SSC CGL - Detailed Guide 2025
Self-Paced Course
Indian Economy Overview
Reference: Lucent GK, NCERT Class 6–12
1. Features of Indian Economy
| Feature | Explanation |
|---|---|
| Mixed Economy | Combines features of both capitalism & socialism. |
| Developing Economy | Characterized by low per capita income, poverty, and unemployment. |
| Agrarian Economy | Though agriculture's GDP share is low (~16-17%), it employs over 45% workforce. |
| Demographic Dividend | Large young population; potential for economic boost if skilled properly. |
| Dualistic Structure | Coexistence of modern (organized) & traditional (unorganized) sectors. |
| Low Capital Formation | Limited savings → low investment → slower growth. |
| Unequal Income Distribution | Rich-poor divide is significant across regions and social groups. |
Note: Indian economy is service-led (tertiary sector is the largest contributor to GDP).
2. Sectors of Economy
| Sector | Includes | Contribution to GDP | Features |
|---|---|---|---|
| Primary | Agriculture, fishing, forestry, mining | ~16-17% | Most labor-intensive, low productivity |
| Secondary | Manufacturing, construction, electricity | ~25% | Industrial growth; Make in India focus |
| Tertiary | Services - banking, education, trade, IT, tourism | ~55-60% | Fastest growing; major contributor to GDP |
Quaternary (knowledge-based) and Quinary (decision-making) are advanced service subsectors.
3. Economic Planning in India
History of Planning
| Period | Key Events |
|---|---|
| 1934 | M. Visvesvaraya suggested national planning |
| 1944 | Bombay Plan by industrialists |
| 1950 | Planning Commission established |
| 1951 | First Five-Year Plan launched |
Objective: Economic development, social justice, and self-reliance.
NITI Aayog vs Planning Commission
| Aspect | Planning Commission | NITI Aayog |
|---|---|---|
| Formed | 1950 | 1 Jan 2015 |
| Structure | Top-down (centralized) | Bottom-up (participatory) |
| Chairperson | Prime Minister | Prime Minister |
| Governing Council | No such structure | Includes all Chief Ministers & Lt. Governors |
| Role | Allocate funds & frame plans | Policy think-tank, cooperative federalism |
NITI Aayog emphasizes real-time data, innovation, and sustainable development.
4. Five-Year Plans (Key Highlights)
| Plan | Period | Focus Area | Notable Points |
|---|---|---|---|
| 1st Plan | 1951-56 | Agriculture, irrigation | Harrod-Domar Model, community development |
| 2nd Plan | 1956-61 | Industrialization (heavy industries) | Mahalanobis model |
| 3rd Plan | 1961-66 | Self-reliance, agriculture + industry | Failed due to wars (1962, 1965) & drought |
| Plan Holidays | 1966-69 | Annual Plans due to economic instability | Focus on food production |
| 4th Plan | 1969-74 | Growth with stability | Green Revolution phase |
| 5th Plan | 1974-79 | Poverty removal (Garibi Hatao) | Abolished in 1978 by Janata Govt |
| 6th Plan | 1980-85 | Economic liberalization begins | Emphasis on modernization |
| 7th Plan | 1985-90 | Employment, productivity | First attempt at economic reforms |
| 8th Plan | 1992-97 | Liberalization, privatization, globalization (LPG) | Post-1991 reforms; rapid growth begins |
| 9th Plan | 1997-2002 | Growth with social justice | Focus on agriculture & infrastructure |
| 10th Plan | 2002-2007 | Faster & inclusive growth | GDP target: 8%; achieved ~7.6% |
| 11th Plan | 2007-2012 | "Faster and more inclusive growth" | Social sector emphasis |
| 12th Plan | 2012-2017 | "Faster, sustainable, inclusive growth" | Last official plan before transition to NITI Aayog |
Post-2017: No Five-Year Plans — replaced by sectoral targets & strategic documents by NITI Aayog.
Developed By Satyam Kumar
Next
Master Indian Economy with Us!
Join Courage Library for comprehensive study materials and expert guidance.
Be a Couragian!