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Class 11-10-9 NCERT Eco Summary PDF
Class 11-10-9 NCERT Eco Summary PDF
Class 11-10-9 NCERT Eco Summary PDF
NCERT
SUMMARY
ECONOMY
CLASS-11,10,9
REVISION OR SHORT NOTES
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Economy - NCERT Class-11
Overview
On the eve of independence Indian economy was in a very bad shape due to the presence of British
colonial rule.
Britishers generally framed policies’ that favoured England.
Under the colonial period, basic infrastructure such as railways, port per transport, posts and telegraphs
developed.
real motive behind this development was not to provide basic amenities to the people but to sub serve
various colonial interests.
Agricultural sector
A-Zamindari system
B-Ryotwari System
C-Mahalwari System
Profit which came from agriculture went into the hands of Zamindars instead of cultivators.
Zamindars aim was to gain profit ignoring whatever the economic condition of cultivators.
Revenue settlement process- zamindars had to deposit fixed amount of money within given date if they
fail to do this they lose their rights.
It is one of the reason for the more harsh attitude of zamindars towards cultivators .
introduced in 1833
during the period of Warren Hastings.
The villages committee was held responsible for collection of the taxes.
2-Commercialisation of Agriculture Instead of producing food crops, farmers were producing cash crops
3-Low Level of Productivity output per hectare of land was very low.
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4-High’Degree of Vulnerability Agriculture was vulnerable to climatic factors + Poor rainfall
Industrial sector
4- Lopsided Industrial Structure consumer goods industry was not adequately supported by capital goods industry.
5-Lack of Basic and Heavy Industries No priority was given +Tata Iron and Steel Mills was the only basic industry in
India.
Positive Signs
Modern industry began to grow during the second half of the 19 century but it’s progress remained very slow.
In the beginning the major industry were cotton and textiles mills.
In the starting of 20 century The Tata Iron and Steel Company(TISCO) was setup in 1907.
After second world-war-Paper, sugar , cement etc industries also setup.
Infrastructure
Roads constructed before independence were not fit for modern transport.
Only roads were built only to serve the purpose of mobilising the army within India and transporting raw
materials from the countryside to the nearest railway station or the port for exporting it.
2. Railways
British rulers introduced railways in India in 1850 and it began its operation in 1853. It is considered as one of
the important contribution of Britishers.
The railways affected the structure of the Indian economy in the following two ways
(i) It enabled people to undertake long distance travel and thereby break geographical and cultural barriers.
(ii) It fostered commercialization of Indian agriculture which adversely affected the self-sufficiency of the village
economies in India.
So, the social benefits provided by the Railways was outweighed by the country’s huge economic loss.
inland waterways, at times, also proved uneconomical as in the case of the coast canal on the Orissa coast
main purpose behind their development was to serve Britain’s colonial interest.
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The colonial government also showed way to the air transport in 1932 by establishing Tata
4. Communication
Modern postal system started in India in 1837. The first telegraphy line was opened in 1857.
The introduction of the expensive system of electric telegraph in India served the purpose of maintaining law
and order.
Foreign Trade
Occupational Structure
Demographic condition
Conclusion
condition of economy during British rule is not very appreciating the agricultural output is very low due to
wrong policies of colonial government
Industrial sectors was crying for modernization, diversification, capacity building and increased public
investment.
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NCERT Economy
Class-11,Chapter-2
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(Revision or Short Notes)
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• Under capitalism, all farms, factories and other means of production are the property of private individuals
and firms.
• They are free to use them with a view to making profit.
• The desire to earn profit is the sole consideration with the property-owners in the use of their property.
Merits
Economic Freedom
Automatic Working
Variety of Goods and Services
Optimum Use of Resources
Higher Standard of Living
Incentive to efficient
New Inventions
Demerit
Labour Exploitation
Wasteful Competition
Threat of Over-Production
Economic Fluctuations
Unbalanced Growth
No Welfare Activities
Monopoly Practices
• economic system is controlled and regulated by the government so as to ensure welfare and equal
opportunity to the people in a society.
• The idea of socialism is first introduced by Karl Marx and Fredric Engles in their book, ‘The Communist
Manifesto’
Merits
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Collective Ownership
No Labour Exploitation
Proper Utilisation of Resources:
No Wasteful Advertisement
Proper Planning
No Cyclical Fluctuations
Social Welfare
Rapid Economic Development
Most Suitable to Developing Countries
Demerits
State monopolies
consumers have no freedom of choice
No Automatic Functioning
Evils of Bureaucracy
Burden on Government
Expenditure on Planning
no proper basis for cost calculation
Merits
Demerits
Un-stabilitypublic sector gets maximum benefits whereas private sector remains controlled
Ineffectiveness of Sectors
Inefficient Planning
Lack of Efficiency
Delay in Economic Decisions
Corruption and Black Marketing
Threat of Nationalismconstant fear of nationalism of private sector
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Analysis the Below Figure
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GDP is the market value of all final goods and services produced in the different sectors of an economy, viz the
primary sector, the secondary sector and the tertiary sector during an year within the domestic teritory of a
country
3. Self-Reliance A nation can promote economic growth and modernisation by using its own resources or by
using resources imported from other nations.
The first seven Five Year Plans gave importance to self-reliance by avoiding imports.
This policy was considered a necessity in order to reduce our dependence on foreign countries especially
for food.
4. Equity It refers to reduction in disparity of income or wealth, by uplifting weaker sections of the society.
Mahalanobis
Mahalanobis had contributed a lot in the formulation of our Five Year Plans.
The Second Plan, became the landmark of his contribution.
Many economists today reject the approach to planning formulated by Mahalanobis but he will always be
remembered for playing a vital role in putting India on the road to economic progress and statisticians
continue to profit from his contribution to statistical theory
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Background
• IN 1991, India met with an economic crisis relating to its external debt.
• govt. was unable to make repayments on its borrowings from abroad
• foreign exchange reserves were not sufficient to repay the debts.
• The prices of essential goods were rising and the imports were growing at a very high rate.
• So govt. initiated a new set of policy measures to reform the conditions of an economy and several
economic reform programme were also introduced
• in this respect to promote privatisation, libéralisation and globalisation.
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• spending on development programmes
• Failed to make repayments on other loans.
• No effort was made to reduce such increased spending.
• Increasing fiscal deficit
• Adverse Balance of Payments
• Gulf crisis
• Rise in prices
• Poor performance of Public Sector Units (PSUs).
• High rate of deficit financing.
• Collapse of soviet block.
• Finally, India approached World Bank and International Monetary Fund (IMF)
• which were intended to correct some weakness that have developed in the Balance of Payments and to bring
Inflation under control.
