Understanding India’s Economic Sectors and Growth Drivers
Economic Concepts and Growth
Short Notes:
- Service-Led Growth: Economic expansion driven by the service sector (finance, IT, tourism, healthcare), contributing significantly to GDP.
- Primary Sector: Extraction and production of raw materials (agriculture, mining, fishing).
- Secondary Sector: Processing and manufacturing of raw materials into finished goods (manufacturing, construction).
- Tertiary Sector: Provision of services to individuals and businesses (healthcare, education, finance, tourism).
- Base Year: A reference year used for comparing economic data over time.
- Drain Theory: Suggests British colonial rule led to a wealth drain from India to Britain.
- Conventional Series: Traditional method of estimating national income.
- New Series: Updated or revised national income estimates.
- Hindu Growth Rate: Term for India’s low economic growth (1950s-1980s), averaging 3-4% annually.
- Output Method: Calculates national income by summing value added at each production stage.
- Income Method: Calculates national income by summing incomes earned (wages, rents, profits).
Long-Type Questions:
- NNP Growth Trend in India: Characterized by fluctuations, with low growth pre-liberalization (Hindu Growth Rate) and significant increases post-1990s due to reforms and globalization.
- Sectoral Contribution to National Income: Historically dominated by agriculture, now led by the services sector, with industry also playing a significant role.
- Major Features of National Income in India: Includes growth trends, sectoral composition shifts, and the impact of economic policies, showing a move from agrarian to a diversified economy.
- Suggestions to Raise National Income Growth: Enhance investment in infrastructure and human capital, promote economic reforms, encourage innovation, and foster inclusive growth.
- Causes for Slow National Income Growth: Historical factors (colonial exploitation), structural issues (informal sector, infrastructure), policy inefficiencies, and external economic downturns.
Agriculture and Rural Development
Short Notes:
- Green Revolution: Agricultural transformation starting in the 1960s, increasing food production through high-yielding varieties and modern inputs.
- MSP (Minimum Support Price): Minimum price guaranteed by the government for crops.
- Consolidation of Land Holding: Combining small landholdings to improve agricultural productivity.
- TRYSEM: Training of Rural Youth for Self-Employment.
- DWCRA: Development of Women and Children in Rural Areas.
- Agriculture Finance: Financial support for farmers and agricultural businesses.
- Warehouses: Storage facilities for agricultural produce.
- Security of Tenancy: Protecting tenants’ rights.
- Agriculture Marketing: Promoting and selling agricultural products.
- NREP: National Rural Employment Programme.
- MGNREGA: Mahatma Gandhi National Rural Employment Guarantee Act, guaranteeing 100 days of employment.
- Crop Insurance: Protects farmers against crop failure.
- NFWP: National Food for Work Programme.
- Annapurna: Food assistance program for the elderly.
- PMGY: Prime Minister’s Gramodaya Yojana for rural development.
- PMGSY: Prime Minister’s Gram Sadak Yojana for rural road connectivity.
- SGRY: Sampoorna Grameen Rozgar Yojana for rural employment.
- JGSY: Jawahar Gram Samridhi Yojana for rural development.
- Irrigation: Supplying water to crops.
- Globalisation: Integration of economies worldwide.
- Liberalisation: Removal of economic restrictions.
- Privatisation: Transfer of ownership to the private sector.
- Industrial Policy – 1956: Promoted industrial development.
Long-Type Questions:
- Government Initiatives for Agriculture: Irrigation projects, crop insurance, subsidies for fertilizers and seeds.
- Government Initiatives for Industries: Liberalization and privatization policies.
- Self-Employment Schemes: TRYSEM and MGNREGA promote self-employment.
- Rural Development Steps: PMGSY and SGRY improve rural infrastructure and provide employment.
- Support for MSMEs: Policies and programs to support micro, small, and medium enterprises.
Fiscal Federalism and Local Governance
Short Notes:
- Horizontal Imbalance: Unequal distribution of resources among regions/states.
- Vertical Imbalance: Mismatch between revenue capacity and expenditure responsibilities of government levels.
- Horizontal Devolution: Transfer of powers/resources to entities at the same level.
- Vertical Devolution: Transfer of powers/resources from higher to lower government levels.
- Finance Commission: Recommends tax revenue distribution between central and state governments.
- Planning Commission: (Defunct) Formulated five-year plans for economic development.
- Grant-in-Aid: Financial assistance from a higher to a lower government level for specific purposes.
