TNPSC Group II – UNIT-VI: INDIAN ECONOMY

(i) Nature of Indian Economy

1. Nature of Indian Economy
   • Characteristics of the Indian economy: Developing economy, mixed economy, agrarian economy.
   • Structural changes: Shifts from agriculture to industry and services.
2. Five Year Plan Models – An Assessment
   • First Five Year Plan (1951-1956): Focus on agriculture, irrigation, and energy.
   • Second Five Year Plan (1956-1961): Industrial policy, Mahalanobis Model, heavy industries.
   • Third Five Year Plan (1961-1966): Emphasis on self-reliance and defense.
   • Fourth Five Year Plan (1969-1974): Focus on growth with stability, poverty alleviation.
   • Fifth Five Year Plan (1974-1978): Emphasis on employment, poverty reduction.
   • Sixth Five Year Plan (1980-1985): Technological modernization, export promotion.
   • Seventh Five Year Plan (1985-1990): Food, work, productivity.
   • Eighth Five Year Plan (1992-1997): Human resource development.
   • Ninth Five Year Plan (1997-2002): Agriculture and rural development.
   • Tenth Five Year Plan (2002-2007): Reduction of poverty, employment generation.
   • Eleventh Five Year Plan (2007-2012): Inclusive growth.
   • Twelfth Five Year Plan (2012-2017): Faster, sustainable, and more inclusive growth.
3. Planning Commission and Niti Aayog
   • Planning Commission: History, structure, and functions.
   • Niti Aayog: Formation, structure, and functions.
   • Differences between Planning Commission and Niti Aayog.
   • Key initiatives of Niti Aayog: Sustainable Development Goals (SDGs), Aspirational Districts Programme.

(ii) Sources of Revenue

1. Sources of Revenue
   • Tax Revenue: Direct taxes (income tax, corporate tax), indirect taxes (GST, excise duty, customs duty).
   • Non-Tax Revenue: Fees, fines, dividends, interest receipts, profits from public enterprises.
2. Reserve Bank of India (RBI)
   • Functions: Monetary authority, regulator of financial system, issuer of currency, manager of foreign exchange.
   • Tools of monetary policy: CRR, SLR, repo rate, reverse repo rate, open market operations.
3. Fiscal Policy and Monetary Policy
   • Fiscal Policy: Objectives, components (revenue and expenditure), budgetary process, fiscal deficit, public debt.
   • Monetary Policy: Objectives, tools, role in controlling inflation and stabilizing the economy.
4. Finance Commission
   • Composition, functions, and role in financial relations between the Union and States.
   • Key recommendations and their implementation.
5. Resource Sharing Between Union and State Governments
   • Mechanisms: Tax devolution, grants-in-aid.
   • Role of Finance Commission in resource allocation.
   • Issues and challenges in resource sharing.
6. Goods and Services Tax (GST)
   • Structure and features: CGST, SGST, IGST.
   • Impact on the economy: One nation, one tax.
   • GST Council and its role.

(iii) Structure of Indian Economy and Employment Generation

1. Structure of Indian Economy
   • Sectors: Primary (agriculture), secondary (industry), tertiary (services).
   • Contribution of each sector to GDP.
   • Changes and trends over the years.
2. Employment Generation
   • Types of employment: Formal, informal.
   • Government initiatives: MGNREGA, Skill India, Start-Up India.
   • Issues and challenges: Unemployment, underemployment, skill mismatch.
3. Land Reforms and Agriculture
   • Objectives and types: Abolition of intermediaries, tenancy reforms, land ceiling, consolidation of holdings.
   • Impact on agriculture: Productivity, rural development.
   • Current issues: Land acquisition, agrarian distress.
4. Application of Science and Technology in Agriculture
   • Role of technology: Green Revolution, biotechnology, GM crops.
   • Modern agricultural practices: Precision farming, drip irrigation, mechanization.
   • Government initiatives: PM-KISAN, Pradhan Mantri Fasal Bima Yojana.
5. Industrial Growth
   • Phases of industrial development: Pre-independence, post-independence.
   • Role of public and private sectors.
   • Industrial policies: 1956, 1991 reforms.
   • Issues and challenges: Infrastructure, ease of doing business, MSMEs.
6. Rural Welfare Oriented Programmes
   • Key programs: PMGSY, NRLM, PMAY-G, Swachh Bharat Mission.
   • Objectives and impact on rural development.
   • Role of Panchayati Raj Institutions.
7. Social Problems
   • Population: Growth trends, demographic transition, policies.
   • Education: Literacy rates, RTE Act, government initiatives.
   • Health: Health indicators, National Health Mission, Ayushman Bharat.
   • Employment: Employment rates, types, government schemes.
   • Poverty: Measurement, poverty alleviation programs, challenges.