KING OF AWLIYA

“The purpose of education is not to

make a machine, but to make the
human being”

-Sheikh Syed Abdul Qadir Jilani r.a.

10TH CBSE
SOCIAL SCIENCE NOTES-ECONOMIC
DEVELOPMENT(SA-I)

JANUARY 1, 2016
SIKANDAR BAIG SIR
mirzasikandarbaig11@gmail.com
Chapter 1

Development

Development
 It pertains to the growth of an individual, a society, a nation or the entire world.

 Development involves thinking about the betterment of life and working towards progress.

 Development goals are different for different people according to their needs. What

may be development for one may prove to be destructive for the other. E.g.

Industrialists may require dams for the generation of electricity for propelling their

industries. The same dams may be resented by those who are displaced from their

homes.

 Most Common Developmental Goals

1.Increase in income

2.Equal treatment

3.Freedom

4.Security

5.End of discrimination

6.Decent standard of living

All developmental goals are co-related.

National Development
 It refers to the progress of the nation as a whole. The policy decisions that benefit a large

section of a country’s population lead to national development.

Attributes or indicators of National

Development
 National Income-It is the sum total of the incomes of all the residents of the country.

Countries with higher incomes are considered more developed than those with less income.

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  Per Capita Income-It is the average income earned by each person of the country in a year.

1.It establishes a relationship between the income and population of a country.

2.Countries with higher PCI are considered developed as it determines the amount of money
at the disposal of each person of the country.

3.World Bank uses PCI for classifying countries as developed and developing

in its World Development Report.

4.However, PCI hides the inequalities in income in the society.

5.India’s current PCI is approximately Rs. 38000.

6.In India, the PCI of Punjab is highest while that of Bihar is the lowest.

 Infant Mortality Rate-It is the number of children that die before attaining one year of age as
a proportion of 1000 live births in a year.It indicates the development of health facilities in a
country.In India, Kerala has the lowest IMR while Bihar has the highest.

 Literacy Rate-It is the number of people above 7 years of age who are able to read and write
with understanding.

1.More is the literacy rate, more developed a country will be.

2.India has a literacy rate of 64%.

3.Kerala has the highest literacy rate and Bihar has the lowest.

 Body Mass Index (BMI)-It is the ratio of the height and weight of a person. It is a major
indicator of the health of a person. If the BMI is less than 18.5, then the person is
undernourished and if it is more than 25, then a person is considered overweight.

Human Development Report

 Published annually by the United Nations Development Program (UNDP) since 1990.

 Compares countries on the basis of education levels, health status and per capita

 income in order to gauge their development.

 Development is measured on the basis of four indices:

1.Human Development Index (HDI)

2.Gender-Related Development Index (GDI)

3.Gender Empowerment Measure (GEM)

4.Human Poverty Index (HPI)

 Of the four, HDI is the most important. It ranks 177 countries of the world on the basis of
three indicators:

1.Life Expectancy at Birth

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 2.iteracy rate for population above 15 years of age and gross enrollment ratio

for the primary, secondary and higher education levels.

3.Per Capita Income

 India’s rank on HDI 2009 is 131 and it is rated as a medium-developing country

with an HDI of 0.612

“The purpose of education is not to

make a machine, but to make the
human being”
Sustainable -Sheikh Syed Abdul Qadir Jilani r.a.

Development
 It refers to a concept of maintaining the present development in such a way that it become
available to the future generations. Whatever development is taking place currently must be
sustainable enough that it can be used by the generations to come. Over-utilization of
nonrenewable resources has posed a serious threat of their extinction, which means the
future generations will not be able to reap their benefits.

