CATEGORY OF AMERICAN INDIAN FINANCIAL SYSTEM
• INDIAN ECONOMIC CLIMATE CAN BE CATEGORIZED IN MANY PLETHORA OF POSSIBILITIES;
• IT IS THE CLASSIFICATION WHILE GIVEN IN THE SYLLABUS FROM INDIAN OVERALL ECONOMY BY RUDDAR DUTT AND SUNDARAM
• DONT ALWAYS BE JUDGEMENTAL PUBLISH WHAT EVER HAS IN GLIDE.
• IFS - CLASSIFICATION
• The financial system of India refers to the system of borrowing and lending of funds or perhaps the demand for as well as the supply of money of all people, business houses and the Authorities.
Commonly the FS can be classified into
• Industrial finance: funds required for the conduct of industry and trade
• Agricultural finance: Funds required and delivered for the conduct of agriculture and allied actions
• Creation finance: Funds needed for advancement which includes both of the above
• Government financing: relates to with regard to and supply of funds to fulfill Govt expenses
DIFFICULTIES/ LIMITS IN NATIONAL INCOME WAY OF MEASURING
• Low market transactions not taken into account
• open source software like cpanel
• Identical commercial merchandise = you billion
• If people switch via commercial to non industrial we see a decline in GDP
No monetary economy ignored
• " The underground economy identifies both legal activities, including often present in construction and services industries where income taxes are not help back and paid, and illegitimate activities, such as drug dealing and prostitution.
• Dark money, Dark-colored market, Dark economy identifies the same
Neglects subsistence creation
• Subsistence economy: Economic climate where development is continued only to the extent of sufficiency intended for self ingestion – valuable surplus is not at all considered
Ignores new products
• In case of Nationwide income at constant prices the base year not having a product like cellular phone leads to denial of product in measurements.
Ignores quality of goods
• Quality of products have to regarded as because they have cause and effect relationship with quantity
• Less expensive less quality goods will not last long; as a result people are required to make regular repeat acquisitions; whereas quality goods long lasting thus lessening the replicate purchase variety
Ignores quality improvements
• Earlier computer systems were energy hungry, high priced and slower. Here the higher cost show higher countrywide income.
• Comparatively higher computing electricity is available by low cost today which reveals a relative decline in national salary
National cash flow is not just a reliable indication of welfare
• The National Income aggregate of the economy doesn't help us in any way because, if the distribution of wealth is unequal then we now have the extreme conditions of lot of rich and lot of the indegent.
It only takes just how much not what is produced
• More medications consumed displays more national income but it really is not just a sign of welfare
Uniformity or sustainability in growth of national profits ignored
• No weightage is given pertaining to the above
Will not tell us unique capital intake or actual wealth growth
• Govt spending on building pyramids
MODULE 2: ECONOMICS OF DEVELOPMENT.
• Significant issues of developments,
• India as being a developing economic system,
• Selling price stability – inflation,
• Price indices,
• Business cycle – features,
• Indicators – lead, lag, coincidental.
ECONOMICS OF DEVELOPMENT
Determinants- Major issues- India as a growing economy- Contribution of different sectors- price stability-Business cycle
• Increase in the amount of the goods and services created by a country with time
• Different indicators works extremely well: real every capita GDP, real every capita GNP, …
• Economic expansion notes
• In an economy there must be well balanced economic growth of all groups – cultivation, manufacturing...