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Indian Economy

 Terminology related to economy

Budget Facts :

The first budget of independent India was presented on November 28, 1947 by R.K. Shanmukham Shetty, the first finance minister. The first Budget of the Republic of India was presented in 1950 by John Mathai, the second Finance Minister. 

So far four Prime Ministers have also served as Finance Ministers in the country.

  1. Morarji Desai.
  2. Chaudhary Charansinh.
  3. V.P.Singh.
  4. Manmohan Singh
Javaharlal Nehru, Indira gandhi and Manmohan singh has also been Finance Minister along with Prime Minister.


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The Budget of 1958-59 was presented by Nehru. From the next year, the budget will be presented on February 28. It was announced but from the year 2017-18, the Modi government decided to present the budget on 1st February.

The highest budget in India has been presented by Morarji Desai. ten times. It has been presented nine times by P. Chidambaram.

Terminology related to economy

Gross domestic product (GDP) :

The final monetary value of the total goods and services produced within the country's borders during that year is called Gross Domestic Product.

Gross National Product (GNP) :

The final monetary value of the total goods or services produced within and outside the country by the citizens of a country is called Gross National Product. meaning
GNP = GDP + Income earned abroad by citizens of the country - Income earned by foreigners in the country.

Net National Product (NNP) :

The monetary value obtained after deducting the amount of depreciation from the gross domestic product of the country is called net national product at market price.

National Income :

National income refers to the final monetary value of goods and services produced by the country's citizens during a fiscal year through the country's economy. This value is obtained by subtracting indirect taxes from the net national product obtained at the market price and subtracting the total amount of subsidies. It is called the net national product in Factor Price.

Mixed Economy :

Equal co-existence of government or public sector in the economy.


Magnetic Ink Character Recognition code consists of 9 characters. In which the first 3 digits are the city, the next 3 digits are the name of the bank and the last 3 digits are related to the bank branch.
which is written in the lower part of the cheque.


Indian Financial System Code (IFSC) has 11 digits. In which the first 4 letters are the short name of the bank, one zero and the last 6 digits statistics contain information about bank branches.

NEFT system :

National Electronic Fund Transfer The amount can be transferred from one bank account to that or another bank account through the internet through NEFT. No minimum or maximum limit has been prescribed for this.

RTGS system : Real Time Gross Sattlement

Under this, an amount of more than 2 lakhs can be transferred from a bank account to that bank or another bank account.

ECS system : 

Under the electronic clearing system, the bank regularly deposits a specified amount into the account of the person or organization nominated by its customer without paper cheques it transfers to the customer's account.

CTS system :  Cheque Transaction System

Under the new arrangement of seats, a scanned copy of the check will be sent electronically to the originating bank without sending the check to the clearing house. And it shall be deemed to be cleared by the check being accepted for payment by the originating bank. This arrangement will save time and money spent on cheque clearing. For this arrangement, banks are giving their customers special seats with watermarks CTS-2010 cheques.

BOND / Debenture  :

Issued by a company at a fixed rate of interest to borrow from the public. Thus, a debenture is a debt of the company. Bonds are usually issued by a government or organization.

Merchant Banking  :

A commercial bank has a special type of service provided to industrial and commercial institutions. In which Share issue has to prepare the administration, project, counselling, feasibility report. It includes arrangement of working capital etc.

Primary Gold  :

24 Caret Gold called Primary Gold.

Buffer Stock  :

A stock of items is prepared to meet the shortage of any item in emergency situations. Which is called buffer stock.

Floating of Currency  :

Freeing the exchange rate of a currency so that its value can be determined based on supply and demand.

Devaluation :

If the exchange rate of a currency is deliberately reduced compared to the rate of another currency, it is called devaluation of that currency. The government devalues ​​the currency depending on the situation.

ISI Mark :

Indian Standard Institution applied to an industrial object. It is prescribed by the Board of Indian Standards (BIS) and has been effective since 1995.


Since 1986, it has been imposed on the agricultural products based on their quality.


Since 1991, BIS has been applied to products with less adverse impact on the environment.


From 2000 to ISI1417 applied to gold Jewelery made by Gold.

Customs duty :

Tax levied on imported-exported goods.


It depends on the production of the product manufactured within the country.

Estate Duty :

Wealth tax levied on the transfer of property after the death of a person.

Wealth Tax:

It is a direct tax levied on a person based on the wealth he holds.

Insider Trading:

The professionals who have secret information of the company. It is called insider trading if profit is obtained by buying and selling of stocks in large quantities. This is an illegal activity.

NPA (Non Performing Assets) :

Banks are the property put against the loan given but the property that does not yield as much as the loan given is called NPA.

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