Iepp Pamaplet Unit 1 & 2

panchal.Dashon M.
According to New Syllabus
F.Y.B.Com Index Semester:-2nd
Que. Unit Page

Particulars
No. No. No.
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59
Topic: 1 Planning & Economic Development in India 1
1 Economic planning & Its objectives & achievement 3
2
Precondition of successful planning 6
3
Importance & need for planning 7
4 Planning in different economies/types of planning 8
Topic: 2 Economic Development
1
Define Economic Development & Growth & Distinguish both. 10
Topic: 3 Measures of Economic Development
1 Income & Non-income indicators of Economic Development 12
2
Old method of calculating of Human Development Index 14
3 New method of HDI 16
Short Note: Human Poverty Index in Developed & Undeveloped

17
Countries
5
Multi-dimensional Poverty Index 18
Difference between HDI, HPI & MPI 19
7.
Gender Inequality Index (New) 20
3.
Roles of Gender inequality index (New) 22
Topic: 4 Inclusive Growth

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Inclusive Growth its Elements & Challenges 23
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Que. Unit Page
No. Particulars
No. No.
Topic: 1 Green Revolution/Second Green Revolution 2
1
Green Revolution Achievement and Weakness of GR 25
2 Features of New Agricultural Policy 2000 25
3
Strategy of New Agricultural Policy 2000 27
4
Second Green Revolution and Measures of SGR 28
Topic: 2 Disaster Management
1 Disaster Management & Its types, effects & Modern phases of 29

Disaster Management A
Topic: 3 Rural Credit in India
1 Rural credit in India & its problems, measures & recent policy 30
initiatives by govt. in India.
1 Measures taken by Government to tackle rural credit problems 33
Topic: 4 Farm Subsidies in India
1 Issue related direct & indirect subsidies in India 34
Topic: 5 Minimum Support Price

7
1
Detail minimum support price in India 34
Topic: 6 Public Distribution System & Food Security in

India.
1 Public Distribution System in India. Its objectives, features &

36
importance
2
Food security in India 38
IEPP
Unit:- 1 & 2
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IEPP Semester: - 2
Unit:-1
Topic No 1 Planning & Economic Development in India
Q-1 What do you mean by economic planning? Discuss the basic objectives and achievements of
planning in India. OR What are the objectives of planning in India? Analyze the performance of
planning in India? OR What are the achievement of planning in India?
Ans. Meaning of Economic Planning:
Planning is a technique, a means to an end, for the realization of certain predetermined and well
defined aims and objectives, laid down by a central planning authority.
The end may be to achieve economic, social, political or military objectives.
Meaning & Definition:
(1) According to Dickinson: Economic planning means,
> Making of major economic decisions (regarding - what & how much to produce, how, when &
where to produce and to whom it is to be allotted), 1
.
By the determinate authority,
> On the basis of comprehensive survey of the economic system as a whole.
This definition indicates that, there are three important features of economic planning. They are as
follow:
(a) It is a process of making major economic decisions, regarding production and allocation of
resources.
(b) The decisions are taken by the planning authority.

(c) The decisions are taken on the basis of a comprehensive economic survey.
(2) According to the Planning Commission: "Economic planning means:

Deliberate control over the economy,
By a central authority,
To achieve certain objectives, within a specified period of time."
Basic Objectives of Planning in India:
Following are the basic objectives of planning in India:

(1) Economic Growth:
The primary objective of five year plan, is to achieve economic growth i.e. to increase national income
by increasing production of goods and services.
During the five year plans, the target of the growth rate was around 5% p.a. (except in the first plan, in
which it was 2.1% p.a.) Further, the target of growth rate was higher than the growth rate of population,
so that we can raise per capital income of people. For this purpose, it was necessary to increase the
production of capital goods and consumer goods.
Plan Plan Target of Growth Rate (% Actual Growth Rate (%
Period p.a.) p.a.)
3.6
1st 1951-1956 2.1
2nd 1956-1961 4.5 4.3
3rd 1961-1966 5.6 2.6
4th 1969-1974 5.7 3.3
4.8
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5th 1974-1979 4.4
6th 5.2 5.7

1980-1985
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7th 1985-1990 5.0 6.0⁰
8th 1992-1997 5.6 6.8
9th 1997-2002 5.5

