Contemporary Economy and Reforms

NITI Aayog serves as a policy think tank and promotes cooperative federalism and strategic policy advice.

Cooperative federalism involves the Union and state governments working together on policy and development priorities.

Education, health and skills can raise productivity, improve employability and support long-term growth.

A demographic dividend is the potential growth benefit when the working-age share of the population rises, if jobs, skills and health conditions are adequate.

Formalisation is the process by which economic activities become more registered, documented and covered by formal institutions and rules.

It aims to make business procedures clearer, faster and less costly while maintaining appropriate protections and standards.

They help measure economic performance, inform policy and allow comparisons across time and sectors.

Diversification reduces dependence on a narrow set of products, sectors or markets and can improve resilience to shocks.

India faced a severe balance-of-payments crisis, including very low foreign-exchange reserves relative to import needs.

LPG refers to Liberalisation, Privatisation and Globalisation.

It means the government sells some or all of its equity in an enterprise.

PLI schemes generally provide incentives linked to incremental production or sales in eligible sectors, subject to scheme conditions.

It aims to strengthen domestic capacity and resilience, including in strategic and productive sectors, without necessarily rejecting international trade.

A trade agreement sets agreed rules and commitments that may reduce barriers and improve market access between participants.

FTAs can expand market access, reduce selected trade barriers and create more predictable rules for trade and investment.

An economic shock is an unexpected event that materially affects economic activity, prices or financial conditions.

The crisis disrupted financial markets and credit, weakened demand and contributed to a severe global recession.

Restrictions, uncertainty and supply disruptions reduced activity in many sectors, while policy responses supported households and firms.

A supply-chain disruption interrupts the flow of inputs or products from suppliers to producers, distributors or consumers.

Economic resilience is the capacity to absorb shocks, adapt and recover while maintaining essential functions.