Economics

India embarked upon planned economic development soon after the achievement of independence. Planning in India derives its objectives and social premises from the Directive Principles of State Policy set forth in the Constitution. The Planning Commission prepares a blueprint of development, taking an overall view of the needs and resources of the country.The First Five-Year […]

Rural DevelopmentIndia lives in villages and village uplift is the key to the progress of the country. Since Independence, there has been a great exodus of population from the villages to the cities and towns. In spite of this the majority of our population still lives in villages.According to the 1971 census, 96 per cent

Every seventh person in the world is an Indian and every third poor person in the world is also an Indian. The statistics speak about the gravity of the problems of unemployment and poverty which demand and immediate solution. It has been observed that with the increase in the number of unemployed persons poverty expands.

Public sector enterprises are those enterprises which are owned and managed by the Central, State or Local Governments. At the time of Independence, public sector enterprises of the Central Government were confined to a very small segment of the economy namely—Railways, Posts and Telegraphs, Ports and Defence establishments. After Independence, the expansion of public sector

Small-scale and cottage industries are important parts of the structure and texture of Indian manufacturing sector. Small-scale industrial units are those which operate with a modest investment in fixed capital, relatively small-scale work force and which produce a relatively small volume of output of goods/services. They differ from large-scale industries with respect to size of

Role of IndustrialisationIndustrialisation has an important role to play in development of a country. This is true in the context of the developing countries as well. To some extent the gap in per capita income between developed and developing countries could be attributed to the structure of the economy in which a relatively poor position

Green RevolutionThe term green revolution has been used in the context of a significant break through in the production of foodgrains especially the wheat which showed a significant improvement in productivity since the mid-sixties. Such a break through could be possible due to the adoption of the new agricultural strategy. The new agricultural strategy emphasised

Agriculture plays a very important role in India’s economic development. The country is predominantly agricultural with 62 per cent of popluation depending directly on agriculture. It contributes about one-third of gross value added in India. Its role in economic development apart, it is a way of life and, therefore, in its development lies the general

National income is the money value of all the final goods and services produced by a country during a period of one year. National income consists of a collection of different types of goods and services of different types. Since these goods are measured in different physical units it is not possible to add them

Prices of goods, as has been stated already, express the exchange value. These are also used for expressing the value of various services rendered by different factors of production such as land, labour, capital and organisation. The values are: rent, wages, interest and profit. Therefore, the concept of price especially the process of price determination,

Consider the following situation: You go to the local market to buy a shirt. You enter one shop which sells shirt. The shirt which you like are priced at Rs. 400. But you think that are not worth more than Rs. 300. You offer Rs. 300 for the shirt. But the shopkeeper is not ready

It is not enough for a firm to divide the costs into fixed and variable costs. It has to work out in detail the different expenses incurred on various heads.Prime costPrime cost refers to all such expenses which can be directly assigned to the production of a commodity. It generally varies directly or proportionataly with

Production analysis or the theory of production deals with the general relationship of output of goods or services with factor inputs. Normally, a physical output is related to analysis. Likewise revenue productivity which is related with economic environment and the general equilibrium of demand and supply is left out in a pure production analysis physical

Production is a very important economic activity. The standard of living of people in the ultimate analysis, demands on the volume and variety of production. In fact, the performance of an economy is judged by a level of its production. Those countries which produce goods in large quantities are rich and those which produce little

We may define capital as that part of wealth of an individual or community which is used for further production of wealth. In fact, capital is a stock concept which yields a periodical income which is a flow concept. It is necessary to understand the difference between capital and wealth. Whereas wealth refers to all