JANUARY CURRENT EVENT ANALYSIS

DOWNLOAD HERE

INDIAN ECONOMY IN NUTSHELL

ECONOMY BASICS

  Ø  Intro:

o   Economy – All production units and workplaces existing in a place

§  provides goods and services – directly or indirectly satisfies wants of people

§  Consumer goods:

·         Single use CG – milk, eggs, meat etc

·         Durable CG – refrigerator, TV etc

§  Consumer services:

·         having a haircut, laundry, banks, doctors etc

§  Producer goods:

·         Goods req to produce more goods – machinery, raw material etc

·         Single user PG – raw material

·         Durable PG – machinery

§  Producer services: single use

o   Vital processes of economy – Production, consumption, investment

o   Stock investment Vs Fixed investment:

§  SI – addition to stock of raw materials, semi finished n finished goods in a year

·         Opening n closing stock – stock at beginning and closing of a year

·         If closing stock is less than opening  stock then it is disinvestment

§  FI – acquire durable use producer goods by production units

o   Net Investment = Gross Investment – Depreciation

o   Production, consumption and investment – interdependent

  Ø  Economic Development and Indian Economy:

o   Economic growth: increase in total volume of goods and services produced by a nation

§  8.4% - expected growth (12^th financial commission)

o   Eco Dev:

§  Economic growth + positive changes in other spheres of life

§  HDI rank – 134

o   World Bank classifies nations into four levels based on Percapita GNP(LI, LMI, UMI, HI)

  Ø  Income:

o   Factor Income:  Profit earned by owner of factor of production in return for the services rendered to the production units(E)+

§  Worker earns income called wages (L)+

§  Land owner earns rent (L)+

§  Owner of capital earns interest (C)

§  4 Factors of production – land,labour,capital,entrepreneurship

o   Non factor income:

§  Money receipts which do not involve any sacrifice on the part of their recipient

§  Gifts, donations, charities, taxes, fines etc

§  Also known as ‘Transfer incomes’

o   National income includes only factor incomes

o   Diff b/n land and capital – land is a free gift(nature), capital is produced by man

o   Flows During Economic activity:

§  Real Flow – flow of goods or services from seller

§  Money flow – flow of money from buyer

o   Types of Economy:

§  Closed Economy –  country which has no eco relations with rest of world

§  Open economy – country which has economic relations with rest of world

o   How to get finance:

§  Bond – It is a security paper, with timed returns

§  Credit rating companies – CRISIL, S&Ps, Moody

§  Junk Bonds – Bonds with credit rating C or D – ‘High Yield Bond’

§  Gilt Edge securities – Government bonds have high credit rating ‘AA’ – low interest rate – but guaranteed returns

§  Bearer Bonds – They don’t have the holder’s name but attached with coupons which can be withdrawn by selling them to broker and fetch partial amount

§  Equity – Take money from individual and offer partnership

§  IPO – Initial Public Offer – Selling of Share Papers for the first time to the public is called as IPO

·         Primary Market – where IPOs are sold

§  The buyers of IPO sell these papers to others, these papers are called – equity or shares

·         Secondary Market – where shares are sold

§  Venture Capitalist – Company which gives initial money to start a company or expand a company but in return demand Part of ownership

·         Deal with only big projects, big investments

§  Angel Investors – Rich gentlemen; finance startup companies for getting partial ownership and or assured returns of investment, after few years\

·         Can give money in the form of Debt or Equity

§  Underwriter – charges commission but covers all technical things, paperwork, SEBI regulations, selling, accepting money for IPO/Bonds sales

  Ø  National Income:

o   The sum total of factor of incomes accruing to the residents of the country, both from their activities within and outside the economic territory is the national income of the country

o   Intermediate products – one production unit purchasing from other for resale

o   Final product – all goods and services purchased for consumption and investment , and not for resale

o   Value added = Value of output – Intermediate cost

o   Gross value added = net value added + depreciation

o   Indirect tax – all taxes levied on production, finally paid by consumer of buyer

