A good indicator of economic growth is a steady increase in the Gross Domestic Product (GDP). GDP is the "market value of all the final goods and services produced in the country during a year". GDP of a country is derived from the different sectors of the economy, namely the agricultural sector, the industrial sector and the service sector. The contribution made by each of these sectors makes up the 'structural composition' of the economy.
(a) What is considered to be a good indicator of economic growth in the economy? Can you define it?
(b) Explain the 'structural composition' of the economy

The progress of the Indian economy during the first seven plans was impressive. Our industries became more diversified and India became self-sufficient in food production due to the 'Green Revolution'. Land reforms resulted in the abolition of the hated 'Zamindari System'. But in the industrial sector there was dissatisfaction on account of the performance of many public sector interprises. Indian policies were 'inward oriented' and they failed to develop a strong export sector. The need for the reform of economic policy was widely felt in the context of the changing global economic scenario: The New Economic Policy was thereby initiated in 1991 to make India more efficient.
(a) Give the three factors which highlight the impressive progress of the Indian economy during the first seven plans.
(b) Explain the background which initiated the New Economic Policy in India in 1991.