MODERN INDIA

A B C D E
SOCIO
RELIGIOUS
MOVE-
MENTS of
modern Satya
Indian Shodhak
history Samaj by
always Jyothiba
SPLITED
1 Brahmo Phule (
Because....
Samaj and organized
Arya anti-caste
Samaj.BECAUSE movement in
IT WAS Maharashtra)
JYOTIBA
PHULE
125TH
BIRTH YEAR
candidates Montague-
Chelmsford
knowledge Proposals
2 on EVOLU- =Govt of
TION OF India act 1919
CONSTITU- (constitutional
TION reforms )
(agitation

3 against the
Partition of
Bengal )

on HISTOR-
ICAL
5 PERSON-
ALITIES
 A B C D E

(SEPARATE CRIPPS
SURAT
AND COM- MISSION
SPLIT1907
MUNAL (FAILED
=Extremists
ELEC- BECAUSE
lack of faith
TORATES DOMIN-
in the
FOR ION STATUS
capacity of
MUSLIMS) WIL BE
6 () the
GIVEN
moderates to
AFTER
negotiate 1927(SIMON WW2.)postdated
with the COMMIS- cheque on a
British SION = ALL FAILNG
Government WHITE BANK
COMMIS-
SION)

10
11

12

13

14

MEDIEVAL INDIA

A B C D

5
 A B C D
6

10
11

12

13

14

ECONOMY

ECONOMY

MACROECONOMIC FRAMEWORK STATEMENT (ECONOMIC PERFORMANCE AT A

GLANCE)

A B C D E F

A. AT
1 CURRENT
PRICES

( 2004-
2
05=100)
(2004-
3
05=100)
4

9
 A B C D E F

10
11

12

13

14

GOVERNMENT FINANCES
 (AGRICULTURE,

FISHING
MANUFACTURING
AND
QUAR-
RING) GAS
Socialistic
Pattern WATER MANUFA
(AGRICULTURE, F ISHIN GAN D QUARRING)
comes SUPPLY)
through 26% SEC-
Mixed ONDARY
Economy. SECTOR
17 % (MAXI-
PRIMARY MUM MEN
SECTOR ENGAGED)
(MAXI-
MUM
WOMEN
ENGAGED)

1
 (AGRICULTURE,

FISHING
MANUFACTURING
AND
QUAR-
RING) GAS
Socialistic
Pattern WATER MANUFA
(AGRICULTURE, F ISHIN GAN D QUARRING)
comes SUPPLY)
through 26% SEC-
Mixed ONDARY
Economy. SECTOR
17 % (MAXI-
PRIMARY MUM MEN
SECTOR ENGAGED)
(MAXI-
MUM
WOMEN
ENGAGED)

BUDGET

(NON RE-
DEEMABLE
i.e. they
cannot be
reclaimaed
Budget is a by the govt.)
financial
statement [ Neither
showing the creates
expected liabilities for
receipt and Govt. Nor
expenditure causes any
of Govt. for reduction in
the coming assets]
fiscal or 1 TAX
 (AGRICULTURE,

FISHING
MANUFACTURING
AND
QUAR-
RING) GAS
Socialistic
Pattern WATER MANUFA
(AGRICULTURE, F ISHIN GAN D QUARRING)
comes SUPPLY)
through 26% SEC-
Mixed ONDARY
Economy. SECTOR
17 % (MAXI-
PRIMARY MUM MEN
SECTOR ENGAGED)
(MAXI-
MUM
WOMEN
ENGAGED)

4
[It creates

5 liabilities or #ERROR!
(ii) It reduces
assets]
6

7 #ERROR!
2 Capital
8 Account
 (AGRICULTURE,

FISHING
MANUFACTURING
AND
QUAR-
RING) GAS
Socialistic
Pattern WATER MANUFA
(AGRICULTURE, F ISHIN GAN D QUARRING)
comes SUPPLY)
through 26% SEC-
Mixed ONDARY
Economy. SECTOR
17 % (MAXI-
PRIMARY MUM MEN
SECTOR ENGAGED)
(MAXI-
MUM
WOMEN
ENGAGED)

10
routine

work of
11 Government
functioning =
salaries ,....

12
 (AGRICULTURE,

FISHING
MANUFACTURING
AND
QUAR-
RING) GAS
Socialistic
Pattern WATER MANUFA
(AGRICULTURE, F ISHIN GAN D QUARRING)
comes SUPPLY)
through 26% SEC-
Mixed ONDARY
Economy. SECTOR
17 % (MAXI-
PRIMARY MUM MEN
SECTOR ENGAGED)
(MAXI-
MUM
WOMEN
ENGAGED)

REVENUE
DEFICIT
REVENUE
EXPENDI- FISCAL
TURE DEFICIT
REVENUE {16-(1+5+6)}
RECEIPTS
13

Implications
of Revenue
Deficit are :
 (AGRICULTURE,

FISHING
MANUFACTURING
AND
QUAR-
RING) GAS
Socialistic
Pattern WATER MANUFA
(AGRICULTURE, F ISHIN GAN D QUARRING)
comes SUPPLY)
through 26% SEC-
Mixed ONDARY
Economy. SECTOR
17 % (MAXI-
PRIMARY MUM MEN
SECTOR ENGAGED)
(MAXI-
MUM
WOMEN
ENGAGED)

14

* On Customs basis. # GDP figures and growth relate to full year (April-March) ## April-
September (@) The figure for 2015-16 is provisional. ^^ Figures as reported by Controller Gen-
eral of Accounts, Department of Expenditure, and Ministry of Finance.

