
๐ Indian Economy โ 300 Static Facts (Professional Notes Series)
๐งญ 1. Nature and Features of Indian Economy
- India is a mixed economy โ combining public and private sectors.
- Developing economy โ high population, low per capita income, and agriculture dominance.
- Indiaโs GDP (nominal) is about $4 trillion (2025 est.), 5th largest globally.
- Per capita income (2024โ25) โ โน1.97 lakh.
- Indian economy shows dual structure โ modern industrial sector & traditional rural sector.
- Agriculture contributes ~18% of GDP but employs ~45% of population.
- Service sector contributes over 50% of GDP โ largest contributor.
- Industrial sector contributes ~30% of GDP.
- Indian economy is open โ liberalized foreign trade policy since 1991.
- Economic growth rate (2024โ25) โ 7%.
๐ 2. National Income and Related Aggregates

- GDP = value of final goods and services produced within India in one year.
- GNP = GDP + Net Factor Income from Abroad (NFIA).
- NDP = GDP โ Depreciation.
- NNP = GNP โ Depreciation.
- Per Capita Income = NDP รท Population.
- Real GDP uses constant prices; Nominal GDP uses current prices.
- Base year of GDP: 2011โ12 (as per NSO).
- NSO (National Statistical Office) compiles GDP data.
- GDP Deflator = (Nominal GDP รท Real GDP) ร 100.
- Gross Value Added (GVA) = Output โ Intermediate consumption.
- Green GDP accounts for environmental degradation.
- Indiaโs first national income estimate by Dadabhai Naoroji (1867โ68).
- Modern estimation by Prof. V.K.R.V. Rao (1931โ32).
- Economic Survey โ annual document summarizing economic performance.
- Economic Census โ counts all establishments producing goods/services.
๐๏ธ 3. Economic Planning and NITI Aayog
- Planning Commission formed in 1950 under Nehruโs government.
- Replaced by NITI Aayog on 1 January 2015.
- NITI Aayog promotes cooperative and competitive federalism.
- NITI CEO (2025): B.V.R. Subrahmanyam.
- First Five-Year Plan (1951โ56) โ agriculture & irrigation.
- Second Plan (1956โ61) โ Mahalanobis model, heavy industry.
- Third Plan (1961โ66) โ self-reliance.
- Fifth Plan (1974โ79) โ โGaribi Hatao.โ
- Eighth Plan (1992โ97) โ first after 1991 reforms.
- Twelfth Plan (2012โ17) โ last plan.
- LPG Reforms (1991) โ Liberalization, Privatization, Globalization.
- Planning types: indicative, imperative, rolling, perspective.
- Gadgil Formula โ allocation of central assistance to states.
- NITI Aayog issues Three-year Action Agenda, not Plans now.
- State Planning Boards handle local development.
๐ฐ 4. Fiscal Policy and Public Finance
- Fiscal policy โ governmentโs policy of expenditure and taxation.
- Union Budget โ under Article 112.
- Presented every year on 1 February.
- Revenue receipts โ tax + non-tax income.
- Capital receipts โ borrowings, disinvestment, loan recovery.
- Revenue expenditure โ recurring costs, no asset creation.
- Capital expenditure โ creates assets.
- Fiscal deficit = Total Expenditure โ (Revenue + Non-debt receipts).
- Revenue deficit = Revenue Expenditure โ Revenue Receipts.
- Primary deficit = Fiscal Deficit โ Interest payments.
- FRBM Act (2003) ensures fiscal discipline (target โค 3% of GDP).
- Finance Commission (Art. 280) constituted every 5 years.
- 15th Finance Commission Chair โ N.K. Singh.
- Zero-Based Budgeting (ZBB) introduced in 1987โ88.
- Gender Budgeting introduced in 2005โ06.
- Outcome Budget links expenditure with results.
- Public debt = internal + external borrowings.
- Public expenditure divided into plan & non-plan (now capital & revenue).
