Indian Economy Mind Map Notes for SSC Exams

The Indian Economy has many linked ideas: sectors, planning, banks, the budget, taxes and prices. This Indian Economy mind map for SSC puts the Indian Economy in the centre and ten branches around it: type of economy, sectors, planning, reforms, banking, RBI, budget and tax, national income, inflation and agriculture.

The Centre: Indian Economy

India has a mixed economy, in which the public sector (government) and the private sector work together. The financial year runs from 1 April to 31 March.

The Mind Map

• 1. Sectors of the Economy
  • Primary: agriculture, fishing, mining
  • Secondary: industry and manufacturing
  • Tertiary: services such as banking, trade and IT
  • The service sector has the largest share of GDP
• 2. Planning
  • Five-Year Plans started in 1951; the First Plan (1951–56) focused on agriculture
  • The Second Plan (1956–61) was based on the Mahalanobis model and focused on heavy industry
  • The Planning Commission was replaced by NITI Aayog on 1 January 2015
• 3. Reforms of 1991
  • Liberalisation, Privatisation and Globalisation (LPG)
  • Started under the Prime Minister P. V. Narasimha Rao and Finance Minister Dr. Manmohan Singh
• 4. Banking
  • The RBI is the central bank and the banker of the banks
  • 14 banks were nationalised in 1969 and 6 more in 1980
  • Commercial, cooperative, regional rural and small finance banks
• 5. RBI and Monetary Policy
  • Established in 1935, nationalised in 1949, headquartered in Mumbai
  • Tools: repo rate, reverse repo rate, CRR and SLR
  • Issues currency notes (except the one-rupee note) and controls credit
• 6. Budget and Taxes
  • The Union Budget is presented by the Finance Minister, usually on 1 February
  • Direct taxes: income tax and corporate tax
  • Indirect taxes: GST, which started on 1 July 2017
  • Fiscal deficit = total expenditure minus total receipts excluding borrowings
• 7. National Income
  • GDP: the value of all goods and services produced within the country
  • GNP = GDP + net income from abroad
  • NNP = GNP minus depreciation
• 8. Inflation and Poverty
  • Inflation is a continuous rise in the general price level
  • Measured by the Consumer Price Index (CPI) and the Wholesale Price Index (WPI)
  • Poverty is measured by the poverty line and by the multidimensional poverty index
• 9. Agriculture
  • Green Revolution (1960s): wheat and rice
  • White Revolution or Operation Flood: milk, led by Verghese Kurien
  • Blue Revolution: fish
  • Minimum Support Price (MSP) protects the farmers
• 10. Markets and Trade
  • SEBI regulates the securities market
  • Stock exchanges: BSE and NSE
  • India is a member of the WTO and the IMF

How to Use This Map

1. Read the map branch by branch.
2. Draw the map from memory and fill in the numbers and years.
3. Revise the RBI tools and the formulas of national income again and again.
4. Read the latest budget news and add it to branch 6.

Quick Tips

• Learn the years: 1951 (plans), 1969 (bank nationalisation), 1991 (reforms) and 2017 (GST).
• Remember the order GDP, GNP and NNP with the formulas.
• Update branch 6 after every Union Budget.
• Read the detailed notes on the RBI and the Five-Year Plans for more depth.

Quick Revision Points

• India has a mixed economy.
• The Planning Commission was replaced by NITI Aayog in 2015.
• The reforms of 1991 are called LPG.
• GST started on 1 July 2017.
• The RBI was established in 1935.

Practice Questions With Answers

1. What type of economy does India have?
   Answer: Mixed economy
2. Which sector has the largest share in India's GDP?
   Answer: The service (tertiary) sector
3. In which year did the first Five-Year Plan start?
   Answer: 1951
4. Which body replaced the Planning Commission?
   Answer: NITI Aayog
5. What does LPG mean in the 1991 reforms?
   Answer: Liberalisation, Privatisation and Globalisation
6. In which year was the RBI established?
   Answer: 1935
7. When did GST start in India?
   Answer: 1 July 2017
8. Who is known as the father of the White Revolution?
   Answer: Verghese Kurien
9. In which year were 14 banks nationalised?
   Answer: 1969
10. Which body regulates the securities market in India?
    Answer: SEBI

How to Practise This Chapter

Draw this mind map yourself on a blank page once, with the centre in the middle and the branches around it, because drawing is the best way to remember. Then test yourself with our practice papers and the previous year papers page. See all maps on the MindMaps page and the Formula Guide and Mnemonics pages. For the detailed notes, read RBI and Monetary Policy and Five Year Plans and NITI Aayog, and the Indian Economy notes. The previous map is Indian Geography and the next map is General Science.

Frequently Asked Questions

What type of economy does India have?

India has a mixed economy.

Which sector contributes the most to GDP?

The service sector.

When did the Five-Year Plans start?

In 1951.

What replaced the Planning Commission?

NITI Aayog, on 1 January 2015.

What were the reforms of 1991?

They were Liberalisation, Privatisation and Globalisation (LPG).

What is the role of the RBI?

The RBI is the central bank and controls the money supply, credit and the currency.

When did GST start?

GST started on 1 July 2017.

What is inflation?

It is a continuous rise in the general price level.

What is fiscal deficit?

Fiscal deficit is the total expenditure minus the total receipts excluding borrowings.

Is Economy important for SSC exams?

Yes. Economy questions are asked in every SSC General Awareness paper.

Which years should I learn?

1951, 1969, 1991, 2015 and 2017.

How often should I revise this map?

After 1 day, 3 days, 7 days and then once a month.