§  Ex – sales tax, excise, customs, octrol

o   Subsidies – Financial help given by the government to the production units for selling the product at lower prices

o   Net Value added at factor cost (NVafc) = Net value added at market price(NVamp)-indirect taxes + subsidies

o   National Product = Domestic product – Factor income paid to rest of the world + Factor income received from rest of world

o   National Income – same as ‘Net National Product at factor cost’

o   Mixed income – mixture of factor incomes (land, labour, capital, entrepreneurship) and difficult to allocate different factor incomes

o   Private Final Consumption Expenditure – sum of purchases made by households and value of free services provided by Non-profit institutions serving households

o   Government’s Final Consumption Exp. – free services provided by govt. to people

o   Gross Domestic Capital Formation – total on investment by production units within economic territory – Gross Domestic Fixed Capital + Net addition to stock

o   Net Export – Measure of investment abroad

                 

                           Important Dynasties of Ancient India

                                                 

KASI Dynasty

Ø  One Of its ruler ASHRASENA was the father of 23^rd  Jain Thirthangara PARASAVANATH who lived 250 years before Mahavira

Ø  Annexed by Kosala

HARYANKA Dynasty:

BIMBISARA:

Ø  His Foreign Policy is Matrimonial Alliance

Ø  He married Koshala Devi, Sister of Kosala Ruler PARSENAJIT and got Kasi as dowry

AJATASHATRU:

Ø  Father: Bimbisara

Ø  Mother: Chellana, Lichchhavi Princes

Ø  First Buddhist Council @ Rajgir (483 BC-Prez: Makasappa)

Ø  Conquered Vajjis Confederation after a prolonged struggle

UDAYIN:

Ø  Found a city called PATALIPUTRA and made it as capital

Ø  Killed by his minister SHISUNAGA

SHISUNAGA Dynasty:

SHISUNAGA: Annexed Avanthi

KALASOKA:

Ø  Second Buddhist Council @ Vaishali (383 BC-Prez: Sabhagami)

Ø  Killed by his minister MAHAPADMANANDA

NANDHA Dynasty:

MAHAPADMANANDA:

Ø  Famously called Ugrasena (Terrible Army)

Ø  Annexed Kalinga before Asoka (source: Hathigumba Inscription, Hathigumba, Orissa during period of  Kalingan King KARAVELA)

DHANANANDHA:

Ø  Last Ruler

Ø  Alexander’s Invasion (326BC) during his period, but he did not fight with Alexander

Ø  Defeated by Chandragupta Maurya with the help of a Brahmin named Vishnu Gupta / Chankya / Kautilya

MAURYAN Dynasty:

CHANDRA GUPTA MAURYA:

Ø  Meet Alexander @ Taxila; Followed Jainism

Ø  Defeated Indo Greek ruler SELEUCUS NICADOR(his ambassador was MAGASTHANESE whose work are compiled as book called INDICA)

Ø  Because of 12 year famine in gangetic plain he abdicated the throne to his son and came to Mysore (Chandragiri) to spread Jainism in South (lead by: BHADRABAHU who fasted unto death and died->called SALLEKANA->to obtain moksha)

BINDUSARA:

Ø  Famously called Amitra Kartha (Slayer of foes); Followed Ajivikaism

Ø  Recieved a Greek (Syria) ambassador DERMAELUS sent by the ruler ANTIOCHUS. Bindusara requested him to sent wine, fig and a philosopher or a sophist but Antiochus sent only wine and fig as per their custom.

ASOKA:

Ø  His concept was Dharma or Dhamma

Ø  To propagate it, he issued edict or inscriptions---Pillar and Rock (Minor and Major (14)).These edicts tell about the Kings Life.

Ø  Among the 14, 2^nd and 13^th edicts are important

Ø  2^nd->Asoka planted trees and laid roads & sent medical missionaries to neighbouring countries viz Chera, Chola, Pandiyas

Ø  13^th->Fought Kalinga War in 201BC; Sent Buddhist missionaries to neighbouring countries; Also used the word “Andrakas”

Ø  Third Buddhist Council @ Pataliputra (250BC-Prez: Mokaliputta Tissa)

BRCHARTHRAKA:

Ø  Last Mauriyan Ruler Killed by his minister PUSHYAMITHRA SUNGA

SUNGA Dynasty:

PUSHYAMITHRA SUNGA:

Ø  He was a Brahmin->So Brahmin revivalism took place

Ø  Great grammarian or Father of Yoga PATHANJALI lived in his court

AGNIMITHRA:

Ø  He was the hero or central play of Kalidasa’s  book MALAVIKA AGNIMITHRA

BHAGAMITHRA/BHAGAVATHA GUPTA:

