CAIIB Exam Study

Salient features of Indian economy Dominance of agriculture and heavy population pressure on agriculture: Per capita land availability is very low and per hectare labour use is very high. Agriculture sector provides livelihood tc about . 65% of Indian population, while the share of agriculture to GDP is around 17%. Low per capita income : According to World Development Report 2007, India's per capita income was US $ 95o (as a result India falls in Middle Economies). It is 1/5oth of US per capita income. Disparities in income distribution : As per NSSO data, 39% of rural population possesses only 5% of all rural assets while, 8% top households possess 46% of total rural assets. This shows high degree of disparity in income and wealth distribution. Over-population : India is over-populated country, next only to China with total population of about 12o cr. To maintain 16.7% of world's population, India holds only 2.42% of total land area of the world. Unbalanced economic ...

Business cycle or economic cycle The business cycle is the periodic but irregular up-and-down movements in economic activity, measured by fluctuations in real GDP and other macroeconomic variables. In other words, a business cycle or an economic cycle refers to economy-wide fluctuations in economic activity (including production of goods and services), over several months or years. Such cycle pass through phases of prosperity and depression. A business cycle is not predictable, regular or repetitive. Its timing is random and unpredictable. The business cycles influence the business decisions and lead to impact on individual firms and the economy as a whole. Characteristics of a business cycle: It is synchronic: The upward or downward movement tend to occur almost at the same time, in all industries. Prosperity or depression in one industry will have impact in other industries, almost immediately. It shows a wave-like movement: The period of boom and depression comes alternatively....