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Assignment Set – 1

  1. Define economic planning. Explain the factors and indicators of economic growth.

Ans 1.

Economic Planning: Economic planning refers to the deliberate and organized effort by a central authority, usually a government, to coordinate and direct the economic activities of a nation or region. This process involves setting goals, determining the resources required to achieve those goals, and outlining specific strategies and policies to guide economic behavior. Economic planning can range from extensive, as in centralized socialist economies, to limited, as in specific sectors or areas within market economies.

Factors and Indicators of Economic Growth:


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  1. Explain in detail the 5 major sectors in economy with examples.

Ans 2.

The economy is typically divided into five major sectors, each of which plays a distinct role in generating wealth and contributing to a country’s overall economic health. These sectors are often referred to as primary, secondary, tertiary, quaternary, and quinary sectors. Let’s explain each of these sectors in detail with examples:

  1. Primary Sector:

Description: The primary sector involves activities that directly extract or harvest natural resources from the Earth. It is the foundation of all other economic activities as it provides the raw materials


  1. Explain the mechanisms of all the 5-year plans in detail.

Ans 3.

India’s Five-Year Plans are a series of national-level economic plans that have significantly influenced its economic and industrial growth. Here’s a detailed breakdown of the mechanisms of India’s Five-Year Plans:

  1. First Five-Year Plan (1951-1956):

Focus: Emphasized the agricultural sector and aimed at rebuilding the nation’s economy after gaining independence.


  • Major investments in dams and irrigation to enhance agricultural productivity: Notable projects included the Bhakra Dam and Hirakud Dam.
  • Allocated funds for land reforms and directed states to control land redistribution.


Assignment Set – 2

  1. Explain the process of poverty and unemployment estimation in India. 10

Ans 4.

Poverty and Unemployment Estimation in India

India, with its vast population and diverse socioeconomic landscape, has grappled with challenges of poverty and unemployment for decades. As the world’s largest democracy, it’s essential for the country’s policymakers to understand the extent and depth of these issues to devise effective strategies. Here’s a deep dive into the process of poverty and unemployment estimation in India:

  1. Poverty Estimation:
  2. Defining Poverty Line: Before measuring poverty, it’s imperative to set a benchmark known as the “poverty line”. This is determined based on the money required to meet the minimum daily calorie



  1. What do you mean by inflation? Explain the causes for rise of prices in India.

Ans 5.


Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. It is a key economic indicator and is typically expressed as an annual percentage, reflecting the yearly change in the broad price level for goods and services in an economy. Central banks attempt to limit inflation — and avoid deflation — to keep the economy running smoothly.

Causes for the Rise of Prices in India:

India, being a diverse and large economy, has experienced varying levels of inflation over the

  1. Elucidate the whole concept of Indian Financial System.

Ans 6.

The Indian Financial System:

The financial system is the lifeblood of any economy, ensuring the smooth flow of funds from those who save to those who invest in various productive channels. The Indian Financial System, shaped by a rich tapestry of historical reforms and policies, is no exception, facilitating the allocation of funds in the vast and diverse country.

  1. Constituents of the Indian Financial System: The Indian Financial System can be divided into two main parts:

Financial Institutions: These are intermediaries that mobilize savings and facilitate the