Category Archives: Economy

Technology Achievement Index 2020 Upsc

Technology achievement index

Technology achievement index is an index that calculates the country’s skills with respect to the latest technologies such as working, innovation, etc.

This index was introduced in the HDR for the year 2001 by UNDP (United Nations Development Programme) to calculate the capacity of a nation to create or innovate technology, diffuse technology structuring, or form of human skill base.

It is in view of the growing interdependence between technology and its impact on human development i.e how we make use of technology that furthers human development.

Technology Achievement Index 2020 Upsc
Technology Achievement Index By Julia.Roesler – Own work, CC BY-SA 4.0,

TAI (Technology Achievement Index) is constructed as follows:

  1. Creation of Technology
  2. Diffusion of Technology
  3. Formation of Human skills base

The creation of technology is determined by:

Number of Patents per capita (The USA has the highest number of patents), and Royal and licenses fees received per capita

Diffusion of Technology is determined by

1. Diffusion of Recent Innovations

A number of Internet hosts per capita. Share of High also medium technology goods exports in the total export of a nation.

2. Diffusion of Old Innovations

Mean ages of schooling, Gross tertiary level enrollment in science, engineering, and mathematics.

Finland is first in the diffusion of Technology.

TAI can be measured by, Leaders, Potential Leader or Future Leaders, Dynamic Adopters and Marginalized

Technology achievement index 2020

The technology achievement index was last updated in 2013. TAI 2020 is yet to release

TAI RankCountryTAI Value
5Korea Rep0.666
7United Kingdom0.606
9Canada 0.589
15New Zealand0.548
21Czech Republic0.465
24Hong Kong0.455
36Costa Rica0.358
39South Africa0.340
41Trinidad and Tobago0.328
42Panama 0.321
54El Salvador0.253
55Dominican Republic0.244
56The Syrian Arab Republic0.240
62Sri Lanka0.203
Technology achievement index 2013


Gender Development Index Upsc

Gender development index definition

The GDI is the ratio of the HDIs calculated separately for females and males using the same methodology as in the HDI. It is a direct measure of the gender gap showing the female HDI as a percentage of the male HDI. 

What is gender related development index?

Gender Development Index – It is the same as HDI but adjusted for reflecting inequalities between men and women.

In other words, HDI tells us about the average achievements of a society.

On the other hand, GDI adjusts these achievements for reflecting inequalities between men and women.

They prepare separate metrics for Male and Females.

Gender Development Index – Empowerment Measures

It tells us the opportunities available to the women in society by way of:

Their political participation and Decision making power.

Their Economic participation such as the number of women holding positions as Senior managers, bureaucrats, etc., and the Number of women bearing high professional or scientific positions.

Share of total income earned by women as against men.

Gender Development Index
Gender Development Index

Global gender inequality index

WEF’s gender gap indexIndia falls 28 places, and it placed at 140 among 156 Countries. India slipped in the World Economic Forum’s Global Gender Gap Report 2021, becoming the third-worst performer in South Asia.

Switzerland has the highest gender inequality index and Yemen is the lowest.

Gdi and Gem

The only difference is that the GDI uses the set of income levels, while the GEM (Gender Empowerment Measure) uses the income levels itself. These gaps are much larger than those between the HDI and the GDI, which are only about 1 percent on average.


What is the rank of India in the gender development index?

India’s rank in GDI is 123.

How is GDI calculated?

It is the ratio of female HDI to Male HDI.

What is a good GDI score?

Good GDI score is 1.000. As the GDI is on a scale of 0.000 to 1.000. 0.000 is the lowest while 1.000 is the Highest.

What is GDI in geography?

The GDI is calculated for 167 countries and the countries are ranked based on the GDI score.

Which country has the lowest GII?

As per Gender Inequality Index 2020, Yemen was the lowest in GII.

Human Poverty Index

Human Poverty and Human Poverty Index Upsc

Human Poverty

When a Human is unable to get nutritious food, shelter, and education, or if children are forced into Child Labour, or a Human or community faces social discrimination such as Caste discrimination, then they come under Human Poverty.

In Several countries, Women, Elderly or Old age people, and female children are the poorest in society, as they are denied opportunities and equal access to resources, even at the family level.

Explain the human poverty index (HPI)?

HPI is an indication of poverty in a nation. It is developed by the United Nation in addition to Human Development Index (HDI).

It was first reported as a part of the Human Deprivation Report in 1997 and in 2010 it was supplanted by UN Multidimensional Poverty Index.

Human Poverty Index
Human Poverty

HPI-I – Indicates the extent of Human Poverty in developing countries.

HPI-II – Indicates the extent of Human Poverty in developed countries.


It shows the extent of deprivation in society or country in terms of longevity, knowledge & decent standard of living.

Lack of longevity is expressed in the percentage of the population having the probability of not surviving up to the age of 40 years.

Adult illiteracy – Percentage of adults who are illiterate

Lack of Decent standard of Living:

% of the population does not have access to improved sources of water supply.

5 of children who are undernourished, who are underweight for age.

It is always measured in terms of Percentage (%)


Lack of Longevity- % up to 60 years. Adult Illiteracy- % of adults who are functionally illiterate.

Lack of decent standard of living- % of people whose income is less than 50% of the medium income of the society.

Social Exclusion- % of people who remain unemployed on a long-term basis (more than 12 months).

Human poverty Index 2020

It is released as “The 2020 Global Multidimensional Poverty Index (MPI)

As per the Human poverty Index, 2020 with respect to India – “Four countries halved their MPI value. India (2005/2006–2015/2016) did so nationally and among children and had the biggest reduction in the number of multidimensionally poor people (273 million).”

The 2018 Global Multidimensional Poverty Index (MPI)

The 2030 Agenda for Sustainable Development reaffirmed the importance of multi-dimensional approaches to poverty eradication that go beyond economic deprivation.

The 2018 MPI answers the call to better measure progress against Sustainable Development Goal 1 – to end poverty in all its forms; and opens a new window into how poverty – in all its dimensions – is changing.

With the 2018 estimates, the MPI measures acute multidimensional deprivations in 105 countries covering 77 per cent of the global population.

Global Multidimensional Poverty Index
Global Multidimensional Poverty Index



Pillars of human development-Human Development Index Upsc

First Human Development Report was published in 1990.

First Person to develop this is Dr. Mahbub-ul-Haq and Prof Amartya Sen with the leadership of Dr. Haq.

The title of the human development report in 2019 is ” Beyond income, beyond averages, beyond today: Inequalities in human development in the 21st century”.

HDR is brought out by the United Nations Development Programme (UNDP).

World development report by World Bank. Dr. Mahbub-ul-Haq describes, Human development as the process of enlarging people’s choices and improving their lives.

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Human Development Index

  1. Longevity or Health
  2. Literacy or Education
  3. Standard of Living

Longevity or Health

The minimum value of 20 years to maximum years of 83.57 years. Maximum years of 83.7 is observed in 1980-2012.

