Indian Economy GK Questions with Answers – Page 53

The statistician who founded the Indian Statistical Institute gave the Second Plan its framework, in which investment was directed towards heavy and basic industries such as steel, machinery and power on the argument that they would build the capacity to produce everything else.

On that date a cabinet resolution created the National Institution for Transforming India in place of the Planning Commission, keeping the Prime Minister as the head of the new body but changing its work from allocating funds to advising governments.

The Planning Commission was constituted on 15 March 1950 by a resolution of the Union Cabinet, with the Prime Minister as its chairman, and it drafted every Five Year Plan until it was replaced in 2015.

The Act requires that employment be given within fifteen days of an application for work, and if the administration fails to do so, the state government becomes liable to pay an unemployment allowance to the applicant.

A mill turns sugarcane into sugar, that is, it changes the form of a natural product, and every such transformation belongs to the secondary or industrial sector.

Gross domestic product is the money value of all final goods and services produced within the boundaries of a country during a year, counted sector by sector.

Operation Flood, launched in 1970 and led by Verghese Kurien, linked village dairy cooperatives to city markets and made India one of the world's great milk producers.

In the public sector the government owns the assets and provides the services, and the aim is public welfare rather than profit; in the private sector ownership rests with individuals or companies and profit is the motive.

An enterprise belongs to the organised sector when it is registered with the government and follows labour laws, so that employment is regular and secure and workers get fixed hours, paid leave, provident fund and medical benefits.

Banking and insurance create no physical product; they support production and trade by providing credit, moving money and covering risk, and such support activities are the core of the tertiary or service sector.

Agriculture and its allied activities still give work to the largest number of Indians, even though the sector's contribution to national income is far smaller than that share of employment would suggest.

The Mahatma Gandhi National Rural Employment Guarantee Act, passed in 2005, guarantees one hundred days of wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work.

On a small family holding every member of the household may work on the land even though the work needs far fewer hands; if some of them were withdrawn, total output would not fall.

It produces no goods at all; it provides services such as transport, storage, communication, trade, banking, insurance, education, health care and administration, which is why it is commonly called the service sector.

Mining takes a product straight out of nature without changing its form, exactly as farming, fishing and forestry do, and every activity of that kind is placed in the primary sector.

GDP counts everything produced within the country's borders, whoever produces it. GNP counts what is produced by the country's own normal residents, wherever they work.

M3 is called broad money or aggregate monetary resources. It equals M1 plus the time deposits of the public with banks, so it measures almost all the money available in the economy.

The State Bank of India was not part of the 1969 nationalisation because it was already a government-owned bank.

The Fiscal Responsibility and Budget Management Act, 2003 is a fiscal reform: it binds the Union government to cut its fiscal and revenue deficits and to report on its borrowing.

Headline inflation is the change in the overall Consumer Price Index, which tracks the average price of a fixed basket of goods and services bought by a typical household, including food, fuel, clothing, housing and services.