6.5
10th 2002-2007 7.6

8.0
11th 2007-2012 9.0 8.0
12th 2012-2017 8.0
Achievements:
➤ During the first three decades of planning, the rate of economic growth was not satisfactory.
Till 1980, the average annual growth rate of GDP was 3.73 percent against the average annual
growth rate of population at 2.5 percent. So, the per capita income increased only by 1 percent.
-
Bui, from the Sixth plan onwards, there was considerable change in the Indian economy. In the
Sixth, Seventh and Eight plans, the growth rate was 5.7 percent, 6.0 percent and 6.8 percent
respectively.
> The Ninth Plan targeted a growth rate of 6.5 percent per annum and the actual growth rate was 5.5
percent.
In the Tenth and Eleventh plan, the growth rate was 7.6 percent and 8.0 percent respectively. Growth
rate of 8 percent is targeted for twelfth, five year plan.
In respect of economic growth, our performance was satisfactory. During the planning period, the
annual growth rate was around 4% p.a.
(2) Self-reliance: One of the major objective of economic planning is to achieve self-reliance. Self
reliance means to reduce of dependence on other countries. Formally, at the time of independence,
India was highly dependent on foreign countries for the import of food grains, capital goods and
foreign aid. So, emphasis was given on self-reliance. To achieve this objective, it is necessary to take
following measures:
fasonable"
(a) To reducé (& finally to eliminate) our dependence on foreign aid & concessional loans.
(b) To reduce (& finally eliminate) our dependence on imports of certain critical commodities. (By
developing import substitution industries).
(c) To achieve expansion and diversification of our exports, (to increase our exports) by export
promotion measures. (So that we can earn sufficient foreign exchange).
Achievements:
In respect of self-reliance, we have made some progress. This is clear from following:
Nahurial 1 compus starps
(a) Particularly after NAS, we have achieved self-reliance in food gain. grain.
(b) In the field of industries, we have been able to develop a variety of capital goods industries.
(c) In the field of science and technology, our achievements are remarkable.
(d) We have been able to reduce our dependence on imports of critical products such as steel, machinery
and fertilizers.
(3) Removal of Unemployment: One of the objectives of economic planning is to remove

unemployment by expanding employment, opportunities. This objective emphasized from 4th &
5th plan. For this purpose it is necessary to develop Agriculture, Industries and Tertiary sector &
to expand employment opportunities by various unemployment removal programmes.
Performance / Achievement: Govt. has taken following measures
(a) Direct employment programme for providing seasonal employment to agricultural laborers, on rurai
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(b) Target group - oriented programme of asset creation, input deliveries and creation of credit and
marketing infrastructures.
Even after the 65 years of planning, we have not been able to solve the problem of unemployment.
(4) Social Justice (Reduction of Income Inequality):
One of the major objectives of economic planning is to provide social justice to poor people. Social
Justice means to reduce the inequality of income and wealth, particularly in rural areas. For this purpose
govt. decided to take following measures: .
➤ Land Reforms, (like ceiling on land holding),_
Supply of certain items at concessional rates, Danhen
Subsidy to poor people,
Special employment programmes, like Jawahar Rojgar Yojna,

To reduce regional disparities / imbalance by developing backward areas.
(5) Elimination (Removal) of Poverty:
One of the objectives of economic planning was to remove poverty. This objective was given
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importance from 5th plan.
The program of poverty is related with the problems of poor purchasing power, low saving, low
capital formation, low productivity and low level of output. So, the long-run objective of planning
was to free the economy from the vicious circle of poverty.
Performance: Paisonious
Government was undertaken several programmes to remove poverty and the process still continues.
(6) Modernization:
Another objective of economic planning is to bring modernization of economy. Modernization means
to bring certain structural changes and institutional changes in the economy.
Structural Changes: They include
fasefollowing:
(a) A shift in the composition of production. i.e. to increase industrial production.
(b) To achieve diversification of economy. i.e. to produce and supply a large variety of goods, (from
consumer goods to capital goods).
(c) To upgrade technology (Use of latest technology) to improve the quality, to reduce costs & to
increase the efficiency of the economy.
Institutional Changes: They include followings:
(a) To develop certain public sector institutions, to supply infrastructure facilities and social services,
(such as banking, insurance, transportation, communication, etc.)
(b) To establish of financial institutions (like IDBI, IFCI, etc.) and to expand commercial banks, (to
provide long term, medium -term and short-term finance to industries.)
(c) To develop human factor, by training, skill formation and Research & Development.
Achievements:
In the field of modernization, our country has made satisfactory progress. For example:
> We have developed many new industries (such as computer, electronic, engineering, electrical and
non - electrical goods) with latest technology.
In agriculture also, there is use of new technology.
concerned:
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Conclusion: So far the performance of planning

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➤ India has made satisfactory progress in terms of rise in national income, diversification,
modernization, etc.
But, we have failed to achieve the long-term objectives of removal of poverty, unemployment and
inequalities.
Q-2 What do you mean by economic planning? What are the pre-requisites (pre - conditions)
successful planning? OR What are the necessary conditions for successful planning in under
developed countries?
Ans. In under - developed countries, for successful implementation of plans, following conditions are
necessary:
(1) Establishment of Planning Commission:

Central Authority
For the preparation & successful implementation of plans, there must be a planning commission. It
should consist of number of experts like economists, statisticians, demographers, engineers etc.
The planning commission should be divided into number of divisions and each divisions and they
should be headed by exports for dealing with different aspects of the economy.
(2) Statistical Data:
For preparing plans, we must have necessary information (statistical data) regarding the existing
problems of economy & the available resources (capital & human resources).
For this. A country should conduct a detail survey of the whole economy.
> Data must be adequate, reliable & accurate. This is highly essential because, decisions regarding
plans are based on such data.
(3) Formulating Objectives:
Planning must have definite objectives, depending upon the needs of the economy. The objectives may
be to remove poverty or to increase employment & income, etc. The objectives must be realistic and
flexible.
(4) Fixation of Targets & Priorities:
The next step is to decide the targets and priorities of the plan.
Targets should be both - global and sectoral targets. Global target means the targets of various
aspects of economy such as agricultural production, industrial production, etc. Similarly, Sectoral
targets mean the targets for individual industries and products.
Fianning commission should also decide macro targets and micro targets as well as short-term and
long-term targets.
After deciding targets, the next step to decide priorities on the basis of the requirements of the
economy. Tomake available
(5) Mobilization of Resources:
> For the success of planning, the Govt. should make provision of necessary resources. There are two
types of resources internal and external resources.
> Internal Resources include savings, profits of public sector, net market borrowings, taxation and
deficit financing.
External Sources include net budgetary receipts.
):
> For the successful working of plan, there must proper balance in the economy. There should not be
any shortage or surplus.
>There should be proper balance between
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o Saving and investment,
o Consumer goods industries & producer goods industries,
o Supply of goods & demand for goods,
o Manpower requirement & its availability, and
o Exports and imports.
(7) Incorrupt & efficient Administration:
> For the achievement of the objectives of planning, there must be a strong, efficient & incorrupt
administration.
>If the administration is corrupted & inefficient, it will not be possible to achieve the targets of
planning. So there must be competent & honest staff in various ministries.
(8) Public Co-operation: In democratic country, there is planning by inducement. For the success of
such planning, there must be full public co-operation to Government measures.
Q-3 Discuss the importance and need for Planning. OR It planning necessary for developing
countries?
Ans. Following are the main points of need/importance of planning in developing countries.
(1) For Regulating the Market Mechanism: Operating Cycle
(a) In most of the under - developed countries, the market mechanism does not work perfectly due to
following reasons:
Ignorance of people,
➤ A large non- monetized sector
The product, factor, money and capital markets are not properly organized.
(b) Price - mechanism fails to bring a balance between demand and supply.
(c) To remove the market imperfections, to make proper allocation and utilization of resources and to
increases the strength of market mechanism, planning is essential.
(2) For Providing Gainful Employment:
(a) In India, there is a problem of widespread unemployment and disguised unemployment.

(b) In India, there is shortage of capital and abundant labour. So, it is very difficult to solve this problem.
(c) It is the only centralized planning, which can provide gainful employment to labour force.
(3) For Balancing Different Sectors:
(a) For rapid economic development, it is necessary to bring a balance between:

Development of agriculture and industrial sector,
Expense.
Social and economic overhead, and
➤ Expansion of domestic and foreign trade.
(b) For all these, it is necessary to make simultaneous investment in different sectors. But, this is
possible only by economic planning.
(4) Direction for Attaining Targets:
(a) In under - developed countries, to remove poverty and unemployment and to raise national income
and per capita income, it is necessary to achieve definite targets.
(b) But, this is possible only if there is economic planning.
(5) For Development of Agriculture and Industrial Sector:
(a) To develop agricultural and industrial sectors, it is necessary to develop economic and social
overheads. It is necessary to build canals, roads, railways, power stations, etc.
(b) Similarly, it is also necessary to develop training and educational institutions, hospitals, etc. Publication
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(c) But, this is possible only if there is economic planning.
(6) For Expansion of Domestic and Foreign Trade:
(a) For the expansion of domestic and foreign trade, it is necessary to develop financial institutions.
(b) In most of the developing countries, money markets and capital markets are not properly developed.
Further, there is a problem of economic instability.
(c) To remove the above problems, it is necessary to develop Central Bank, Commercial Banks and
Financial Institutions. For this, economic planning is necessary.
Q-4 Explain Planning in different economies. Discuss the types of Planning.
Ans - Planning in India: In India, plans are prepared by the Planning Commission of India. The plans
also specify the time, within which they are to be implemented. Each plan is prepared for 5 years.
We have a national pian for the whole country. Within the national plans, there are plans for
different areas/sectors.
(1) Plane specify the time, within which, they are to be implemented. In India, each pian is for a period
of 5 years.
(2) The plans also specify the areas, which are covered by the plan. In India, we have a national plan
for the whole country. Within this national plan, we have plans for smaller areas like state plan.
Further, in India, the planned activities are controlled and regulated by the planning authority.
(3) Plans are prepared by the planning authority. In our country, plans are prepared by the Planning
Commission of India, since 1951. It is headed by Deputy Chairman.
Planning in different typesof economy:
(1) Planning in a Capitalist Economy:
In capitalist economy, planning is indicative in nature.
Government intervention is limited.
There are indirect controls to achieve goals.
Economic decisions are left to the market forces.
Property rights are clearly defined and owners of the resources decisions - what to produce, how to
produce and how to distribute.
(2) Planning in Socialist Economy:
In socialist economy, there are complete govt. controls and regulations over economic activities.
In this kind of economy, goals are decided by Government and Government intervention is
maximum.
Planning is imperative in nature.