- Cess & Surcharge โ not shared with states.
- Deficit financing โ printing of new currency by RBI.
๐ฆ 5. Banking and Financial System
- RBI established in 1935, nationalized 1949.
- Functions: monetary authority, banker to govt., lender of last resort.
- RBI HQ: Mumbai.
- First Indian Governor: C.D. Deshmukh.
- Monetary Policy regulates money supply.
- MPC (Monetary Policy Committee) โ 6 members, inflation target = 4% ยฑ 2%.
- Repo rate โ RBI lends to banks; Reverse repo โ RBI borrows.
- CRR โ deposits kept with RBI.
- SLR โ deposits in liquid assets.
- Bank rate โ long-term lending rate.
- Open Market Operations (OMO) โ RBI buys/sells govt securities.
- MSF (Marginal Standing Facility) โ overnight borrowing.
- Scheduled Banks โ in Second Schedule of RBI Act.
- Nationalization of Banks: 14 in 1969, 6 in 1980.
- Regional Rural Banks (RRBs) โ started in 1975.
- NABARD (1982) โ apex body for rural credit.
- SIDBI (1990) โ small industries finance.
- EXIM Bank (1982) โ export promotion.
- NPCI (2008) โ UPI, RuPay, BHIM payment systems.
- Digital Banking โ UPI, e-RUPI, Bharat BillPay, etc.
๐พ 6. Agriculture and Rural Development
- Agricultureโs share in GDP: ~18%.
- Green Revolution (1965โ67) โ M.S. Swaminathan, focus on wheat & rice.
- White Revolution โ Operation Flood, milk.
- Blue Revolution โ fisheries.
- Golden Revolution โ horticulture & honey.
- Pink Revolution โ meat & poultry.
- MSP fixed by CACP.
- PM-KISAN โ โน6,000/year to farmers.
- PM Fasal Bima Yojana (2016) โ crop insurance.
- RKVY (2007) โ state agri investments.
- E-NAM (2016) โ online agri market.
- Food Corporation of India (FCI) manages buffer stocks.
- National Food Security Act (2013) โ covers 67% population.
- Integrated Rural Development Programme (IRDP) โ 1978.
- Rural employment schemes: NREGS (2005), PMGSY, DDU-GKY.
- Kisan Credit Card โ launched 1998.
- Operation Greens (2018) โ stabilizing onion, tomato, potato prices.
- Doubling farmersโ income target โ Ashok Dalwai Committee.
- Cooperative banks finance rural needs.
- Agri export policy (2018) โ boost farm exports.
๐น 7. Industrial Policy and Infrastructure
- Industrial Policy 1956 โ basic framework for industries.
- New Industrial Policy 1991 โ ended license raj.
- Disinvestment โ partial privatization of PSUs.
- Privatization โ transfer of ownership.
- PSUs classified as Maharatna, Navratna, Miniratna.
- MSME sector โ backbone of Indian industry.
- SIDBI provides financial support to MSMEs.
- Industrial Corridors: DMIC, CBIC, AMIC, BMEC, ECEC.
- Make in India (2014) โ boost manufacturing.
- Startup India (2016) โ innovation & self-employment.
- Atmanirbhar Bharat (2020) โ self-reliance in production.
- Insolvency & Bankruptcy Code (2016) โ speedy debt recovery.
- National Infrastructure Pipeline (2019) โ โน111 lakh crore investment.
- PM Gati Shakti (2021) โ digital infra planning.
- Digital India (2015) โ e-governance & IT growth.
- Smart Cities Mission (2015) โ urban improvement.
- AMRUT (2015) โ urban rejuvenation.
- UDAY (2015) โ DISCOMs financial reform.
- Power sector โ NTPC, NHPC, PGCIL major PSUs.
- Transport infra โ Bharatmala (roads), Sagarmala (ports).
๐ 8. External Sector and Trade
- BoP (Balance of Payments) = Current + Capital Account.