• aimed at improving the efficiency of the economy and increasing its international competiveness by removing
the rigidities in various segments of the Indian economy.
Structural reforms
1. Liberalisation
2. Privatisation
3. Globalisation
1-Liberalisation
• aim to put an end to those restrictions which became major hindrances in growth and development of
various sectors.
• It is generally defined as the lossening of govt regulations in a country to allow for private sector companies
to operate business transactions with fewer ristrictions.
• In relation to developing countries, this term refers to opening of economic border for multinationals and
foreign investment.
Objectives of Liberalisation
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• To expand the size of the market.
(ii) Contraction of Public Sector The number of industries reserved for the public sector was reduced from 17 to 8...
They are
• Railways
• Atomic energy
• Defence
(iii) De-reservation of Production Areas The production areas which were earlier reserved for SSI were de-
reserved.
(iv) Expansion of Production Capacity The producer’s were allowed to expand their production capacity according
to market demand. The need for licensing was abolished.
(v) Freedom to Import Capital Goods The business and production units were given freedom to import capital
goods to upgrade their technology.
• Financial sector includes financial institutions such as commercial banks, investment banks,
• stock exchange operations and foreign exchange market.
Cash Reserve Ratio (CRR) was lowered from 15% to 4.1%.
Competition from New Private Sector Banks
RBI’s role underwent a change from a ‘regulator’ to a ‘facilitator
• fiscal reforms simplified the tax structure and lowered the rates of taxation. This reduced tax-evasion and
increased government’s revenues.
• the rupee was devalued to increase our country’s exports and to discourage imports.
Other Measures
• founded 1995 as the successor organisation to the General Agreement on Trade and Tariff (GATT).
Background
Functions of WTO
• It facilitates the implementation, administration and operation of the objectives of multilateral trade
agreements.
• It administers the ‘trade review mechanism’.
• It administers the ‘understanding rules and procedures , governing the settlement disputes’.
• It is a watchdog of international trade, it examines the trade regimes of individual members.
• Trade disputes that cannot be solved through bilateral talks are forwarded to the WTO dispute settlement
‘court’.
• It is a management consultant for world trade. Its economist keep a close watch on the activities of the
global economy and provide studies on the main issues of the day.
2-Privatisation
• It refers to giving greater role to private sector thereby reducing the role of public sector. In other words, it
means shedding of the ownership or management of a government owned enterprise.
• It may also mean de-reservation of industries previously reserved for public sector.
Government companies (public companies) are converted into private companies in two ways
• By withdrawal of the government from ownership and management of the public sector companies.
• By the method of disinvestment.
Forms of Privatisation
• Denationalisation When 100% govt.ownership of productive assets is transferred to the private sector, it
is called denationalisation. It is also known as strategic sale.
• Partial Privatisation When less than 100% or more than 50% ownership is transferred,. It is also known
as partial sale.
• Deficit Privatisation/Token Privatisation When the government disinvests its shares to the extent of 5 to
10% to meet the deficit in the budget, this is termed as deficit privatisation or token privatisation.
Objectives of Privatisation
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• Reducing the workload of public sector.
• Increasing the efficiency of the government undertakings.
• Providing better goods and services to consumers.
• Bringing healthy competition within an economy.
• Making way for Foreign Direct Investment (FDI).
Examples
(i) Maharatnas
(ii) Navratnas
(iii) Mininavratnas
3-Globalisation
• In outsourcing, a company hires regular service from external sources, mostly from other countries, which
were previously provided internally or from within the country like legal advice, computer service,
advertisement, etc. + In other words outsourcing means getting a work done on contract from Someone
outside.
• growth of GDP increased from 5.6% during 1980-91 to 8.2% during 2007-2012.
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Main highlights of economic growth during reforms
1-Neglect of Agriculture
• Cheaper imports have decreased the demand for domestic industrial goods.
• Globalisation created conditions for the free movement of goods and services from foreign countries that
adversely affected the local industries and employment opportunities in developing countries.
• inadequate investment in infrastructural facilities such as power supply.
• developing country like India still does not have the access to developed countries markets because of high
non-tariff barriers.
• Privatisation of power supply in Andhra Pradesh resulted in substantial increase in power rates,
• causing many power looms to shut down in a small town, Sirdlla.
Other Failures
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Chapter-4 POVERTY
Background
Poverty
Poverty is the deprivation of food, shelter, money and clothing when people can’t satisfy their basic needs.
Poverty can be understood simply as a lack of money or more broadly in terms of barriers to everyday
human life. OR
A state or condition in which a person or community lacks the financial resources and essentials to enjoy a
minimum standard of life and well-being that's considered acceptable in society.
Hunger, starvation & malnutrition Hunger & starvation are the basic problems of the poorest households.
Malnutrition is alarming high among the poor.
Poor health they are generally physically weak due to ill health disability or serious
Illness Their children are less likely to survive or be born healthy.
Limited economic opportunities they have very Limited economic opportunities due to lack of literacy
and skills.
Debt trap they borrow from money landless who charge high rate of interest.
Lack of facilities of electricity & water most poor household do not have access to electricity. Their
primary cooking fuel is fire wood & cow dung cake.
Types of poverty
• 1- Relative poverty
• 2- Absolute poverty
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1- Relative poverty
• when we compare the incomes of different people, & we find that some people are poorer than other , it is
called relative poverty.
• A person is in absolute poverty when they don’t have enough food, water, shelter, clothing and other basic
necessities that are required to survive.
• In other words, you could say that someone is in absolute poverty when he or she is struggling to survive.
• Relative poverty, as the term suggests, is relative to a population sample. It is often defined differently by
governments or organizations.
• For example, we can define relative poverty as “the population that earns less than 20% of the average income
in the country”.
• As a real world example, in the UK, a household is in relative poverty if it’s income is less than 60% than the
median household income.
• Relative poverty does not consider; how poor the poor persons are or whether he is deprived of the basis
minimum requirement of life or not.
• It compares the inequality of income & assets ownership. It helps in understanding the relative position of
different segment of the populations.
• The defect in the relative measure of poverty is that it only reflects the relative position of different segment
of the population in the income hierarchy.
2-Absolute poverty
Refers to the state in which an individual cannot afford a basic subsistence level i.e. is insufficient in basic
necessities of life like food, clothing and shelter.
Since income and food consumption are the most important criteria to check on well-being of an individual,
they are used to define what we call as a poverty line
Absolute poverty is usually synonymous with abject or extreme poverty.
For 2017, absolute poverty is technically defined as living on less than $1.90/day.