Life expectancy birth is 55 means it would be 0.551 for the country.

Literacy or Education (HDR-2010)

Mean Years of Schooling- This is based on surveys available with the UNESCO Institute for Statistics database and Barro & Lee’s (2010) method.

Expected years of schooling (Minimum age the child enters the school) – Enrollment by age at all levels of education and population of the official school. The expected years of schooling is currency 18 years.

In 1980-2012m 13.3 years were estimated for the United States.

Standard of Living

It is measured by GNI (Gross National Income/ Product) per capita at ‘Purchasing Power Parity in US Dollars (PPP $). GDP is used in the past for Standard of Living.

The minimum income is $100 to a maximum of $87,478 (PPP). Qatar is maximum with $87,478 (PPP) in 2012.

UNDP ranks based on the performances on a scale from 0 to 1.

The scale of Classification HDI by UNDP

  1. 0.8 to 1.0 – High HDI countries.
  2. 0.5 to 0.79 medium HDI countries.
  3. 0.0 to 0.49 Low HDI countries

Approaches of human development

Income Approach

It is one of the earliest methods of determining Human development and it is linked to income. The higher the level of income and higher is the level of human development.

Welfare Approach

This method treats humans are target beneficiaries and it argues the government to spend money on education, health, amenities, etc. In this approach, people are just receivers of benefits and not participants.

Basin Needs Approach

This approach was proposed by International Labour Organisation (ILO) initially. Health, education, food, water supply, sanitation, and housing were identified as basic needs, and human choices are ignored.

Capability Approach

This method of human development is associated with Prof. Amartya Sen. By building human capabilities such as Health, education, access to resources will help human development.

Approaches to Human development Index
Approaches to Human Development

Pillars of Human Development

Human development has four pillars, they are equity, sustainability, productivity, and empowerment.

Equity refers to the process of giving equal opportunities to everyone in society irrespective of gender, race, etc. In the case of India, it is caste.

Sustainability is continuity in making the availability of opportunities for all generations. All the environmental, financial, and human resources must be used keeping in mind for future generations. Misuse of natural resources will make natural resources unavailable for future generations.

Productivity means human resources or human labor, it needs to be constantly enriched by giving education, increasing the health facilities, etc.

Check Tamilnadu Economics with respect to HDI

union budget 2020-21

Union Budget 2020-21 and Reforms to Energize Economy

The Highlights of Union Budget 2021 are as follows

union budget 2020-21

3 Most Important Theme of Union Budget 2020-21

The themes of the budget are Aspirational India, Economic development for all, and Caring Society.

Aspirational India is the country with better standards of life with health access, jobs and education for all section of the society.

Economic development for all

“Sabka Saath, Sabka Vikas, Sabka Vishwas”.

Caring Society or Antyodaya as an article of faith.

These three themes are held by Corruption less and policy driven governance.

Three Components of Aspirational India

1. Agriculture and Rural development
2. Wellness of people, providing water to all and Sanitation to all.
3. Education and development of skills

Agriculture, Irrigation and Rural Development in 2020-21

Reforms or Sixteen Action points for Agriculture, Rural and Irrigation in Union Budget 2020-21

  • A total of ₹ 2.83 Lakh crores has allocated for this 16 Action points.
  • For Agriculture, Irrigation & allied activities ₹ 1.23 Lakh crores has been allocated.
  • For the development of Panchayat rat and Rural development ₹ 1.23 lakh crore is allocated.

Agriculture Credit

  • A target of ₹15 Lakh crore has been set for the Agriculture credit for the year 2020-21.
  • Under the KCC Scheme, PM-Kisan beneficiaries also proposed to be covered.
  • Further expansion of Re-finance scheme “NABARD”.
  • Lot of comprehensive measure for 100 water deficient district.
  • To achieve 16 action points for Agriculture, Irrigation and Rural Development, a sum of Rs 2.83 Lakh Crore is to be allocated.
  • For Agriculture and Rural Development Rs 1.6 Lakh Crore is to be allocated.
  • In that Rs 2.83 Lakh Crore, Rs 1.23 Lakh Crore is allocated for the Rural Development and Panchayati Raj (Local Government in Villages).

Agriculture Credit in Union Budget 2020-21

  • For the year 2020-21 , a target of Rs 15 Lakh Crore is set for Agriculture Credit.
  • KCC scheme covers PM-KISAN beneficiaries.
  • Expansion of NABARD Re-Finance Scheme.
  • Proposal for comprehensive measure for 100 water stressed districts.

Blue Economy in Union Budget 2020-21

Union Budget 2020-21- Fishing Budget
Photo by Quang Nguyen Vinh on
  • By 2024-25, Rs 1 Lakh Crore Fisheries products exports to be achieved.
  • By 2022-23, the targeted Fish production to be increased by 200 Lakh tonnes.

Kisan Rail in Union Budget 2020-21

  • Through PPP(Public Private Partnership) mode Kisan Rail to be setup.
  • For Perishable item such as milk, meat, fish etc, National cold storage supply chain will be build.
  • Refrigerated coaches in Express and Freight trains.

Krishi Udaan in Union Budget 2020-21

  • Krishi Udaan is a part of Ministry of Civil Aviation.
  • The coverage is both national and internation routes.
  • Realization of improved value of agri-products by North-East and Tribal Districts.

One Products One District

  • The aim is to improve export and marketing of Horticulture products.
  • Innovation fertilizers and traditional organic fertilizers to be balancly used.
  • Organic,  natural and integrated farming measures to be taken.
  • Organic products market to be strengthened by online nation portal Jaivik Kheti.

Zero Budget Natural Farming in Union Budget 2020-21

  • It is mensioned in July 2019-20 Budget is also included in this budget.
  • In rain fed areas, the integrated farming system is to be expanded.
  • In the non-crop seasons, solar energy production, bee-keeping, Multi-tier cropping in the farm fields.

PM-KUSUM in Union Budget 2020-21

  • Expansion of solar agricultural pumps (PM-KUSUM).
  • Stand alone solar pumps to be provided for 20 Lakh farmers.

Village Storage Scheme in Union Budget 2020-21

  • Village storage scheme to be implemented by the Self Help Groups(SHG) to provide farmers a good holding capacity and also to reduce the logistics costs.
  • Dhanya Lakshi scheme, for Women SHG under Village Storage Scheme.

Livestock in Union Budget 2020-21

  • Bu 2025, doubling of capacity of milk processing by 108 million metric tonnes.
  •  The present artificial insemination of 30% is to be increase by 70%.
  • Fodder farms to be developed by MNREGS.
  • By 2025, disease in cattles such Foot and Mouth Diseases, Brucellosis in cattle and Peste Des Petits Ruminants (PPR) in cow, sheeps, goats etc to be eliminated.

Deen Dayal Antyodaya Yojana in Union Budget 2020-21

  • For Poverty alleviation, 0.5 crore household are part of 58 lakh SHG.

