APPSC Group 1 · Study notes
Indian economy notes for APPSC Group 1
120 notes in 19 chapters. Open a chapter, or go straight to a note.
3.2.1 Basic concepts 4
- 3.2.1.1Micro and macroeconomics; capitalist, socialist and mixed economiesRead here
- 3.2.1.2Sectors of the economy: primary, secondary and tertiary; organised and unorganisedRead here
- 3.2.1.3Goods, capital and the circular flow: final and intermediate goods, stocks and flows, leakages and injectionsRead here
- 3.2.1.4Keynesian income determination: consumption function, multiplier and the paradox of thriftRead here
3.2.2 National income 6
- 3.2.2.1National income aggregates: GDP, GNP, NNP and personal disposable income
- 3.2.2.2Market prices, factor cost and basic prices: GVA and net product taxes
- 3.2.2.3Measuring GDP: product, income and expenditure methods
- 3.2.2.4Nominal and real GDP, the GDP deflator and per capita income
- 3.2.2.5National accounts in India: early estimates, NSO, release calendar and base-year revisions
- 3.2.2.6GDP and welfare: externalities, non-market work, Green GDP and alternative measures
3.2.3 Growth and development 4
- 3.2.3.1Growth and development: concepts, Kuznets curve and development theories (Rostow, Lewis, Nurkse, Hirschman)
- 3.2.3.2Saving, investment and capital formation: GCF, GFCF and ICOR
- 3.2.3.3Colonial economy: drain of wealth, deindustrialisation and India on the eve of independence
- 3.2.3.4India's growth since 1950: phases, structural change and the latest estimates
3.1.1 Planning and NITI Aayog 7
- 3.1.1.1Planning: types, pre-independence plans and the constitutional basis
- 3.1.1.2Planning Commission and the National Development Council
- 3.1.1.3Five Year Plans 1–6: Harrod–Domar, Mahalanobis model, plan holiday and rolling plan
- 3.1.1.4Five Year Plans 7–12: from food, work and productivity to faster, more inclusive growth
- 3.1.1.5Goals and record of planning; area development programmes (DPAP, hill areas, Tribal Sub-Plan)
- 3.1.1.6NITI Aayog: structure, functions and contrast with the Planning Commission
- 3.1.1.7NITI Aayog initiatives: Aspirational Districts and Blocks, Atal Innovation Mission and indices
3.1.2 Economic reforms since 1991 4
- 3.1.2.1The 1991 balance of payments crisis and stabilisation
- 3.1.2.2LPG reforms: liberalisation, privatisation and globalisation – an assessment
- 3.1.2.3New Industrial Policy 1991: delicensing, public sector reservation and MRTP to the Competition Act
- 3.1.2.4Public sector reform: Ratna status, disinvestment and the National Monetisation Pipeline
3.4.1 Money and monetary policy 6
- 3.4.1.1Money: functions, legal tender and money supply measures (M0–M4, money multiplier)
- 3.4.1.2Currency management: note issue, coinage, demonetisation 2016 and the digital rupee
- 3.4.1.3Reserve Bank of India: history, governance and functions
- 3.4.1.4Monetary policy tools: CRR, SLR, bank rate, open market operations and qualitative controls
- 3.4.1.5Liquidity management: LAF corridor, repo, SDF, MSF, MSS and sterilisation
- 3.4.1.6Monetary Policy Committee, inflation targeting and lending rate benchmarks (BPLR to EBLR)
3.4.2 Banking and financial inclusion 9
- 3.4.2.1Structure of Indian banking: scheduled, cooperative, regional rural and differentiated banks
- 3.4.2.2Bank nationalisation and reforms: 1969, 1980, Narasimham committees and PSB mergers
- 3.4.2.3Prudential regulation: Basel norms, capital adequacy and deposit insurance (DICGC)
- 3.4.2.4Non-performing assets: classification, twin balance sheet problem and resolution (ARCs, NARCL)