• Poverty line is a cutoff point on the line of distribution, which usually divides the population of the country
as poor & non poor.
• People having income below the poverty line are called poor & people with income above poverty line are
called non poor.
• planning commission defined poverty line on the basis of recommended nutritional requirement of 2400
calories per person in rural areas and 2100 for a person in urban areas.
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• While fixing the poverty line, consumption of food is considered as the most important criteria.
Gini coefficient
• The Gini coefficient (also known as the Gini index or Gini ratio) is a measure of differences in income. It was
developed by the Italian statistician Corrado Gini in 1912.
• The Gini coefficient is usually a number between 0 and 1 (or 0 to 100). 0 means a country where the income is
equally distributed.
• On the other hand, 1 means that one person owns everything but the rest owns nothing.
• In reality, all scores are between 0.25 and 0.6 (between 25 and 60 on the 0 to 100 scale).
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In most of Europe, a family with a net income of less than 60% of the “median net disposable income” — a
broad measure of the national average income net of taxes — is counted as poor.
This would imply that a family in the United Kingdom would be poor if its current net income is less than £250
(about Rs. 22,500) a week.
A poverty line “relative” to the national average also gives an idea about the state of inequality.
• The poverty line represents the basic cost of food for a family multiplied by three.
• In 2011 — the latest year for which data is available — the poverty threshold for a family of four stood at
$22,811 (about Rs. 11 lakh then).
• There were 46 million such poor families accounting for 15% of the US population
How does the Indian poverty scenario compare with the African countries?
• For instance, South Africa had three poverty lines — food, middle and upper — and all three were higher than
that of India.
• The food poverty line in Indian rupees was Rs. 1,841 per capita per month in 2010, middle poverty line was at
Rs. 2,445 and upper poverty line was at Rs. 3,484.
• Per capita poverty line of a rural adult Rwandian in Indian terms comes out to be Rs. 892 per month, slightly
more than Rs. 816 for a person in rural India.
• One should not forget that prices of food items in Rwanda are less than in India.
Causes of poverty
• Population explosion
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• High level of un-employment
• Inequalities of income
• Social factors Joint family system
• Political factors Before Independence, India was exploited under the British rule.
• Inflation
• High illiteracy rate
• Poor state of agriculture
• this approach is based on an expectation that effects of economic growth (rapid increase in GDP & per
capital income) would speed to all sections of the society & will trickle down to the poor section also)
• it was felt that rapid industrial development & transformation of agriculture through green revolution in
selected regions & more backward sections of the community.
• This is the second approach has been initiated from the third five year plan & progressively enlarged by govt
time to time,Like
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3-Minimum Needs programmers
• The third approach is to provide minimum basic amenities to the people. (Food grains at subsidized rates,
education, health, water supply & sanitation) people’s living standard could be improved.
• Programmers under this approach are expected to supplement the consumption of the poor. Create
employments in health & education.
• 3 major programs that aims at improving the food & nutritional status of poor are:-
Public distribution system
integrated child development scheme
midday meal scheme
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• Expenditure on education
• Expenditure on Health
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• Expenditure regarding on the job training
• Expenditure on migration
• Expenditure on Information Expenditure is incurred to acquire information relating to labour market and
other market.
• This information is necessary to make decisions regarding investment in human capital as well as for
efficient utilization of the acquired human capital stock.
• Insufficient Resources
• Serious Inefficiencies poor health facilities + non education
• High Growth of population
• Lack of proper manpower planning
Educational sectors
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Gross Enrollment Ratio
• Gross Enrollment Ratio (GER) is the total enrolment of pupil in grade or cycle or level of education,
regardless of age, expressed as percentage of the corresponding eligible official age group population in a
given school year.
• GER in elementary education increased steadily from
• 1950-51 82%
• 2005-06 94.85%
• Concept of Gross Enrollment Ratio
• Gross Enrolment Ratio determine the number of students enrolled in school at several different grade levels
( primary, upper primary, elementary, secondary, senior secondary and higher education).
• The data is defined as the percentage of student enrolment in primary and secondary school on gender
basis.
• Government of india releases this data every year.
• This method is adopted by UN to check gender basis education and education on different grades.
Literacy Rate
• 195118.33%
• 200164.84%
• Elementary Education in India means eight years of schooling from the age of six i.e., primary & middle
school education together, is called Elementary Education.
• govt has made elementary education compulsory and free. But, the goal of universal elementary education
in India has been very difficult to achieve till now.
• In December 2002, the government of India made free and compulsory education, a fundamental right of
all children in the age group of 6-14 years.
• It was launched in 2001 to universalize & improve the quality of Elementary Education in India through
community ownership of Elementary Education.
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• The SSA is being implemented in partnership with states to address the needs of children in age group of 6-
14 years.
• The programme is aimed at enhancing girl’s education by providing additional support for development of
a model girl child friendly school.
• In every cluster with more intense community mobilization and supervision of girls enrolment in schools.+
More teachers and more school
• KGBV scheme was launched in July 2004 for setting up residential schools at upper primary level, for girls
belonging predominantly to the SC, ST, OBC & minority community.
• The scheme ran as separate scheme for two years but was merged with Sarva Siksha Abhiyan w.e.f 2007.
• High Illiteracy: According to 2001 census, the literacy rate of 64.8 percent is still far off the 100 percent mark.
• Gender Bias: Education in India is gender biased. The enrolment of girls in both primary and upper primary
classes is much below the boys.
• Low Quality Education: The quality of the education is fairly low.
• Lack of Vocational and Technical Training: Too much emphasis on general education neglecting the Vocational
and Technical Education.
• Low Level of Government Expenditure: Actual level of expenditure is only 3.46% compared to the desired level
of 6%
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Basic concepts
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Rural development is a comprehensive term which essentially focuses on action for the development of area which
is lagging behind in overall development of village economy
Rural credit means credit for the farming communities. Farmers require credit for various purposes like
purchasing agricultural tools and machines, digging wells and tube wells, purchasing seeds, fertilizers,
pesticides, etc.
The gestation period between sowing and harvesting is high.
so, farmers have to borrow to fulfill their needs during this period.
Credit is the life line of the farming activity. Rural credit means providing credit for the forming community.
Farmers need credit because
Most formers in India are small and marginal land holders who practice subsistence farming. They have no
surplus for further production.
The gestation period between sowing and harvesting is quite high. So, farmers have to borrow to fulfill their
various needs during this period.
Types of borrowings
(i) Productive Borrowings -These borrowings include loans to buy seeds, fertilizers and
agricultural equipment’s and implements.
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(ii) Un-productive Borrowings- These borrowings include loans for social purposes such as marriage and festive
occasions.