NATIONAL INCOME AGGREGATES (=NATIONAL INCOME ACCOUNTING)

 The data of
India s
national
income are
issued by the
CSO

A (noted that all these variables are evaluated at market prices .CSO changed the base year from 2004 2005to 2011-2012. Replacingf actorcostswithmarketprices : From now on, theCentral Sta

( HELPS TO
GAUGE
ECONOMIC
SOUND-
NESS OF A
COUNTRY)

mp

of a INDIA in
an AC-
COUNTING
YEAR

contribution
of BOTH
MONETARY CITIZENS
WORTH AND
(MONE- FOERIGN
TARYY NATION-
VALUE) ALS,
OF
1
GOODS
AND
SERVICES
PRODUCED
WITHIN
THE... Gross
domestic
Product at
Market
Price
(GDPMP) is
the market
value(agrregate
production)

6
 The data of
India s
national
income are
issued by the
CSO

A (noted that all these variables are evaluated at market prices .CSO changed the base year from 2004 2005to 2011-2012. Replacingf actorcostswithmarketprices : From now on, theCentral Sta

( HELPS TO
GAUGE
ECONOMIC
SOUND-
NESS OF A
COUNTRY)

STRENGTH
AND SIZE
OF ECON-
OMY,AND
REFLECT
THE
AGREGATE
7 OUTLINES CONSUMP-
TION,

NET
EXPORTS
DURING

National Income Accounting

Adam Smith= An Enquiry into the Nature and Cause of the Wealth of Nations

EXPENDITURE METHOD INCOME METHODPRODUCT METHOD B

5
 (BASE YEAR) (BASE YEAR)
1 (BASE YEAR)

2
RELEASES
CPI2010
FOR ALL
INDIA AND
STATES AND
Uts NAD
SEPA-
3 RATELY FOR
RURAL
URBAN
ALONG
WITH
ANNUAL
INFLATION
RATES
4
they get dat
5
from
 (Base:

2004-
05=100)
April, 2016
38 % of the
weight of
items
included in
the Index of
Industrial
manufactur- Production
ing (IIP). Coal
CATE- Crude Oil
6 >primary>
GORIES Natural Gas
fuel
10
(Alloy +
Non-Alloy)
7
6
5
4
2.5
2
Fertilizers 1

8 676
 manufacturing
>primary>
fuel

DECREASING
9
DECREASING

2011 TO 2015

2011 TO 2015

10
11 S
PRODUC-
TION
WHOLE
SALER
12
SIDE
.doesnt
count Retail
margin
negligible
weightage to
weightage to
13 food
food
component
component
14 CPI
has 3 cate-
gories(primary
articles[food,non-
food,minerals]+fuels
has 6 has 3 cate-
15
[oil,electricty,coal]and
categories() gories(manufacturing+mining+electricity)
power+manufactured
prod-
ucts[chemical,metal,food])
 MISC:
HEALTH,
EDU,
RECRE-
ATION
HOUSING POWER +
although not MANUFAC-
16
applicable in TURED
rural areas PROD-
FUEL & UCTS[chemical,metal,food]
LIGHT
CLOTHING,
FOOTWEAR
PAN,TOBACCO,INTOXICANTS.

BUNDLE 3

A
INFLATION

= PRICE IN
CURRENT
1 YEAR
/ PRICE IN
THE BASE
YEAR
2

BOP ACCOUNT

A B
 A B

Balance of VISIBLE
payment is a TRADE
comprehen- (MERCHANDISE
sive and TRADE = X
systematic AND M)
records of all VISIBLE
economic TRADE
transaction BALANCE =
between X-M
normal
residents of a
(VISIBLE)
country and
rest of the Visible items TRADE
COMPO-
world during BALANCE or
NENTS
an BALANCE
OF (import and
accounting OF TRADE
1 year POL export of
is the net
whereas goods )
difference of
Balance of (=AUTONOMOUS = EXPORTS
Import and
trade is the TRANSAC- AND
export of all
net difference TION IMPORTS
visible items
of Import and +
export of all ACCOMODATING
visible TRANSAC-
TION)
Deficit of
Bop
Account :
When total
inflows of
foreign
exchange on
 A B
BOP
accounts
1
CURRENT
ACCOUNT