Long-Type Questions:
- Constitutional Provision of Tax Distribution: Articles 270 and 275 outline tax distribution and grants-in-aid between the Union and States.
- 15th Finance Commission on Tax Sharing: Recommended increasing states’ share in divisible taxes to 41% and emphasized fiscal discipline.
Panchayati Raj and Urban Local Bodies
Step 1: Understand the Problem
The task requires answering questions on Panchayati Raj institutions, their composition, finance, functions, Municipal Corporations, and the PESA Act.
Step 2: Identify the Questions
Questions are divided into short notes (17 topics) and long-type questions (12 topics).
Step 3: Answer the Short Notes
- Balawant Raj Mehta Committee: Recommended a three-tier Panchayati Raj system.
- Ashok Mehta Committee: Recommended a two-tier system and more powers for Panchayats.
- Panchayati Raj: System of rural local self-government in India.
- 73rd Constitutional Amendment Act, 1992: Gave constitutional status to Panchayati Raj institutions.
- Gram Sabha: Meeting of all registered voters in a Gram Panchayat area.
- Gram Panchayat: Basic unit of Panchayati Raj, providing basic services.
- Power of Sarpanch: Varies by state, includes executive and administrative functions.
- Panchayat Samiti: Block-level council coordinating Gram Panchayats.
- Zilla Parishad: District-level council overseeing Panchayat Samitis.
- Function of Zilla Parishad: Planning, implementing development programs, guiding Panchayat Samitis.
- PESA Act of 1996: Extended Part IX of the Constitution to Scheduled Areas.
- 74th Constitutional Amendment Act, 1992: Gave constitutional status to urban local bodies.
- Municipal Corporation: Local government body governing a city or urban area.
- Municipality: Local government body governing a town or urban area.
- NAC (Notified Area Committee): Local government body governing a notified area.
- Function of NAC: Provides basic civic amenities and services.
- State Finance Commission (SFC): Reviews finances of Panchayats and Municipalities, recommends financial strengthening.
Step 4: Answer the Long-Type Questions
- Panchayati Raj System Before Independence: Roots in ancient India, formalized during the British period.
- 73rd Constitutional Amendment for Panchayati Raj: Gave constitutional status to Panchayati Raj institutions.
- 74th Constitutional Amendment for Urban Areas: Gave constitutional status to urban local bodies.
- Three-Tier Panchayat Raj Institution: Consists of Gram Panchayat, Panchayat Samiti, and Zilla Parishad.
- Composition and Finance of Gram Panchayat: Elected representatives; finance from grants, taxes, revenue.
- Composition and Finance of Panchayat Samiti: Representatives from Gram Panchayats; finance from grants, taxes, revenue.
- Composition and Finance of Zilla Parishad: Representatives from Panchayat Samitis; finance from grants, taxes, revenue.
- Composition and Finance of Municipality: Elected representatives; finance from grants, taxes, revenue.
- Composition and Finance of Municipal Corporation: Elected representatives; finance from grants, taxes, revenue.
- Composition and Finance of NAC: Elected representatives or nominees; finance from grants, taxes, revenue.
- Function of State Finance Commission: Reviews finances of Panchayats and Municipalities, recommends financial strengthening.
- PESA Act: Panchayats Extension to Scheduled Areas Act, extending Part IX of the Constitution.
Gender and Society
Short Notes:
- Patriarchy: Male-dominated power structure.
- Sex: Biological and physiological differences between males and females.
- Gender: Social construct of roles, behaviors, and expectations.
- Femininity: Qualities traditionally associated with women (nurturing, caregiving).
- Masculinity: Qualities traditionally associated with men (strength, assertiveness).
- Gender Inequality: Unequal treatment, opportunities, and rights between men and women.
- Labour Force Participation: Percentage of people actively engaged in the workforce.
- Causes of Gender Inequality in India: Cultural norms, lack of education/economic opportunities, discriminatory laws.
- Gender Pay Gap: Difference in average earnings between men and women.
- Poverty: Economic deprivation; women are disproportionately affected.
- Women’s Rights as Political and Civil Rights: Right to vote, participate in politics, access education and employment.
- Women and Inheritance Rights: Right to inherit property and assets.
- Stereotyping: Assigning oversimplified characteristics based on gender.
- CEDAW: Convention on the Elimination of All Forms of Discrimination against Women.
- Crimes Against Women: Violence, abuse, and exploitation (domestic violence, sexual harassment).
- Gender Justice and Human Rights: Ensuring equal rights and opportunities regardless of gender.