Types of Rural Credit
1. Long-term Credit
• These loans are required to acquire permanent assets like tractors, land, costly equipment’s, tube-wells,
etc. These loans are for a period of 5 to 20 years.
2. Medium-term Credit
• These loans are required for purchasing machinery, constructing fences and digging wells.
• Such loans are generally stretch over a period of 12 months to 5 years.
3. Short-term Credit
• These loans are required for buying seeds, tools, manure and fertilizers, etc.
• This credit is given to the needy borrowers by cooperatives, moneylenders and banks. These loans are for
a period of 6 to 12 months.
Sources of rural credit in India
1. Non-institutional sources are money lenders, traders and commission agents, landlord, relatives and friends.
2. Institutional sources are as follow-
Co-operative credit societies.
Commercial Banks
Regional Rural Banks
NABARD (National Bank for Agriculture and Rural Development.) (established in 1982)
Self Help Groups (SHGs) The above institutional structure of rural banking which is called multi agency
system which has initiated by govt. in 1969
Agricultural marketing
• Agricultural marketing is the process that involves functions of assembling, storage, processing, packaging,
transportation, grading and distribution of agricultural commodities throughout the country.
Defects of agricultural marketing
Inadequate warehouses
Multiplicity of middlemen
Malpractice in unregulated markets.
Lack of Adequate finance
Inadequate means of transport and communication.
Measures adopted by the government to improve marketing system
Regulation of markets.
Co-operative agricultural marketing societies.
Provision of warehousing facilities.
Subsidized transport.
Dissemination of marketing information.
Buffer stocks and minimum support price (MSP)
Public Distribution System (PDS)
Alternative marketing channels
Improvement of physical Infrastructure
Diversification in agriculture activities 2 aspects
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refers to a system of multiple cropping rather than mono cropping.
It may also mean a shift from subsistence farming to commercial farming.
Advantages
Animal husbandry
Fisheries
Horticulture
Cottage and household industry
Information technology-every village a knowledge Centre
Advantages
is a system of farming that maintains, enhances and restores the ecological balance.
It helps in sustainable development of the agricultural sector, In organic forming, farmers use organic
manure, bio fertilizers and organic pesticides.
Advantages of organic farming
Inexpensive process.
Generates income.
Healthier and tastier food.
Solves unemployment problem
Environment friendly.
Limitation of Organic farming
Yields from organic farming is less than modern agricultural farming in initial years.
Organic produce have shorter shelf life than sprayed produce.
Choice in production of off-season crops is quite limited in organic farming.
But
Organic farming involves labour-intensive process of production of labour so India has comparative
advantage in organic farming.
Operation Flood
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NCERT Economy, Class-11, Chapter-7
Basic
Work plays an important role in our lives as an individual and as members of society.
Economic activity economic activity refers to the activity performed by people to earn money
Production activity refers to all those activities which are under taken to produce goods and services for
generation of income.
Labour force Persons working + persons seeking and/or available for work.
Work force number of persons, who are actually employed at a particular time are known as workforce.
• It includes all those persons who are actually engaged in productive activities.
• Concept - labor force participation rate is the percentage of adults in the labor force (i.e. either looking for
work or working).
Types of workers
I. Casual Workers
II. Regular Workers(Salaried)
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(a) Self Employed worker who own + operate an enterprise to earn their livelihood are known as self-employed.
(b) Hired workers Those people who are hired by others + paid wages or salaries as a reward for their services are
called hired workers.
1. Casual Workers Those people, who are not hired by their employers on a regular/permanent basis and do not get
social security benefits are said to be casual workers.
2. Regular Workers(Salaried) When a worker is engaged by someone or by an enterprise and paid his or her wages
on a regular basis, they are known to as regular salaried employees or regular workers.
Analyze
• Men particularly rural men, form the major section of workforce in India.
• Majority of workers in India are self-employed, casual wage labourers and regular salaried employees
together account for less than half the proportion of India’s workforce.
• Major workforce depends on agriculture and other allied activities as the major source of livelihood.
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• Jobless GrowthIt is defined as a situation where GDP grows faster than the employment opportunities
resulting in unemployment.
• Unemployment Rate It is calculated as percentage of labour force who are unemployed, not as
percentage of total population.
Types of unemployment
• Disguised unemployment kind of unemployment in which some people look like being employed but are
actually not employed fully.
• also known as Hidden Unemployment.
• In such a situation more people are engaged in a work than required.
• For example, in rural areas, this type of unemployment is generally found in agricultural sector.
• Open Unemployment refers to that situation wherein the worker is willing to work and has the necessary
ability to work yet he does not get work and remains unemployed for full time.
• Seasonal Unemployment It refers to a situation where a number of person that are not able to find a job in a
particular season.
• Frictional unemployment defined as the unemployment that occurs because of people moving or changing
occupations.
• Structural unemployment defined as unemployment arising from technical change such as automation
For eg., a decline in the demand for typewriters would lead to structurally unemployed workers in the
typewriter industry.
• Cyclical unemployment defined as workers losing their jobs due to business cycle fluctuations in output,
Causes of unemployment
Right based
Demand driven scheme.
Promises 100 days of employment every year to each rural household.
The Act stipulates that wage payment be made within 15 days of work completion.
Stipulates for one third participation of women
Some other schemes like
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Infrastructure
Infrastructure
• Its contributes economic development + raising the productivity + improving the quality of life.
• raising the place of economic growth of a country
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Analyze
Social Infrastructure
• Raises productivity
• Provides employment
• Induces foreign investments
• Raises ability to work
• Facilitates outsourcing
• Raises economic development
• Raises size of the market
• Generates linkages in Production
Analysis
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Energy
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Some challenges in the power sector
• Health Health is not only absence of disease but also the ability to realize one’s potential
• Its related to the overall growth + development of the nation.
State of health infrastructure
• India has 48 doctors per 100,000 persons which is fewer than in developed nations
• HEALTH is insufficient for rapidly increasing population in India.
• Public health system and facilities are not sufficient for bulk of the population.
• There is a wide gap between rural urban areas and between poor and rich in utilizing health care facilities
• Regulated private sector health services can improve the situation and at the same time, NGOs and
community participation is very important in providing health care facilities and reading health
awareness.
• Indian system of medicine (ISDM) AYUSH (Ayurveda, yoga and naturopathy, unani, siddha, homoeopathy
needs to be explored.
• At the village level, a variety of hospitals known as Primary Health Centers (PHCs) have been set.
India's Health Infrastructure + Healthcare
• At the village level, a variety of hospitals known as Primary Health Centres(PHCs) have been set.
