It is simply Social Science of the factors influencing “well-being”.
Three types of Economic System:-
MARKET ECONOMY:
Based on division of labour.
SOCIALIST ECONOMY:
In this Economy, Goods and Services are produced to use, not to gain profit.MIXED ECONOMY:
In this Economy, Private sectors and Government sectors, both take part.NOTE: India has adopted Mixed Economy.
Economic Growth:
- Increase in the capacity of a country to produce the output of goods and services within the country.
- Steady increase in the GDP is a good indicator of economic growth.
Economic Development:
- Overall development of Economy.
- It implies a sustained increase in real per capita income of a country over a period of time.
Micro Economics:
- Studies the behaviour of individual, households and firms in making decisions on the allocation of limited resources.
Macro Economics:
- Deals with the performance, structure, decision making of the whole economy. This includes national, regional and global economics.
Economics activities can be classified as:-
Primary activities:
- Directly dependent on natural resources.
- It includes agriculture, mining, fishing, forestry etc.
Secondary activities:
- Adding value to the natural resources by transforming raw materials into valuable products.
- It includes manufacturing, processing and construction industries.
Tertiary activities:
- It includes both production and exchange.
- Some of the tertiary activities are trade, transport, communication and services.
Quaternary activities:
- Production of information.
- It revolves around research and development.
INDIAN ECONOMY
According to World Bank, Indian Economy will accelerate to 7.2% in 2017-18, 7.5% in 2018-19 and 7.7% in 2019-20.GDP composition by sector (2016 Estimate):
- Service sector= 45.4%
- Industry sector= 29.8%
- Agriculture sector= 16.5%
NOTE: Sources, THE WORLD FACTBOOK.
- Indian Economy is the 7th largest Economy by nominal GDP.
- 3rd largest by purchasing power parity (PPP).
- Maharashtra is the wealthiest Indian state.
- India ranks 2nd worldwide in farm output.
- Indian Economy will become 3rd largest economy by 2030, surpassing 4 developed nations JAPAN, GERMANY, BRITAIN and FRANCE, according to projections by a US government agency.
- Sector wise contribution in GDP:
WORLD
|
INDIA
|
USA
|
CHINA
|
|
|---|---|---|---|---|
AGRICULTURE
|
6
|
17
|
1
|
9
|
INDUSTRY
|
30
|
26
|
19
|
43
|
SERVICES
|
64
|
57
|
80
|
48
|
NOTE: ALL NUMERICAL ARE IN %.