Government
▸ Property rights are not given to individuals and state is the owner of all resources.
State decides - what to produce, how to produce and how to distribute.
(3) Planning in Mixed Economy (India):
➤ Planning in mixed economy is a combination of above two systems.

➤ In, this economy, there is a role of private sector as well as public sector.
> In this economy, planning is mixed in nature.
> There are direct and indirect controls of the Government over economic activities.
State intervention plays an important role in mixed economy. State plays a role of facilitator and guides
to the private sector to achieve goals.
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Types of Planning:
(A) Financial Planning
(a) Financial planning means allocation of resources in terms of money. (To achieve the targets of
planning, it is necessary to estimate the financial requirements & to make provision of necessary
finance through taxation, savings, borrowings, etc. This is the work of financial planning.) 1
(b) In financial planning, attempts are made to bring a balance:

between income of people & supply of consumer goods,
between fund available for investment in capital goods & supply of capital goods, and
> between foreign payments & receipts.
(c) Thus, the main purpose of financial planning is to achieve a balance between demand & supply, to
avoid inflation, and to achieve economic stability.
Limitations
(1) If govt. tries to mobilize more resources by heavy taxation, it may reduce private saving & capital
formation.
(2) In under - developed country, there is a large non-monetary sector & small monetary sector. This
creates an imbalance between two sectors. Such imbalance may create the problems of shortage &
inflation.
Export = import.
(3) When attempts are made to increase supply by more imports, it will create balance of payment
difficulties.
(4) To be successful, financial planning must be free from all the obstacles & particularly from
inflationary price-rise.
(5) Financial planning is unsuitable to underdeveloped countries, because it may increase

unemployment & inequality in income & wealth.
(B) Physical Planning:
(a) Physical planning means allocation of resources in physical terms like money, materials, etc, to
attain the goals.
, we have to estimate the requirement of men, materials, & machines to achieve
the targets of planning.
(c) In physical planning, attempts of resources &
To find out requirement of resources &
To assess availability of all physical resource such as raw-materials, man - power, machines etc.
(d) This type of planning tries to achieve a balance between requirement of resources & available
resources to avoid scarcity.
Limitations:
under developcountries.
(1) In UDCs.(accurate data & information regarding available resources are not available. So, it is
difficult to set physical targets & to achieve the targets.
(2) To achieve the targets of planning, we must achieve a balance between various sectors of economy.
But in under-developed countries, it is not possible to maintain such balance due to unexpected
difficulties such as failure of monsoon, crop failure, power shortage, etc. These create problem of
shortage.
(3)
Shortage may give rise to the problem of inflation. (Rising price - level).
(4) Physical planning cannot achieve the targets without financial planning. Financial planning &
physical - both are complementary. Both are inter - dependent and both are essential for economic
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Important.
(C) Indicative Planning and Imperative Planning:
Indicative Planning
Such planning is used in France and it is flexible and not rigid.
⇒ In the type of planning, the private sector is expected to achieve the targets but it is not rigidly
controlled by the Government Further, it is not directed to fulfill the priorities and targets of the
plan:
→ Govt. provides all types of facilities to private sector, but does not direct.
→ The government provides incentives to private sector through grants, loans, tax-exemptions, etc.
→ It gives guidance to the private sector but does not issue directions.
Imperative Planning:
Such planning is used in China and Russia.

⇒ In the type of planning, all the resources and factors of production are under complete control of the
Government.
⇒ All economic activities are also controlled by the Government.

⇒ There is no freedom of production and consumption.
→ Decisions regarding production (such as what and how much to produce) are taken by the Central
Planning Authority.
→ The decisions and policies of the Government are rigid in nature. So, they cannot be changed easily.
Topic No 2- Economic Development
Q-1 Define economic development and economic growth. Bring out the major differences between
the two. OR Explain the main points of distinction between economic growth and economic
development. OR "The term economic development and economic growth are synonym". Explain.
OR "Growth without development is possible, but development without growth is not possible".
Explain the statement. OR "Growth and development are not the same." Differentiate between
them.
Ans. (A) Economic Growth

Continigus.
1. Economic growth means a sustained increase in the per capita national output or net national
product over a long period of time.
2. According to Kindleberger: "Economic growth means an increase in output (increase in production
of goods and services) over a long period of time".
3. According to Prof. Meier: “Economic Growth means the process, whereby the per capita income of
a country increases over a long period of time".
4. Another qualification of economic growth is that the national output should consist of such goods
and services, which satisfy the maximum wants of the maximum number of people.
Determinants of Economic Growth:
o Human Resource and its quality
o Natural resources
o Capital Formation
o Technological development
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Economic Development (Definitions):
(1) Economic development is a broader concept as compare to economic growth. Economic Development
refers to growth plus something more than growth. Economic development means the process, as a
result of which
o there is increase in real per capita income,

o there is reduction in inequality, poverty, illiteracy, and
o there is improvement in health, quality of life, standard of living and economic welfare of the
people.
(2) Economic development refers to economic growth as well as economic welfare.
(3) According to Peterson -"Economic Development is a process whereby real per capita income and
economic welfare increase over a period of time".
Thus, there are two indicators of economic development -
increase in real per capita income, & increase in economic welfare of people
(4) According to Todaro - "Economic development is a multidimensional process, which involves major
changes in social structure, attitude and institutions, acceleration of economic growth and reduction
in poverty".
(5) According to C. P. Kindleberger - "Economic growth means more output and Economic development
means both more output and changes in the technical and institutional arrangements, by which it
is produced".
Distinction between Economic Development and Economic Growth:

Following are the main points of distinction between economic growth and economic development:
Economic Development Economic Growth
(1) Economic development means progressive (1) Economic growth means increase in real
changes in socio-economic structure of a country. output of goods and services in a country.
(2) Economic development means increase in output (2) According to Kindleberger,. economic
along with changes in the technical and institutional growth means increase in total output.
arrangements.
(3) Economic development means a rise in real per (3) Economic growth means only a rise in real
capital income and economic welfare of people. per capital income.
(4) Economic development is comprehensive or wide (4) Economics growth is a narrow term,
or broad term, because it includes increase in total because it includes only increase in total output.
output along with certain technological and structural (It is a part of economic development.)
changes in the economy. (It also includes increase in
economic welfare of people).
(5) Economic development includes quantitative (5) Economic growth includes only
changes as well as qualitative changes. quantitative changes.
(6) In case of economic development, there is a shift (6) In economic growth, there is no such shift.
from agriculture to industries or from relatively low
productivity to high productivity.
(7) Economic development refers to the problems of (7) Economic growth refers to the problems of
under developed countries. developed (advanced) countries.
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(8) According to Maddison, economic development (8)levelEconomic growth means increase in income
in rich countries.
means increase in income level in poor countries.
(9) According to Mrs. Ursula Hicks, economic (9) Economic growth is concerned with the
development is concerned with the problems of problem of growth of resources.
unused or idle resources with their known uses.
(10) According to Schumpeter, economic (10) Economic growth is a gradual and steady
development is a discontinuous and sudden changes change, in long-run.
in the stationary state. dimensional
(11) Economic development is a multi-dimensional (11) Economic growth is a uni
concept as it includes increase in income and other concept.
changes.
(12) Economic development is not possible without (12) Economic growth does not include
growth, because it includes economic growth. economic development. So, economic growth
is possible without economic development.
(13) It does not require government intervention. (13) It requires planning, direction and
regulation of economy by the Government.
(14) It requires continuous and deliberate efforts. (14) It is an automatic process. It does not
require special efforts.
Topic No - 3 Measurement of Economic Development

OR Explain Real Per
Q-1 Explain income and non-income indicators of economic development.
Capita Income and physical quality of life Index (PQLI) as the indicators of economic development.
Ans - The income indicators include Real National Income (RNI) and Real Per Capita Income (GNP per
Capita)
(A) Real National Income (RNI & GNP):

(1) According to this indicator, economic development is a process, in which real national income of a
country increases over a long period.
(2) RNI means total output of goods and services in real terms.
Limitations (Demerits):- This criteria has following l`limitations:
(1) This method does not consider changes in prices.
(2) This measure ignores (does not consider) the effect of population growth on real per capita income. (If
the growth rate of population is higher than the growth rate of RNI, then Real PCI may not rise. So, standard
of living of people may not improve.)
(3) This indicator ignores the distribution of National Income. (If there is uneven distribution of RNI; the
benefits of more production will not be available to most of the poor people.
(4) This measure does not consider income earned through illegal activities.
(5) This calculating NI, the problem of double counting occurs. This is due to the failure to distinguish
between final and intermediate goods.
(6) While calculating NI, a problem arises that whether, transfer payment (like pension) should be included
or not.
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(B) Real per Capità Income (GNP Per Capita or RPCI)
According to Meier,-"Economic development is a process, whereby the real per capita income (RPCI) of
a country increases over a long period of time".
Real National Income GNP at Constant Price
Real PCI =
Population Population
When RPCI increases over a long period, there is an improvement in the standard of living of people. So,
increase in RPCI over a long period indicates economic development of country.
Limitations:-Following are the main limitations of this indicator:
(1) Even if, real per capita income increases, there may not be a rise in the standard of living of people.
(2) This indicator ignores the distribution of national income. (If there is uneven distribution of national
income, the benefits of increased income will go to few rich people. So, the majority of people will
remain poor, even if RPCI increases.)
(3) It does not take into account (consider) the problems associated with the basic needs of people (like
nutrition, health and other social services like education.)
(4) This indicator fails to measure adequately the changes in output due to changes in the price level.
(5) The international comparisons of RPCI are not accurate, due to difference in exchange rate.
(6) It does not consider social cost i.e. the problems of pollution, urbanization, industrialization. In spite of
above limitations, RPCI is widely used measure of economic development.
(7) It is very difficult to prepare accurate estimation of real national income.
(C) Physical Quality of Life Index (PQLI) (Non-income Indicator):-(This index was developed by
Morris D.Morris, in 1979. This index is based on following three elements (indicators of) human life
(1) Life Expectancy (at age one):- This shows the average number of years, for which, a person is expected
to live (the average life of a person).
(2) Literacy Rate (at age 15):- It shows the percentage of population, who can read and write any language.
(3) Infant Mortality Rate: This shows the death rate among infants i.e. the number of infants, per 1000
infants, who die before completing one year age> chid death rat.
Methods of Measurement:
(1) PQLI is a simple average of the index of the above three indicators. So, to measure PQLI, first the index
of each indicator is calculated.
(2) After finding out index of each indicator, PQLI can be measured by following formula:
Life Expectancy Index(LEI)+Infant Mortality Index (IM!)+Basic Literacy Index(BLI)
PQLI: =
3
LEI+IMI+BLI
PQLI =
3
It should be noted that the value of PQLI is measured between 0 and 100.
COEFFICIENT OF CORRELATION:-In this index:
(1) There is a positive correlation between literacy rate and life expectancy. i.e. where literacy rate
increases, life expectancy at age increases.
(2) There is negative correlation between literacy rate and infant mortality rate i.e. when literacy rate
increases, infant mortality rate falls.
(3) There is negative correlation between life expectancy and infant mortality rate i.e. when infant
mortality rate falls, life expectancy increases.
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Significance of PQLI:
(1) When life expectancy and literate rate increases, and infant mortality rate falls, there is an improvement
in PQLI. This indicates economic development.
(2) This
index shows the needs
performance of a country in satisfying the basic of people (such as pure
drinking water, sanitation, nutrition, education, medical facility etc.)
Limitations:
(1) It is very difficult to measure economic development with the help of this indicator.
(2) It does not measure total welfare of people.
(3) It does not include all consumption details.
(4) It does not explain the changing structure of economic and social organisations.
Q-2 Explain the old method of calculating Human Development Index (HDI) as an indicator of
Economic Development.
Ans - Human Development Index (HDI) (Old Method):
➡ HDI was created by Indian economist Amartya Sen and Pakistani economist Mahbbubul Haq in 1990.
It was United Nations (UN) under the United Nations Development Programme(UNDP)
HDI is a composite index and it is used to rank countries into four categories of human development.
HDI shows the average achievement of a country in following three basic dimensions of human
development:
(1) A long & healthy life: - It is measured by life expectancy at birth.

