Indian Economy for IBPS (इंडियन इकॉनमी फॉर आईबीपीइस) – All the competitive exams like IBPS Bank exam have general awareness section in their exam. This is a common paper for the entire bank exams . Today we are going to discuss about one of the top most topics in IBPS like General Awareness syllabus related to “Indian economy”. Here our attention would be on the various GK (General Knowledge) questions which will be related to Current Indian Economy.
- 1 Indian economy questions for bank exams
- 2 What is economy (व्हाट इस इकॉनमी)
- 3 Types of Economy
- 4 Important factors of the economy
- 5 Indian economy: An Overview
- 6 About stock exchanges
- 7 What does GDP means ?
- 8 Roles of GDP
- 9 Inflation
- 10 Fiscal year (FY)
- 11 World Trade Organization
- 12 Foreign Exchange Reserve
- 13 Foreign Development Investment (FDI) stocks
- 14 Current economy of India
- 15 Current economy of India
- 16 Share this:
- 17 Related
Indian economy questions for bank exams
These are the following topics for the "Current Indian economy". Carefully study these topics and find the answers below.
- What is economy?
- Describe Indian Economy.
- Types of economy
- Important factors of economy in a country
- Indian economy overview
- Stock exchanges meaning and working
- What is GDP and it’s role in Current Indian Economy
- Fiscal year, meaning of Inflation, foreign reserves, FDI stocks etc.
- Current Inflation Rate
- Current economy of India
What is economy (व्हाट इस इकॉनमी)
Economy of India is the seventh largest economy in the world. Economy is basically an entirely combined network from producers and distributors to the ultimate consumers of the goods and services developed and consumed in a regional or national community. It can be seen as a great combination of inter-related production and consumption activities that helps in determining how rare the resources are allocated in the country.
Types of Economy
Economy is basically of three types:
- Capitalist Economy: It includes the law of inheritance, profit motive, competition of market, pricing features and inequalities.
- Socialist Economy: It includes social planning, social welfare and no class conflicts in society.
- Mixed Economy: It includes mix of both capitalist as well as socialist economy. It also includes government regulation, economy planning of country, privatization,subsidy and economic planning.
Important factors of the economy
There are some significant factors that depict the economy:
- Natural resources
- Human resources
- Capital formation the country
Indian economy: An Overview
Indian economy is the seventh largest economy in the whole world. The economy of India is one of the fastest growing economy in the world and is the part of the esteemed G-20 major economies. It is also a member of prestigious BRICS (Brazil, Russia, India, China and South Africa). In 2011, India’s total per capita income was $ 3,703 and also ranked 129th in the world. India is ranked 3rd largest economy with purchasing power and is also said to grow immensely in coming years.
India's services sector donated 57% of GDP in 2012-13. India is leading exporter of IT services , BPO services and software services . Many IT industries in the private sector are growing fast. India had 3100 start-ups in 2013-2014 it is the fourth largest center .
Agricultural sector for the Indian economy reflects its share of 17% of GDP and 26% share in industry in GDP shows India 's retail market and it is the fastest growing e-commerce market with worth 600% . Read this carefully and answer the questions you find the Indian economy .
About stock exchanges
There are two stock exchanges in India :-
The Bombay Stock Exchange (BSE) is an Indian stock exchange which is located at Dalal Street, Kala Ghoda, Mumbai, Maharashtra, India. It was established in 1875, the BSE is considered as Asia’s first stock exchange. It is the world's fastest stock exchange, with median trade speed of 6 microseconds. The Bombay Stock Exchange comes at 11th place in the list of world's largest stock exchange it has an overall market capitalization of $1.8 trillion as of February 23, 2015. Around 5500 companies are publicly listed on BSE.
The National Stock Exchange of India Limited (NSE) is the leading stock exchange of India and is located in Mumbai, India. The NSE was set up in 1992 as the first electronic exchange of the country. NSE is the first exchange in the country to provide us a latest and fully automated screen-based electronic trading system which offers trading between investors and the companies.
What does GDP means ?
GDP (Gross Domestic Product) is basically the economic value of the country. It shows a sum of country’s production i.e. goods and services produced in a country.
The GDP of a country can be calculated via:
- Calculating via Income Approach
- Calculating via Expenditure approach
- Calculating via Value-added approach
Formula for calculating GDP:
GDP = (exports-imports)+ consumption + investment + government spending
The formula is GDP = (X-M)+C + I + G where:
C stands for spending by consumers,
I stands forinvestment by businesses,
G stands for government spending and
(X-M) stands for net exports. i.e. the value of exports deducted from imports. Net exports may result negativebut. imports are more than exports max. no. of times.
Roles of GDP
- It is used as indicator for decision making for government.
- Each component of the GDP is given the weight of its relative price.
- It helps the investors to manage their portfolios by providing them with guidance about the state of the economy
- Calculation of GDP provides with the general health of the economy. Negative GDP growth shows bad signals for the economy.
Definition: Inflation may be defined as a prolonged hike in the prices of commodities of a country. Inflation is calculated as an annual % hike increase. If inflation rises demand and supply for goods and services decreases.
Fiscal year (FY)
Definition: Fiscal year is said to be a period which a company or government value for their accounting purposes and preparing the annual financial statements. The fiscal year is basically a budget year, It starts on October 1st and ends on September 30.
World Trade Organization
WTO (World Trade Organization) is a global International Organization which deals in between the trading of nations. It was founded on Jan 1, 1995. India is a respected member in the assembly members of World Trade Organizations.
Foreign Exchange Reserve
RBI is the power which handles the Foreign Exchange Reserves in India. These are basically foreign assets which are measured by Reserve Bank of India either in the form of gold or any specific foreign currency.
Foreign Development Investment (FDI) stocks
Foreign Direct Investment (FDI) stocks measure an absolute level of direct investment in our country at a particular time. It is usually measured at the end of quarter or of an annual year.
Current economy of India
Inflow of: $261.7 billion Outflow of: $129.8 billion (2014)
Gross External Debt
$480.2 billion (in 31 Dec 2015) ( $18.3 billion)
1.3% of GDP ($27.5 billion) (2014–15)
Net international investment position
-$363 billion (in 31 March 2015) ( -$26.2 billion)
Current economy of India
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