Multiple Cropping – to grow more than one crop on a piece of land during the year.
It is the most common way of increasing production on a given piece of land and other way is to use modern farming methods for higher yield.

The Green Revolution in the late 1960s introduced the Indian farmer to cultivation of wheat and rice using high yielding varieties (HYVs) of seeds. Higher yields were possible only from a combination of HYV seeds, irrigation, chemical fertilizers, pesticides, etc.

Chemical fertilizers provide minerals which dissolve in water and are immediately available to plants. But these may not be retained in the soil for long. They may escape from the soil and pollute groundwater, rivers and lakes. Chemical fertilizers can also kill bacteria and other microorganisms in the soil. This means some time after their use, the soil will be less fertile than ever before.

Market activities involve remuneration to anyone who performs whereas non-market activities are the production for self-consumption.

The various activities have been classified into three main sectors i.e., primary, secondary and tertiary.
Primary sector includes agriculture, forestry, animal husbandry, fishing, poultry farming, mining and quarrying.
Manufacturing is included in the secondary sector.
Trade, transport, communication, banking, education, health, tourism, services, insurance, etc. are included in the tertiary sector.

Sarva Shiksha Abhiyan (SSA) was a flagship program launched by the Government of India in 2001 to achieve universal elementary education. It aimed to provide free and compulsory education to children aged 6 to 14 years, as mandated by the 86th Amendment to the Constitution. The initiative focused on improving school infrastructure, bridging gender and social gaps, and enhancing the quality of learning

Seasonal unemployment occurs when workers lose their jobs at certain times of the year due to fluctuations in demand. This type of unemployment is common in industries like agriculture, tourism, and retail, where employment depends on seasonal cycles.

Disguised unemployment occurs when more people are employed in a job than actually needed, leading to inefficiency. It is common in agriculture and informal sectors, especially in developing economies like India.

Educated unemployment refers to a situation where individuals with formal education—such as graduates or postgraduates—struggle to find jobs that match their qualifications. This issue is particularly prevalent in urban areas and is a growing concern in India.

In case of India, statistically, the unemployment rate is low. A large number of people represented with low income and productivity are counted as employed. They appear to work throughout the year but in terms of their potential and income, it is not adequate for them.

Some of the surplus labour in agriculture has moved to either the secondary or the tertiary sector. In the secondary sector, small scale manufacturing is the most labour-absorbing.

Social Exclusion it is a process through which individuals or groups are excluded from facilities, benefits and opportunities that others enjoy.

The concept of domestic territory (economic territory) is different from the geographical or political territory of a country. Domestic territory of a country includes the following

• Political frontiers of the country including its territorial waters
• Ships, and aircrafts operated by the residents of the country between two or more countries for example, Air India’s services between different countries.
• Fishing vessels, oil and natural gas rigs and floating platforms operated by the residents of the country in the international waters or engaged in extraction in areas where the country has exclusive rights of operation.
• Embassies, consulates and military establishments of the country located in other countries.

It excludes all embassies, consulates and military establishments of other countries and offices of international organisations located in India.

Capital Receipts:

• The main items of capital receipts are market borrowings and from Banks, loans received from foreign governments and international organisations, and recoveries of loans granted by the central government.
• Other items include small savings (Post-Office Savings Accounts, National Savings Certificates, etc), provident funds and net receipts obtained from the sale of shares in Public Sector Undertakings (PSUs).

• Divided into tax and non-tax revenues.
• Tax revenue receipts comprise of direct taxes – which fall directly on individuals (personal income tax) and firms (corporation tax), and indirect taxes like excise taxes (duties levied on goods produced within the country), customs duties (taxes imposed on goods imported into and exported out of India) and service tax. The share of direct taxes in gross tax revenue has increased from 19.1 per cent in 1990-91 to 41.3 per cent in 2003-04.
• Non-tax revenue consists of interest receipts (on account of loans by the central government which constitutes the single largest item of non-tax revenue), dividends and profits on investments made by the government, fees and other receipts for services rendered by the government.  Cash grants-in-aid from foreign countries and international organisations are also included.

Primary Deficit:   

Primary deficit indicates the borrowing requirement exclusive of interest payment. The borrowing requirement of the government includes not only accumulated debt, but also interest payment on debt.

Capital Account (Balance of Payment)
Capital Account records all international transactions of assets in any one of the forms in which wealth can be held. Purchase of assets is a debit item on the capital account.
If an Indian buys a UK Car Company, it enters capital account transactions as a debit item (as foreign exchange is flowing out of India). On the other hand, sale of assets like sale of share of an Indian company to a Chinese customer is a credit item on the capital account.
Capital Account includes Foreign Direct Investments (FDIs), Foreign Institutional Investments (FIIs), external borrowings and assistance.
Shipping and banking form part of Current Account.

Capital Account (Balance of Payment)

Capital Account records all international transactions of assets in any one of the forms in which wealth can be held. Purchase of assets is a debit item on the capital account.