(2) Knowledge (Education attainment):- It is measured by Adult Literacy Rate (ALR) (with 2/3 weight)
& Combined (Primary, Secondary and Tertiary) Enrollment Ration (CER) (with 1/3 weight.)
(3) A decent standard of living: - It is measured by the natural logarithm of Real GDP per capita, based
on purchasing power parity (PPP) in US dollars.
How to calculate HDI: (UNDP). Pure drinking water, sanitation, nutrition, education, medical facility,
etc.)
(1) First we have to calculate index of each of the above dimensions. To calculate the index of each
dimension, maximum value & minimum value have been given. They are as follow.
Gual posts for calculating HDI
No. Components Maximum Value Minimum Value
1 Life expectancy (Years)in 85 25
Adult Literacy Rate (ALR) (in %) 100
3 Combined Enrolment Ratio (CER) (in %) 100 0
4 Real GDP per Capita (in US $) 40,000 100
For each of the above indicators, index can be calculated by following formula.
Actual Value-Minimum Value
(a) Index=
Maximum Value-Minimum Value
(b) Education Index =Elz=2/3 (ALRI) + 1/3 (CERI)
Log (Actual GDP) – Log (MinimumGDP)

(c) GDP Index =
Log (Maximum GDP) - Log (Minimum GDP)
(2) Now, HDI is a simple average of the index of above three dimensions. So, it can be calculated by
following formula:
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LEI + EI + GDP Index
HDI =
3
Where: LEI = Life Expectancy Index EI Education Index
HDI and Level of Development:

(1) The value of HDI ranges between 0 and 1. 1
(2) Now,
If the value of HDI is between 0 to 0.499, it shows low level of development.

If the value of HDI is between 0.5 to 0.799, it shows medium level of development.
If the value of HDI is 0.8 and above, it indicates high level of development.
(3) Whe there is increase in life expectancy, literacy rate and level of income, there is an improvement in
HDI. This indicates economic development.
Example of HDI:
From following information, calculate HDI. Give your interpretation.

Life Expectancy (LE) = 63.4 yrs
Adult Literacy Rate (ALR) = 66 %
Combined Enrollment Ratio (CER) = 61%
Real GDP Per Capita in US $ = $2753
Real GDP Per Capita (in log) = 3.4
Log Value of $ 100 = 2.0. Log Value of $40,000 = 4.602
Formula:
Actual Value Minimum Value

(1) Index for each Indicator =
Maximum Value Value - Minimum Value
(2) Educational Attainment Index = (2/3) ALR+ (1/3) CER

LEI + EAI + GDPI
(3) HDI =
3
Solution
(1) Life Expectancy Index (LEI):