Ø  Visit of Greek Ambassador Heliodorous (he was converted into Bhagavathism){source: Besanagar Inscription, Madhya Pradesh}

DEVABHUTI:

Ø  Last Sunga Ruler; Killed by his minister VASUDEVA KANVA

KANVA Dynasty:

VASUDEVA KANVA: First Ruler

SUSARMAN: Was defeated and killed by SATAVAHANA ruler PULAMAYI I

SATAVAHANA Dynasty:

Ø  They were Andhra People; Language: Prakrit; Founder: Simuka; Capital: Pratisthan/Python on the bank of river Godavari

Ø  Issued a typical Coin called Potin (made of tin)

HALA: Wrote a book called GATASAPTASATI/SATHASI->says about love and lust

GAUTMIPUTRA SATAKARANI: Gave importance to woman

PULAMAYI IV: Last Ruler

GUPTA Dynasty:

CHANDRA GUPTA: Married Lichchavi Princess Kumaradevi; Issued Kumaradevi type of coin

SAMUDRA GUPTA: Called as Indian Napolean; Son of Chandra Gupta; Veena Player; Achievements are mentioned in Allahabad Inscription written by his commander HARISENA

CHANDRA GUPTA II: Achievements mentioned in Iron Pillar in Meruli (Old Delhi); Visit of Chinese traveller FA-HIEN (But he never met King); Took the title Chandra Gupta Vikramaditya

KUMARA GUPTA: Built Nalanada University @ Bihar; First Invasion of Huna (But got defeated)

SKANDHA GUPTA: Repeated Invasion of Huna Rulers but got defeated

VISHNU GUPTA: Last Ruler of Gupta Empire       

Dynasties in Medieval India

                                                         Medieval History

MUGHALS RULE IN INDIA

Important Rulers

1.      Babar               -           1526 – 1530 AD

2.      Humayun        -           1530 – 1540 AD & 1555 – 1556 AD

3.      Shershah Suri  -           1540 – 1545 AD

4.      Akbar              -           1556 – 1605 AD

5.      Jahangir           -           1605 – 1627 AD

6.      Shahjahan        -           1627 – 1657 AD

7.      Aurangzeb       -           1657 – 1707 AD

1.      BABAR ( 1526 – 30 AD)

-          Founder of Mughal Dynasty in India

-          Defeated Ibrahim Lodi in 1^st Battle of Panipat (1526 AD)

-          Wrote his Auto-biography “Tuzuki-e-Baburi” (Babar Naama), in Turkish Language. It means, ‘Memories of Babar’.

2.      HUMAYUN (1530 – 40 AD, 1555 – 56 AD)

-          Son of Babar

-          Defeated by Shershah and fled away to Iran

-          Gulbandan begum, sister wrote his Auto-biography “Humayun Naama”.

3.      SHERSHAH SURI (1540 – 45 AD)

-          Founder of Sur Dynasty (Afghans) in India.

-          Introduced ‘Pattadri System’ (Pattas to Farmers), Silver Rupia, Gold Mohar.

-          Successor’s: Islam Shah (1545 – 53 AD) , Sikindar Shah (1553 – 55 AD)

4.      AKBAR (1556 – 1605 AD)

-          At the time of Humayun death, his son Akbar was just 14 years old. So, Hem raj occupied the throne in Agra.

-          Then Akbar marched from Amarkot, Rajasthan to Agra with his guardian Bairam Khan and waged 2^nd Battle of Panipat (1556 AD).

-          Abolished Jijiya, Pilgrimage tax

-          Introduced a new religion called, “Din-i-Ilahi” (1582 AD).

-          Introduced ‘Mansabdari System’; a rank in Civil & Army administration.

5.      JAHANGIR (1605 – 1627 AD)

-          Son of Akbar, (Real Name- Salim, Wife- Mehurnnisa)

-          After marriage, he gave her title ‘Noorjahan’ (Light of World).

-          But her domination in rule led to a civil war with her brother Asaf Khan, Military Chief (Father of Mumtaj Begum).

-          Finally he jailed Noorjahan and made his Son-in-law, Shah Jahan as the emperor.

6.      SHAH-JAHAN (1627 – 1657 AD)

-          He built Taj Mahal, Agra and Red Fort, Delhi.

-          He took 22 years (1631 – 1653) for completion of Tajmahal (Ustad Isa).