Wellness, Water and Sanitation in Union Budget 2020-21

  • For Healthcare sector, a overall sum of Rs 69,00 crore is allocated.
  • PMJAY(PM Jan Arogya Yojana), Rs 6400 crore allocated.
  • PMJAY(PM Jan Arogya Yojana) adopted by more than 20,00 hospitals.
  • Proposal of Viability Gap Funding window for building hospitals through PPP mode.
  • In the first phase, district with no Ayshman enabled hospitals to be covered.
  • For Swachh bharat mission 2020-21, Rs 12,300 crore is allocated.
  • To sustain ODF (Open defecation Free) behaviour, committment to ODF plus.
  • Management of Grey water and liquid.
  • Segregation and processing of Solid Waste Collection.

Planning Commission Tnpsc Notes

Planning Commission of India

The planning commission of India was constituted in the year 1950 in March. It was established by a resolution of the Government of India under the chairmanship of Pandit Jawaharlal Nehru.

Its objective was to prepare a plan for the “most effective and balanced utilization of the country’s resources”. The planning commission played an advisory role with regard to the formulation of the plans.

The Planning commission is a non-constitutional and a non-statutory body and it is responsible for the formulation of five-year plans.

It is the duty of the central government and state government to execute the planning programmes. Currently, the planning commission was replaced by Niti Aayog.

Functions of Planning Commission

  • The planning commission has the job of assessing the resources of the nation so that they could be used for the future needs of the country.

  • These included materials are capital, human resources, etc. It is the primary duty of the commission to prepare the plans so that these resources could be used effectively and balanced manner.

  • The resources had to be allocated among various sectors as per priorities and the stages of progress and completion of programmes were to be laid down to the commission.

  • The commission needs to identify the conditions and issues that would be a hindrance to the development.

  • It had to examine the ways by which the plan could be effectively implemented in the prevailing conditions of the nation.

  • It also determined the stage-by-stage execution of the plan. The planning process had to be assessed periodically so that the right strategies could be used to implement the plans.

  • In the process, the planning commission had the function of advising the central and state government with regard to the appropriate strategies of planning.

  • The commission also had to analyze particular issues and advice the government.

  • It was the role of the planning commission to determine the rate of growth of the economy specifying the targets of the plan period for every sector.

Composition and Organization of Planning Commission

The Planning commission consisted of the Prime Minister and four full-time members and a few part-time members of cabinet rank. The full-time members were the person who has excelled in the technical field, economy, and administration.

The Prime minister is the chairman of the planning commission enabling the coordination of the functions of the commission. As per the recommendations of the Administrative Reforms-Commission changes were made in the composition of the commission.

It included the Prime Minister as the Chairman who presides over the meetings of the commission, a deputy chairman who is the de-facto executive head and who has the responsibility of formulating the draft of the plan to the central cabinet, a secretary, four full-time members, and some cabinet ministers as part-time members.

The finance minister and planning ministers are ex-officio members of the commission and a member secretary who is usually a senior IAS officer is also part of the commission. The functioning of the administration was coordinated by the additional secretary.

Senior officers in the ranks of deputy secretaries and undersecretaries had to monitor the progress of the programmes. There were no representatives from the state government and it was a central body. The planning commission of India worked on the principle of collective responsibility.

It has three organs namely the general division, subject division, and Administrative division. The general division relates to the entire economy and the subject division concerns specific areas of development like food and agriculture, power and irrigation, transport, etc.

The commission also includes the General Administration branch and evaluation divisions. Along with these, various other bodies also worked with the Planning Commission for the formulation and execution of plans. They are: National Planning Council, National Development Council (NDC)

Efforts Towards Poverty Eradication

One of the major problems in India was poverty. The Planning Commission aimed not only at increasing the per capita income but also improving the quality of life of the people. The growth of the economy necessitated the inclusion of all sectors. It was also understood that the quality of life of the common man was interrelated to his economic conditions.

So, it was realized by the state that it was important to guarantee people a decent standard of living along with proper access to education and health care which are next to food, clothing, and shelter. But the challenge was that economic growth and reduction of poverty are not always related.

From the fourth five-year plan, the government focussed on this issue and concentrated on ‘garibi hatao’ during the early1970’s. Employment generation was considered to be one of the measures for the reduction of poverty. There were many problems due to unemployment and underemployment.

In all the five-year plans emphasis was given to employees. The rural-urban divide was another important area where the Planning Commission had to concentrate. In the process of economic development, industrialization and urbanization increased and this had its impact on Indian society and economy.

The disparity in the development of the rural and urban population would foster inequality which is against the principle enshrined in the constitution. The Planning Commission recommended many programmes for the development of the rural economy so that the development of both the rural and urban populations could be ensured.


What is planning commission of India?

It is an institution in the government of India, that formulates the five-year plans and also formulates the resources planning.

Chairman of planning commission of india 2018?

Shri Montek Singh Ahluwalia

Is the planning commission of India is a statutory body?

No, the Planning commission is a non-constitutional and non-statutory body.

Planning commission of india was set up in the year?

March 1950.


Planning Commission is established in March 1950. Its main objective is to formulate five-year plans. It was finally replaced by Niti Aayog on January 1, 1950, by a cabinet resolution.

tamil nadu economic growth

Economic trends in Tamilnadu Tnpsc -Tamil Nadu economy

Economy of Tamil Nadu and Economic Trends in Tamilnadu Districts
major industries of districts of tamil nadu

Economic trends in Tamilnadu Tnpsc

The economic and social development of Indian states is not uniform and there exists a wide regional disparity. The Southern and Western parts of India are better than the rest of India.

The economy of Tamil Nadu is the 11th largest and 6th most populated state in India. Tamil Nadu economic growth in terms of GDP, Tamil Nadu is second in India.

Tamil Nadu economy is the 3rd highest in terms of Per Capita Income, investment, Foreign Direct Investment (FDI), and Industrial Output. As per the Economic freedom report, Tamil Nadu has been ranked the most economically free state.

In terms of the health and social sector, Tamil Nadu is better than many other states and better than the national average in terms of higher education, health, MMR, and IMR.

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Economic Development

The Tamil Nadu economic growth is the fastest growth of SGDP since 2005. Poverty reduction is faster than in other states.

It contains less proportion of the poor population in India. It is the second-largest contributor to India’s GDP. According to UNDP-2015, Tamil Nadu ranks third in the Human Development Index (HDI).

In terms of Invested capital, Tamil ranks third with 2.92 Lakh Crore Rupees and the value of the total industrial output of 6.19 Lakh Crore Rupees.

In terms of the number of factories and industrial workers, Tamil Nadu stands first with a 17% share in Industry and a 16% share in Industrial workers across the country. As per the Niti Aayog report, Tamil Nadu is placed in Health Index.

It has the highest Gross Enrolment Ratio in Higher Education in India. It has the highest number of Engineering Colleges in India. Tamil Nadu is a major hub for renewable energy.

