Quick revision list of important economic terms specifically tailored for competitive exams like UPSC, SSC, JKPSC, JKSSB, HPSC, and APSC:

byhomeacademy •سبتمبر 27, 2025

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Quick revision list of important economic terms specifically tailored for competitive exams like UPSC, SSC, JKPSC, JKSSB, HPSC, and APSC:

Economy – System of production, distribution, and consumption of goods & services.
GDP (Gross Domestic Product) – Total value of goods & services produced within a country.
GNP (Gross National Product) – GDP + Net income from abroad.
Per Capita Income – Average income per person; GDP ÷ Population.
National Income – Total income earned by a nation from production of goods/services.
Disposable Income – Income available to households after taxes.
Saving – Part of income not spent on consumption.
Investment – Spending on capital goods for future production.

Money Supply (M1, M2, M3, M4) – Total money in the economy.
Liquidity – Ease of converting asset into cash.
Monetary Policy – Control of money supply and interest rates by RBI.
Repo Rate – Rate at which RBI lends to banks.
Reverse Repo Rate – Rate at which RBI borrows from banks.
Cash Reserve Ratio (CRR) – Minimum cash banks must maintain with RBI.
Statutory Liquidity Ratio (SLR) – Minimum liquid assets banks must maintain.
Inflation Targeting – Setting target inflation rate (India: 4% ± 2%).
Lender of Last Resort – RBI provides emergency funds to banks.
Financial Inclusion – Access to banking and financial services for all.

Exports – Goods/services sold abroad.
Imports – Goods/services bought from abroad.
Balance of Trade (BOT) – Exports − Imports.
Balance of Payments (BOP) – Record of all international transactions.
Current Account – Trade in goods, services, income, and transfers.
Capital Account – Financial assets, investments, loans.
Foreign Direct Investment (FDI) – Investment by foreign entities in domestic businesses.
Foreign Portfolio Investment (FPI) – Investment in financial assets.
Trade Deficit – Imports > Exports.
WTO – World Trade Organization, regulates global trade.
IMF – International Monetary Fund, provides financial stability.
World Bank – Provides loans for development projects.

Economic Planning – Government strategy for resource allocation.
Five-Year Plan – Centralized development plan (replaced by NITI Aayog).
NITI Aayog – Policy think-tank promoting cooperative federalism.
Human Development Index (HDI) – Measures life expectancy, education, per capita income.
Poverty Line – Minimum income to meet basic needs.
Inclusive Growth – Growth benefiting all sections of society.
Sustainable Development – Economic growth without harming environment.
Make in India – Initiative to boost domestic manufacturing.
Digital India – Initiative for digital infrastructure & governance.

MSME – Micro, Small, and Medium Enterprises.
SEZ (Special Economic Zone) – Export-oriented industrial area.
PPP (Public-Private Partnership) – Collaboration between government & private sector.
Smart Cities – Urban infrastructure development initiative.
IT & ITES – Information Technology & Services exports.

Unemployment Rate – % of labor force without jobs.
Underemployment – Employment below skill or capacity.
Skill India – Training youth for employable skills.
Self-employment Schemes – Promote entrepreneurship.
Social Security – Financial protection against risks like old age, unemployment, illness.