We started with
a revision of last class topic.
Types of economy based on government policies:
·
Capitalism
·
Socialism
·
Mixed
Economy
Socialism:
The concept was
introduced by Karl Marx, a German philosopher, through his book “Das Kapital or
Capital: A Critique of Political Economy.
Features:
·
Social
justice is the objective.
·
More
government influences.
·
Government
involved in Production Distribution and consumption of goods and services.
·
Examples
of socialist Economies: USSR
Mixed economy:
This concept of
economy was introduced by John Maynard Keynes in his book General theory of
employment interest & money in 1936 after the Great depression of 1929.
A mixed
economic system is a system that combines aspects of both capitalism and
socialism. A mixed economic system protects private property and allows a level
of economic freedom in the use of capital, but also allows for governments to
interfere in economic activities in order to achieve social aims.
Features:
·
Public
goods / social goods production, distribution by government.
·
Private
goods production, distribution by private.
·
Example
of mixed economy: India
Sectors of economy:
Based on the
job nature:
1.
Primary
sector - Direct use of natural resources
·
Agriculture
·
Cattle
rearing
·
Fishing
·
Collection
of fruits, nuts, honey, rubber, resin and medicinal herbs, and lumbering
2.
Secondary
sector - The raw materials obtained from the primary actives are converted into
finished products through machinery on a large scale.
·
Argo
based industries – cotton textiles, sugar mills, food processing
·
Forest
based industries - paper mills, furniture making, building materials
·
Marine
based industries – sea food processing
3.
Tertiary
sector - It includes all economic activities where different services are
provided.
·
Transport
– roadways, railways, waterways, airways
·
Communication
– post, telephone, information technology etc
·
Banking
- money transactions, banking services
E.g., Question:
A)
Cattle
rearing 1) secondary
occupation
B)
Food
processing 2) services
C)
Iron
& steel industry 3) primary
occupation
D)
Telephone 4) Argo based industry
Options:
A)
4 3
1 2
B)
3 4
1 2
C)
4 2
3 1
D)
3 2
4 1
Answer
B)
Types of Economies: (based on GDP)
1.
Agrarian
economy:
·
More
than 50% of GDP contribution from primary sector.
·
India
during independence.
·
GDP
more than 14%.
·
Workforce
more than 47%.
2.
Industrial
economy:
·
More
than 50% of GDP contribution from secondary sector
·
Economic
subjugation by British
·
India
never became industrial economy
3.
Service
Economy:
·
More
than 50% of GDP contribution from tertiary sector
·
1991
LPG reforms: Liberalization, Privatization, Globalization
·
GDP
54.1%
Sector wise
evolution:
Agri – Industry
– Service
Equal growth leads
to saturation level.
Since India was
never an industrial economy due to subjugation of British, we went straight from
agrarian to service-based Economy. to promote our industry sector government has
introduced new schemes like Make in India, Atmanirbhar Bharat etc.,
Content Credits: Leo Brindha B
