FYUG Even Semester Exam, 2025
Indian Economy (COMDSM-251)

Subject: Commerce

Paper Code: COMDSM-251

Semester: 4th Semester

Full Marks: 70

Time: 3 Hours

UNIT-I

Question 1 [2 x 2 = 4 Marks]

(a) Make a distinction between growth and development.

  • Economic Growth: Refers to a quantitative increase in a country's real national income or gross domestic product (GDP) over a period.
  • Economic Development: A broader qualitative concept involving improvements in the quality of life, including literacy, health, and reduction in inequality, alongside growth.

(b) What is Human Development Index?

The Human Development Index (HDI) is a statistical composite index of life expectancy, education (mean years of schooling completed and expected years of schooling upon entering the education system), and per capita income indicators used to rank countries into four tiers of human development.

(c) Define sustainable development.

Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

Question 2 [10 Marks]

Option A

Discuss the various measures of development.

Development is measured through various economic and social indicators:

  • Gross National Income (GNI) per capita: The total domestic and foreign output claimed by residents of a country.
  • Human Development Index (HDI): Measures longevity, knowledge, and standard of living.
  • Physical Quality of Life Index (PQLI): Focuses on infant mortality, life expectancy, and basic literacy.
  • Gender Inequality Index (GII): Measures disparities between men and women in reproductive health, empowerment, and the labor market.

Option B

Discuss the basic features of an under-developed country.

Under-developed or developing countries typically exhibit the following characteristics:

  • Low Per Capita Income: Resulting in a low standard of living for the majority of the population.
  • Dependence on Agriculture: A primary sector-heavy economy with low industrialization.
  • Rapid Population Growth: High birth rates often leading to high dependency ratios.
  • High Unemployment: Including significant levels of underemployment and disguised unemployment.
  • Technological Backwardness: Lack of modern infrastructure and production techniques.

UNIT-II

Question 3 [2 x 2 = 4 Marks]

(a) What is the relation between Population and Economic development?

Population acts as both a catalyst and a constraint. While a large population provides a labor force and market, rapid growth can strain resources, infrastructure, and lead to poverty if it outpaces economic growth.

(b) What is disguised unemployment?

Disguised unemployment occurs when more people are engaged in an activity (commonly agriculture) than are actually required, such that their marginal productivity is zero.

(c) Define poverty line.

The poverty line is a minimum level of income or consumption deemed adequate in a particular country to meet basic necessities like food, clothing, and shelter.

Question 4 [10 Marks]

Option A

Discuss the basic objectives of planning in India.

The primary objectives of economic planning in India have historically included:

  • Economic Growth: Increasing the GDP and national income.
  • Self-Reliance: Reducing dependence on foreign aid and imports.
  • Social Justice: Reducing inequalities of income and wealth.
  • Modernization: Adopting new technologies and social outlooks.
  • Full Employment: Creating job opportunities to eradicate poverty.

Option B

Discuss the causes of income inequality in India. What are the measures undertaken by Govt. of India in this regard?

Causes: Unequal distribution of land, unemployment, inflation, and lack of access to quality education/healthcare.
Measures: Progressive taxation, land reforms, MGNREGA for employment, and targeted subsidies through the Public Distribution System (PDS).

UNIT-III

Question 5 [2 x 2 = 4 Marks]

(a) Suggest two measures to raise productivity in agriculture.

  • Use of High Yielding Variety (HYV) seeds and modern fertilizers.
  • Expansion of irrigation facilities to reduce dependence on monsoons.

(b) What is White Revolution?

The White Revolution, or Operation Flood, was a massive dairy development program that transformed India from a milk-deficient nation into the world's largest milk producer.

(c) Write a note on public distribution system.

The Public Distribution System (PDS) is a government-sponsored chain of shops tasked with distributing essential food and non-food items to the poor at subsidized rates to ensure food security.

Question 6 [10 Marks]

Option A

Discuss the role of agriculture in Indian Economy.

Agriculture is the backbone of the Indian economy:

  • Contribution to GDP: Though declining, it still accounts for a significant portion of national income.
  • Employment: It is the largest source of livelihood, employing nearly half the workforce.
  • Industrial Raw Materials: Supplies key inputs for industries like textiles, sugar, and food processing.
  • Food Security: Ensures the availability of food grains for a massive population.

Option B

What is Green Revolution? Discuss the role of technology in the development of agriculture.

The Green Revolution (begun in the 1960s) involved the introduction of HYV seeds, chemical fertilizers, and controlled water supply to increase food production.
Role of Technology: Modern machinery (tractors), biotechnology, satellite mapping for soil health, and digital platforms for market information have significantly enhanced yields and farmer income.

UNIT-IV

Question 7 [2 x 2 = 4 Marks]

(a) Define public sector.

The public sector consists of government-owned and operated organizations and enterprises that provide services and goods for the benefit of the general public.

(b) Write a note on 'Make in India' initiative.

Launched in 2014, 'Make in India' is a major national program designed to facilitate investment, foster innovation, enhance skill development, and build best-in-class manufacturing infrastructure.

(c) What is Balance of Payments?

The Balance of Payments (BoP) is a systematic record of all economic transactions between the residents of a country and the rest of the world over a specific period.

Question 8 [10 Marks]

Option A

Discuss the New Industrial Policy of 1991 in India.

The 1991 policy marked a paradigm shift toward Liberalization, Privatization, and Globalization (LPG):

  • De-licensing: Abolished industrial licensing for most industries.
  • Foreign Investment: Allowed automatic approval for foreign direct investment (FDI) in many sectors.
  • Public Sector Reform: Reduced the number of industries reserved for the public sector.
  • MRTP Act: Removed the threshold limit of assets for MRTP companies to encourage expansion.

Option B

Discuss the role and importance of MSME in Indian Economy.

Micro, Small, and Medium Enterprises (MSMEs) are vital for:

  • Employment: They are the second-largest employer after agriculture.
  • Exports: Contribute nearly 45-50% of India's total exports.
  • Regional Development: Help in the industrialization of rural and backward areas.
  • Innovation: Provide a platform for entrepreneurship and low-cost innovation.

UNIT-V

Question 9 [2 x 2 = 4 Marks]

(a) Mention the three categories of occupational structure in India.

  1. Primary Sector (Agriculture and allied activities).
  2. Secondary Sector (Manufacturing and Construction).
  3. Tertiary Sector (Services).

(b) What is Digital India Mission?

It is a flagship program aimed at transforming India into a digitally empowered society and a knowledge economy by ensuring government services are available electronically.

(c) What is circular economy?

A circular economy is a model of production and consumption that involves sharing, leasing, reusing, repairing, refurbishing, and recycling existing materials and products for as long as possible.

Question 10 [10 Marks]

Option A

Discuss the importance of service sector in Indian Economy.

The service sector is the fastest-growing sector and the largest contributor to India's GDP:

  • GDP Contribution: Accounts for over 50% of GVA.
  • Foreign Exchange: India is a global hub for IT and BPO services, bringing in significant forex.
  • Infrastructure Support: Provides essential services like banking, insurance, and transport to other sectors.

Option B

What factors are responsible for rapid growth in service sector? Mention few challenges.

Growth Factors: Economic reforms (LPG), high demand for IT services, growth in tourism, and increased outsourcing.
Challenges: Low employment elasticity (jobless growth), skill gap in the workforce, and regulatory hurdles in sectors like retail and aviation.

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