• It includes Maternal and child health care Promotion of health and provision of essential drugs
Immunisation Educating the people about identifying, preventing and controlling diseases.
2. Secondary Healthcare
• Health care institute having better facilities for surgery, x-ray, ECG are called Secondary Healthcare institutes .
Patients are referred here when their condition is not managed by PHC.
3. Tertiary Healthcare
• In this sector, there are the hospitals which have advanced level equipment and medicines and undertake all
the complicated health problems. which could not be managed by primary and secondary hospitals.
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Environment
• Environment supplies resource (both renewable and nonrenewable resources) for production.
• Environment assimilates waste,
• Environment sustains life.
• Environment enhances quality of life.
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Note environment is able to perform these functions without any interruption as long as demand on these functions
are within its carrying capacity.
Basic
Problem of pollution.
Problem of excessive exploitation of natural resources.
Air pollution
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Water Pollution
Noise Pollution
Land Pollution
Global Warming
• Global warming is a gradual increase in the average temperature of the earth’s lower atmosphere.
• Global warming is caused by man-made increase in carbon dioxide (Co2 ) and other greenhouse gases through
the burning of fossil fuels and deforestation.
• Some of the long term results of global warming are as follow
• Melting of polar ice with a resulting rise in sea level and coastal flooding.
• Extinction of species as ecological niches disappear.
• more frequent tropical storms and
• increased incidence of tropical diseases.
Ozone depletion
• Ozone depletion refers to reduction in the amount of Ozone (a protective layer) in the stratosphere.
• problem of Ozone depletion is caused by high levels of CFC used as cooling substances in air conditioners
and refrigerators or as aerosol propellants and bromofluro-carbons used in fire extinguishers.
• As a result of depletion of the ozone layer, more ultra violet (UV) radiation comes to earth causing damage
to living organism.
• Air pollution, water contamination, soil erosion, deforestation and wildlife extinction is some of the most
pressing environmental concerns of India.
Land degradation decline in the overall quality of soil, water or vegetation condition, commonly caused by human
activities.
• Biodiversity loss
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• Air pollution with special reference to vehicular pollution in urban cities.
• Management of fresh water.
• Solid waste management.
• Sustainable development is that process of development which meets the needs of present generation without
reducing the ability of future generation to meet their own needs.
Main features
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Inefficiencies arising from pollution should be corrected.
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An Overview
(i) All the three countries started their development path at the same time.
(ii) All the 3 countries had started planning +development strategies in similar ways.
creating a large public sector and raising public expenditure on social development.
(v) Till 1980s , all 3 countries had similar growth rates and per capita incomes.
China 1978,
Pakistan 1988
India 1991
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Development Strategy(Pakistan)
1-China
(iv) In rural areas commune system was started, under which people collectively cultivated lands.
(vi) In the initial phase, reforms were initiated in agriculture, foreign trade and investment sectors. In the later phase,
reforms were initiated in the industrial sector.
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This means fixing the prices in two ways; farmers and industrial units were required to buy and sell fixed
quantities of raw materials and products on the basis of prices fixed by the government and rest were
purchases and sold at market prices.
(viii) In order to attract foreign investors, special Economic Zones (SEZ) were set up. SEZ is a geographical region that
has economic laws different from a country’s typical economic laws. Usually the goal is to increase foreign investment.
1. Demographic Indicators
• population of Pakistan is very small and accounts for roughly about one-tenth of China and India.
• Though China is the largest nation geographically among the three, its density is the lowest.
• Population growth is highest in Pakistan followed by India and China.
• One child norm which was introduced in China in the late 1970s is the major reason for low population growth.
But this measure led to a decline in the sex ratio, that is the proportion of females per 1000 males.
• sex ratio is low and biased against females in all the three countries. There is strong son-preference prevailing
in all these countries.
• Fertility rate is low in China and very high in Pakistan.
• Urbanisation is high in both China and Pakistan- with India having 28 percent of its people living in Urban areas.
2. Gross Domestic Product (GDP) and Sectors
India
• Pakistan has performed poorly. The reasons for the slowdown of growth and re-emergence of poverty in
Pakistan’s economy are:
Political instability.
Volatile performance of agriculture sector.
Over dependence on remittances.
Growing dependence on foreign loans on the one hand and increasing difficulty in paying back the loans on the
other.
China
*****
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Chapter-1: DEVELOPMENT
Q- What is Development?
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• Different people have different development goals
• What is development for one might not be development for another
• So, Different people have different development goals development goals are varying from people to
people.
• → People prefer to earn more income for fulfilling their daily requirements of life. Companies provide material
thing like, money. But people also want non-material thing like, freedom, security, and respect of others.
• → Some companies provide less salary but offer regular employment which enhances sense of securities.
• → In other case, some companies provide high salary but offer no job securities. They reduce sense of securities.
For an IAS aspirants CAN WE CONNET WITH TODAY ISSUE ? just think ,you will get the answer
National Development
• → National development refers to ability of a nation to improve standard of living of its citizens.
• → Standards of living of citizens depend upon per capital income, Gross Domestic Product, literacy rate and
availability of health etc.
• These factors also consider as measure of improvement.
• → We can compare different countries or state on the basis of per capital income.
• → We cannot take national income to compare different companies because each country has different
population rate.
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• → Per capital income is calculated by dividing total income of a country to total population of that particular
country.
• → Per capital income of a country shows standard of living of the citizens of that particular company.
• → A country with higher per capita income is more developed than others with less per capita income
• The total amount of income accruing to a country from economic activities in a financial year’s time is known
as national income.
• It includes payments made to all resources in the form of wages, interest, rent and profits.
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• This is the true net annual income or revenue of the country or national dividend.
• In Simple English National Income can be defined as the total market value of the assets produced by the
country in one year by means of different goods & services
• It compares the standard of living between two nations and tells the position of a nation in international sphere.
• To decide economic policies to be implemented in a nation, what should be tax rate and interest rate, govt,
expenditure etc.
• To decide Economic structure, and which sector of economy contributes how much to economy,
• To decide Inflationary and Deflationary gap. If supply side goods is less than demand than it is inflation gap.
• To make budgetary policies, decide subsidies, and National expenditure
• Limitations factors like happiness are not considered and only a mathematical approach. it is not up to mark
for unorganized sector
• In 1863, Dadabhai Nauroji estimated per capita annual income to be ₹ 20, This is considered as the first attempt
to calculate national income
• First scientific attempt to measure national income of our country was made by V. Rao in 1931
• National Statistical commission was formed in 2005 for promoting statistical network in our country
Public Facilities
• Facilities which are provided by the government considered as public facility like schools, hospitals, community
halls, transport, electricity etc.
