Topics
Introduction
- A Simple Economy
- Central Problems of an Economy
- Concepts of Production Possibility Frontier
- Organisation of Economic Activities
- Positive and Normative Economics
- Macroeconomics Vs Microeconomics
National Income and Related Aggregates
- Macroeconomics Vs Microeconomics
- Representative Goods and Sectors
- Macroeconomic Agents and Government Role
- Emergence of Macroeconomics
- Context of the Present Book of Macroeconomics
- Meaning of Economic Wealth and Final Goods
- Stocks, Flows, and Depreciation
- Capital Formation, Trade-off & Circular Flow of Income
- Circular Flow of Income and Methods of Calculating National Income
- Output Method/Product Method
- Expenditure Method
- Income Method
- Factor Cost, Basic Prices and Market Prices
- Some Macroeconomic Identities
- National Disposable Income
- Private Income
- National Income Aggregates
- Real GDP and Nominal GDP
- GDP and Welfare
Introductory Macroeconomics
Development Experience (1947-90) and Economic Reforms since 1991
- India's Economy Before Independence
- Low Level of Economic Development Under the Colonial Rule
- Agricultural Sector in India
- Industrial Sector
- Foreign Trade of India
- Demographic Condition
- Occupational Structure
- Infrastructure
- Post-Independence Economic Systems and Planning
- Five Year Plans (FYP)
- Agriculture
- Industry and Trade
- Trade Policy: Import Substitution
- The 1991 Economic Crisis and Reforms
- Background of the New Economic Policy
- Liberalisation
- Privatisation
- Globalisation
- World Trade Organisation (WTO)
- Impact of the Economic Reforms
Indian Economic Development
Money and Banking
- Concept of Money
- Functions of Money
- Demand for Money and Supply of Money
- Money Creation by Banking System
- Limits to Credit Creation and Money Multiplier
- Policy Tools To Control Money Supply
- Demand and Supply for Money : A Detailed Discussion
- The Transaction Motive
- The Speculative Motive
- Various Measures of Supply of Money
- Narrow and Broad Money
- Demonetisation
Current Challenges Facing Indian Economy
- Concept of Human Capital
- Sources of Human Capital
- Human Capital and Economic Growth
- Human Capital and Human Development
- State of Human Capital Formation in India
- Growth of Education Sector in India
- Challenges and Future Prospects in Education
- Rural Development in India
- Credit and Marketing in Rural Areas
- Agricultural Market System
- Diversification into Productive Activities
- Sustainable Development and Organic Farming
- The Nature and Importance of Work in Society
- Workers and Employment
- Participation of People in Employment
- Self-employed and Hired Workers
- Employment in Firms, Factories and Offices
- Growth and Changing Structure of Employment
- Informalisation of Indian Workforce
- Concept of Unemployment
- Government and Employment Generation
- Environment and Sustainable Development in India
- State of India’s Environment
- Concept of Sustainable Development
- Strategies for Sustainable Development
Theory of Consumer Behaviour
- Consumer Behaviour: The Problem of Choice
- Basic Concepts of Microeconomics > Utility
- Cardinal Approach (Utility Analysis)
- Derivation of Demand Curve in the Case of a Single Commodity
- Ordinal Utility Analysis/Indifference Curve Analysis
Introductory Microeconomics
Production and Costs
- Production Function
- Basics of Production Theory
- Variation of Output in the Short-Run Returns to a Factor
- Relation Between Total, Average and Marginal Product
- Law of Variable Proportions
- Average and Marginal Physical Products
- Changes in Production
- Cost - Fixed Cost
- Cost -variable Cost
- Behaviour of Cost in the Short - Run
- Relationship Between Average Variable Cost and Average Total Cost and Marginal Cost
- Concept of Opportunity Cost
- Revenue Concepts
- Producer's Equilibrium
- Law of Supply
- Market Supply Schedule and Supply Curve
- Distinction Between Supply and Stock
- Determinants of Supply
- Change in Supply> Extension and Contraction in Supply
- Measurement of Elasticity of Supply > Percentage Method
- Methods of Measurement of National Income
- Cost Concepts > Marginal Cost
- The Law of Diminishing Marginal Product
- Shapes of Product Curves
- Costs in Long Run Period
- Returns to Scale
Development Experience of India – a Comparison with Neighbours
Determination of Income and Employment
- Aggregate Demand and Its Components