- WEF: World Economic Forum, promotes global economic cooperation.
- The Glass Ceiling: Invisible barriers preventing women’s career advancement.
- Traditional Profession: Occupations historically associated with specific genders.
- UDHR: Universal Declaration of Human Rights.
Long-Type Questions:
- Distinguish between Sex and Gender: Sex is biological; gender is a social construct.
- Distinguish between Masculinity and Femininity: Traditional gender characteristics, variable across cultures.
- Distinguish between Public and Private Sphere: Public sphere is outside the home (work, politics); private sphere is domestic life.
- Impact of Globalization on Women’s Work: Increased opportunities in some sectors, but also exploitation and poor conditions.
- Gender Inequality and Low Labour Participation in India: Causes include cultural norms, lack of education/opportunities, discrimination, childcare duties, and societal expectations.
- Types of Women’s Rights and Safeguards: Political, civil, economic, and social rights are safeguarded through laws, policies, and programs promoting women’s empowerment.
- Forms of Violation of Women’s Rights: Domestic violence, sexual harassment, trafficking, unequal access to opportunities, discriminatory laws.
Labor Market and Social Security
Short Notes:
- Labour Market: Where workers and employers interact to exchange labor services for wages.
- Demand for Labour (Perfect Competition): Determined by marginal revenue product (MRP); firms hire until MRP equals wage rate.
- Supply of Labour (Perfect Competition): Determined by the number of workers willing to work at a given wage; typically upward-sloping.
- Wage Employment: Working for an employer in exchange for wages or salary.
- Self-Employment: Working for oneself, often as an entrepreneur.
- Disadvantages of Self-Employment: Risk, uncertain income, lack of benefits, requires entrepreneurial skills.
- Productivity: Output per unit of labor input; a measure of labor efficiency.
- Global Integration: Increasing interconnectedness of economies and labor markets worldwide.
- Factories Act, 1948: Regulates working conditions, health, and safety in factories.
- Employee’s State Insurance Act, 1948: Provides social security and health insurance benefits.
- Contract Labour Act, 1970: Regulates the employment of contract labor.
- Employee’s Provident Funds Act, 1952: Provides retirement benefits to employees.
- Skill Mismatch: Gap between workers’ skills and employers’ requirements.
- Wage Gap: Difference in earnings between different groups.
Long-Type Questions:
- Wage Determination under Perfect Competition: Wages determined by the intersection of labor supply and demand curves; wage equals MRP.
- Wage Determination under Imperfect Competition: Wages influenced by monopsony power, collective bargaining, and government regulations.
- Wage Employment vs. Self-Employment: Wage employment offers stability; self-employment offers flexibility and potential higher earnings. The better option is individual-dependent.
- Factors Explaining Wage Differential: Differences in productivity, education, experience, and industry.
- Why Women Get Less Wage than Men: Occupational segregation, discrimination, and caregiving responsibilities.
- Mismatch and Labour Productivity: Skill mismatch leads to lower labor productivity.
- Reasons for Declining Labour Share in National Income: Technological change, globalization, and changes in labor market institutions.
- Government Steps for Social Security and Labour Welfare: Legislation, regulations, and social programs.
Environment and Climate Change
Short Notes:
- Blue Carbon: Carbon captured by ocean and coastal ecosystems (mangroves, seagrasses).
- Green Carbon: Carbon stored in terrestrial ecosystems (forests, grasslands).
- Black Carbon: Short-lived climate pollutant from incomplete combustion.
- Brown Carbon: Carbonaceous aerosol that absorbs light.
- Humidity in Atmosphere: Amount of water vapor in the air, crucial for weather.
- Carbon Sink: Reservoir that absorbs and stores atmospheric CO2.
- Global Warming Potential: Measure of heat trapped by a greenhouse gas.
- Acid Rain: Precipitation with high levels of sulfuric and nitric acid.
- Carrying Capacity of Earth: Maximum population Earth can sustain indefinitely.
- Assimilative Capacity of Earth: Environment’s ability to absorb pollutants without harm.
- Climate Change: Long-term changes in Earth’s climate, primarily human-caused.
- Global Warming: Overall warming of Earth’s atmosphere.
- Greenhouse Effect: Natural process of heat trapping by certain gases.
- Greenhouse Gases: Gases contributing to the greenhouse effect (CO2, methane).
- Ozone Layer Depletion: Reduction of the ozone layer due to human activities.
- ENSO: El Niño-Southern Oscillation, a complex climate pattern.
