GU Indian Economy Solved Question Paper'2023 [Gauhati University B.Com 4th Sem CBCS]

Gauhati University B.Com 4th Sem. CBCS 

Indian Economy Question Paper 2023

(Commerce)

Full Marks : 80

Time: Three hours

(Indian Economy)

Paper: COM-HG-4016

The figures in the margin indicate full marks for the questions.

1. Answer the following questions : 1×10=10

(a) Define economic growth. 

ANSWERS: Economic growth can be defined as the increase or improvement in the inflation-adjusted market value of the goods and services produced by an economy in a financial year.

(b) What is the rank of India in the Human Development Index Report 2021–22? 

ANSWER: India ranks 132 out of 191 countries and territories on the 2021/22 Human Development Index, tracking the global decline in human development 

(c) What is the Quality of Life Index?

ANSWER: The Quality of Life Index is a measure that combines three basic indicators of human well-being – literacy rate, life expectancy, and infant mortality rate – into a single index.

(d) Which is the major contributor to national income of India within the primary sector?

ANSWER: Agriculture is the major contributor to national income of India within the primary sector.

(e) Who is the chairperson of the Monetary Policy Committee (MPC) in India?

ANSWER: The governor of the Reserve Bank of India is the chairperson ex officio of the Monetary Policy Committee (MPC). Decisions are taken by majority with the governor having the casting vote in case of a tie.

(f) What is industrial unemployment?

ANSWER: Industrial unemployment is a situation when a person has to remain unemployed for a given period due to the changes in the industrial sector, such as technological change, structural change, or cyclical fluctuations.

g) When was the MRTP Act adopted in India?

ANSWER: The MRTP bill was passed in 1969 and the MRTP act India came into full force from 1st June 1970. The act aimed to prevent the concentration of economic power and control monopolistic, restrictive, and unfair trade practices.

(h) The situation with increasing unemployment and inflation is termed as stagflation. (Fill up the blanks)

(i) Mention one major cause of low rate of capital formation in India.

ANSWER: One major cause of low rate of capital formation in India is the low level of national income and per capita income, which limits the motives and ability of savings and investments.

(j) In India, the last five year plan was in 2012-2017.  (State True/False)

ANSWER: True. The Twelfth Five Year Plan (2012-2017) was the last plan period for India’s planning process. After its completion, the Indian government decided to discontinue the Five Year Plan system and shift to a more flexible approach focused on achieving sustainable development goals.

2. Answer the following questions :

(a) What are the equality and sustainability components of human development?

ANSWER: 

(b) Write two features of occupational structure in India at the time of independence.

ANSWER: 

(c) What are the two important objectives of disinvestment policy?

ANSWER: 

(d) Name the banks which are called ‘Domestic Systemically Important Banks' (D-SIBs) in India.

ANSWER: 

(e) Mention two objectives of WTO.

ANSWER: 

3. Write short notes on any four of the following: 5×4=20

(a) NITI AAYOG.

ANSWER: NITI Aayog is a policy think tank of the Government of India that provides inputs and advice on various programmes and policies of the government. It was established in 2015 to replace the Planning Commission, which followed a top-down model of development planning. NITI Aayog aims to foster cooperative federalism, innovation, and sustainable and inclusive growth through a bottom-up approach involving the states and union territories. 

Some of the key initiatives of NITI Aayog are:

• Aspirational Districts Programme: This programme focuses on improving the socio-economic indicators of 112 districts across the country by providing them with support and incentives.

• Atal Innovation Mission: This mission aims to promote a culture of innovation and entrepreneurship in India by creating incubators, tinkering labs, and innovation challenges.

• National Data and Analytics Platform: This platform provides access to high-quality data and analytics for evidence-based policy making and governance.

• Women Entrepreneurship Platform: This platform provides support and guidance to women entrepreneurs through mentorship, funding, and networking opportunities.

NITI Aayog is headed by the Prime Minister of India, who is the chairperson of the Governing Council. The Governing Council consists of all the chief ministers of the states and union territories, and the lieutenant governors of the union territories. The vice-chairperson of NITI Aayog is nominated by the Prime Minister and acts as the chief coordinator of the think tank. The chief executive officer of NITI Aayog is appointed by the Prime Minister and oversees the day-to-day functioning of the organisation. NITI Aayog also has full-time members, part-time members, ex-officio members, and special invitees from various fields of expertise.

(b) Role of NEDFI on the Economy of North-East India.

