Value Added Tax (VAT) In the earlier existing system before VAT was implemented sales tax on most products is paid by the manufacturer not by the retailer and on very few products by the wholesaler which means most traders don’t have to keep detailed books of accounts. Worse, most do not declare their sales and income correctly. The result massive theft of tax. A few years ago a large chain of...

Industrial Revolution in India Or The Beginning of Industrial Era in India In any country, be it least developed under developed or advanced, the industrial sectors from the sheet anchor for the generation and development of country’s productive forces. There is a strong case for industrialization of countries like India which has vast manpower, large and varied resources and continental dimensions. The first plan was not as important as far as...

Indian Economy Adopting New Approach   After independence, India chartered a path of economic development based on mixed economy, building a new industrial structure around the public sector and a closely monitored, regulated and controlled system where government played the role of licenser in the process of building industry. There were few hiccups in between. In the late 70s Mrs. Indria Gandhi brought in small doses of liberalization. In the mid...

Indian Financial System   The Reserve Bank of India is the sole authority for the issue of currency in India other than one rupee notes and small coins which are issued by Government of India. The issue of notes by the RBI is kept separate from the rest of its banking operations. For this the RBI is organized under two separate department, the Issue Department and Banking Department. The former being...

Economic Reforms Or The Process of Globalisation of Indian Economy    Economic Reforms are not ends in itself. Its success is appraised on the whetstone of whether it has been able to better the quality of life of all the people for whom these reforms are meant. While one school of opinion avers that effects of reforms on the overall population of India will be slow and steady, critics say that...

Agriculture    Agriculture is the mainstay of Indian economy. About 64% of labour force depend upon agriculture and it contributes approximately 26% of gross domestic product. Agriculture contributes to 18% of total Indian exports. Indian agriculture depend on monsoonal rain due to lack of irrigation facilities. Since 1970-71 Agricultural census on quinquennial basis has been organised by the department of agriculture and cooperation to collect essential and reliable information regarding agriculture...

Role of Banks in Boosting Indian Economy   Fourteen major banks were nationalised in 1969, and some more were nationalised a few year later. Since then banks have to come to play a major role in the socio-economic life of the country. They are no longer merely instruments for credit mobilisation and money-lending. They are no longer merely institutions for earning maximum profits for the benefits of a few individuals. They...

Planning Commission   Planning Commission was constituted by a cabinet resolution in 1950. Hence it is extra-constitutional authority. The functions of planning commission are varied. It makes an assessment of the material, capital and human resources of the country including technical personnel. It investigates the possibilities of augmenting such of these resources which are found to be deficient in relation to the nation’s requirements. It formulates a plan for the most...