RRB NTPC Indian Economy Syllabus

Indian Economy syllabus — full chapter and topic list

Expand any chapter to see its topics and sub-topics. This is the whole examinable outline for Indian Economy in RRB NTPC, not a summary of it.

1. 1

   Basics of Indian Economy

   4 topics

   • Nature and Sectors of the Economy
     • Primary, secondary and tertiary sectors
     • Mixed economy features
   • National Income
     • GDP, GNP, NNP and per capita income
     • Methods of measuring national income
   • Economic Planning
     • Five-Year Plans
     • NITI Aayog and planning shift
   • Poverty, Unemployment and Inflation
     • Types of unemployment
     • Causes and measures of inflation
2. 2

   Money, Banking and Public Finance

   4 topics

   • Money and the Reserve Bank of India
     • Functions of RBI
     • Monetary policy tools
   • Banking System
     • Commercial and cooperative banks
     • Financial inclusion schemes
   • Budget and Taxation
     • Union Budget components
     • Direct and indirect taxes and GST
   • Capital Markets
     • Stock exchanges and SEBI
3. 3

   Government Schemes and International Economy

   4 topics

   • Flagship Welfare Schemes
     • Rural and urban development schemes
     • Social security and insurance schemes
   • Foreign Trade and BoP
     • Imports, exports and balance of payments
   • International Economic Organisations
     • IMF, World Bank and WTO
   • Economic Reforms
     • 1991 LPG reforms

Indian Economy flashcards for RRB NTPC

23 of 51 cards from the Indian Economy deck — real questions with worked answers.

1. Into which three broad sectors is economic activity classified, and what does each represent?

   Primary (extraction of natural resources, e.g., agriculture, mining), Secondary (manufacturing/industry), and Tertiary (services, e.g., banking, transport, IT).

2. What is the difference between an open economy and a closed economy?

   An open economy trades goods, services and capital with other countries; a closed economy has no economic transactions with the rest of the world (no foreign trade).

3. What is the 'quaternary sector' of the economy?

   The knowledge-based part of the service sector involving intellectual activities such as research, IT, education and information generation.

4. What is National Income?

   The total money value of all final goods and services produced by a country during a financial year; commonly measured as Net National Product at factor cost (NNP at FC).

5. What is the formula for Gross Domestic Product (GDP) by the expenditure method?

   GDP = C + I + G + (X − M), where C = consumption, I = investment, G = government spending, X = exports, M = imports.

6. How does GNP differ from GDP?

   GNP = GDP + Net Factor Income from Abroad (income earned by residents abroad minus income earned by foreigners domestically).

7. What is the difference between GDP at market price and GDP at factor cost?

   GDP at factor cost = GDP at market price − Indirect taxes + Subsidies.

8. What is the difference between nominal GDP and real GDP?

   Nominal GDP is measured at current prices; real GDP is measured at constant (base-year) prices, removing the effect of inflation.

9. What is per capita income and how is it calculated?

   Average income of a person in a country; National Income divided by the total population.

10. Which organisation estimates National Income in India?

    The National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI); earlier the CSO.

11. In which year did India launch its First Five-Year Plan and on which model was it based?

    1951; it was based on the Harrod-Domar model and prioritised agriculture and irrigation.

12. On which model was the Second Five-Year Plan based and what did it emphasise?

    The Mahalanobis model; it emphasised rapid industrialisation, especially heavy and basic industries.

13. Which body replaced the Planning Commission in India and in which year?

    NITI Aayog (National Institution for Transforming India) replaced the Planning Commission on 1 January 2015.

14. Which Plan is known as the 'Plan Holiday' period and why?

    1966–69; three annual plans were made instead of a five-year plan due to the 1965 war, drought and economic problems.

15. Who is the Chairperson and who is the Vice-Chairperson of NITI Aayog?

    The Prime Minister is the Chairperson; the Vice-Chairperson is appointed by the PM.

16. What is the difference between absolute poverty and relative poverty?

    Absolute poverty is the inability to afford a minimum basket of basic needs; relative poverty measures income inequality compared to others in society.

17. What is the poverty line in India based on?

    A minimum level of consumption expenditure (calorie intake norms—2400 kcal rural, 2100 kcal urban); recommended by committees such as the Tendulkar and Rangarajan committees.

18. What is disguised unemployment?

    A situation where more people are employed than actually needed, so their marginal productivity is zero; common in Indian agriculture.

19. What is the difference between structural unemployment and cyclical unemployment?

    Structural unemployment arises from a mismatch between skills and available jobs; cyclical unemployment results from downturns in the business cycle.

20. What is inflation?

    A sustained rise in the general price level of goods and services over time, reducing the purchasing power of money.

21. What is the difference between demand-pull and cost-push inflation?

    Demand-pull inflation occurs when aggregate demand exceeds supply; cost-push inflation occurs when rising production costs (wages, raw materials) push prices up.

22. What are the two main price indices used to measure inflation in India?

    Wholesale Price Index (WPI), released by the Office of Economic Adviser, and Consumer Price Index (CPI), released by the NSO.

23. What is the inflation target set for the RBI under the flexible inflation targeting framework?

    4% CPI inflation, with a tolerance band of +/- 2% (i.e., 2% to 6%).

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