Part A: Introductory Macroeconomics

Macroeconomics as a branch of economics will help you to understand the performance, structure, behaviour and decision making of the economy as a whole.

Unit 1: National Income and Related Aggregates                                30 Periods

This chapter will help you to understand macroeconomics as a branch of economics and its basic concepts. It will further guide you towards the meaning of national income, its calculation, and the circulation of income in the economy. Following are the sub topics that will be covered in this unit and will enhance your knowledge of National Income and Its Aggregates.what is Macroeconomics?Basic concepts in macroeconomics : consumption goods, final goods, intermediate goods: stocks and flows investment and depreciationCircular flow of income (two sector model); Methods of calculating national Income - Vaue Added or Product method, Expenditure method, Income Method.Aggregates related to National Income: Gross National Product (GNB), Net National Product (NNP), Gross Domestic Product (GDP) and Net Domestic Product


What is Macroeconomics?Basic concepts in macroeconomics: consumption goods, capital goods, final goods, intermediate goods;stocks and flows;gross investment and depreciation.
Circular flow of income (two sector model);Methods of calculating National Income - Value Added or Product method, Expenditure method, Income method.
Aggregates related to National Income: Gross National Product (GNP), Net National Product (NNP), Gross Domestic Product (GDP) and Net Domestic Product (NDP) - at market price, at factor cost; Real and Nominal GDP.GDP Deflator, GDP and Welfare

Unit 2: Money and Banking                                15 Periods

This chapter starts with the introduction of Barter System and its Limitation. Then it will help you to understand the importance of money and how it acts as a foundation stone around which all the economic activities revolve. This chapter will further guide you towards the credit creation by commercial banks and finally highlights the functions of Central bank as an ‘apex’ body.Money – meaning and functions, supply of money - Currency held by the public and net demand deposits held by commercial banks. Money creation by the commercial banking system.Central bank and its functions (example of the Reserve Bank of India): Bank of issue, Govt. Bank, Banker's Bank, Control of Credit through Bank Rate, Cash Reserve Ratio (CRR), Statutory Liquidity Ratio (SLR), Repo Rate and Reverse Repo Rate, Open Market Operations, Margin requirement. 

Unit 3: Determination of Income and Employment                                30 Periods

This chapter starts with the introduction of meaning of Aggregate Demand and Aggregate supply. It introduces some important functional relationships such as of Consumption function, Savings function and Investment function. As the name suggests, it will finally guides you to determine equilibrium level of income with the help of AD-AS and S-I approach. Further, it proceeds with an interesting concept of investment Multiplier. This chapter ends with the introduction of the concept of Excess demand and supply and how monetary and fiscal policies can be used to control these situations of excess demand and supply.Aggregate demand and its components.Propensity to consume and propensity to save (average and marginal).Short-run equilibrium output; investment multiplier and its mechanism. Meaning of full employment and involuntary unemployment. Problems of excess demand and deficient demand; measures to correct them - changes in government spending, taxes and money supply. 

Unit 4: Government Budget and the Economy                                17 Periods

This chapter will help to understand the meaning, importance, components and objectives of the Union Budget. Further, it will guide you to understand the sources of revenue for the government and it plans its expenditure in different sectors or items during a fiscal year. Further, three types of budget will be introduced: Balanced Budget, Surplus Budget and Deficit Budget. And finally, this chapter ends with three types of Budgetary Deficit: Revenue Deficit, Fiscal Deficit and Primary Deficit. Government budget - meaning, objectives and components.Classification of receipts - revenue receipts and capital receipts; Classification of expenditure – revenue expenditure and capital expenditure. Balanced, Surplus and Deficit Budget – measures of government deficit. 

Unit 5: Balance of Payments                                18 Periods

This unit introduces you to two chapters ‘Balance of Payments’ and ‘Foreign Exchange Rate’.Balance of Payment refers to a record of transactions taking place between the country and the rest of the world during a given period of time which is maintained by every government. This chapter will guide you towards the meaning, structure and components of Balance of payment. It also introduces the concept of Balance of Trade, Autonomous and Accommodating items.Foreign Exchange Rate is the rate at which one currency is exchanged for the other. This chapter starts with the introduction of foreign exchange and foreign exchange rate. Then, types of foreign exchange rates are introduced: Fixed Exchange Rate, Flexible Exchange Rate and Managed Floating Rate System. Finally, it helps to determine exchange rate by the market forces of demand and supply of foreign exchange.Balance of payments account - meaning and components; Balance of payments – Surplus and Deficit Foreign exchange rate - meaning of fixed and flexible rates and managed floating.Determination of exchange rate in a free market, Merits and demerits of flexible and fixed exchange rate. Managed Floating exchange rate system

Part B: Indian Economic Development

Indian Economic Development as a subject of economics aims to familiarise you with the basic features of the Indian Economy and its process of development. Its main objective is to expose you to some of the key Issues such as poverty, illiteracy, unemployment, poor health and infrastructure, etc. facing the Indian economy. It also provides opportunities for knowing what economic resources are and how these resources are being utilised in different sectors. It will help you to learn how our neighbouring countries: China and Pakistan built their economic policies since their Independence. Through this subject, you are expected to develop analytical skills, interpret the economic events and visualise the economic future of India.

Unit 6: Development Experience (1947-90) and Economic Reforms since 1991: 28 Periods

This chapter provides a general picture of the Indian economy in 1947, just before Independence. It also identifies the main causes of India's stagnation and backwardness. It addresses the five-year plans' objectives specified by the planning commission. It also includes a summary of the many government policies put in place throughout the planning period to promote the growth of trade, industry, and agriculture.India introduced economic reforms and unveiled the New Economic Policy as a result of the balance of payments problem in 1991. This chapter also discusses the significant policies of liberalisation, privatisation, and globalisation, as well as their effects on the Indian economy. The current government initiatives of GST and demonetization are also a part of the economic reforms since 1991. In this chapter, you will discover more about them.A brief introduction of the state of Indian economy on the eve of independence. Indian economic system and common goals of Five Year Plans. Main features, problems and policies of agriculture (institutional aspects and new agricultural strategy), industry (IPR 1956; SSI – role & importance) and foreign trade. Economic Reforms since 1991: Features and appraisals of liberalisation, globalisation and privatisation (LPG policy); Concepts of demonetization and GST ·       

Unit 7: Current challenges facing Indian Economy                                60 Periods

This unit discusses the current challenges facing the Indian economy such as poverty, illiteracy, poor health, and infrastructure etc. In this unit, you will get conceptual knowledge of Poverty Alleviation Programmes, Sources and importance of Human Capital Formation, Sources of rural credit, structure of employment, challenges to India’s environment.Human Capital Formation: How people become resource; Role of human capital in economic development; Growth of Education Sector in India Rural development: Key issues - credit and marketing - role of cooperatives; agricultural diversification; alternative farming - organic farming Employment: Growth and changes in work force participation rate in formal and informal sectors; problems and policies Sustainable Economic Development: Meaning, Effects of Economic Development on Resources and Environment, including global warming·        

Unit 8: Development Experience of India:                                12 Periods

In this chapter, China and Pakistan—two of India's significant and strategic neighbours—are compared to India in terms of their development histories, development plans, key performance indicators, and accomplishments.A comparison with neighbours India and Pakistan India and China Issues: economic growth, population, sectoral development and other Human Development Indicators Prescribed Books:Macroeconomics 1. Macroeconomics, Sandeep Garg2. Macroeconomics, T.R. JainIndian Economic Development1. Indian Economic Development, NCERT 2. Indian Economic Development, Sandeep Garg