In terms of the credit deposit ratio in commercial and cooperative banks, Tamil Nadu has the highest credit. It has the highest ranks, first on investment proposals filed by MSME.

Human Development Indicators in Tamilnadu and a comparative assessment across the country

Maharashtra and Gujarat seem to perform in some economic indicators. Kerala ranks first in Literacy, IMR, and MMR.

Tamil Nadu in recent years has done outstanding performance far ahead of other states in terms of Health, Higher Education, Growth of MSME, job generation, and poverty alleviation.

In the Health Index report, Kerala and Punjab tops and Tamil Nadu are in the third spot.

The Neo mortality rate is 14 lower than that of many Indian states and also under 5 mortality has dropped from 21 in 2014 to 20 in 2015 as per Healthy States, Progressive India Report 2018 by Niti Aayog.

The success of Tamil Nadu is because of its social policies to cover most of the people for example the Public Distribution System(PDS), Midday meals, and Health Infrastructure has reached the masses.

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Water Resources

The state is not gifted with natural resources like other states. It has only 3% of water sources, 4% of land area for 6% of the population of India. It depends on the North-East monsoon which is a major source of Rainfall and is followed by South West Monsoon.

It has 17 river basins, the main rivers are Palar, Cheyyar, Cauvery, Chittar, Vaigai, Bhavani, etc. The largest source of irrigation in the state is Wells, about 56%.

Water Resources

Source of IrrigationNumbers
Tube Wells3,20,707
Open Wells14,92,359
Number of Water Resources in Tamil Nadu

Source: State Government Season & Crop Report 2012-13

Mineral Resources

Tamil has Titanium, Lignite, Magnesite, Graphite, Limestone, Granite, and Bauxite mines and projects. There is a large Industrial complex developed across Neyveli, such as Neyveli Lignite Corporation, Thermal Power Plant, Fertilizer, and Carbonisation plants.

Magnesite mining at Salem where Bauxite ores are taken out at Yercaud and this region is rich in Iron Ore, Kanjamalai. In Dharmapuri, Molybdenum is found and it is found only in this place in India.

Mineral Resources

Mineral NationalReserve (Tonnes)Share
Mineral Resources and Quantity in the state

(Source: Department. of Geology and Mining)

The Population of the State

Its population is 7.21 crore, 6th in India’s 121 crores as per the 2011 census. The population is higher than in many countries according to the UN Report.

State / CountryPopulation (in Crore)
Tamil Nadu7.2
The U.K.6.5
South Africa5.6
Sri Lanka2.1
The states Population Compared with other countries

(Source: Projections published by the United Nations in the 2017 Revision of World Population Prospects.)

Population density

The population density is 555 per sq. km in 2011. Tamil Nadu stands 12th in population density. India’s population density is 382 per sq. km.


It is the most urbanized state in India with 48% of the urban population which is higher than the national average of 31.5%. That is 9.61% of total urbanites in India against 6% of the total population.

The sex ratio of Tamil Nadu is almost 995 which is far better than most of the states. It stands third in the sex ratio, only next to Kerala and Puducherry.

Sex Ratio

IndicatorTamil NaduIndia
Life Expectancy Total Male Female

Literacy Rate Total Male Female
80.33 %86.81 %73.86 %

74.04 %82.14 %65.46 %
Sex Ratio995940
Growth Indicator of the state

IMR (Infant Mortality Rate) which is mortality before completing 1 year, is higher than the national average and most other states. As Niti Aayog report, IMR is 17 (per 1000), which is half of the national average of 34 as in 2016.

MMR (Maternal Mortality Rate) which mother’s death at the time of delivery per 1 lakh, Tamil Nadu ranks third with 79 only after Kerala with 61 and Maharashtra with 67. The national average MMR is 159.

Life Expectancy at birth

It is the average period that a person expects to live is called Life expectancy and India well below most developed and developing nations.


The literacy rate of the states is higher than in many Indian states.

Gross State Domestic Product (GSDP)

It is the total money value of all the goods and services produced in the state. According to the Directorate of Economics and Statistics, Tamil Nadu, In India, the state of Tamil Nadu ranks second in GSDP.

The GSDP in 2016-2017 is $207.8 billion.

The GSDP of the state is equal to the GDP of Kuwait on Nominal terms and the GDP of UAE on PPP terms. Tamil Nadu’s GSDP is far higher than in many countries, this is mainly due to the population effect.

State / CountryGSDP /GDP(Billion)
Tamil Nadu-GSDP$ 207.8
Iraq-GDP$ 171
New Zealand-GDP$ 184
Sri Lanka-GDP$ 81
GSDP compared with other countries

(Source: IMF Outlook, April 2017)

Sectoral Contribution of Industries

Economic Trends in Tamilnadu- Sector based contribution of Industries
Industrial Contribution to the Economy of Tamil Nadu

The major contributor to the economy is the tertiary sector/ service sector with GSDP of 63.7%. The industry sector/ secondary sector is growing rapidly at 28.5% GSDP.

The agriculture sector is now declining, the current GSDP is 7.76%. Tertiary and secondary have the upper hand over the agriculture sector in the state and this economic trend in Tamil Nadu is not good for sustainable development.

Per capita Income of the State

The per capita income is 1.75 times higher than the national average as per the 2018 census and that is $2200. It has increased rapidly from ₹ 1,03,600 in 2010-11 to ₹1,88,492 in 2017-18.

State / CountryPer capita Income(in USD)
Per Capita Income of Tamil Nadu Compared to Other Countries

(Source: World Bank National Accounts data, and OECD National Accounts data files. –https://data.

StateState PI (₹)
Tamil Nadu1,57,116
Andhra Pradesh1,37,000
Per Capita Income of Tamilnadu compared to other States of India (2015-2016)

(Source: Reserve Bank of India, New Delhi. February 2017.)


Tamil Nadu has different soil types and severs agro-climatic zones and it is good for crops such as fruits, vegetation, spices, plantation crops, flower, and medicinal plants.

It is the largest producer of loose flowers and third in fruits. It is the second-largest producer of rice. First is West Bengal. It is also the largest producer of Turmeric.

It is also the largest producer of Kambu, Groundnut, Oilseeds, Sugarcane, and corn. It is the largest producer of bananas in the country and the second-largest producer of rubber, cashew, and coconut.

It is the third-largest producer of pepper and the fourth-largest producer of sugarcane.

The total gross cropped area under cultivation is 58.97 Lack Hectares in 2013-2014. The area under food cultivation is 72.9%. Paddy is the major food crop and among the non-food crops coconut and groundnut are major ones

Food grain Production

Tamil Nadu producers 79.49 Lakh tones of Rice in 2015-16, 40.79 Lakh tonnes of Millets in 2015-2016, Pulses of 3.59 Lakh tonnes in 2011-2012.

Productivity Position
CropPosition of Tamil Nadu at National Level
Total Oilseeds1
Coarse cereals4
Total Pulses8
Rank of Tamil Nadu in Food Grain Production

Source: Agriculture Department Policy Note 2017-18

The economy of Tamil Nadu: Industry in the State

Chennai is called the Health and Banking capital of India. It is also called Detroit of Asia due to a Large number of automobile industries’ presence.