• → As we know that Punjab has more income than the average person in Kerala but Kerala has a low infant
Mortality Rate because of better public system like, Public Distribution System which provide Health and
nutritional status to the state.
• → We need public facility because we are not able to purchase all things by money. We cannot able to buy a
pollution free environment with the help of money.
OTHERS
Sustainable development
• Sustainable development is development that meets the needs of the present without compromising the ablity
of future generations to meet their own needs
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Human Development Index (HDI)
• HDI developed by Indian Economist Amartya Sen and Pakistani economist Mahbub ul Haq
• By United Nations Development Programme (UNDP)
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Economic activities
All activities that give an income in return are called economic activities.
Example people going for work in factories, banks, schools, etc.
Primary sector
• The primary sector of the economy is the sector of an economy making direct use of natural resources or
exploit natural resources.
Secondary Sector
• Natural products are changed into others forms through ways of manufacturing. Also known as Industrial
sector.
• Eg think yourself
Tertiary Sector
• These activities , by themselves, do not produce a good but they are an aid or a support for the production
process. Also known as service sector.
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• Rising importance of the Tertiary Sector In any country several services such as hospitals, educational
institution, defense, transport, banks etc. are required.
• The development of agriculture and industry leads to the development of services such transport, banks
are required.
• The development of agriculture and industry lends to the development of services such as transport,
trade, storage.
• total value of final goods +services+ produced in each sector during a particular year provides+ the total
production of the sector for that year.
Organized Sector
• Terms of employment are regular Registered by government Follows various rules and regulations It has
some formal processes and procedures.
• In simple term like a person working in govt sector or limited firm + their jobs are secured ( having
montly salary, all govt rules and law apply)
Unorganized sector
• Unorganized sector covers small and scattered units which are largly outside the control of the
government.
• There are rules and regulations but they are generally not being implemented by the unorganised sector.
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• Employment is not secure in the unorganished sector
Public sector
• Public sector is the sector which is owned, controlled and managed by the government.
• Activities in the government sector are guided by the motive of social welfare and not to earn profit.
Private sector
• In private sector ownership of production units is in the hands of private individuals. Activities in the
private sector are mainly guided by the motive to earn profit.
• Example : TISCO and RIL.
• This act is implemented as “Right to Work” in all the 604 districts of India.
• guaranteed 100 days of employment in a year by the government.
• only one person per family is entitled to this benefit.
• The unemployment which generates due to the variation in seasons is called seasonal unemployment
• When more people are working than required, it is called disguised unemployment.
• When the economy fails to generate enough jobs, it is called structural unemployment.
• The unemployment that is created because of depression in an economy, it is called cyclical
unemployment.
• When unemployment happens because of transferring from one job to another, the period between
changing the job is called frictional unemployment.
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What is Credit
• is an agreement in which is created when a person give money and goods to the needy person with the promise
of to repay that with some rate of interest
Terms of credit
• loans from moneylenders, traders, employers, relatives and friends are included.
• rate of interest is supervised by moneylenders, traders, employers who are provided money.
• rate of interest is varying from person to person.
• There is no organization for supervising loan in informal sector.
• Lenders can use any method for get back their money from the borrowers.
• Sometimes, the incomes of the borrowers become less compare than the amount which has to pay due to
high rate of interest.
• Informal vs Formal sector: Activities of the people associated with informal sector are not tracked by any
form of govt. Further, earnings are also neither taxed nor counted in GDP. However, in case of formal sector,
earnings are taxed as well as counted in GDP.
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• Un-organised vs Organised sector: In organised sector, employment terms are fixed. Employees are
protected under various schemes like minimum wages act, factories act etc. However, in case of Un-
organised sector, there are no such employment terms.
• Now, Organised sector can have people from both Informal as well as formal sector. Similarly, Un-organised
sector can also have people from both the sectors.
• E.g. A person who is doing free-lancing is part of both Un-organised sector as well as formal sector.
However, a cycle rickshaw driver is part of un-organised and informal sector.
• Organised/Unorganised: related to the registration with government and size of company/firm. Organised if
registered and employ 10 or more persons, if no then it’s unorganised.
• Grameen Bank of Bangladesh is one of the biggest success stories in reaching the poor to meet their credit
needs at reasonable rates.
• Started in the 1970s as a small project, Grameen Bank now has over 6 million borrowers in about 40,000
villages spread across Bangladesh.
• Almost all of the borrowers are women and belong to poorest sections of the society.
• These borrowers have proved that not only are poor women reliable borrowers, but that they can start and
run a variety of small income-generating activities successfully.
Self-Help Groups
• An organisation constituted to collect the savings of the poor which is known as self-help group.
• aim lend loan at less rate - to counter money lenders
• 15 – 20 members.
• Savings vary from member to member
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NCERT Economy Class 10, Chapter-4
• Average growth rate of India was 3.5% p.a with per capita 1.3%p.a.
• More focused on Heavy Industries and Agriculture.
• Less attention towards service sector.
• Major imbalance in payments of loans.
• Influenced by Protectionism and Public ownership.
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• Existence of License Raj (Red Tape).
• Downfall of USSR and Gulf War added fuel to the fire of crisis.
• International Monetary Fund (IMF) demanded for economic reforms in return of aid.
• Prime Minister Narasimha Rao and Finance Minister Manmohan Singh took initiative to bring Liberalization.
What is MNC
• A multinational corporation (MNC) has facilities and other assets in at least one country other than its home
country. Such companies have offices and/or factories in different countries and usually have a centralized head
office where they coordinate global management.
• Bring FDI
• Technology transfer
• R and D
• Promote competition
• Promote export in the host economies
• MNC’S Setup production offices and factories on the basis of the availability of skilled and unskilled labour
at cheap prices.
• INVESTMENT= to buy Land, Building, Machines etc made by MNCs is called FOREIGN INVESTMENTS.
• LARGE MNCs in developed countries place orders for Joint production is 2 fold production with small
producers.
• MNCs can provide additional investments
• latest technology MNCs investments is to buy up local companies and then expand production
• Local own brand names to the customers.
• Strong Quality.
• widely dispersed locations is getting interlinked.
Concept
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• Liberalisation:- means removing unnecessary trade restrictions and making the economy more competitive.
• Privatisation:- means removing strict control over private sector and making them free to take necessary
decisions.
• Globalisation:- means free interaction among economies of the world in the field of trade, finance,
production, technologies and investment.
• Modernization:- means the new economic policy according to top priority to modern techniques and
technology.