- Water Stress due to Climate Change: Impact of climate change on water availability.
- Rise in Sea Level: Increase in ocean levels due to climate change.
- Health Problems due to Climate Change: Health issues arising from climate-related factors.
- Ocean Acidification: Decrease in ocean pH due to increased CO2 absorption.
- Carbon Sequestration: Capturing and storing atmospheric CO2.
- Carbon Credit: Right to emit a certain amount of greenhouse gases.
- Carbon Offsetting: Compensating for emissions by investing in emission reduction projects.
- Carbon Tax: Fee on fossil fuel production, distribution, or use.
- Geo-engineering: Large-scale technological interventions in the climate system.
- Changes in Himalayas: Climate-related changes impacting the Himalayan region.
Long-Type Questions:
- Climate Change: Long-term climate shifts caused by human activities (fossil fuels, deforestation). Factors include GHG emissions, land use, and natural variability.
- Causes of Climate Change: Burning fossil fuels, deforestation, land-use changes, industrial processes.
- Consequences of Climate Change: Rising sea levels, more frequent extreme weather events, altered weather patterns.
- Mitigating Climate Change: Reducing GHG emissions, transitioning to renewable energy, carbon sequestration.
- CEEW Study Findings: Highlights India’s vulnerability to climate change and the need for adaptation.
- First Assessment Report Findings: Assesses climate change impacts in India, providing future projections and mitigation strategies.
Climate Change Policies and Concepts
Step 1: Understand the Task
Answering questions related to environmental and economic topics, including climate change concepts and policies.
Step 2: Address the “Short notes” section
- Net Zero Emission: Balance between greenhouse gas emissions produced and removed from the atmosphere.
- IPCC: Intergovernmental Panel on Climate Change, assesses climate science.
- Stockholm Conference (1972): First major international conference on environmental issues.
- Earth Summit (1992): UN Conference on Environment and Development, led to climate and biodiversity conventions.
- Kyoto Protocol: International treaty committing parties to reduce greenhouse gas emissions.
- Sustainable Development Goals (SDGs): 17 global goals for a better, sustainable future by 2030.
- Glasgow Conference (COP26, 2021): Focused on accelerating climate action.
Step 3: Address the “Long-type Questions”
- Net Zero Emissions: Achieving a balance between emitted and removed greenhouse gases to limit global warming. Requires emission reduction and offsetting.
- Sustainable Development Goals and India’s Position: India has made progress but faces challenges in climate action, clean energy, and reducing inequality.
- IPCC’s Role in Mitigating CO2 and GHG: IPCC assesses climate science, providing reports that inform policymakers on reducing emissions and adapting to impacts.
Government Initiatives and Economic Growth
Unit 1: Economic Growth
- Major Government Initiatives for Economic Growth: Make in India, Digital India, Pradhan Mantri Kaushal Vikas Yojana, Deen Dayal Upadhyaya Grameen Kaushalya Yojana, Production-Linked Incentives (PLI) scheme.
- Sectoral Contribution to GDP: Services sector (53.8%), Industry sector (~30%), Agriculture sector (~16%). The services sector is the largest contributor.
Unit 2: Fiscal Federalism and Local Governance
- Division of Power between Centre and State: Outlined in the Constitution via Union, State, and Concurrent Lists, ensuring cooperative federalism.
- State Finance Commission: Recommends financial resource distribution between state and local governments; assesses needs and recommends fund allocation.
- 73rd and 74th Constitutional Amendments: Established Panchayati Raj and empowered urban local governments, decentralizing power.
Unit 3: Gender, Work, and Labour Market
- Impact of Globalization on Women’s Work: Mixed impact, with increased opportunities in some sectors but also exploitation and poor working conditions. MGNREGA has improved women’s economic status.
- Labour Market Regulations: Aim to protect workers’ rights (fair wages, safe conditions) and promote employment, though some regulations can affect growth.
- Gender Justice and Human Rights: Crucial for empowering women through education and economic opportunities, promoting equality. Initiatives like Beti Bachao, Beti Padhao support this.
Unit 4: Climate Change Policies
- Current Mitigation and Adaptation Schemes: National Action Plan on Climate Change, renewable energy targets.
- Understanding Net Zero CO2 and GHG: Balancing emissions with removals to achieve neutrality, crucial for mitigating climate change.
- Observed Changes, Impact, and Attribution of Climate Change: Rising temperatures, extreme weather events. Human activities are confirmed as the primary cause.