- Current Account includes goods, services, transfers.
- Capital Account โ FDI, FPI, loans.
- Trade Deficit โ imports > exports.
- CAD (Current Account Deficit) โ indicator of imbalance.
- Forex reserves managed by RBI (~$640 billion).
- Exchange rate system โ managed float.
- Devaluation โ deliberate reduction of currency value.
- FDI โ long-term foreign investment.
- FPI โ short-term portfolio investment.
- EXIM Bank โ promotes exports.
- SEZ Act 2005 โ special export zones.
- WTO (1995) โ regulates global trade.
- Indiaโs top export โ petroleum products.
- Largest trading partner โ USA.
- Trade policy framed by Ministry of Commerce.
- Tariff โ tax on imports; Quota โ limit on imports.
- BoT (Balance of Trade) โ goods only; BoP โ goods + services.
- Foreign aid classified as concessional and non-concessional.
- EXIM Policy updated every 5 years.
๐จโ๐ฉโ๐งโ๐ฆ 9. Poverty, Employment, and Welfare
- Tendulkar Committee (2009) โ new poverty line.
- Rangarajan Committee (2014) โ revised line upward.
- Poverty line based on monthly consumption.
- MGNREGA (2005) โ 100 days guaranteed rural employment.
- PM Awas Yojana (2015) โ affordable housing.
- Ujjwala Yojana (2016) โ LPG to poor women.
- Ayushman Bharat (2018) โ โน5 lakh health cover.
- Skill India (2015) โ youth employment.
- PM Svanidhi (2020) โ street vendor loans.
- PM Jan Dhan Yojana (2014) โ financial inclusion.
- SHG-Bank Linkage Programme โ started 1992 by NABARD.
- Unemployment Types: structural, frictional, cyclical, disguised.
- PLFS โ official employment data.
- Human Development Index (HDI) โ UNDP measure.
- Indiaโs HDI Rank (2024) โ around 134.
- Gini coefficient measures inequality.
- Social sector spending includes education, health, housing.
- Inclusive growth โ growth + social justice.
- Welfare state โ Directive Principles (Article 38).
- National Social Assistance Programme (NSAP) โ pension for poor.
โ๏ธ 10. Miscellaneous Economic Concepts and Institutions
- SEBI (1992) โ regulates capital market.
- IRDAI (1999) โ regulates insurance.
- PFRDA (2013) โ manages pension funds.
- CCI (Competition Commission, 2009) โ checks monopolies.
- FSDC (2010) โ coordinates financial regulators.
- RBI Act, 1934 โ legal foundation of RBI.
- Banking Regulation Act, 1949 โ governs banks.
- Negotiable Instruments Act, 1881 โ cheques & promissory notes.
- Companies Act, 2013 โ regulates corporate governance.
- Consumer Protection Act, 2019 โ consumer rights.
- Census โ every 10 years (next: 2025).
- Economic Survey โ key pre-Budget document.
- Union Public Accounts Committee (PAC) โ examines audit reports.
- CAG (Art. 148) โ guardian of public purse.
- NABARD โ rural refinance apex body.
- IFCI (1948) โ oldest financial institution.
- IDBI โ formed 1964; development bank.
- EXIM Bank (1982) โ export promotion.
- India Infrastructure Finance Company Ltd (IIFCL) โ infra funding.
- DFI (Development Finance Institution) โ long-term funding agencies.
๐ฑ 11. Environment, Energy, and Sustainable Development
- Sustainable development โ meets present needs without harming future.
- Paris Agreement (2015) โ limit temperature rise to 1.5ยฐC.
- Indiaโs Net Zero Target โ 2070.
- Renewable energy goal โ 500 GW by 2030.
- Solar Mission (2010) โ under National Action Plan on Climate Change.
- MNRE โ Ministry of New and Renewable Energy.
- NTPC โ Indiaโs largest power producer.
- ONGC โ Indiaโs top oil & gas PSU.
