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Fundamental terms of economics — national income, money & banking, budget and key organisations — a high-yield quick reference for competitive exams.
| Term | Meaning |
|---|---|
| GDP (Gross Domestic Product) | Total value of goods & services produced within a country in a year |
| GNP (Gross National Product) | GDP plus net income earned from abroad |
| Per Capita Income | National income divided by the total population |
| Inflation | Sustained rise in the general price level; fall in the value of money |
| Deflation | Sustained fall in the general price level |
| Recession | Significant decline in economic activity over a period |
| Fiscal Deficit | Excess of total government expenditure over total receipts (excluding borrowings) |
| Sector | Includes |
|---|---|
| Primary | Agriculture, mining, fishing, forestry (natural resources) |
| Secondary | Manufacturing & industry (processing of raw materials) |
| Tertiary | Services — banking, transport, IT, trade, education |
| Concept | Details |
|---|---|
| Central Bank | Reserve Bank of India (RBI), established 1935; issues currency & controls monetary policy |
| Repo Rate | Rate at which RBI lends to commercial banks |
| CRR / SLR | Cash Reserve Ratio & Statutory Liquidity Ratio maintained by banks |
| Union Budget | Annual financial statement (Article 112); presented on 1 February |
| Direct Tax | Levied directly on income/wealth (e.g. Income Tax, Corporate Tax) |
| Indirect Tax | Levied on goods & services (e.g. GST) |
| GST | Goods and Services Tax; a single indirect tax launched on 1 July 2017 |
| Organisation | Role |
|---|---|
| NITI Aayog | Policy think-tank of India (replaced the Planning Commission in 2015) |
| SEBI | Regulator of the securities & stock markets |
| World Bank & IMF | International institutions for development finance & monetary stability (HQ: Washington, D.C.) |
| WTO | World Trade Organization — governs international trade (HQ: Geneva) |