This book, in its present 36th edition, has been extensively revised and updated on the basis of latest available information on the subject. Besides, additional reading material has been incorporated wherever necessary such as in respect of Eleventh Five-year Plan. The aim in doing all this has been to highlight the recent trends and developments in the economy as also the policy measures adopted by the Government to tackle them. This will help better understanding of the subject-matter as also the evaluation of the progress of the country`s economy. The utility of the book will thus increase further. To equip the reader with the analytical tools for understanding the Indian economy, the first two chapters explain the economics of underdevelopment and development. The next two chapters give an overview of the past and the present state of the Indian economy. Considerable space is then devoted to the study of national income, its industrial origin and its distribution as also poverty. Sectoral problems bearing on agriculture, industry and services have been dealt with in detail. Current problems like price-rise, deficit in government budgets, deficits in balance of payments, unemployment, farm-size and efficiency, industrial sickness, foreign direct investments, debt burden, convertible rupee system, privatisation of public sector etc. have been given due place and analysed in detail. Planning and its various aspects have been comprehensively explained. These include: features and objectives of planning; centralised and decentralised planning; strategy of development; financing of plans; progress under planning with a section evaluating the Ninth Plan. A separate chapter deals with the main aspects of the Eleventh Plan. The last chapter of the book highlights India's place in the world economy. Latest information on the current major issues have been added through data tables in the Appendix. The book would be extremely useful to students preparing for degree courses in Indian universities as well as to the candidates of various professional and competitive examinations. To help them in their studies, several questions corresponding to various chapters, have been appended at the end of the book. About The Author A.N. Agrawal, educated at Allahabad, served as a senior lecturer at Ramjas College, University of Delhi. He is a well-known author of several books which have been well received both within the country and abroad. The London Economist profusely praised his Indian Agriculture and its Problems, while the Problems of Cooperative Farming in India (co-authored with Prof. A.M. Khusro) won the Government of India Award. Among his well-known books Indian Economy (36th edition) has also been published by New Age International Publishers. Table of contents Underdevelopment Development Indian Economy: A Historical Perspective Present State and the Perspective Economic Reforms Natural Resources Population Growth and Urbanisation Population: Development and Policy Human Capital Workforce and Occupational Structure Unemployment and Employment Economic Infrastructure National Income: Measurement, Growth and Industrial Origin Income Distribution and Poverty Capital Formation Domestic Saving Agriculture: Role Backwardness and Progress Crops, Production, Productivity, Inputs and Surpluses Land Reforms Farm-size and Efficiency Agricultural Labour Agriculture: Mechanisation and Green Revolution Agricultural Finance and Rural Indebtedness Marketing of Agricultural Produce Agricultural Prices Cooperative Movement Food Problem and Public Distribution System Rural Development Industrial Growth: Performance and Problems Small-scale and Cottage Industries Public Sector and Private Sector Industrial Finance Monopoly, Concentration and Multinationals Industrial Labour New Industrial Policy Financial System Money and Money Market Reserve Bank and Monetary Policy Commercial Banks Prices, Money and Inflation Central Finances and New Fiscal Policy Tax Structure: Problems and Reforms Agricultural Income Tax, Expenditure Tax, MODVAT and Service Tax Parallel Economy Public Debt and Deficit Financing Federal Finances Balance of Payments: Problems and Policies Foreign Trade: Trends and Problems New Trade Policy: Features and Evaluations WTO: Features and Assessment Rupee: Exchange Rate and Convertibility Foreign Capital Economics Planning: Features and Objectives Planning: Centralisation and Decentralisation Strategy of Development Financing of Plans Progress under Planning Tenth Five-Year Plan (2002-2007) India and the World Economy Eleventh Five Year Plan (2007-2011)