2. ECONOMIC GROWTH
๏ An increase in the capacity of an economy to
produce goods and services, compared from
one period of time to another.
๏ It can be measured in nominal terms or in real
terms.
Increase in Demand
โข Lower interest rates &
income tax
โข Increased wages,
government spending
& consumer
confidence
Increase in Supply
โข Increased capital,
working population,
Labour productivity
โข Technological
improvements
CAUSES
3. IMPORTANCE
๏ Reduce Poverty
๏ Reduces
Unemployment
๏ Budget deficits
๏ Living Standards
๏ In the FY 2014 โ 2015
economic growth of
India was 7.4% and in
2015 โ 2016, we
expect to have a
growth of 8.1 โ 8.5%.
Inflation decreased by
6%. CAD decreased
by 1%
MAJOR OBSTACLES TO INDIAโS
GROWTH
โขInfrastructure Shortages
โขLarge Fiscal Deficit
โขRestrictive Labor Regulations
โขUnreformed Financial Sector
4. BLACK MARKETING
๏ A black market or underground economy is
the market in which goods or services are
traded illegally.
๏ Common black markets are - Drugs (Both
Legal & Illegal),Slave Labor, Animals
(Particularly Furs and Exotic creatures),
Human Organs and Stolen Goods.
๏ Black market is estimated to be as much
as 36 percent of the GDP of developing
nations and 13 percent of developed
5. causes of blackmarket:
๏ง When the supply of goods is not equal to the
demands
๏ง Increasing level of poverty and
unemployment
๏ง There is no controls on licensing system
๏ง Due to lacking of education and awareness
MeasurementDirect Approach
โขQuestionnaire & Survey
โขEmployment analysis
Indirect Approach
โขGDP and expenditure
analysis
โขEnergy conception analys
6.
7. Recommendations for legalization
๏ Simplify/Rationalize tax laws
๏ Consolidating the public sector and making
administrations more efficient
๏ Stringent laws to control and monitor
๏ Creation of awareness among students on
the evil of black marketing