- Coal India Ltd โ largest coal producer.
- Hydropower potential โ about 150,000 MW in India.
- Biofuel Policy (2018) โ 20% ethanol blending target by 2030.
- Perform, Achieve, and Trade (PAT) โ industrial efficiency scheme.
- National Solar Mission โ promote solar energy use.
- Fertilizer subsidy โ major component of revenue spending.
- Environment (Protection) Act, 1986 โ umbrella legislation.
- Polluter Pays Principle โ environmental liability concept.
- CAMPA Fund โ compensatory afforestation.
- Green Credit Scheme โ incentivizing afforestation.
- Sustainable Development Goals (SDGs) โ 17 goals till 2030.
- Indiaโs ranking in Climate Change Performance Index (2024) โ in top 10.
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๐ Indian Economy โ Final 100 Static Facts (201โ300)
(Directly asked or highly probable in upcoming exams 2025โ26)
๐๏ธ 12. Economic Growth & Development Indicators
- Human Development Index (HDI) measures health, education, income.
- Indiaโs HDI rank (2024): around 134 out of 193.
- Gross National Happiness (GNH) concept originated in Bhutan.
- Gender Development Index (GDI) measures gender equality in HDI.
- Gender Inequality Index (GII) includes maternal mortality, education, participation.
- Multidimensional Poverty Index (MPI) โ developed by UNDP & Oxford.
- Gini Coefficient measures income inequality (0 = equality, 1 = inequality).
- Inclusive Growth = growth + equitable distribution.
- Human Capital Formation โ investment in education & health.
- Trickle-down theory โ benefits of growth automatically reach poor.
๐ธ 13. Money, Capital Market & Financial Inclusion
- Money Market deals in short-term funds (<1 year).
- Capital Market deals in long-term funds (>1 year).
- Call Money Market โ overnight inter-bank borrowing.
- Treasury Bills (T-Bills) โ short-term government securities (<1 year).
- Commercial Paper (CP) โ short-term debt issued by corporates.
- Certificates of Deposit (CD) โ negotiable bank instruments.
- Bond yield inversely related to bond price.
- Primary Market โ new issues; Secondary Market โ existing trading.
- Stock Exchange โ organized secondary market.
- SEBI (1992) โ regulates capital markets in India.
๐ช 14. Inflation, Prices & Indices
- Inflation โ persistent rise in general price level.
- Deflation โ persistent fall in price level.
- WPI โ compiled by Office of Economic Adviser, Ministry of Commerce.
- CPI (Combined) โ official inflation measure (base year 2012).
- Headline inflation = overall inflation; Core inflation = excludes food & fuel.
- Stagflation โ inflation + stagnation.
- Demand-pull inflation โ too much money chasing few goods.
- Cost-push inflation โ rise in cost of inputs.
- Phillips Curve โ inverse relation between inflation & unemployment.
- Deflationary gap โ when aggregate demand < potential output.
๐งพ 15. Public Sector, Disinvestment & Privatization
- Disinvestment = selling part of govt. equity in PSUs.
- Privatization = transfer of ownership to private sector.
- PSU categories: Maharatna (โฅโน5,000 cr net profit), Navratna, Miniratna.
- First disinvestment policy started in 1991-92.
- DIPAM โ Department of Investment & Public Asset Management.
- Air India privatized in 2021 (Tata Group acquired).
- LIC IPO launched in 2022.
- ONGC โ Indiaโs biggest oil & gas PSU.
- NTPC โ Indiaโs largest power PSU.
- BHEL โ leading engineering PSU.
๐ 16. Trade, BoP & External Debt
- Indiaโs foreign trade policy formulated every 5 years.
- EXIM Policy 2023-28 replaced the earlier 2015-20 policy.
- Top export items: petroleum products, gems, machinery, pharma.
- Top import items: crude oil, gold, electronics, machinery.
- BoP = Current Account + Capital Account + Errors & Omissions.