It has 110 industrial estates and parks. The state government also supports Rubber Parks, Apparel parks, Floriculture Park, Ticel park for biotechnology and IT parks in Siruseri and Agro Export Zones.

Automobile and heavy engineering industries are around the suburbs of the capital city. Karur is famous for bus bodybuilding, it builts 80% of buses in south India.

TNPL, a government enterprise is Asia’s largest producer of eco-friendly paper. Salem is called a steel city, has a large number of metallurgical and mining industries.

Sivakasi is the largest in India in Printing, Matchmaking, and fireworks, its products are 80% of total matchboxes and 90% of total fireworks in the country. Thoothukudi is the called Gateway of the state, is the second-largest Chemical producer after Chennai

Textiles Industries

tamilnadu industrial tirupur
cotton textile industry in tamilnadu

Tamil Nadu is known as the “Yarn Bowl” of the country and its largest textile hub in India. The textile industry provides direct employment to almost 35 million people which contributes 4% of GDP and 35 % of gross export earnings.

The textile industry contributes 14% to manufacturing industries. The state has India’s half of the spinning mills.

The majority of the spinning industry is present in the western part of Tamil Nadu, such as  Karur, Erode, Tirupur, Dindigul.

These spinning mills manufacture blended yarn, silk yarn, polyester yarn, cotton yarn which are used by various states such as Maharastra, Tamil Nadu, etc, also exported to Bangladesh, China, etc.

Tirupur called “Knitting City”, exports of garments well worth USD three Billion.

Karur is also a prime producer of domestic textile garments consisting of Curtain material, mattress linens, kitchen linens, restroom linens, desk linens, wall hangings, and many others and export hubs in India.

Erode is the principal cloth market in South India for retail as well as wholesale ready-mades.

Leather Industries

The state makes 30% of leather-based exports and approximately 70 % cent of leather-based production in India.

Hundreds of leather-based and tannery industries are positioned around Vellore, Dindigul, and Erode. Every year the state hosts the India International Leather Fair in Chennai.

Electronics Industries

Chennai has emerged as the EMS Hub of India. Many multinational companies have selected Chennai as their South Asian manufacturing hub.

Automotive Industries

Chennai is called “The Detroit of Asia” as it is home to many large car part manufacturing companies.

Tamil Nadu has a 28% share in automotive and auto components industries, 19% within the trucks phase, and 18% passenger cars and two-wheelers.

Cement Industry

The state ranks at number three in cement production in-country, after Andra Pradesh and Rajasthan.

Among the 10 largest cement companies in India in 2018, Ramco Cement and India Cement of Tamil Nadu are based to find a good position.

And additionally, the state stands only next to Andra Pradesh in the number of cement plants. Andra Pradesh tops with 35 plants and Tamil Nadu with 21 plants.

Fireworks Industry

The town of Sivakasi is the topper in the areas of printing, fireworks, and safety matches. Sivakasi referred to as “Little Japan” by Jawaharlal Nehru.

It contributes 80% of India’s fireworks production. Sivakasi provides over 60% of India’s total offset printing solutions.

Other Industries

BHEL (Bharat Heavy Electricals Limited) has a plant in Tiruchi and Ranipet.

The state government of Tamil Nadu has its own Paper production company called TNPL(Tamil Nadu Newsprint and Paper Limited) and its world’s largest bagasse paper mill in Karur.

Tamil Nadu is one of the largest cement producers in India and has plants in Ariyalur, Virudhunagar, Coimbatore, and Tirunelveli.

The Salem city outskirts are mineral-rich, SAIL a Government of India company for steel products has plants in Salem.

About two-thirds of country’s Pumps are produced in Coimbatore and it is famously called “the Pump City”.

It satisfies the need for two-third of countries’ requirements for vehicles and pumps.

Coimbatore is also the leading exporter of Jewellery, wet grinders, and auto additives. “Coimbatore wet grinder” is added to the GI tag.

The gateway of Tamil Nadu”, Thoothukudi, is the major chemical manufacturing hub in the state, it also produces 70% of salt in Tamil Nadu and 30% of salt in India.


The Micro, Small, and Medium Enterprises are defined under the MSMED Act 2006.

It is classified as a manufacturing and service enterprise based on investment in plant and machinery and equipment excluding land and building.

Tamil Nadu has 15.07% MSME in the country which is the highest in the country with 6.89 Lakh registered MSME.

Tamil Nadu accounts for 15.07% of Micro, Small and Medium Enterprises (MSMEs) in the country( the highest among all States) with 6.89 lakhs registered MSMEs.

MSME in Tamil Nadu produces over 8000 varieties of products and MSME investment is more than Rs 32,008 crore.

The product includes Engineering, Chemicals, Garments, etc. About 15.61 Lakh entrepreneurs provide employment to 99.7 lakhs with the capital of Rs. 1,68,331 crore.

Economy of Tamil Nadu: Energy Sector in Tamil Nadu

Tamil Nadu is the largest power producer in South India.

Tamil Nadu26,865 MWI
Karnataka18,641 MWII
Andhra Pradesh17,289 MWIII
Telangana12,691 MWIV
Kerala4,141 MWV
Total Power79,627 MW 
Rank of Tamil Nadu in Electricity Production Compared to other states of India

(“Source: Central Electricity Authority, Ministry of Power, Government of India. Retrieved Jan.2017” )

Tamil Nadu is the leader in installed capacity of power plants pan India.

Muppandal wind farm is a renewable energy source that supplies power to villagers for work. Wind Mill is being installed in Tuticorin and Nagercoil.

Tamil Nadu already has installed windmills in Coimbatore, Pollachi, Dharapuram, and Udumalaipettai. Wind Mills of Tamil Nadu produces more than half of India’s wind power and 2% of the total power of the country is about 2000 megawatts.

Nuclear Energy in Tamil Nadu

Kalpakkam and Koodankulam Nuclear power plants are major nuclear plants in Tamil Nadu.

UnitsExisting Installed capacity (2018)
Kudankulam1834 MW (2 x 917)
Kalpakkam470 MW (2 x 235)
Nuclear Power Plants in Tamil Nadu

Thermal Power in Tamil Nadu

The thermal power plant is in Athippattu in North Chennai, Ennore, Mettur, Neyveli, and Thoothukudi. The generation of power under various sources is given below.

SourceMillion Units%
Others (Wind,Solar)3.6738.61
Power Plant Types and its Capacity in Tamil Nadu

(“Source: Central Electricity Authority, Ministry of Power, Government of India. Retrieved 15 Jan.2017.”)

Hydel Energy in Tamil Nadu

Tamil Nadu has 20 Hydroelectric units, the famous ones are Hundah, Mettur, Periyar, Maravakandy, Parson Valley, etc

Solar Energy in Tamil Nadu

Tamil Nadu tops in solar power generation in India as seen in the following table.