- Consumption
- Investment
- Determination of Income in Two-sector Model
- Determination of Equilibrium Income in the Short Run
- Macroeconomic Equilibrium with Price Level Fixed
- Effect of an Autonomous Change in Aggregate Demand on Income and Output
- The Multiplier Mechanism
- Paradox of Thrift
- Equilibrium Output and Employment
The Theory of the Firm Under Perfect Competition
- Concept of Market
- Market Equilibrium
- Determination of Market Equilibrium
- Effects of Changes (Shifts) in Demand on Equilibrium Price and Equilibrium Quantity
- Perfect Competition
- Imperfect Competition
- Classification of Market Structure
- Oligopoly
- Market Forms - Perfect Oligopoly
- Market Forms - Imperfect Oligopoly
- Equilibrium Price
- Applications of Tools of Demand and Supply Price Control
- Price Ceiling
- Price Floor
- Revenue Concepts
- Profit Maximisation Objective
- Determinants of a Firm’s Supply Curve
- Market Supply Schedule and Supply Curve
- Price Elasticity of Supply
Government Budget and the Economy
Market Equilibrium
- Simple Monopoly in the Commodity Market
- Other Non - Perfectly Competitive Markets
Balance of Payments
- Open Economy and Its Linkages
- Concept of Balance of Payments
- Current Account
- Capital Account
- Balance of Payments Surplus and Deficit
- Foreign Exchange Market
- Foreign Exchange Rate
- Determination of the Exchange Rate
- Merits and Demerits of Flexible and Fixed Exchange Rate Systems
- Managed Floating Exchange Rate System
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Overall Economic Performance
- GDP grew at about 5.6% per annum during 1980–2000, compared to 3.5% in the previous decades.
- Rising national income suggests production of goods and services increased after reforms.
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Sector-Wise Assessment
- Service sector experienced significant growth; agriculture and industry did not grow as expected.
- Major concern: employment opportunities did not increase proportionately with GDP growth.
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Foreign Trade & Investment
- India's share in world exports increased from 0.1% to about 0.5%.
- Foreign Direct Investment (FDI) inflows increased from US $100 million (1990–91) to US $4,029 million (2000–01).
- Foreign Exchange Reserves increased from US $6 billion (1990–91) to US $54.1 billion (2002–03).
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Criticisms of Reforms
Agriculture
- Investment in agriculture - including public investment in infrastructure like irrigation, power, roads, and market linkages - has been declining.
- Subsidy removal led to increased cost of production for farmers.
- Export-orientation shifted focus to cash crops, threatening food security.
- Import duties on agricultural goods were reduced, exposing farmers to international competition.
Industry
- Cheaper imports led to decline of domestic industries and deindustrialisation in some sectors.
- Small-scale industries faced severe competition, leading to the closure of many units (e.g., the Siricilla Tragedy in Andhra Pradesh, where handloom weavers lost livelihoods).
Disinvestment
- PSUs (Public Sector Undertakings) were sold at undervalued prices.
- Revenue from disinvestment was not used for social development or development of PSUs.
Fiscal Policy
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Reforms reduced import duties, resulting in fall in tax revenues and less government spending on social sectors.
Globalisation & Inequality
- Benefits of higher growth did not reach the majority; rich became richer, poor became poorer.
- Even if poverty ratio fell, the absolute number of poor remained high.
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Key Points: Impact of the Economic Reforms
- GDP growth rate improved to 5.6% per annum post-reforms but employment growth lagged behind.
- Service sector grew significantly; agriculture and industry underperformed.
- FDI inflows rose sharply from $100 million (1990–91) to $4,029 million (2000–01).
- Forex reserves jumped from $6 billion to $54.1 billion within a decade.
- Reforms hurt small industries and farmers through cheaper imports and reduced subsidies.
- PSU disinvestment was criticised for undervaluation and non-utilisation of proceeds.
- Globalisation widened income inequality, with the poor not benefiting proportionately
