2. What is Economics?
• Economics is a social science, it’s basic
function is to study how individuals,
households, firms and nations maximize their
gains from their limited resources.
3. Objectives of Economic Policies
• Guide growth while controlling Inflation
• Achieve full employment
• Steady growth of national income as measured
by output of goods and services
• Improve balance of payments by guiding
foreign trade and investment
• Reduce regional imbalances
• Reduce economic imbalance in society
4. Indian Economy today
• Indian economic era since independence can
be divided in two parts
Pre 1991 (pre reform period)
Post 1991 (reform period which led to
liberalization of Indian economy)