Southern Tamil Nadu is considered one of the most suitable regions in the country for developing solar power projects.

RankingStatesTotal capacity(MW) 2017
1Tamil Nadu1590.97
5Andhra Pradesh979.65
Rank of Tamil Nadu in Solar power production

(Source: Data from MNRE)

Wind Energy in Tamil Nadu

Tamil Nadu has the largest wind power in India. The State has a very high quality of offshore wind energy potential of the Tirunelveli coast and southern Thoothukudi and Rameswaram coast.

Service sector in Tamil Nadu

The tertiary sector or Service sector is Banking, Insurance, Energy, Transport, and Communication.

Banking Sector in Tamil Nadu

In Tamil Nadu, People have 52% of bank accounts in Nationalised banks with 5337 branches in the state, 30% in Private Banks with around 3060 branches, 5% or 537 branches of Rural banks, and 22% in foreign bank branches.

There is an increase in deposits by 14.32% by March 2017 and reached ₹6,65,068.59 crores. The credit of banks also increase by 13.5% by March 2017 and reached ₹6,95,500.31 crores.

In the Priority Sector Advances, the share stands higher than the countries’ average 40% with 45.45%.

Agricultural advances are also higher than the national average of 18%, whereas Tamil Nadu has 19.81%. The credit Deposit Ratio is also higher than the countries average of 77.5%, where Tamil Nadu maintains 119.15%.

Education and health systems in tamil nadu tnpsc

Education in Tamil Nadu

higher education in tamilnadu
Literacy rate of Tamil Nadu

a. School Education

Tamil Nadu is grouped among high Gross Enrolment Ratio (GER) States. It ranks third next only to Kerala (81%) and Himachal Pradesh (74%). The all India average is 43% and the world average is 59%.

Tamil Nadu’s primary education statistics 2016-17

High and Higher Secondary12,911
Education Data of Tamil Nadu

(Source: Tamil Nadu State portal, State interim Budget 2016-17)

Gross Enrolment Ratio is 118.8% for primary level(class 1-5); 112.3% for upper primary level (class 6-8), 62.7% for secondary level (class 9-10), 49.26% at Higher Secondary level (class 11-12).

This has been possible mainly due to the supply of free food, cloth, footwear, scholarship, laptop, etc.

Higher Education

In Gross Enrolment Ratio under higher education (Tertiary level) Tamil Nadu continues to be at the top level well ahead of other states.

The GER is 46.9% in Tamil Nadu which is far higher than the national average and all other States.

This higher GER is thanks to the distribution of free food, cloth, footwear, laptop, and scholarship.

Tamil Nadu46.9
Uttar Pradesh24.9
All India25.2
GER of Tamil Nadu is top among the Indian states

(Source: All India Survey on Higher Education (AISHE) released by the Ministry of Human Resource Development- January 2018)

Tamil Nadu has 59 Universities, 40 Medical Colleges, 517 Engineering colleges, 2,260 Arts and Science colleges, 447 Polytechnics, and 20 dental colleges.

Tamil Nadu produces nearly four lakh engineering and polytechnic students every year, the highest in the country.

Educational Loans

Tamil Nadu takes maximum education loans from Public Sector Banks of about 20.8% between 2013-2014 and 2015-16.

Andhra Pradesh was second with 11.2% of the total loan amount followed by Maharashtra (10.2%).

Tamil Nadu stands second in getting education load from Private Banks during 2013-2016 of about 24.8% only next to Kerala of about 37.8%.

Karnataka and Kerala get more than 60% of education loans from private banks.


Tamil Nadu has a three-tier health infrastructure comprising hospitals, primary health centers, health units, community health centers, and subcentres.

As of March 2015, the State has 34 district hospitals, 229 sub-divisional hospitals, 1,254 primary health centers, 7,555 Sub-centres, and 313 community health centers.

Transport and Communication in Tamil Nadu tnpsc


Tamil Nadu has second in terms of internet subscribers in the country of about 28.01 million, First is Maharashtra with 29.47 million users.

Next to Tamil Nadu are Andra Pradesh (24.87 million) and Karnataka (22.63 million). As per government data, there are 342.65 million internet subscribers in March 2016, India.


Tamil Nadu has a well-established transportation system that joins all parts of the State. This is partly responsible for the investment in the State.

Tamil Nadu is served by an extensive road network in terms of its spread and quality, providing links between urban centers, agricultural market-places, and rural habitations in the countryside.

However, there is scope for improvement.

a. Road

There are 28 national highways in the State, covering a total distance of 5,036 km.

The State has a total road length of 167,000 km, of which 60,628 km are maintained by the Highways Department.

It ranks second in India with a share of over 20% of total road projects under operation in the public-private partnership (PPP) model.

b. Rail

Tamil Nadu has a well-developed rail network as part of Southern Railway, headquartered in Chennai.

The present Southern Railway network extends over a large area of India’s Southern Peninsula, covering the States of Tamil Nadu, Kerala, Puducherry, minor portions of Karnataka, and Andhra Pradesh.

Tamil Nadu has a total railway track length of 6,693 km and there are690 railway stations in the State.

The system connects it with most major cities in India.

Main rail junctions in the State include Chennai, Coimbatore, Erode, Madurai, Salem, Tiruchirapalli, and Tirunelveli.

Chennai has a well-established Suburban Railway network, a Mass Rapid Transport System, and is currently developing a Metro system, with its first underground stretch operational since May 2017.

c. Air

Tamil Nadu has four major international airports. Chennai International Airport is currently the third-largest airport in India after Mumbai and Delhi.

Other international airports in Tamil Nadu include Coimbatore International Airport, Madurai International Airport, and Tiruchirapalli International Airport.

It also has domestic airports at Tuticorin, Salem, and Madurai which connect several parts of the country.

Increased industrial activity has given rise to an increase in passenger traffic as well as freight movement which has been growing at over 18 percent per year.

d. Ports

Tamil Nadu has three major ports; one each at Chennai, Ennore, and Tuticorin, as well as one intermediate port in Nagapattinam, and 23 minor ports.

The ports are currently capable of handling over 73 million metric tonnes of cargo annually (24 percent share of India).

All the minor ports are managed by the Tamil Nadu Maritime Board, Chennai Port.

This is an artificial harbor and the second principal port in the country for handling containers.

It is currently being upgraded to have a dedicated terminal for cars capable of handling 4,00,000 vehicles.

Ennore Port was recently converted from an intermediate port to a major port and handles all the coal and ore traffic in Tamil Nadu.


Tamil Nadu has since ancient past been a hub for tourism. In recent years, the state has emerged as one of the leading tourist destinations for both domestic and foreign tourists.

Tourism in Tamil Nadu is promoted by Tamil Nadu Tourism Development Corporation (TTDC), a Government of Tamil Nadu undertaking.

The State currently ranks the highest among Indian states with about 25 crore arrivals (in 2013).