ANSWER: 

(c) Act East Policy and North-East Region.

ANSWER: 

(d) Policy of Import Substitution.

ANSWER: 

(e) Demographic Dividend in India.

ANSWER: A note on Demographic Dividend in India:

Demographic Dividend is the economic growth potential that can result from shifts in a population’s age structure, mainly when the share of the working-age population (15 to 64) is larger than the non-working-age share of the population (14 and younger, and 65 and older). India has one of the youngest populations in an aging world, with a median age of 28 in 20202. India’s working-age population has grown larger than the dependent population since 2018, and this bulge will last till 2055. This window of opportunity for economic growth is available for five decades in India, longer than any other country in the world. However, this demographic dividend is not uniform across the states, as different regions have different fertility and mortality rates.

The advantages of demographic dividend for India include:

1. Increased labour force that enhances the productivity of the economy.

2. Increased fiscal space to invest in physical and human infrastructure, as the expenditure on children declines.

3. Rise in women’s workforce, as lower fertility is associated with higher female participation in the labour market.

4. Increased personal savings and purchasing power, as the working-age population has more disposable income.

5. To reap the benefits of demographic dividend, India needs to make the right social and economic investments and policies in health, education, governance, and the economy. 

Some of the challenges and recommendations are:

1. Improving the quality and accessibility of education and skill development, to ensure that the young population is employable and productive.

2. Enhancing the health and nutrition status of the population, especially the women and children, to reduce morbidity and mortality.

3. Creating more and better jobs, especially in the formal sector, to absorb the growing labour force and reduce unemployment and underemployment.

4. Promoting gender equality and women’s empowerment, to enable women to participate fully in the economic and social spheres.

5. Strengthening the social security and pension systems, to support the aging population and reduce old-age dependency.

6. Managing the environmental and climate impacts of population growth, to ensure sustainable development and resource conservation.

4.(a) What is economic development? Explain the measures of development. 2+8=10

ANSWER: 

Or

Discuss the composition of national income in India since 1951. 10 

ANSWER: 

(b) Critically evaluate the impact of economic reforms on the Indian economy. 10

ANSWER: 

Or

Discuss the role of MSME industries in India. Briefly explain the initiatives of MSME's. 10 

ANSWER: 

Or 

Discuss the role of MSME industries in India. Briefly explain the initiatives taken for promotion and development of MSME's. 5+5=10

ANSWER: Download Pdf for complete solution.

(c) Explain various types of structural changes that took place in Indian agriculture after independence. How have these changes helped in poverty alleviation and food security in India? Discuss.  5+5=10

ANSWER: 

Or

Sikkim is the first ‘Organic State' in India. What are the ecological and economical benefits of organic state? Discuss.

ANSWER: Sikkim is the first state in the world to implement a 100% Organic Policy, which means that all of its farmland is certified organic and free of chemical fertilizers and pesticides. This policy has brought many ecological and economical benefits to the state, such as:

Ecological benefits:

1. Organic farming preserves and enhances soil fertility, biodiversity, water quality, and climate resilience.

2. Organic farming reduces greenhouse gas emissions and energy consumption by avoiding synthetic inputs and promoting natural cycles.

3. Organic farming protects the health of farmers, consumers, and wildlife from the harmful effects of chemicals.

4. Organic farming conserves the rich cultural and natural heritage of Sikkim, which is home to many endemic and endangered species.

Economical benefits:

1. Organic farming increases the income and livelihood security of farmers by reducing input costs, enhancing crop productivity, and diversifying farm enterprises.

2. Organic farming creates new market opportunities and value addition for organic products, both domestically and internationally.

3. Organic farming boosts rural development and sustainable tourism by attracting visitors, investors, and entrepreneurs to the state.

4. Organic farming enhances the brand image and reputation of Sikkim as a leader in organic agriculture and a model for sustainable development..

In conclusion, Sikkim’s organic policy has demonstrated that organic farming is not only environmentally friendly, but also economically viable and socially beneficial. Sikkim’s success story can inspire other states and countries to follow its example and adopt organic farming as a way of achieving the Sustainable Development Goals.

(d) Justify the need for FDI for the development of the Indian economy. Suggest remedial steps to be taken for increasing actual FDIs in India. 6+4=10 

ANSWER: Download Pdf for complete solution.

Or

What are the major import items of India? What are the factors responsible for the increasing current account deficit in India? Discuss. 3+7=10

ANSWER:  Download Pdf for complete solution.

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