-          He has 4 sons Darashikov, Murad, Aurangzeb, and Shahshuja. But Aurangzeb, killed all his 3 brothers, imprisoned his father and occupied the throne.

7.      AURANGZEB (1657 – 1707 AD)

-          Third Son of Shahjahan

-          Annexed Bijapur (1686 AD) and Golconda (1687 AD), Renewed Jijiya tax.

VIJAYANAGARA KINGDOM (1336 – 1680 AD)

Important Dynasties

1.      Sangama’s       : 1336 – 1485 AD

2.      Salva’s : 1485 – 1505 AD

3.      Tuluva’s         : 1505 – 1570 AD

4.      Araveti’s         : 1570 – 1680 AD

-          Founders are Hariraya I & Bukkaraya I of Sangama Dynasty (1336 AD).

-          But actually this period is ruled by Mohd. Bin Tughlaq (1335 – 51 AD).

-          Sri Krishna Devaraya (1509 – 1529 AD)

-          Considered to be the Greatest Ruler, belongs to Tuluva dynasty.

-          “Yavvanarajya Sthapanacharya”, “Andhra Bhoja” was his famous titles.

-          He defeated Bijapur and Orissa.

-          He built “Hazararama Swamy Temple” in Hampi, Karnataka.

-          He wrote ‘Jambhavati Parinayam’ in Sanskrit and ‘Aamuktha Malayada’ in Telugu.

-          His court Bhuvanavijayam has ‘Ashta Diggajas” (8 Poets),

1.      Allasani Peddana              - Manu Charitra

2.      Tenali Ramakrishnudu      - Panduranga Mahatyam

3.      Dhurjati                             - Kaalahasthi Mahatyam

4.      Pingali Suranna                 - Kalaa Purnodayam

5.      Ramaraja Bhushana          - Vasu Charitra

6.      Rama Bhadra                    - Sakala Neethisara Sangraham

7.      Mallana                             - Rajasekhara Charitra

8.      Nandi Thimmana              - Paarijatha Apaharanam

-          “Battle of Tallikota/ Bannihatti/ Rakhasa Tangadi” (1565 AD) led to the fall of the Vijayanagara Kingdom.

-          In this war The Vijayanagara Kings (Aliya Ramaraya, Sadasiva Raya) fought with Bahamani Sultans of Bidar, Ahmadnagar, Bijapur and Golconda.

BAHAMANI KINGDOM (1347 AD)

-          Alauddin Hasan Bahmanshah (Hasan Gangu) Proclaimed Independence during the rule of Mohd. Bin Tughlaq.

-          Mohd. Shah III was the important ruler. (Mohd. Gawan, Prime Minister)

S.NO	Territory	Ruled By	Annexed By
1.	Birar	Imadshahi Dynasty	Sultan of Ahmad Nagar (1574 AD)
2.	Bidar	Baridshahi Dynasty	Sultan of Bijapur (1619 AD)
3.	Ahmad Nagar	Nizamshahi Dynasty	Mughal Ruler Shahjahan (1633 AD)
4.	Bijapur	Adishahi Dynasty	Mughal Ruler Aurangzeb (1686 AD)
5.	Golconda	Qutubshahi Dynasty	Mughal Ruler Aurangzeb (1687 AD)

MARATHA KINGDOM/ BHONSLE DYNASTY

-          ‘Chatrapathi’ Sivaji, Greatest ruler among Maratha’s.

-          Father: Shaji Bhonsle, Mother: Jijiyabhai, Guardian: Dadaji Kandev

-          Spiritual Guru: Samarda Ramadas

-          An exponent in “Guerrilla Warfare” techniques.

-          Defeated Afzal Khan of Bijapur (1659 AD)

-          Defeated Military General of Aurangzeb, Shaistha Khan (Surat) in 1664.

-          Introduced new taxes Chauth (1/4^th revenue from areas under Sivaji’s rule), Sardeshmukhi (1/10^th revenue must be paid to King).

-          His court has ‘Ashta-Pradhanas’ (8 Ministers)

1.      Peshwa                  : Prime Minister

2.      Amathya               : Finance Minister

3.      Mantri                   : Home Minister

4.      Sumanth                : Foreign Minister

5.      Sachiva                  : Royal Correspondence

6.      Senapathi              : Military Chief

7.      Nyayadish             : Judiciary Chief

8.      Panditarao             : Religious Head