Fiscal Reforms
• means controlling public expenditures and increasing revenue in order to discipline expenditure
• Increase in the Rate of Economic Growth
• Fall in Fiscal Deficit.
• Price Control
• Reduction in Poverty and Inequality
• Improving the Efficiency of Public sector
• Development of Small-scale Industries
Problem
• Injustice to agriculture
• Heavy Dependence on Foreign Depts. Dependence on Foreign Technology
• Excessive Importance to Privatisation
• Reduction in Employment Opportunities
• Encouragement to the production of Luxuries
WTO
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Tariff barriers
• Quota
• Technical and administrative regulations
• Import license
Indian government put barriers to foreign trade and foreign investment after independence on account of the following
reasons……
• Self sufficiency
• Heavy investment
• Elimination of poverty and unemployment
• Control on core sectors
• Indian government want to remove these barriers because foreign trade creates competition which is
beneficial for the customers And customer get goods at cheap rate with better quality.
• Indian producers can export their goods in other countries without any barrier and earn handsome profit.
Outsourcing
• Business Process Outstanding (BPO):- is an organisation which Works on different processes of different
companies to help them in reducing cost of operation and providing standard and high quality service delivery.
Ex- like Call center
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CONSUMER RIGHTS
WHO IS A CONSUMER
A person who has indicated his or her willingness to obtain goods and/or services from a supplier with the
intention of paying for them.
does not include any person who buys goods for resale or commercial purpose and services for commercial
purpose
But any person who buys goods for commercial use but exclusively for his livelihood by means of self-
employment is a consumer
Its apply both goods and services
DUTIES OF CONSUMERS
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To check the weights and measures before making purchases
Reading the label carefully
To procure the bill, cash received warranty, etc.
Shopping carefully and wisely
Understanding the terms of the sale
Reading and following instructions
HOW CONSUMERS ARE EXPLOITED
• Limited Information
• Limited Supplies
• Limited Competition
• Illiteracy
CONSUMER MOVEMENT
• But why ?
• Dissatisfaction of the consumers
• There was no legal system available for consumers to protect them
NEED OF CONSUMER MOVEMENT
• Consumer Protection Act, 1986, popularly known as COPRA, is an Act of the Parliament to protect interests of
consumers in India.
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• Effective safeguards are provided to the consumer, against all types of exploitations and unfair dealings,
• The rights under the Act flow from the rights enshrined in Articles 14 to 19 of the Constitution of India.
• The Act has set up a three-tier quasi-judicial consumer disputes redressal machinery at the National, State and
District levels, for expeditious and inexpensive settlement of consumer disputes.
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FARMING IN PALAMPUR
• 75% of the people in palampur are dependent on farming. some are farmers and some are farm labourers
• As all the land has already been used for cultivation, there is no possibility of increasing production by
adding more land
increasing production
• no lands is left idle. different crops are cultivated in different seasons on the limited land . its is called
multiple cropping
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• growing different varieties of crops in one year is possible only because of the developed system of
irrigation
• electricity plays a vital role in the irrigation system. tube wells run by electricity help in irrigating a large
area of land quickly and more effectively
• introduction of the green revolution
• High Yielding Variety of seeds in wheat and rice
• HYV are capable of producing more amount of grain on one plant
• modern methods of cultivation with excessive use of chemical fertilizers have weakened the natural
resource base
• its is difficult to restore it, thus better care of the environment should be taken for the development of
agriculture in future
• people without land, work for the people with land for earning their livelihood
• people with small plots of land do not cultivate enough for a decent income and have no savings for the
next season.
• the large farmers produce and earn enough to save capital for the next season
• Small farmer
• Medium farmer
• Large farmer
• Labourer ( landless)
LABOUR
• labor is the next most important thing after land for production. small farmers and their families farm
themselves, while medium and large farmers hire labourers.
• introduction of modern techniques of irrigation have lowered the employment opportunities for
labourers further, thus forcing them to migrate to nearby villages for work
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• landless labourers work on the land of medium and large farmers and earn either in cash or in kind. they
are hired on a daily basis, early basis or on the basis of a particular activity
• small farmers borrow money from large farmers or money lenders for the capital required for starting
production.
• interest rate on these loans is very high
• medium and large farmers have their savings
• the profit made after selling off the surplus is either used for personal purposes or saved as capital for the
next season
• diary
• small scale manufacturing
• shopkeepers - sell like toothpaste, IAS materials etc
• Transport- rickshaws , trucks, tractors etc
• Every entrepreneur (उद्यमी) employs 4 factors of inputs for the production of goods and services in the
economy.
• The resources (input) used to produce final products (output) are termed as factors of production
• The four factors of inputs are:
1. Land (भू सम)
2. Capital (पूूँजी)
3. Labour (श्रम)
4. Entrepreneurship (उद्यमी)
NoteThese four factors of input help the entrepreneur to produce the goods and services in the economy for
the fulfillment of needs, wants and desires of the consumers and customers.
• The land, on which the business is set up, gets rent (लगान) in return.
• The labour that is engaged in the physical production of the goods and services gets wages in return for
the hard work
• The capital that the entrepreneur invests gets interest.
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• Entrepreneur gets profit in return for his business idea
• Land
• Labour ( Living thing)
• Capital
• Entrepreneurship
Features-→
Features-→
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Capital (पूूँजी)
Features of capital
• Can be touched
• Physical capital" refers to fixed capital
• any human-made resource that is used to create other goods and services(like tractors, machinery,
building, factories, tools,etc)
• Physical" is used to distinguish physical capital from human capital
Entrepreneurship
• An entrepreneur is a person, who undertakes risks, mobilizes resources, and generates employment by
establishing and running an enterprise.
Features
• Creativity
• Innovation
• Risk Taking and Decision Making Ability
• Self-Motivation
• Self-Confidence
• Time Management, etc
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• Human capital → any skills or knowledge gained by a worker through education and experience (like
college degrees, vocational training ,etc)
• More the educated population of a country more will be the Human capital that’s why our PM is more
focusing on India’s skill development .( GS Mains –paper-2+3)
Green revolution
• Achievement of large scale production of crops in developing countries by use of artificial fertilizers,
pesticides and hybrid seeds is referred to as the Green Revolution.
• Father of Green Revolution is Norman Borlaug. (Nobel price winner)
• Father of Green Revolution in India is M.S. Swami Nathan.
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Overview
1. primary sector,
2. secondary sector,
3. tertiary sector
• two parts of economic activities market activities, non market activities
• quality of population education, health, unemployment
• its considers directly using of natural resources. Eg agriculture,fishing ,mining , animal husbandry etc.
