TOTAL NO OF WORDS:  3261.                                

                              ECONOMICS ASSIGNMENT


                          INDIAN ECONOMICS










         The term “Economics” is derived from two Greek words, oikou and nomos, meaning the rule or law of the household.There are several definitions of economics such as “SCIENCE OF WEALTH” by Adam Smith and J.B.SAY, “SCIENCE OF MATERIAL WELL BEING” by Alfred Marshall and A.C.Pigou, “SCIENCE OF CHOICE MAKING” by Robbins and “SCIENCE OF DYNAMIC GROWTH AND DEVELOPMENT” by Paul.A.Samuelson.

       Indian Economy is the third-largest in the world.The economy is diverse and encompasses agriculture, handicrafts, textile, manufacturing, and a multitude of services. Although two-thirds of the Indian workforce still earn their livelihood directly or indirectly through agriculture, services are a growing sector and are playing an increasingly important role of India's economy.

     However, since the early 1990s, India has gradually opened up its markets through economic reforms by reducing government controls on foreign trade and investment.

India faces a burgeoning population and the challenge of reducing economic and social inequality. Poverty remains a serious problem, although it has declined significantly since independence, mainly due to the green revolution and economic reforms.

     Economics is divided into two parts :- Micro Economics and Macro Economics. Micro Economics is that branch of economics that concentrate on price, output and wage decisions of individual firms and workers. On the other hand, Macro Economics concentrates on the overall level of economic activity, such as the size of national income.

         Here in this assignment we will discuss about the aspects of  objectives of Macro Economics and also would discuss on the aspects of Micro Economics.

2. Macro Economics:- It is aggregate economics wherein the overall conditions of the economy such as total production, total consumption, total saving and total investment are studied. It is the study of overall economic phenomena as a whole rather than its individual parts. It includes :

1. national income and output;

2. general price level/ inflation;

3. balance of trade and payments;

4. external value of money;

5. saving and investment; and

6. employment and economic growth.


The objectives of Macro Economics are explained as follows:-

3. Healthy Economic Growth:

                                                 Economic growth may be defined as an increase in aggregate output of real goods and services during a given period of time, generally a year. The present status of the Indian Economy is the result of a culmination of forces extending over a period of about two centuries beginning with the arrival of the British East India Company around the eighteen century.

       Economic Growth = Size of output (Quantitative Aspect)

       Economic Development = Economic Growth + Economic welfare.

                                                      (A Qualitative Aspect)


Growth of National Income and Per Capita Income refers to Quantitative rise in National Income and Per Capita Income over the planning period. However, economic Development in India is very slow over the planning period. This is because it includes economic welfare also. Economic welfare in India has been very less as there is lesser growth of education, employment, health and standard of living.

Per Capita Income and National Income have risen :

 The Per Capita Income implies the ratio of National Income and Population i.e.

P.C.I. = National Income/ Population.

Join now!

National Income refers to the money value of all the goods and services produced in an economy in one accounting year. The Growth of National Income during the planning period is as follows:--


              *Some figures are rounded off.

The Net National Product has risen in the following manner


The growth of PCI is as follows:--


The Central Statistical Organisation has Classified the economy in three main sectors such as Primary Sector, ...

This is a preview of the whole essay