The changes that took place in the role of state since 1991 are as under:

1. Before economic reforms, government had its share in all sectors of the economy. It was producing bread, butter, biscuits, milk, running hotels and many of these were actually not required to be in public sector. Government withdrew herself from these sectors through delicensing, deregulation and disinvestment.
2. As a regulator, during 1947-1990, Government regulated all activities with the laws and acts. But after 1991, except some basic and strategic goods and services, decisions were made to be market driven. For this purpose, regulatory authorities were set up for different sectors.
3. Since 1991, Government has focused its attention on development of social sector like education, health, defence, law and order.

The license policy was misused by the big industrialists. It was found that often the industrialists obtained licenses not for starting a new firm but in order to prevent the competitive firms from entering the market. Moreover, the licensing system was inefficient and corrupted. Huge time and effort of the industrialists was lost in obtaining the licenses. 

‘People as a resource’ is a term that means how the population can be an asset and not a liability. It a way of referring to the working class of society in terms of their existing productive skills and abilities. The population becomes human capital when an investment is done in the form of education and training. Education and health also help human beings to be an asset to the economy. Thus, people as a resource refers to the working population that results in the development of society.

Under the commune system, the farmers were encouraged to cultivate land collectively and not individually. That is, the farmers were encouraged to combine their individual plots of land and perform farming collectively.​The basic objective of the system was to enable the farmers to reap the benefits of large scale production.

The license policy was misused by the big industrialists. It was found that often the industrialists obtained licenses not for starting a new firm but in order to prevent the competitive firms from entering the market. Moreover, the licensing system was inefficient and corrupted. Huge time and effort of the industrialists was lost in obtaining the licenses. 

The license policy was misused by the big industrialists. It was found that often the industrialists obtained licenses not for starting a new firm but in order to prevent the competitive firms from entering the market. Moreover, the licensing system was inefficient and corrupted. Huge time and effort of the industrialists was lost in obtaining the licenses. 

Value of output = Sales + Change in stock

                      = 20 + 2

                      = Rs 22lakh

Gross value added at market price = Value of output - Intermediate consumption

                                                  = 22 - 5

                                                  = Rs 17lakh

NVAFC = GVAMP - Depreciation - Net indirect tax

          = 17 - (Cost of producers goods/No. of useful life in year) - (Indirect tax - Subsidy)

          = 17 - (10lakh/10) - (1 - 0)

          = 17 - 1 - 1 = Rs 15lakh

The government by selling its stake in public sector or joint sector enterprise is termed as disinvestment. This leads to privatisation. But the government should unload shares of only inefficient enterprises and the money received should be utilised for productive investment.

Understanding the Balance of Payments (BOP)

The balance of payments of a country is a systematic record of all economic transactions between the residents of foreign countries during a given period of time. The transaction in the balance of payment account can be categorized as autonomous transactions and accommodating transactions. These transactions consist of imports and exports of goods, services, and capital, as well as transfer payments, such as foreign aid and remittances. A country's balance of payments and its net international investment position together constitute its international accounts.

If your options are

1 Life expectancy

2 Education attainment

3 per capital income

4 National income

Ans : National income is the total value of all goods and services produced in one year. National income is not an indicator of Human Development Index.

What is Occupational Structure?

The occupational structure of a nation refers to the percentage of its workforce employed in various economic ventures. To put it in other words, articulating how many of the total working population are employed in agriculture and associated activities and how many of them are involved in manufacturing and service sector can be identified from the occupational structure of the nation.

Occupational Structure in Colonial India

During the colonial period, the occupational structure of India, i.e., the allocation of working people across various industries and sectors, explicated small hint of change. The agricultural sector valued for the highest share of the workforce, which normally prevailed at a high of 70 – 75 % while the manufacturing and the services sectors estimated for only 10 and 15-20 % sequentially. Another outstanding perspective was the growing geographical variation. Parts of the then Madras Presidency (including areas of the present-day states of Tamil Nadu, Kerala, Andhra Pradesh and Karnataka), Bombay and Bengal observed a drop in the dependence of the workforce on the agricultural sector with a corresponding increase in the production and the services sectors. However, there was an increase in the share of the workforce in agriculture during the same time in states such as Rajasthan, Odhisa and Punjab.

Central characteristics of capitalism include capital accumulation, competitive markets, a price system, private property and the recognition of property rights, voluntary exchange and wage labor. People often use the terms free enterprise, free market, or capitalism to describe the economic system of the United States. A free enterprise economy has five important characteristics. They are: economic freedom, voluntary (willing) exchange, private property rights, the profit motive, and competition.

The current account of the balance of payments includes a country's key activity, such as capital markets and services. CAB will tell whether a country is in a surplus or deficit. There are four major components of a current account, including goods, services, income, and current transfers. The current account represents a country's imports and exports of goods and services, payments made to foreign investors, and transfers such as foreign aid. The current account tracks actual transactions, such as import and export goods. The capital account tracks the net balance of international investments – in other words, it keeps track of the flow of money between a nation and its foreign partners.

The focus of the industrial policies pursued by the colonial government in India was lo make our country a mere supplier of Britain's own flourishing industrial base. The policies were concerned mainly with the advancement of the British economic and political power. The industrial policy pursued by the British colonial administration had the following shortfall (i) Neglect of Indian Handicraft Industries The British followed a discriminatory tariff policy under which they imposed heavy tariffs (export duties) on India's export of handicraft products while allowed free export of India's raw material to Britain and free import of finished products from Britain to India. This made Indian exports costlier and its international demand fell drastically loading to the collapse of handicrafts industries. Also, Indian handicrafts faced a stiff competition from machine-made textiles of Britain. (ii) Lack of Investment in Modern Indian Industries The modern industries in India demanded investments in capital goods and technology that were beyond the means of Indian investors. British Government was least interested in investing in Indian industries as they never wanted India to become self reliant. Thus due to the lack of sufficient investment, the growth of Indian industries, was severely constrained.

Bad effects are as under:- 1) Public sector monopolies gradually turned out to be a 'dead social weight'. By incurring heavy losses, public sector enterprise led to insufficient use of resources. 2) Protection of domestic industries stimulated its growth. But, it failed to achieve international standards of product quality. 3) Saving foreign exchange through import substitution proved to be an inefficient policy instrument.

Net Indirect Tax is the difference between the Indirect tax and subsidy. To find out Market Prices (MP), indirect taxes are added and subsidies are subtracted from Factor Cost (FC) as explained above. Symbolically: Market Price = Factor Cost + Indirect taxes – Subsidies. = Factor Cost + Net indirect taxes. The imposition of an indirect tax on a commodity such as a sales tax or excise duty causes the supply curve for that commodity to shift to the left because when a tax is imposed the cost of supplying the commodity to the market increases. At each price a smaller quantity is supplied.

An investment is an asset or item accrued with the goal of generating income or recognition. In an economic outlook, an investment is the purchase of goods that are not consumed today but are used in the future to generate wealth. In finance, an investment is a financial asset bought with the idea that the asset will provide income further or will later be sold at a higher cost price for a profit.