- 3.4.2.5Insolvency and Bankruptcy Code 2016
- 3.4.2.6NBFCs and development finance institutions: NABARD, SIDBI, EXIM Bank and NaBFID
- 3.4.2.7Priority sector lending and financial inclusion: lead bank scheme, Jan Dhan and SHG–bank linkage
- 3.4.2.8Payment systems: NPCI, UPI, RTGS, NEFT and digital payments
- 3.4.2.9Commercial banks: credit creation and portfolio management
3.4.3 Inflation and price indices 5
- 3.4.3.1Inflation: meaning, measurement and types by rate
- 3.4.3.2Causes of inflation: demand-pull, cost-push, structural factors and the quantity theory of money
- 3.4.3.3Effects of inflation and related terms: deflation, stagflation, core inflation, base effect and the Phillips curve
- 3.4.3.4Price indices: WPI, PPI and the CPI family – compilers, weights and base years
- 3.4.3.5Controlling inflation: monetary, fiscal and supply-side measures
3.4.4 Financial markets 5
- 3.4.4.1Financial system and regulators: money and capital markets, FSDC and who regulates what
- 3.4.4.2Money market instruments: call money, treasury bills, commercial paper and certificates of deposit
- 3.4.4.3Capital market: primary and secondary markets, stock exchanges and SEBI
- 3.4.4.4Capital market instruments: shares, bonds, mutual funds, derivatives, G-secs and REITs/InvITs
- 3.4.4.5Insurance and pension sectors: IRDAI, LIC, PFRDA, NPS and the Unified Pension Scheme
3.4.5 Public finance 11
- 3.4.5.1Public finance basics: functions of government and public goods
- 3.4.5.2Union Budget: receipts and expenditure, budget documents and budgeting reforms
- 3.4.5.3Measures of deficit: revenue, effective revenue, fiscal and primary deficit
- 3.4.5.4Fiscal policy: deficit financing, crowding out, multipliers and automatic stabilisers
- 3.4.5.5Public debt and the FRBM framework: the 2003 Act, 2018 amendments and the debt anchor
- 3.4.5.6Taxation: concepts, incidence, buoyancy, reform committees and abolished taxes
- 3.4.5.7Direct taxes: income tax, corporation tax, MAT, GAAR and the global minimum tax
- 3.4.5.8GST: 101st Amendment, dual structure and taxes subsumed
- 3.4.5.9GST in operation: rate slabs, compensation, e-way bill and the 2025 rationalisation
- 3.4.5.10Fiscal federalism: Finance Commissions, the divisible pool and state borrowing
- 3.4.5.11Fifteenth and Sixteenth Finance Commissions: devolution criteria and grants
3.3.1 External sector 11
- 3.3.1.1Balance of payments: current and capital accounts, CAD and India's BoP
- 3.3.1.2Exchange rates: fixed, floating and managed systems, NEER/REER, PPP and rupee convertibility
- 3.3.1.3Foreign exchange reserves and Special Drawing Rights
- 3.3.1.4Foreign investment: FEMA, FDI, FPI and instruments (ADR, GDR, masala bonds, P-notes)
- 3.3.1.5External debt, remittances and NRI deposit schemes
- 3.3.1.6India's foreign trade: composition, direction, Foreign Trade Policy 2023 and rupee trade settlement
- 3.3.1.7Trade remedies and regional trade agreements: anti-dumping, FTAs, CEPAs and customs unions
- 3.3.1.8GATT and WTO: structure, principles, rounds and ministerial conferences
- 3.3.1.9WTO agreements: Agreement on Agriculture (boxes, peace clause) and TRIPS
- 3.3.1.10IMF: quotas, SDRs and lending facilities
- 3.3.1.11World Bank Group and other development banks: ADB, AIIB and NDB
3.3.2 Agriculture and rural economy 11
- 3.3.2.1Agriculture in India: role, landholdings, cropping seasons and cropping intensity
- 3.3.2.2Land reforms: intermediaries, tenancy, ceilings, Bhoodan and Operation Barga
- 3.3.2.3Green Revolution: HYV programme, phases and impacts
