Hallmarking method for gold as well as silver ornaments certifying to the purity of the ornament according to the standards set by the Bureau of Indian Standards.
■ Eco Mark
Eco mark is a mark for environmentally friendly products for reducing environmental impact. Eco mark is given by the Bureau of Indian Standards. The marking scheme was started in 1991.
■ FSSAI Mark
Food Safety and Standards Authority of India (FSSAI) is to safeguarding and endorsing public health through the regulation and administration of food safety. FSSAI was formed in August 2011. FSSAI mark is certification mark for all food materials.
■ India Organic Mark
India Organic certification mark is for the organically farmed food products. The certification is issued by APEDA under National Program for Organic Production.
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