F1: The diversity of sectors in the sensex steadily increased over time following market reforms. It shoes less concentration of wealth in few firms and diversification of firms post liberalisation.
F2: Benefit of liberalisation can be gauged from the democratisation of the firms. Now the ratio of size of Biggest/ smallest firm is just 12. In 1991 it was just 100.
C1: Creative destruction create wealth in an economy. It is a process of Industrial mutation that incessantly( continuously) revolutionises the economic structure from within, continuously destroying the old one and creating a new one.
C2: Difference between Pro business vs Pro Crony
| Pro Business | Pro crony |
| Firms compete on a level playing field | Some incumbent firms may receive preferential treatment |
| Efficient resource allocation in an economy | Resource allocation may not be an efficient one |
| Maximisation of citizen welfare | Citizen welfare may not be maximised. |
C3: Dutch Disease: Firms that got free resources diverted efforts towards the tunnelling of the windfall gain instead of towards productive business activity.
C4: Block diagram: Dutch disease and wilful defaulter
F3: Wilful defaulter have an obligation of about 1.4 lakh crore. Most of them are from manufacturing sector.
F4: Had the money siphoned away by wilful defaulter stayed in the economy, the amount would be equivalent to :
- 2 X ( Health sector expenditure, Rural development expenditure)
- 3 X ( MGNREGA expenditure)
C5: 
Characteristics of wilful defaulter(WD):
- WD tends to be more opaque.
- 60% of the non defaulter and distress defaulter practice non party disclosure.
- WD make large loan to related parties whereas such practice is not common with distress defaulter. Later are net receiver of loans.
C6: WD leads to:
- Transmission of wealth from poor to rich.
- It increased cost of borrowing for others.
- Risk aversion attitude increases for banks.
- Erosion of wealth creation capacity
- Exit of genuine borrowers from the market.
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