- Current Account Deficit (CAD) arises when imports > exports.
- Forex reserves include gold, SDRs, foreign currency assets.
- Foreign Exchange Management Act (FEMA) โ 1999.
- Rupee depreciation makes imports costlier, exports cheaper.
- Exchange Rate Regime โ managed floating system.
๐ผ 17. Employment & Labour Sector
- Labour force participation rate (LFPR) โ proportion of working population.
- Unemployment โ when willing & able people canโt find work.
- Disguised unemployment common in agriculture.
- Seasonal unemployment โ in agriculture, tourism.
- Structural unemployment โ skill mismatch.
- Cyclical unemployment โ due to business cycles.
- Frictional unemployment โ temporary job change.
- PLFS โ official source of labour data.
- Gig economy โ short-term, freelance jobs.
- Code on Wages (2019) โ consolidates wage laws.
๐ฟ 18. Environment & Resource Economics
- Sustainable development โ use of resources without depletion.
- Club of Rome (1972) โ published โLimits to Growth.โ
- Rio Earth Summit (1992) โ Agenda 21.
- Kyoto Protocol (1997) โ legally binding emission reduction.
- Paris Agreement (2015) โ global climate deal.
- Indiaโs Net Zero target โ 2070.
- Renewable energy target โ 500 GW by 2030.
- Forest cover in India (2023) โ ~21.7% of area.
- MNRE โ Ministry of New & Renewable Energy.
- Perform, Achieve, Trade (PAT) scheme โ energy efficiency.
โ๏ธ 19. Key Economic Committees & Reports
- Narasimham Committee (1991 & 1998) โ banking reforms.
- Kelkar Committee (2002) โ fiscal consolidation.
- Tendulkar Committee (2009) โ poverty estimation.
- Rangarajan Committee (2014) โ updated poverty line.
- Nachiket Mor Committee (2013) โ financial inclusion.
- Vijay Kelkar Committee (2013) โ PPP reforms.
- BN Srikrishna Committee (2008) โ financial sector roadmap.
- Raj Chetty โ behavioural economics Nobel contributor.
- M.S. Swaminathan โ father of Green Revolution.
- Verghese Kurien โ father of White Revolution.
๐ง 20. Economic Terms, Indices & Programs
- Base year of CPI (Combined) โ 2012.
- Wholesale Price Index (WPI) โ base year 2011-12.
- Index of Industrial Production (IIP) โ base year 2011-12.
- IIP compiled by โ NSO (Ministry of Statistics).
- Headline inflation โ overall CPI inflation.
- Core inflation โ excludes food & fuel.
- Banking Ombudsman โ RBIโs customer grievance scheme (1995, updated 2021).
- Financial inclusion โ delivery of affordable banking services.
- Pradhan Mantri Jan Dhan Yojana (2014) โ universal bank accounts.
- RBI Integrated Ombudsman Scheme (2021) โ one portal for complaints.
๐ 21. Government Schemes โ Economic & Social
- Atal Pension Yojana (2015) โ pension for unorganised workers.
- Stand-Up India (2016) โ loans for SC/ST & women entrepreneurs.
- Mudra Yojana (2015) โ micro loans (Shishu, Kishor, Tarun).
- PM Svanidhi (2020) โ credit to street vendors.
- PMEGP โ self-employment via Khadi & Village Industries.
- Beti Bachao Beti Padhao (2015) โ girl child empowerment.
- Digital India (2015) โ IT-enabled governance.
- Skill India (2015) โ training & entrepreneurship.
- Startup India (2016) โ innovation ecosystem.
- PM Vishwakarma Yojana (2023) โ skill credit support for artisans.
โ โ Completed: 300 Static Facts (Full Professional Notes Series)
๐ Structure Recap
Category Facts Economy Basics to Sustainable Dev. 300 Total Conceptual + Institutional + Direct PYQs Covered Data Year Used 2023โ25 latest
Amaresh Yadav ๐ฎ๐ณ
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