This textbook covers the syllabus of the papers on economy, state and society of undergraduate and postgraduate courses in Economics in India. It also covers the topics under the paper on history of economic thought taught in some colleges/universities. The book explains the emergence, evolution and working of the capitalist system with the help of some of the major principles and theories of economics, both mainstream and heterodox. It interrelates economics and economic life with other aspects of our lives--social, cultural, political, religious and intellectual. This book departs from the tr.