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Questions and Answers
What is the average GDP growth rate of India over the past decade?
What is the main objective of fiscal policy in India?
Which of the following is a tool of monetary policy in India?
What percentage of India's population lives below the poverty line?
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What is the approximate percentage of India's GDP accounted for by exports?
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Which of the following is a challenge of fiscal policy in India?
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What is the main objective of monetary policy in India?
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What is the approximate Gini coefficient of India?
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Study Notes
Indian Economy
GDP Growth
- India's GDP growth rate: averaged around 7% per annum over the past decade
- Contribution to GDP:
- Services sector: 55-60%
- Industrial sector: 25-30%
- Agriculture sector: 15-20%
- Factors influencing GDP growth:
- Investment in infrastructure
- Growth in the services sector
- Increase in consumer spending
- Government's economic reforms
Fiscal Policy
- Fiscal policy in India: managed by the Ministry of Finance
- Objectives:
- Promote economic growth
- Reduce poverty and inequality
- Manage public finances
- Tools:
- Government expenditure
- Taxation
- Fiscal policy challenges:
- Managing fiscal deficit
- Reducing subsidies
- Improving tax compliance
Monetary Policy
- Monetary policy in India: managed by the Reserve Bank of India (RBI)
- Objectives:
- Price stability
- Economic growth
- Financial stability
- Tools:
- Interest rates
- Reserve requirements
- Open market operations
- Monetary policy challenges:
- Managing inflation
- Maintaining financial stability
- Managing exchange rates
Poverty and Inequality
- Poverty in India:
- Around 22% of the population lives below the poverty line
- Rural poverty: 25-30%
- Urban poverty: 15-20%
- Inequality in India:
- Income inequality: Gini coefficient around 0.35
- Wealth inequality: top 1% hold around 50% of the wealth
- Government initiatives:
- Poverty reduction programs
- Social welfare schemes
- Education and healthcare initiatives
Foreign Trade
- India's foreign trade:
- Exports: around 10% of GDP
- Imports: around 15% of GDP
- Major trade partners:
- USA
- China
- UAE
- Trade agreements:
- WTO membership
- Regional trade agreements (e.g. SAFTA, ASEAN)
- Bilateral trade agreements
Indian Economy
GDP Growth
- India's GDP growth rate averages around 7% per annum over the past decade
- GDP composition: services sector (55-60%), industrial sector (25-30%), and agriculture sector (15-20%)
- Factors driving GDP growth: investment in infrastructure, growth in services sector, increase in consumer spending, and government's economic reforms
Fiscal Policy
- Managed by the Ministry of Finance
- Objectives: promote economic growth, reduce poverty and inequality, and manage public finances
- Tools: government expenditure and taxation
- Challenges: managing fiscal deficit, reducing subsidies, and improving tax compliance
Monetary Policy
- Managed by the Reserve Bank of India (RBI)
- Objectives: price stability, economic growth, and financial stability
- Tools: interest rates, reserve requirements, and open market operations
- Challenges: managing inflation, maintaining financial stability, and managing exchange rates
Poverty and Inequality
- Poverty: around 22% of the population lives below the poverty line
- Rural poverty: 25-30%
- Urban poverty: 15-20%
- Income inequality: Gini coefficient around 0.35
- Wealth inequality: top 1% hold around 50% of the wealth
- Government initiatives: poverty reduction programs, social welfare schemes, education, and healthcare initiatives
Foreign Trade
- Exports: around 10% of GDP
- Imports: around 15% of GDP
- Major trade partners: USA, China, and UAE
- Trade agreements: WTO membership, regional trade agreements (e.g. SAFTA, ASEAN), and bilateral trade agreements
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Description
This quiz covers the basics of Indian economy, including GDP growth rate, sectoral contributions, and factors influencing growth. It also touches on fiscal policy, its objectives, and management.