( records
EXPORTS
and
IMPORTS of
goods and
services and
UNILAT-
ERAL
TRANS-
FERS BUT
these
components
DO NOT
cause a
change in the
assets or
liabilities
status of the
residents of a
country or its
government )

BALANCE
(CAB)

TRADE
BALANCE +
INVISIBLES
(NET
FACTOR +
INCOME
+INCOME
PRIVATE Deficit of
TRANS- Bop
FERS) Account :
2 When total
2 CAPITAL inflows of
ACCOUNT foreign
FDI exchange on
LOANS
FPI
BANKING
AND
CAPITAL
TRANSAC-
TIONS
 A B
3
(NET)
(SERVICES
(Banking
Insurance
Shipping)
(Foreign
Travel)
Like Nepal
And
Afganistan
TRANSFERS
4 ( Payments)
Including
Remittances
= UNILAT-
ERAL
Transfers.)

(Invisible
items (import
and export of
services

6
(Visible

trade
7 balance
+net
invisible
(trade)balance)
8

10
11

12

13

14
 A B
15

16

17

18

A B
1

10
11

A B C D E F
1

8
 A B
1

10
11
1

CONTRAC-
12
TIONARY
2 EXPAN-
SIONARY
13

14

A B

INCREAS-

ING
INFLATION)
1
RATES
(CRR SLR
BR)

2 ASES

PLUS+ UP ()STIMU-
3
LATED)

INFLATION
 A B
1

2
(IN-
VESTORS)UP

( IF
3 INFLATION
RANGE IS IN
BETWEEN
4% TO 5%)

UPWARDS
(AD,AS,PPPRODUCTION,INVESTMENT,NOMINAL
7 VALUE OF
INCOME, ))

TAX PAYERS
10
11
PHILLIPS
12
CURVE
(supply side
13
inflation)
14

A B

6
 A B

10

11

12

RESTRIC-
TION AND
BAN
STOCK(STORAGE
)LIMITS TO
StOP
HOARDING
AND
BLACKMAR-
KETTNG
UNDER
ESSENTIAL
COMMODI-
TIES
ACT.
AND
DELISTING
13 THEM
FROM
APMC ACT

BECAUSE

OF

EDIBLE OIL
14 COAL PRICE
ABUNDANT
PRODUC-
TION

CONTRACTIONARY
MONETARY
POLICY

15

NCERT MACROECONOMICS TIPPING POINTS

Introduction

John Maynard Keynes = The General Theory of Employment, Interest and Money in 1936

B C D E F G H I J

Great
Depression
1
of 1929
 B C D E F G H I J

Capitalist

economy
(a) there is
private
ownership
of means of
production
(b)
production
takes place
for selling
the output in
the market
(c) there is
sale and
2
purchase of
labour
services at a
price which is
called the
wage rate
(the labour
which is sold
and
purchased
against wages
is referred to
as wage
labour)

Money and Banking

Liquidity
B C D E F
trap.

DEMAND

FOR Speculative
MONEY Motive

1
Transaction
Motive
 Liquidity
B C D E F
trap.

where, CU is
CURRENCY
(NOTES
PLUS
COINS) held
by the public
and DD is net
DEMAND
DEPOSITS
held by
commercial
banks. The
word net
implies that
only deposits
of the public
held by the
banks are to
be included
in money
supply. The
interbank
deposits,
which a
commercial
bank holds in
other
commercial
banks, are
not to be
regarded as
part of
money
supply. M1
2 M1, M2, M3
and M2 are
and M4
known as
NARROW
MONEY. M3
and M4 are
known as
BROAD
MONEY.
These
gradations
are in
decreasing
order of
liquidity. M1
is most liquid
and easiest
for
transactions
 Liquidity
B C D E F
trap.

Sterilisation
by RBI: E F

Income Determination

B C D E

parametric

1 shift of a
graph
 B C D E

states that as
people
become more
2 thrifty they
end up saving
less or same
as before

The Government : Functions and

Scope
A B C D E
 A B C D E
It is called
equivalence
because it
argues that
taxation and
borrowing
are
equivalent
means of
financing
expenditure.
When the
that in the government
face of high increases
deficits, spending by
people save borrowing
1 more today, which
will be repaid
by taxes in
the future, it
will have the
same impact
on the
economy as
an increase in
government
expenditure
that is
financed by a
tax increase
today
 A B C D E

4
 A B C D E

It requires
the reduction
in fiscal
deficit by 0.3
per cent of
GDP each
year and the
revenue
deficit by 0.5
per cent. If
this is not
achieved
through tax
revenues, the
necessary
adjustment
has to come
from a
reduction in
expenditure.

The actual
deficits may
exceed the
targets
specified only
on grounds of
policy. The national
central security or
government natural
must ensure calamity or
inter- such other
generational exceptional
equity, grounds as
longterm the central
macro- government
economic may specify.
stability by
achieving The central
sufficient government
revenue shall not
5 surplus, borrow from
removing the Reserve
fiscal Bank of India
obstacles to except by way
monetary of advances
policy and to meet