If an Indian buys a UK Car Company, it enters capital account transactions as a debit item (as foreign exchange is flowing out of India). On the other hand, sale of assets like sale of share of an Indian company to a Chinese customer is a credit item on the capital account.

Capital Account includes Foreign Direct Investments (FDIs), Foreign Institutional Investments (FIIs), external borrowings and assistance.

Shipping and banking form part of Current Account.

A rise in price of foreign exchange will reduce the demand for imports as we have to pay more in rupees for the goods.

Economic units or economic agents are those individuals or institutions which take economic decisions. They may be producers of goods and services who decide what and how much to produce and consumers as well who decide what and how much to buy.

Real GDP (Gross Domestic Product) measures the total value of goods and services produced within a country, adjusted for inflation. It reflects the actual economic output by using constant prices from a base year, ensuring that inflation doesn’t distort comparisons over time.

In the present case though the Nominal GDP has doubled but the real GDP remains same. Unlike Real GDP, it does not adjust for inflation, meaning price changes can distort comparisons over time.

Real GDP= (Nominal GDP/GDP Deflator) ×100

Consumer Price Index (CPI) is the index of prices of a given basket of commodities which are bought by the representative consumer. CPI is generally expressed in percentage terms as compared to a base year‘s prices.

The GDP deflator is an economic metric that measures the impact of inflation on a country’s GDP by comparing nominal GDP to real GDP.

Therefore, GDP deflator takes into account all goods and services produced in the country and does not include imported goods.

GDP ≡ Sum total of gross value added of all the firms in the economy

GNP ≡ GDP + Net factor income from abroad

Net factor income from abroad= Factor income earned by the domestic factors of production employed in the rest of the world – Factor income earned by the factors of production of the rest of the world employed in the domestic economy

NNP (at market prices) ≡ GNP – Depreciation

NNP at factor cost ≡ NNP at market prices – Net indirect taxes
(National Income or per capita income)

Gross Value Added (GVA) at Market Prices is a measure of economic productivity, reflecting the value of goods and services produced in an economy after adjusting for subsidies and taxes.

GVA at Market Prices= GVA at Basic Prices + Net Taxes on Products

GDP (Gross Domestic Product) measures the total value of goods and services produced within a country including foreign entities.

The money supply in an economy includes various components that represent liquid assets available for transactions. It is categorized into different measures:

1. Demand Deposits in Savings Accounts – Funds that individuals can withdraw or use for transactions without prior notice.
2. Current Account Deposits – Money held by businesses and individuals for daily transactions, often without interest.
3. Coins – Physical currency issued by the government for circulation.
4. Currency Notes – Paper money issued by the central bank.

Additionally, money supply also includes:

5. Time Deposits (Fixed Deposits, Recurring Deposits) – These are less liquid and not readily available for spending.
6. Central Bank Reserves – Funds held by banks in their reserves with the Reserve Bank of India (RBI).
7. Money Market Instruments – Includes treasury bills, commercial papers, and certificates of deposit.

Regional Rural Banks (RRBs):

• On the basis of Report of Narasimham Working Group in 1975, RRBs were established under RRB Act, 1976 as the specialized banks to cater to the needs of the rural poor.
• RRBs are set-up as rural-oriented commercial banks with the low cost profile of cooperatives but with the professional discipline and modern outlook of commercial banks.
• The branch network of RRBs in the rural area form around 43 per cent of the total rural branches of commercial banks.
• A large number of branches of RRBs were opened in the un-banked or under-banked areas providing services to the interior and far-flung areas of the country.
• RRBs primarily cover small and marginal farmers, landless laborers, rural artisans, small traders and other weaker sections of the rural community.
• The RRBs were owned by three entities with their respective shares as follows: Central Government → 50%, State government → 15%, Sponsor bank → 35%
• They are regulated by the Reserve Bank of India (RBI) and supervised by the National Bank for Agriculture and Rural Development (NABARD).

Base rate is the minimum rate set by the Reserve Bank of India below which banks are not allowed to lend to its customers.

Open Market Operations refers to buying and selling of bonds issued by the Government in the open market. This purchase and sale is entrusted to the Central bank on behalf of the Government.

When RBI buys a government bond in the open market, it pays for it by giving a cheque. This cheque increases the total amount of reserves in the economy and thus increases the money supply. Selling of a bond by RBI (to private individuals or institutions) leads to reduction in quantity of reserves and hence the money supply.

Moral Suasion refers to a method adopted by the central bank to persuade or convince the commercial banks to advance credit in accordance with the directives of the central bank in the economic interest of the country.

Marginal Standing Facility (MSF): A facility under which scheduled commercial banks (not all commercial banks) can borrow an additional amount of overnight money from the Reserve Bank by dipping into their Statutory Liquidity Ratio (SLR) portfolio up to a limit at a penal rate of interest. This provides a safety valve against unanticipated liquidity shocks to the banking system.