The annual growth rate of this industry stood at 16 percent. Approximately 28 lakh foreign and 11 crore domestic tourists visit the State.

Unemployment and Poverty

Decline of Poverty in Tamil Nadu Since 1994

The national average unemployment rate stands at 50 and Tamil Nadu ranks and foreign tourists. Tourism in Tamil Nadu is promoted by Tamil Nadu Tourism Development Corporation (TTDC), a Government of Tamil Nadu undertaking.

The State currently ranks the highest among Indian states with about 25 crore arrivals (in 2013). The annual growth rate of this industry stood at 16 percent.

Approximately 28 lakh foreign and 11 crore domestic tourists visit the State. 22nd with an unemployment rate of 42 per 1000.

There are different kinds of unemployment with different economic implications. All those aspects need to be studied to fully understand the employment situation.

Tamil Nadu is one of India’s richest states Since 1994, the state has seen a steady decline in poverty.

Today, Tamil Nadu has lower levels of poverty than most other states in the country. After 2005, Tamil Nadu was among India’s fastest-growing states, with growth being driven mainly by services.

Poverty in Tamil Nadu is lower than most of the Indian States
Total Population72138958
Crude birth rate (per thousand)15.7
Crude death rate (per thousand)7.4
Growth Rate (per thousand)8.3
Districts with Highest PopulationChennai, Kancheepuram, Vellore, and Thiruvallur
Districts with Lowest PopulationPerambalur, The Nilgiris, Ariyalur, and Theni
Population Density (per sq km)555 (2011), 480 (2001)
Maximum DensityChennai (26903
Minimum DensityNilgiris (288)
Sex Ratio (per 1000 males)995 females (2011), 987 females (2001)
District with Highest Sex RatioNilgiris (1041 females), Thanjavur (1031 females), Nagapattinam (1025 females)
District with Lowest Sex RatioTheni (900 females), Dharmapuri (946 females)
Child Sex Ratio (0-6 age group)946 female children (2011), 942 female children (2001)
District with Highest Child Sex RatioThe Nilgiris (985), Kanyakumari (964)
District with Lowest Child Sex RatioCuddalore (896), Ariyalur (897)
Literacy Rate80.33% (2011), 73.45% (2001)
Male Literacy86.81% (2011), 82.33% (2001)
Female Literacy73.86% (2011), 64.55% (2001)
District with Highest LiteracyKanyakumari (92.14%), Chennai 90.33%)
District with Lowest LiteracyDharmapuri(64.71%), Ariyalur (71.99%)
Data of Tamil Nadu based on 2011 Census

Economic Trends in Tamilnadu Tnpsc Pdf

Role and impact of social welfare schemes in the socio-economic development of Tamilnadu

Rural welfare oriented programmes in India Upsc

Rural welfare oriented programmes in India

The Article deals with the feature of rural development in India and understands the need to develop rural areas.

And also the problems faced by the villages and initiatives taken by the  Governments to improve the conditions.

Social Sector Problems

1. Village Economics

It deals with the application of principles of economics and the development of the life of people in rural areas.

Village economy refers to the economy of the communities or people who live in villages.

The problem faced by the villages is low employment opportunities, poverty, backwardness in agriculture, poor infrastructure, illiteracy, poor labour productivity, surplus labour forces, population, high dependency on natural resources, etc.

As per 2011 population census 6,40,867 villages in India and out 121 crore people 68.84% of people live in villages.

1.2 Features of Rural Economy

a. Village as an Institution

It is a primary institution and it satisfies all the basic needs of rural people and their communities these people have a feeling of belonging and a great sense of unity towards each other.

b. Dependence on Agriculture

Most people are dependent on natural resources, agriculture activities, and allied services of agriculture.

c. Life of Village People

The lifestyles of these people are generally simple, they rely on faith, superstition, and traditional cultural practices.

Basic public services such as education, transport, banking, hospitals, etc are very limited and mostly unavailable. Most of the people are economically poor.

In terms of production, the social organization rural sector is extremely weak, and in recent years alcohol drinking and caste killings have gone up.

The people of the so-called High, Mid Caste live in the village mainland as a single group and SC or so-called lower caste people are forced to live outside the village mainland.

d. Population Density

Population density is generally lower in villages and houses are scattered in villages. Village people generally leave as groups and colonies.

e. Employment

Unemployment is common in villages. There exist seasonal and underemployment in villages. Unemployment is a situation where people with abilities and willingness do not find any work.

Underemployment is the excess of people employed over and above the requirement. Disguise Unemployment is where people work and there is no increase in production.

Underemployment and Disguised Unemployment, both of these exist in village areas.

f. Poverty

It is a condition where basic needs such as food, shelter, and clothing are not met. According to the 2011-2012 economic survey, about 22 crore villages, people are below the poverty line.

g. Indebtedness

Village people are highly indebted owing to poverty and underemployment.

This is due to a lack of agriculture and non-agriculture job opportunities, seasonal employment, low-wage employment, poor production, poor marketing network, etc.

Since there were no formal loan facilities available to the villagers, they had no way but to lend money to the money lenders who squeeze the villagers.

As a result of these parasites (money lenders), villagers commit suicide.

” An India farmer is born in debt, lives in debt and dies in debt ” stated by a British writer Sir Malcolm Darling (1925)

h. Village Income

The village economy is not vibrant to provide work consistently or self-employment opportunities. A large number of labourers and skilled people are underemployed and the scope of increase of income is limited.

1.3 Rural Development

Rural development is an overall improvement in the social and economic, well-being of villagers.

As per World bank, “Rural Development is a strategy designed to improve the economic and social life of
a specific group of people – rural poor”

In brief, rural development is a process of improving the village areas, their people, and their living.

1.4 Need for Rural Development in India

It is essential for the overall growth and development of the Indian economy due to the following reasons.

  • Most of the population lives in the village and their contribution is essential for nation-building.
  • By keeping villages backwards, India cannot be developed.
  • The backwardness of villages has a significant impact on the National economy, as it provides essential commodities such as milk, food and raw materials.
  • Improving the village areas in areas of education, health and sanitation, can avoid Urban problems such as begging, rack picking and slumming due to migration from villages.
  • Food production and rural employment can be increased by developing agriculture and allied activities in rural.
  • Rural development reduces the evils of brain drain and urban migration.
  • Underutilized resources can be utilized by improving the village’s economy.
  • PURA by former President Abdul Kalam, In terms of infrastructure facilities, the gap between Rural and Urban must be reduced by rural development.
  • The Human Development Index (HDI), Women Empowerment Index (WEI), Gender Disparity Index (GDI), Physical Quality of Life Index (PQLI) and Gross National Happiness Index (GNHI), are an economic indicator that needs to be addressed to improve the national status globally.

