JAIIB · IEIFS

An Overview of the Indian Economy & Sectors of Indian economy

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Indian Economy and Indian Financial System — JAIIB.

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Q

What is the primary classification of the Indian economy based on ownership of means of production?

A

India follows a mixed economy model where both public sector (government-owned) and private sector enterprises coexist and contribute to economic activity.

Q

What is the 'mixed economy' model that India adopted after independence?

A

Economy combining both private enterprise and state-owned enterprises.

Q

Which sector of the economy is referred to as the 'primary sector' in India?

A

The primary sector encompasses agriculture, forestry, fishing, mining, and quarrying — activities that directly extract or harvest natural resources.

Q

What is the 'capital account' in India's Balance of Payments?

A

Records foreign investment, loans, and banking capital flows.

Q

What does the secondary sector of the Indian economy primarily include?

A

The secondary sector includes manufacturing, construction, and processing industries that transform raw materials from the primary sector into finished or semi-finished goods.

Q

What is 'Gross National Product (GNP)' and how does it differ from GDP?

A

GNP includes income earned by nationals abroad, GDP does not.

Q

How is the tertiary sector distinguished from the primary and secondary sectors?

A

The tertiary sector, also called the services sector, provides intangible services such as banking, insurance, trade, transport, communication, and IT rather than producing physical goods.

Q

What is 'National Income at Factor Cost' in India's economic accounting?

A

Value of output measured at factor input prices, excluding indirect taxes.

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