Structure of the Indian Economy

Friends, here is the second lesson of our Economy study materials series for upcoming SSC CGL exam 2014 (you can read Lesson 1 : Characteristics of Indian Economy from here). In this lesson we shall learn about the structure of Indian Economy. Happy Reading :)

• Indian Economy :
• 10th Largest in the world (by nominal GDP)
• 3rd Largest in the world (by PPP)
• Indian Economy consists of 3 important aspects :

1. Agricultural
2. Industry 
3. Services
• RBI :  Central bank and monetary authority
• RBI was established in private sector : 1935
• RBI was established in public sector : 1949
• Telecommunication policy : 1994
• Governor of RBI : Raghuram Govinda Rajan
• Occupational Structure : The distribution of working population among "different occupations" or "productive activities" 
• There are 3 types of occupations (or sectors)
• Primary Occupation - Agriculture, Plantations, Mining etc
• Secondary Occupation - Industries, Construction activities
• Tertiary (service) occupation - Banking, Hotels, Computers, Communications
• The share of Agriculture in National income
• UK - 2%
• USA - 3%
• Canada - 4 %
• Australia - 5 %
• Working population engaged in Agriculture 
• France - 14 %
• Japan - 13 %
• USA - 4 %
• UK - 2 %
• UAR  - 64 %
• Pakisthan - 74 %
• India - 63 %
• The productivity per acre in small farms is greater than the large farms because of intensive cultivation. 
• Agriculture Production per hectare 
• Rice :
• India - 17.5 quintals
• China - 55.1 quintals
• North Korea - 75 quintals
• Wheat :
• India - 22.7 quintals
• China - 31.2 quintals
• Ireland - 74.5 quintals
• HYV - Highest Yielding Varieties
• The Industrial structure can be classified as 
• Type of ownership
• Size of Investment
• Type of Output
• Structure of Industry by type of ownership
• The public sector
• The private sector
• the foreign sector
• Structure of ownership by size of investment
• The Large scale sector - Rs. 1 crore 50 lakhs above
• The Small scale sector - Rs. 25 lakhs to 1 crore 50 lahks
• The Tiny scale sector - Rs. 25 lakhs below
• Structure of Industry by type of Output
• Basic Goods Industries - Provide essential inputs
• Ex : Chemicals, Cement, Aluminium, Iron and Steel, Fertilizers etc
• Capital Goods Industries - Produce machinery and equipment
• Ex : Machine tools, engineering goods
• Intermediate goods industries - Produced in the process of other goods
• Ex : Tyre Industry, Plastics, Oils etc
• Consumer Goods Industries : 
• Ex :T.V, Watch, Cosmetics etc.

Synopsis :

• Occupational Structure :
• Primary Sector : Agriculture, Cattle rearing, Poultry, Fishing, Forestry, Mining
• Secondary Sector : Capital Goods like machinery, Machine Tools, Consumption, Goods and Building Activities etc
• Tertiary Sector : Banking, Commerce, Communications, Computers etc
• Structure of Industry :
1. Type of Ownership :
• Public Sector
• Private Sector
• Foreign Sector
2. Size of Investment
• Large Scale Sector (more than 1 crore 50 lakhs of rupees)
• Small Scale Sector (25to 1 crore 50 lakhs of rupees)
• Tiny Scale Sector (below 25 lakhs of Rupees)
3. Type of Output :
• Basic Industrties
• Capital Goods Industries
• Intermediate Goods Industries
• Consumer Goods Industries