Key Limitations

1. Non-Monetary Transactions: Activities such as barter trade and household work are not included, leading to an underestimation of economic activity.
2. Informal Sector Exclusion: The informal economy, which is significant in many countries, is often poorly accounted for.
3. Quality of Data: Data inaccuracies and incomplete reporting can distort national income calculations.
4. Environmental Costs: Depletion of natural resou

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1. Background

1. The economic crisis of 1991 due to high fiscal deficits, balance of payments issues, and low foreign reserves necessitated reforms.
2. The New Economic Policy (NEP) of 1991 introduced LPG reforms under the leadership of P.V. Narasimha Rao and Dr. Manmohan Singh.

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1. Introduction to Five-Year Plans

1. The Five-Year Plans were introduced post-independence to guide India's economic development.
2. Formulated and monitored by the Planning Commission, established in 1950.
3. Replaced by NITI Aayog in 2015, marking the end of the Five-Year Plan era.

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1. Definition of PPC

1. PPC is a graphical representation showing all possible combinations of two goods that an economy can produce using its available resources and technology efficiently.
2. Efficiency: Points on the curve represent efficient production levels.
3. Scarcity: The curve highlights resource limitations.

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