ECONOMIC DEVELOPMENT

Presenting by:-
Vikram Sharma
Diksha Raghav
Anant Kumar Pandey
Md Zulquarnain
Md Safdar Aziz
Pooja Naagar
Sakshi Saini
Bhawna Sharma
Manoj Kumar
Under the Guidance of:- Sakshi Jindal
Divya Mam Aakash Parashar
Roopance Jain
Rameeza Khan
PRESENTATION OUTLINE
 INTRODUCTION
 CONCEPT OF ECONOMIC DEVELOPMENT
 MAIN ELEMENTS OF ECONOMIC DEVELOPMENT
 FEATURES OF SUSTAINABLE DEVELOPMENT
 CONDITIONS OF SUSTAINABLE DEVELOPMENT
 SIGNIFICANCE OF SUSTAINABLE DEVELOPMENT
 DIFFERENCE B/W EG,ED & SD
 DETERMINANTS OF ECONOMIC DEVELOPMENT
 ECONOMIC DETERMINANTS
 NON-ECONOMIC DETERMINANTS
INTRODUCTION
 CONCEPT OF ECONOMIC
DEVELOPMENT

 Although Adam Smith had examined the problem of economic

development two hundred years ago, yet it is only for the last 10-15
years that economists took great interest in the study of the problems
of underdeveloped countries.

 Actually Economic Development refers to that process by which per

capita income and economic welfare of country increase overtime.
 ECONOMIC DEVELOPMENT IN INDIA
YEAR GDP RATE
 The economic development in India 2000 5.6
followed socialist-inspired policies for most 2001 6.0

of its independent history. 2002 4.3

2003 8.3
2004 6.2
 Due to being mixed Economy, Economic 2005 8.4
development of India depends on following 2006 9.2
factors:- 2007 9.0
2008 7.4
2009 7.4
1. Agriculture
2010 10.1
2. Industrial Output 2011 6.8
3. Services 2012 6.5
4. GDP growth rate 2013 4.4
 Difference
b/w EG &
ED
Economic Sustainable
Development Development

Distinction
Economic Determinants
among
Growth of ED EG,ED & SD
ECONOMIC GROWTH
 Economic growth refer to quantitative changes.
 It is a process of growth in the national & per capita income.
 Acc. to Mc Connell “Economic Growth may be defined as an
increase in the Economy’s real gross national product or real
national income.”
 Acc. to his defn. the production of Larger amount of Goods &
Services signifies growth.
 Acc. to Samuelson “It is a process whereby per capita real income
increases.

Per Capita income = National Income

Population
 MAIN ELEMENTS OF ECONOMIC
DEVELOPMENT

 Economic Development is a Process.

 Economic Development is increase in Real Per Capita income.

 It is a Long Period Concept.

 Absence of Rise in Poverty and Ineqality.

DIFFERENCE b/w ED AND EG
ECONOMIC GROWTH ECONOMIC DEVELOPMENT

 SINGLE DIMENSIONAL  MULTI DIMENSIONAL

 QUANTITATIVE  QUALITATIVE
 CONTINUOUS AND  SPONTANEOUS &
STEADY CHANGE DISCONTINUOUS
 USED FOR DEVELOPED CHANGE
ECONOMIES.  USED FOR
DEVELOPING
ECONOMIES.
 SUSTAINABLE DEVELOPMENT

 There is a new concept of Economic Development

known as Sustainable Development.

 Actually, Sustainable Development is that process of economic

development which aims at maintaining the quality of life of both
present and future generations without harming natural resources and
environment.
FEATURES OF SUSTAINABLE
DEVELOPMENT

 Efficient use of Natural Resources.

 No Reduction in the Quality of Life of the future generation.

 No Increase in Pollution.

 Does not limit Development.

CONDITIONS OF SUSTAINABLE
DEVELOPMENT

 Economic development

 Conservation of Natural Capital Stock.

 Reduction in Industrial Pollution.

 Reduction in Agricultural pollution.

 Comprehensive Rural Development.

 SIGNIFICANCE OF SUSTAINABLE
DEVELOPMENT

 Raising the standard of living of the existing Population.

 Checking any harm to the living standard of the future generation.

 Protecting the people against Pollution of their quality of their life and
health.

 Conserving environment which is so much necessary for sustainable

development.
 DIFFERENCE B/W EG,ED & SD
ECONOMIC GROWTH
Refers to long term increase in
real per capita income.
Used for Developed Economies.
It ignores the distribution of
Income.
Ignores Protection of
Environment & Checking of
Pollution.
Exploits to a large extent the
stock of natural Capital.
ECONOMIC
DEVELOPMENT
Refers to long term increase in
real per capita income
And economic welfare.
Used for underdeveloped
Economies.
It does not ignore Distribution of Doesn’t ignore Distribution of
Income.
No Special attention to
enviromental protection &
Checking of pollution.
It exploits the Stock of natural
Capital.
SUSTAINABLE
DEVELOPMENT
Per capita income,economic
welfare & economic welfare of
future generation.
Used for both type of
Economies.
Income of Present and Future
Generation.
Special Emphasis on
Environmental & Checking of
Pollution.
Makes rational utilization of
Stock of natural Capital to
Safeguard the future Genrns.
DETERMINANTS OF ECONOMIC
DEVELOPMENT

Economic Non- Economic

Determinants Determinants

Economic
Development
 ECONOMIC DETERMINANTS
1.Quantity And Quality of Natural Resources.
2. Quantity And Quality of Human Resources.
ECONOMIC DETERMINANTS CONT..
3).Physical Capital Resources

Increase in Real Saving

Mobilisation of Savings or Resources

Investment
ECONOMIC DETERMINANTS CONT..

4). Low Capital Output Ratio

Capital Output Ratio=K/Y
Here, K= Capital
Y= Output or Income

5). Large extent of the Market

6). Technical Progress

7). Growth oriented Economic Agencies

8). International Determinants

NON-ECONOMIC DETERMINANTS

 Social Deteminants

 Political Determinants

 Religious Determinants

 Freedom from Corruption

 Law and Order Situation

 Aspiration of Development
Thanx
For your
Participation
&
Co-ordination