10.5 Problems of Rural development in India

Rural economy
Problems of the rural economy
  • People Related Issues– Sentiment and Beliefs, illiteracy, lack of technical knowledge etc are some of the problems.
  • Agriculture– Agricultural problems include knowledge, unavailability of inputs, poor marketing of agricultural products, small land holdings, fragmentation of land holding, absence of infrastructure to stay and work in villages, low adoption of modern technologies, lack of investment in both public and foreign investments, and fixing of the price of own agricultural goods.
  • Infrastructure– lack of electricity, water, health, storage, banking and insurance,  and educational institutions etc lacking in rural areas.
  • Economics- Inability to adapt to technology and inputs, low-income, underprivileged rural industries, indebtedness and inequality in land holding and assets. Also, feed landlords owing large areas.
  • Leadership- Rural people are in the hand of leaders who are incompetent, self-interested and politically biased.
  • Administration- Low wages, improper utilization of budget, lack of monitoring body for rural development programmes.

1.6 What is Rural Poverty?

On the basis of food consumption, a person taking less than 2400 calories per day in a rural area is considered as rural poverty.

As the Planning Commission estimates, 54.1 % of people live below the poverty which accounts for 33.8 % during 2009-2010. Poverty is high among Scheduled Castes (SC) and Scheduled Tribes (ST) in rural areas.

In 2005, SC and ST people accounted for 80 % of the poor in rural although their share in the total rural population is much smaller.

In 2015, 80 crores or more lived in villages, and 22 crore people are below the poverty line which is one quarter.

India is home to 22% of the world’s poor.

1.6.1 Causes of Rural Poverty
  • Landless agricultural labour, they work on other’s land to support their families.
  • Lack of Non-farm Employment- Many workers are hired for fewer wages due to the lack of non-farm employment.
  • Lack of Public sector Investment- It is the root cause of poverty in rural, as the Public sector lacks investment in human resource development.
  • Inflation- Increases in price affect the power of purchasing in rural.
  • Low Productivity- Many people are employed for less demanding work and hence paid less, resulting in less productivity.
  • Unequal Benefits of Growth- Urban rich enjoy economic development, but due to poor economic structure contributions of the poor are not accounted for property and their hard work does not improve their financial status.

Ministry of Rural Development in India

These are the Rural Welfare Oriented Programmes that are given by the Ministry of rural development. It is one of the ministries of the government of India for planning and providing faster growth in the village or rural areas.

  1. Shyama Prasad Mukherji Rurban Mission

It is a centrally sponsored scheme, which was launched in 2016 that is developed to accelerate rural growth. The funding is shared by the state government and central government in the ratio of 40:60. That is 60% by the centre and 40% by the state.

For the Himalayan state and NE state, it is 90% by the centre and 10% by the state.

Under this mission, the Union government at the centre will coordinate with the district administration to develop urban cities with proper civic amenities for villages and gram panchayats.

Social Welfare Programmes

rural development in India using the model self-help group among rural women's
SHG – Self-Help Groups

Ministry of Agriculture and Farmer Welfare

  • Pradhan Mantri Fasal Bima Yojana
  • Soil Health Card (SHC) Scheme
  • Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)
  • Pradhan Mantri Kisan Maan Dhan Yojana (PM-KMY)
  • Participatory Guarantee Scheme (PGS)
  • Schemes to support organic farming in-country


Several ministries of the Union Government of India design different development schemes to improve the benefits or welfare of the people. Some such schemes are National Rural Livelihood Mission, MGNREGA, etc.

Goods and Services Tax

Taxes Subsumed under Gst Upsc

Need for Goods and Services Tax

The Government propose GST after the implement of VAT (Value added Tax). GST aimed at making a single tax pan India by integrating the taxes of the state and centre.

The government of India believed that by a created a single market throughout India, might help the Industry, business etc in a big way. Going by the expert’s opinions, GST has the potential to increase the GDP up to 2%.

The GST bill was passed in the parliament on 29 March 2017 and can into effect on July 1, 2017.

goods and services tax upsc
Goods and services tax

Also Check out Economy of Tamil Nadu

Suggestion for GST in the First Proposal

The GST is to be collected same as VAT and it is imposed pan India with Uniformity. That is single rate throughout the country.

Taxes subsumed under Gst Upsc

The taxes subsumed under GST are Four central taxes such as cenvat, service tax, stamp duty, and central sales tax. Also, Nine state taxes such as excise duty, sales tax/vat, entry, lease, works contract tax, luxury tax and turnover taxes and also octroi, and cess to be merged into GST.

Implementation of GST

The government of India decided to introduce GST in the financial year 2010-2011 after the Kelkar Committee Report in 2006 but the process was delayed due to various reasons such as disputes between the state and central etc.

Finally, by 101st Amendment Bill,2016 was cleared by the parliament in August 2016 and by September 2016 GST council was created.

The council had the power to make recommendations to Union and states on rates, floor rates, exceptions, etc and the new federal GST was implemented on July 1, 2017.

Gst rates in India

It is a new Indirect tax that is applied to all except Alcoholic liquor and five petroleum products such as crude petroleum, motor spirit/petrol, high-speed diesel, natural gas, and aviation turbine fuel.

Central excise duty, duties of excise(Medicinal and Toilet preparations), additional duties of excise (Goods of special importance), additional duties of excise (textile and textile products), additional duties of customs/ countervailing duties (CVD), and special additional duty of customs (SAD), service tax, and central surcharges and cesses, these 8 cental taxed subsumed under Goods and Services Tax.

State Vat, Central sales tax, luxury tax, entry tax, entertainment and amusement tax (except Local Bodies), taxes on an advertisement, purchase tax, lottery tax, betting, and gambling, and state surcharges and cesses, these nine states are merged into GST.

The method of declared ‘goods of special importance‘ is dropped. For the inter-state transactions of the goods and services, an “Integrated GST” will be levied.

The upper limit for the exception from levy of GST would be 20 Lakh rupees for the normal states and 10 lakh rupees for the special category states.

The upper limit for getting the composition would be 50 lakh rupees with the service providers kept out of it. States to get compensation for five years for loss of revenue due to implementation of Goods and Services Tax ( for the base year will be 2015-16) with a growth rate of 14%.

Small amendments in rules may be allowed with the approval of the chairperson if required. All exemptions/incentives on indirect taxes will rest withdrawn with an obligation to pay GST. If any of them continue it will be administered by way of a reimbursement mechanism.

Bands of rates of good under GST shall be 5,12,18, and 28, and also there would be a category of exempt goods. Further, a cess would be levied on certain goods such as luxury cars, aerated drinks, pan masala, and tobacco products, over and above the rate of 28 per cent (for payment of compensation to the states).

Keeping in mind the structure of the federal, there will two taxes CGST(Central GST) and SGST (State GST).

Both centre and state levying GST across the value chain on every supply of goods and services. States with assess 90% of assesses with annual turnover below 1.5 crore rupees while 10% by the centre. For taxpayers with over 1.5 crore rupees turnover, the split is 50:50 between the centre and states.


We have discussed, What is GST and what are taxes subsumed under it. Kindly check the latest GST rates, as it changes regularly.