Important Sectors of the Economy: Primary, Secondary, Tertiary, Quaternary and Quinary
In the process of classifying economic sectors, economists have divided economic sectors based on the type of work performed and the goods and services produced. These sectors are initially classified as primary, secondary, and tertiary Sectors. The number of sectors grew as new types of work developed, and economists defined new sectors. Currently, there are…
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RBI revises Priority Sector Lending (PSL) Guidelines, fresh categories included
Today (September 4, 2020) announced that PSL guidelines have been comprehensively reviewed to align it with emerging national priorities and bring a sharper focus on inclusive development, after having wide-ranging discussions with all stakeholders. “Revised PSL guidelines will enable better credit penetration to credit deficient areas; increase the lending to small and marginal farmers and…
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History of Economic Planning in India
In 1934, Bharat Ratna Sir M. Vishveshvaraiah published a book titled “Planned Economy in India”, in which he presented a constructive draft of the development of India in the next ten years. The central idea envisaged by Sir M.Vishveshvaraiah was to lay out a plan to shift labour from agriculture to industries and double up…
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Definition, role and sectors of Priority Sector Lending (PSL)
Definition: The priority sector is defined as the sectors that the Government of India and Reserve Bank of India consider as important for the development of the basic needs of the country and are to be given priority over other sectors while lending. The role of lenders is assigned by the Reserve Bank of India…
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Structural Change in Indian Economy
The term “structural change” refers to the major changes in the relative importance of the main sectors of an economy (agriculture, industry, services, and so on) in the course of economic growth. Structural change has often been defined as a process by which the transfer of economic benefits is evidenced in terms of major changes…
Basic Characteristics of Indian Economy
Low per capita real income, high rate of population growth, the cycle of poverty, an agro-based economy, income disparities, slow capital formation, poor infrastructural development, an imperfect market, Lack of skilled manpower, outdated technology, corruption, and a backward society are the basic characteristics of the Indian economy. Per Capita income: India is universally known as…
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