The RBI mandates banks to lend a certain portion of their funds to specified sectors, like agriculture, Micro, Small and Medium Enterprises (MSMEs), export credit, education, housing, social infrastructure, renewable energy among others.
All scheduled commercial banks are mandated to set aside 40% of their Adjusted Net Bank Credit (ANDC) and Regional rural banks, co-operative banks and
small finance banks have to allocate 75% of ANDC for lending to these sectors.

RBI as a lender of last resort:

• As the total amount of money stock in the economy is much greater than the volume of high-powered money (The total liability of the monetary authority of the country).
• Commercial banks create this extra amount of money by giving out a part of their deposits as loans or investment credits.
• In case of a crisis, it stands by the commercial banks as a guarantor and extends loans to ensure the solvency of the latter.

A Co-operative bank is a financial entity which belongs to its members, who are at the same time the owners and the customers of their bank. It is distinct from commercial banks.

Since there is duality of control over these banks with banking related functions being regulated by the Reserve Bank and management related functions regulated by respective State Governments/Central Government.  (‘Cooperation’ is a state subject.)

These banks are owned and controlled by the members, who democratically elect a board of directors.

The larger is the quantum of transactions to be made, the larger is the quantity of money demanded. When interest rates go up, people become less interested in holding money since holding money amounts to holding less of interest-earning deposits, and thus less interest received. Therefore, at higher interest rates, money demanded comes down.

The RBI controls the money supply in the economy in various ways. The tools used by the Central bank to control money supply can be quantitative or qualitative. Quantitative tools control the extent of money supply by changing the CRR, or bank rate or open market operations.

Open Market Operations refers to buying and selling of bonds issued by the Government in the open market. When RBI buys a government bond in the open market; it pays for it by giving a cheque. This cheque increases the total amount of reserves in the economy and thus increases the money supply.

Reducing Cash Reserve Ratio will increase the money supply in the market and therefore, will further increase inflation.

The GDP deflator is an economic metric that measures the impact of inflation on a country’s GDP by comparing nominal GDP to real GDP.
Consumer Price Index (CPI) is the index of prices of a given basket of commodities which are bought by the representative consumer. CPI is generally expressed in percentage terms as compared to a base year‘s prices.

It is the rate at which Reserve Bank of India lends money to commercial banks in the event of any shortfall of funds. A decline in the repo rate can lead to the banks bringing down their lending rate which is beneficial for retail loan borrowers.

Transfer pricing happens whenever two subsidiary companies that are part of the same multinational group, trade with each other.

Balance of Payments & Its Components:

Current Account includes

• The balance of trade (i.e. Export and import of goods)
• The balance of services
• Remittances
• Transfer Payments

Capital Account includes:

• Investment (i.e. FDI and FII)
• Borrowings (External Commercial Borrowings, sovereign loans)
• NRI Deposits

Automated Teller Machines (ATMs) set up, owned and operated by non-bank entities are called “White Label ATMs” (WLAs). Non-bank entities incorporated in India under the Companies Act 1956 are allowed to operate WLAs.

India was importer of finished consumer goods like woollen clothes, cotton, silk, and capital goods like light machinery manufactured in Britain.

The use of HYV seeds was restricted to the more affluent states such as Punjab, Andhra Pradesh and Tamil Nadu.

1. Chronic poor – Always below poverty line
2. Churning poor – Regularly move in and out of poverty line
3. Transient poor – The occasionally poor who are rich most of the time

Absolute poverty is a state of being in which a person can mobilize enough resources to arrange for minimum means of the of subsistence.
Relative poverty is a state in which a person is not in a position to enjoy these comforts of life which are normally enjoyed by large number of persons in a society.

The Human Development Index (HDI) is a composite statistic used to measure a country’s overall achievement in key dimensions of human development:

• Health: Assessed by life expectancy at birth, reflecting the ability to live a long and healthy life.
• Education: Measured by both mean years of schooling for adults and expected years of schooling for children.
• Standard of Living: Evaluated using gross national income (GNI) per capita, adjusted for purchasing power parity.

India ranks 2nd globally in fruit and vegetable production after China.

Horticulture contributes six per cent of Gross Domestic Product of India.

India ranks 1st globally in number of organic producers and 6th in organic agricultural land.

Frictional unemployment refers to the time lag between the jobs when an individual is searching for a new job or is switching between the jobs.

Cyclical unemployment rises during recessions and declines with economic growth.

Microfinance refers to small, collateral-free loans and financial services provided to low-income individuals or groups who lack access to traditional banking. It includes:

• Microcredit: Small loans for income-generating activities
• Microsavings: Low-deposit savings accounts
• Microinsurance: Affordable insurance for health, crops, or assets
• Remittance Services: Money transfer facilities

The Reserve Bank of India (RBI) defines microfinance as loans to households with annual income up to ₹3 lakh.