- 3.3.2.4Farm inputs: seeds, GM crops, plant variety protection, fertiliser subsidy and soil health
- 3.3.2.5Irrigation: sources, classification of projects and PMKSY
- 3.3.2.6Agricultural prices: CACP, cost concepts, MSP, FRP and PM-AASHA
- 3.3.2.7Food security: FCI, buffer stocks, PDS and the National Food Security Act 2013
- 3.3.2.8Agricultural marketing: APMC, e-NAM, the 2020 farm laws and warehousing
- 3.3.2.9Agricultural credit and crop insurance: KCC, interest subvention, NABARD and PMFBY
- 3.3.2.10Allied sectors: dairy, fisheries, livestock and the colour revolutions
- 3.3.2.11Farm income support and new initiatives: PM-KISAN, Agriculture Infrastructure Fund, cooperatives, natural farming and millets
3.3.3 Industry 8
- 3.3.3.1Industrial Policy Resolutions 1948 and 1956
- 3.3.3.2Licence raj: IDRA 1951, MRTP 1969, small-scale reservation and the 1977 and 1980 policies
- 3.3.3.3MSMEs and startups: MSMED Act, classification (2020, 2025), Startup India and Stand-Up India
- 3.3.3.4Make in India, National Manufacturing Policy 2011 and PLI schemes
- 3.3.3.5SEZs, NIMZs and industrial corridors
- 3.3.3.6Industrial statistics: IIP, eight core industries and the Annual Survey of Industries
- 3.3.3.7Steel, coal and minerals: public sector plants, coal reforms, MMDR Act and District Mineral Foundations
- 3.3.3.8Labour codes and industrial relations
3.3.4 Infrastructure and services 7
- 3.3.4.1Infrastructure financing: PPP models, HAM, VGF, National Infrastructure Pipeline and NaBFID
- 3.3.4.2Power and energy sector: Electricity Act 2003, discom reforms (UDAY, RDSS), renewable targets and the Green Hydrogen Mission
- 3.3.4.3Roads and railways: Golden Quadrilateral, Bharatmala, PMGSY and dedicated freight corridors
- 3.3.4.4Ports, waterways and aviation: Sagarmala, national waterways and UDAN
- 3.3.4.5Logistics and digital infrastructure: PM Gati Shakti, National Logistics Policy and the Telecommunications Act 2023
- 3.3.4.6Urban development missions: Smart Cities, AMRUT, PMAY-Urban and Swachh Bharat (Urban)
- 3.3.4.7Services sector: growth, IT-BPM, tourism and the gig economy
3.1.3 Poverty and inequality 6
- 3.1.3.1Poverty: concepts, types and the poverty line
- 3.1.3.2Poverty estimation: Alagh to Rangarajan, consumption surveys and the World Bank line
- 3.1.3.3Multidimensional poverty: global MPI and NITI Aayog's National MPI
- 3.1.3.4Inequality: Lorenz curve, Gini coefficient and poverty gap measures
- 3.1.3.5Anti-poverty programmes: IRDP to DAY-NRLM and SECC-based targeting
- 3.1.3.6Rural employment guarantee: MGNREGA design, working and reform
3.1.4 Employment and unemployment 3
3.1.5 Human development and demography 4
- 3.1.5.1Human development: capability approach and the HDI method
- 3.1.5.2Global development indices: IHDI, GDI, GII, Human Capital Index, happiness and hunger indices
- 3.1.5.3Demographic dividend: age structure, dependency ratio and the economics of population
- 3.1.5.4Population policy, fertility and sex ratio: NPP 2000, NFHS-5 and SRS
3.1.6 Inclusive growth and welfare schemes 3
3.4.6 Union Budget and Economic Survey 6
- 3.4.6.1Union Budget 2025-26: fiscal numbers and tax changes
- 3.4.6.2Union Budget 2025-26: sector announcements and new missions
- 3.4.6.3Economic Survey 2024-25: key themes and figures
- 3.4.6.4Union Budget 2026-27: fiscal numbers and tax changes
- 3.4.6.5Union Budget 2026-27: sector announcements and new missions
- 3.4.6.6Economic Survey 2025-26: key themes and figures
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