(2) Education Index:
(a) ALR Index =

66.00
= 0.66
=
63.4 - 25
85-25
= 0.64
EL=2/₂·ALRAY (ER
)+1/3(0-61)
(b) CER Index =
100-0
63.0-0
100 0
= 0.61 2/3(0·600.04
So, Education Index
(3) For calculation of GDP Per Capita Index, Income is adjusted by using logarithm.
1.4
log(2753)-log(100) 3.4-2 ===0.53
GDP Index:= =
log(40000)-log(100) 4.602-2 2.6
:: HDI =
Life Expectancy + Education Index + GDP Index
3
0.64 +0.64 +0.53

3
= 0.61
medium level of
Interpretation:-The value of HDI of his country is between 0.5 and 0.799. So, it has
development. Publication
15 Expert
A6B04C22@1500N
Q-3. Explain the new method of calculating HDI (New HDI).
Ans (A) It
.
shows the average achievement of a country in following three dimensions:

(1)
A long & healthy life: - It is measured by Life Expectancy at birth.
:- It is a combination of Mean Years of Schooling (MYS) and Expected Years of Schooling
(EYS). Where:
(i) Mean
Years of Schooling means no. of years, a 25 years old person has spent in school.
(ii) Expected Years of Schooling means the expected number of years, a 5 year old child will spend in
school.
(3) A Decent Standard of Living: - It is measured by GNI per Capita (PPP US$).
(B) How to calculate:
(1)First, we have to calculate the index of each of the above dimensions. To calculate the index of each
dimension, maximum value and minimum value are given. They are as follow.
Goal posts for calculating HDI
Dimensions Indicators Max. Value Min.Value
Health 20
Life expectancy (Years) 85
Education
Mean Years of Schooling (Years) 15 0
Expected Years of Schooling (Years) 18 0
Standard of living GNI per Capita 75,000 100
(Gross National Income) (in US $)
For each dimension, index can be calculated by following formula:

(i) Index=
Maximum Value Minimum Value
-
MYSI + EYSI
(ii) Education Index=
2
In (GNIpc) - In(100)
(iii). Income Index=
In(75,000) In (100)
(2) Now, HDI is the geometric mean of the above three dimensional indices.
1/3
: HDI = (Health Index x Education Index x Income Index) ¹/
: HDI = 3√LEI X EI X II
Example: From following information calculate HDI as per new method.
Life Expected at birth = 79.93 years Mean Years of Schooling =
8.37 years
Expected Years of Schooling =
13.50 years GNI Per Capita (US $)
= 13011.70

1
(1) Health Index= Maximum Value - Minimum Value

79.93 - 20
=
85-20
59.93
65
= 0.922
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(2) Education Index (EI):
8.37 -0 8.37
= 0.558
Means Years of Schooling Index = 15-0 15
13.50 13.50
= 0.750
Expected Years of Schooling Index =
18-0
=
18 1
MYSI + EYSI
Education Index =
2
0.558 +0.750
=
= 0.654
(3) Income Index (II): (4) HDI = (LEI × EI × GNIpcl)¹/³

In(13011.7) In (100) (0.922 × 0.654 × 0.735)¹/³
Income Index =
In(75000)- In (100)
= 0.735 = 0.763
Q-4. Write a short note on human poverty index for developed as well as developing countries.
Ans - The Human Poverty Index (HPI) indicates the standard of living in a country.
It was developed by United Nations (UN) to complement the Human Development Index (HDI) and was
first reported in the Human Development Report in 1997.
In 2010, it was Akhlinewed
supplanted by the UN's Multidimensional Poverty Index.It shows the extent of poverty in
a country.
HPI measures deprivation (lack of achievement or non-achievement) of a country. There are two
HPI: HPI-I: - for Developing countries.
HPI - II:- for Developed Countries (High income countries)
Human Poverty Index (HPI-I):- HPI-I measures deprivation (lack of achievement or non-achievement)
of a country in following three basic dimensions of human development.
(1) A Long and Healthy Life (P1):- It is measured by the probability of not surviving up to the age of 40
years.It showspercentage of people, who are expected to die before the age of 40 years.
(2) Knowledge (P2):- It shows exclusion from the world of reading and communication. It is measured by
Adult Illiteracy Rate. (I.e. if literacy rate is 30%, it means Adult Illiteracy rate is 70%.They are unable to
read & communicate).
(3) A Decent Standard of Living (P3):
This indicator is a simple (unweighted) average of following two indicators: Rachars

