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Synopsis The first edition of the book Understanding the Problem of Indian Economy was published in the year 2000 covering the syllabus of B.Com (Hons.) of University of Delhi. The book has been very well received by teachers as well as students and is being used virtually as a text book in Delhi University colleges for B.Com (Hons.) and also in some other universities. Encouraged by the response from the students and teachers of Delhi University, the second (2001-02) edition was thoroughly revised and new chapters added, keeping particularly in view, the revised syllabus. In view of the further revision in the recommended reading list in 2003, the fourth edition (2003-04) had been accordingly revised. The discussion and analysis in various chapters is based on the new recommended readings. Full length articles recommended are available in my edited book Indian Economy Since Independence (running in its 16th edition) which is used as a reference text by B.A. (Hons.) Economics of University of Delhi University. The present fifth edition (2004-05) has been updated and revised where required.