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Chapter 2

Sectors of the Indian Economy

Primary Sector
 Primary Sector-Those activities wherein goods are produced by exploiting natural resources.
It provides the basic raw materials for all goods subsequently produced.E.g. Agriculture,
forestry, mining, fishing, animal husbandry etc.
 Share in India’s GDP: 17%

Secondary Sector
 It refers to the industrial activity that involves the manufacturing process. Goods are
produced in big factories using natural or synthetic products as raw material.
 E.g. Textile production, construction, automobile, manufacturing etc.
 Share in India’s GDP: 28%

Tertiary Sector
 This sector covers those activities that aid the primary and secondary sectors. It
provides services rather than goods and hence, it is also called the service sector.
E.g. Transportation, education services, telephone, information technology,
banking, health services etc.
 Share in India’s GDP: 55%

GDP-Gross Domestic Product

 It is the value of all final goods and services produced in a country during a year. It
includes the total production of all the three sectors of the economy.
 It is a measure of the size of a country’s economy.
 In India, primary sector was traditionally the biggest and most important sector.
 With the coming of industrialisation, secondary sector gained importance.
 Manufacturing became a major industry of the Indian economy.
 In the past few decades, tertiary sector has assumed much importance in terms of total
production. Today, tertiary sector is the largest producing sector in India and contributes the
most to the country’s GDP.

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Reasons for the Growing Importance of
Tertiary Sector
 With the development of the nation, services such as banking, education, health,
information technology, municipal corporation, transport etc. are increasingly
required.
 Development of agriculture and industry propelled the growth of service sector.
 Increase in the standard of living led to the introduction of new services such as
eating outlets, shopping arcades, professional training centres, tourism and hotels
etc.
 Growth of information technology-based services.

Sectors in Terms of Employment &

Share in GDP
Sectors Employment Share in
GDP
Primary 63% 17%
Secondary 14% 28%
Tertiary 23% 55%

 Primary sector is the largest employer yet its contribution to the GDP is the least.

Underemployment
A situation wherein a person is apparently employed in an activity though is not working to

his/her full potential. It is also called disguised unemployment as the person seems to be

employed but in actuality, he/she is not adding anything to production. It is most

commonly observed in the Indian agricultural sector where all members of a family work

on a single field that produces the same output every year.

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Solutions for Reducing
Underemployment
 Provision of bank loans to farmers so that they can buy HYV seeds for increasing the
yield.
 Irrigation facilities must be provided by constructing wells, canals and dams in order
to increase production and provide employment.
 Connecting villages to the nearby town through pukka roads so that farmers can sell
their produce. Also, the transportation of food crops to markets will generate
employment opportunities for many.
 Promotion of local and small-scale industries in rural areas for channelizing the
excessive work force of the agricultural sector into the secondary sector.
E.g. Flour mill, cold storage, etc.
 National Rural Employment Guarantee Act (NREGA)
1.Passed by the Government of India in 2005.
2.Initially implemented in 200 districts of India. Later extended to cover the entire
nation.
3.Guaranteed 100 days of wage employment in a year is provided to each person able
4.and willing to do unskilled manual work.
5.In case of failure to provide employment, the government shall give an
unemployment allowance.

Organised Sector
 It refers to those work places where the terms of employment are fixed and the
rules established by the government are followed.
 Features
1.Registered by the government
2.Follow labour laws such as the Factories Act, the Minimum Wages Act and the Payment of
Gratuity Act etc.
3.Job security
4.Fixed working hours
5.Fixed salary and leave policy
6.Provision of provident fund and gratuity, medical benefits etc.

Unorganised Sector
 It is characterized by small and scattered work units that are largely outside the
government’s control.
 Features
1.Laws laid down by the government are not followed
2.No job security
3.Low paying jobs

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 4.No leave policy
5.No fixed working hours
6.In rural areas, the workers are mostly landless farmers, sharecroppers and
artisans.
7.In urban areas, it includes workers in small-scale industry, trade and
transport, construction etc.

Public Sector
 It refers to the business enterprises owned by the government that provide services for the
welfare of the people.
 E.g. Railways, post offices, education etc.

Private Sector
 It refers to those enterprises that are owned by private individuals. The production is done
with a motive of earning profits.
 E.g. TISCO, Reliance etc.

Sectors of the Indian Economy

Basis of Classification
Primary,Secondry,Tertiary The nature of
production process
Organised & Unorganised The nature of
employment
Public & Private On the basis of
ownership

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