3-tertiary sector (िे वा क्षेत्र)→ called services . example, transport , banking , education , health , tourism , insurance etc
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two parts of economic activities
• market activities means production of goods or services including govt service for salary
• non market activities means production of goods or services for self- consumption
• their is difference between men and women work
• women doing cooking of food , washing of clothes etc
• men are paid for their work in the field but women are not paid for their work in the home
• men work count in national income
• women domestic work not count in national income
Quality of population
Health
• an unhealthy person is burden for a country in terms of economics. a healthy mind creates healthy
environment
• in india , states like bihar are UP hv less medical colleges , and hv poor health conditions
• karnataka andhara T.N. maharashtra hv majority in number of medical colleges
• crude birth rates - is the number of living births occurring in a given geographical area per 1000
• (प्रसि 1000 बच्चो पर सिए गए भौगोसलक क्षेत्र में रहने वाले जीसवि जन्ोूं की िूंख्या है )
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• infant mortality rate (सििु मृत्यु िर) The infant mortality rate (IMR) is the number of
deaths of infants under one year old per 1,000 live births. This rate is often used as an indicator of the
level of health in a country.
• (सििु मृत्यु िर प्रसि 1000 जीसवि जन्े सििुओ ूं मे िे एक वर्ष या इििे कम उम्र मे मर गये सििुओ ूं की िूंख्या है )
Unemployment
• seasonal unemployment (मौिमी बेरोजगारी ) means people are not able to find jobs during some
months of the year
• eg agriculture sector some seasonal food grains are produced. so, the farmers are employed only in
that season
• Disguised (Hidden)unemployment (प्रच्छन्न बेरोजगारी ) it happens when people appear to be
employed
• for eg--> in a field it requires only six people and nine people are worked in the same field then , 3
people are come under the category of disguised unemployed .
• production will not decrease when three people are removed
• urban areas unemployment
• mostly educated unemployment are seen
• number of graduated and post graduated unemployed has increased faster than among high school
pass out unemployed
point to be noted
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Poverty →Poverty is the lack of basic human needs such as Nutrition, health care education, clothing and
shelter, because of the inability to afford them
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In simple word→Poverty can be understood simply as a lack of money or more broadly in terms of barriers to
everyday human life
World bank view → poverty is hunger. Poverty is lack of shelter. Poverty is being sick and not being able to see a
doctor. Poverty is not having access to school and not knowing how to read. Poverty is not having a job , is fear for the
future, living one day at a time
Relative poverty
If the class of 100 students have majority of the students who are doing extremely well academically then the
approach of a teacher towards the students would change.
Say if 95 students out of 100 score above 90 marks and only 5 students score above 80 marks. Then the teacher
would motivate these 5 students to work hard so as to be in the same league as other 95 students.
This analogy applies in case of developed nations where everyone is having enough money for satisfying their
basic needs.
In a hypothetical situation in a developed country if 80 out of 100 are having a car then the remaining 20 would
be considered as poor (not because they are actually not having money for basic needs but just because they
are not enjoying the same standard of living).
This method requires the use of Gini coefficient which is used to measure the income inequality.
• When an individual or households income is insufficient for them to afford basic shelter, food , clothing
• There is a class of 100 IAS aspirants students. Majority of the students were not good at studies. The teacher
hence decides a criteria that out of a paper of 100 marks, the student must score a minimum of 35 marks to
pass the exam. Anyone scoring below 35 would be considered as fail.
• If a student fails an exam then the professor would focus more on him and motivate him to pass the exam.
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• The teacher is akin to Government.
• The minimum marks required to pass is akin to Poverty line.
• The students failing are akin to poor population.
• This is what happens in case of Absolute Poverty which is used in underdeveloped and developing nations like
India.
• India uses Absolute Poverty to measure Poverty.
• In India, there is a concept of Poverty line which decides the amount of money a person must earn for not being
considered as poor.
• As per Poverty line a person is not considered as poor if he is earning Rs.32 in a village and Rs.47 in a city. ( I will
give vast view in 11th class NCERT)
• USA and other developed nations use this method.
Inter-state disparities
• Poor Orissa, Madhya Pradesh and Bihar are the poorest states of India.
• Best Punjab, Himachal Pradesh and Jammu and Kashmir are the best states when poverty is concerned.
Causes of poverty
• british rule
• rural economy
• income inequality
• heavy pressure on population
• unemployment and underemployment
• lack of industrialization
• indian economic policy
• neo liberal policies and effects
• less job opportunities
• unequal distribution of assets
• lack of land resources, etc..
• landlessness
• unemployment
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• size of families
• illiteracy
• poor health
• child labor
• helplessness
• hunger
• lack of shelter
• lack of resource to spend on education and health
• lack of sanitation
Poverty Line
• POVERTY LINE” -→common method → measure poverty based on →income or consumption levels.
• A person is considered poor if his or her consumption level is below a given level set by each country.
• Different yardsticks are used in different countries to measure the poverty line.
• Via→ World Bank →person→ living on less than →1$ per day below the poverty line.
• figure raised to 1.25 $ per day
• World Bank report (2010)→ 32.7% of India’s population was living below the poverty line.
Calorie funda
Analysis
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• In Sub Saharan Africa, poverty increased from 41% in 1981 to 48% in 2001.
• The poverty level has remained the same in Latin America.
• Poverty has resurfaced in Russia and some of the former communist countries.
• The Millennium Development Goal of the United Nations has targeted to reduce the poverty level to half
of the 1990 level by 2015
Problem in schemes
• Political instability
• Lack of implementation of laws
• Caste system
• No patriotism among the people
• No interest for the rich to feed the poor
• Less subsidy provided by the government
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• Poor are not being employed
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Shortage of Food → Price UP→ affordability DOWN→ starvation UP
Famine-→ Deaths by starvation and Epidemics by contaminated ( दू षित )water
landless people
traditional artisans
traditional services providers
petty self-employed workers
Homeless, beggars etc.
Families employed in ill-paid occupations
casual labourers (seasonal activities+ very low wages)
SCs, STs and some sections of the OBCs–having poor land-base or very low land productivity
Migrants ( as a result of natural disasters )
Women and children
Hunger
Buffer Stock is the stock of food grains, namely wheat and rice procured by the government through Food
Corporation of India (FCI)
But ( another statement) ( Which is not given 9th Class NCERT)
Buffer stock is the storage of stocks for the purpose of stabilizing the prices. Its used in free markets
where prices are determined by demand and supply
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What is MSP
ISSUE Price
• Distributed food grains in the deficit areas and among the poorer state of society at a price lower than the
market price
Government schemes
• (b) BPL cards for those below poverty line; and (c) APL cards for all others.
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