National Income

– GDP (Gross Domestic Product): Total value of goods and services produced within India’s territory
– GNP (Gross National Product): Total value of goods and services produced by Indian citizens, regardless of location

Monetary Policy

– Controlled by the Reserve Bank of India (RBI)
– Tools:
– REPO Rate: Interest rate at which RBI lends to banks
– Reverse REPO Rate: Interest rate at which RBI borrows from banks
– MSF (Marginal Standing Facility) Rate: Interest rate at which banks can borrow from RBI overnight
– Bank Rate: Long-term interest rate at which RBI lends to banks
– CRR (Cash Reserve Ratio): Percentage of deposits that banks must keep as cash reserve with RBI
– SLR (Statutory Liquidity Ratio): Percentage of deposits that banks must keep as cash reserve with themselves

Fiscal Policy

– Controlled by the Government
– Tools:
– Budget
– Tax
– Subsidies
– Expenditure
– Deficits:
– Fiscal Deficit (FD): Difference between government expenditure and receipts
– Primary Deficit: Fiscal deficit minus interest payments

Balance of Payments (BoP)

– Current Account Deficit (CAD): Difference between exports and imports of goods and services
– Capital Account Deficit: Occurs wh