Economic Reforms in India comes under the Economic section of the phase 2 exam for RBI Grade B. Topics covered under it are: Industrial and Labour policy, Monetary and Fiscal policy, Privatization and Role of Economic Planning.
A brief description of the above topics is given below. Make sure you cover these topics in detail while studying.
Economic reforms in India refer to the neo-liberal polices introduced by the government in 1991 and in the later years. The crucial point of the reform was liberalization of the economy, simplifying regulations, giving more role to the private sector and opening of the economy to competition.
An industrial policy of a country, sometimes symbolised as IP, sometimes industrial strategy, is its official strategic effort to encourage the development and growth of all or part of the economy, often focused on all or part of the manufacturing sector.
The term Labour Law is used to denote that body of laws which deal with employment and non-employment, wages, working conditions, industrial relations, social security and labour welfare of industrially employed, persons. Labour has a vital role in growing productivity and management must help create conditions in which workers can make their maximum contribution towards this objective.
Monetary policy is the procedure by which the monetary authority of a country, typically the central bank or currency board, controls either the cost of very short-term borrowing or the money supply, often targeting inflation rate or interest rate to ensure price stability and general trust in the currency.
In economics and political science, fiscal policy is the use of government revenue collection and expenditure to monitor and influence a nation's economy. It developed out of the Great Depression, when the laissez-faire approach to economic management was ended and government intervention became the means of influencing macroeconomic variables.
Privatization can mean different things including moving something from the public sector into the private sector. It is also sometimes used as a synonym for deregulation when a heavily regulated private company or industry becomes less regulated.
Economic planning is a mechanism for the allocation of resources between and within organizations which is held in contrast to the market mechanism. As an allocation mechanism for socialism, economic planning replaces factor markets with a direct allocation of resources within a single or interconnected group of socially-owned organizations.
You should have a clear understanding of the above topics to score high in this section. Extensive reading will help you increase your knowledge in this area. Focus on each and every topic and stay updated with current affairs to ensure that no question surprises you in the exam. In case you need more details on these topics and study material get in touch with us and make us a partner in your success.