(a) The percentage of population not having improved water sources, and
(b) The percentage of children (under age-5) who are underweight for their age.
Considering the above three dimensions, HPI1 can be calculated' by following formula:
Where: P1 =Probability (at birth) of not surviving up to the age of 40 years.
P2 = Adult Illiteracy Rate
P3 = Unweighted (simple) Average of Population without improved water source, and underweight
children under five.
α = 3
Human Poverty Index-(HPI-II):- This index is an extension of HPI-J. indicates the deprivation of a
country in four dimensions of human development. These four dimensions are as follow:
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(1) A Long and
Healthy Life (P1):- It is measure by the probability (at birth) of not surviving to the age
of 60 years. (Times 100).
(2) Knowledge (P2):- It shows exclusion from the world of reading and communication. It is measured by
the percentage of adults (16 to 65 years) lacking functional literacy skill.
(3) A Decent Standard of Living (P3):- It is measure by percentage of people living below income poverty
line
(4) Social Exclusion (P4):- It is measure by the rate of long-term unemployment. It is percentage of
population, which is unemployed for 12 months or more than 12 months.
Considering the above dimensions, HPI2 can be calculated by following formula:
HPI₂ [1/4 (Pla + P2a + P3a + P4a)¹/a]
Where: a = 3 P1 = Probability at birth of not surviving up to age 60
P2 = Adults (aged 16-65) lacking functional literacy skills
P3 = Percentage of people living below the income poverty line (50 % of the median adjusted
household disposable income
P4 = Rate of long-term unemployment (lasting 12 months or more)
Q-5. Explain Multidimensional Poverty Index.
Ans - The Multidimensional Poverty Index (MPI) was developed in 2010 by Oxford Poverty & Human
Development Initiative and the United Nation Development Programme.
It uses different factors to determine poverty. It replaced the previous Human Poverty Index.
It shows the number of people, who are multidimensional poor and the number of deprivations for poor
people.
It indicates deprivations in basic services for people across 104 countries.
Dimensions and Indicators: This index uses three dimensions (just like Human Development Index.)
They are: health, education and standard of living. They are measured by ten indicators, as given below:
Dimension Indicators
(1) Health Nutrition Child Mortality

(2) Education Years of Schooling
Children Enrolled (Child School Attendance)
(3) Standard of living Cooking Fuel
Toilet Sanitation
Drinking Water
Electricity
Floor
Assets Ownership
Each dimension and each indicator (within a dimension) is equally weighted.
Calculation of the Index (Formula):
The MPI can be calculated by following formula:

MPI = H x A
Where:
H: Percentage of people, who are multidimensionally poor MPI (incidence of poverty).

A: Average intensity of MPI poverty across the poor. (%)
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Indicators of MPI:
The following are the ten indicators, which are used to calculate the MPI:
weighted equally 1/6).
Education
(1) Years of(eschooling:
ach indicatordeprived
is disadiantan
if no usehold member has completed five years of schooling.
(2) Child school attendance:deprived if any school-aged child is not attending school up to class 8.
(3) Child mortality: deprived if any child has died in the family.
(4) Nutrition: deprived if any adult or child is malnourished (does not get proper nutrition).
Standard of Living (each indicator is weighted equally at 1/18).
(5) Electricity: deprived if the household has no electricity.
(6) Sanitation: deprived if the household's sanitation facility is not improved or it is improved but shared
with other households.
(7) Drinking Water: deprived if the household does not have access to safe drinking water or safe drinking
water is more than a 30-minute walk from home.
(8) Floor: deprived if the household has a dirt, sand or dung floor.
(9) Cooking Fuel: deprived if the household cooks with dung, wood or charcoal.
(10) Assets Ownership: deprived if the household does not own more than one radio, TV, telephone, bike,
motor bike, or refrigerator and does not own a car or truck.
A person is considered poor, if they are deprived in at least a third of the weighted indicators. The intensity
of poverty denotes the proportion of indicators, in which they are deprived.
Definitions of Poverty States:
(1) A household is considered deprived but not near-MPI poor if the deprivation score is positive but less
than 1/5.
(2) A household is considered near-MPI poor if the deprivation score is 1/5 or more, but less than 1/3.
(3) A household is considered multi-dimensionally poor (or MPI poor) if the total of weighted deprivations
(deprivation score) is equal to 1/3 or more.
(4) A household is considered severely multi-dimensionally poor, if the deprivation score is ½ or more.
(5) If a household is deprived, then all its members are deprived.
(6) Dimensions included in the MPI are education, health, and living standards, all are equally weighted by
1/3 each.
Q-6. Distinguish between Human Development Index (HDI) Human Poverty Index (HPI) and
Multi-dimensional Poverty Index (MPI).

Ans-Following are the main points of distinction between HPI & HDI.
HPI MPI
HDI
(1) The concept of HDI was (1) The concept of HDI (I and II) (1) It was introduced in 2010.
introduced since 1990. So, it is has been introduced since 1997. So, it is the latest concept.
relatively old concept. So, it is relatively new concept.
(2) The HDI shows the average (2) HDI shows the deprivation (2) It shows the deprivation of
achievements of a country in three (non-achievement) of a country poor people in the same .0 of
basic elements of human life. in the same three elements of human life.
human life.
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A6B04C22@1500N
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20313
(3) HDI measures the extent of (3) HDI measures the extent of (3) It shows the number of
B
people, who are multi

development of a country. poverty in a country.
dimensionally poor and the
number of deprivations for
poor people
Three Indicators Health :

(4) In HPI, it is measured by (4) It is measured by child
(4) In HDI, it is measured by life percentage of people, who are mortality and nutrition
(60
expectancy at birth. expected to die before age 40
in case of HPI - II) (P₁).
Knowledge (Education): (5) In HDI, it is measured by (5) It is measured by years of
and children
(5) In HDI, it is measured by a percentage of adults, who are schooling
Enrolled
combination of (a) adult Literacy illiterate (P₂).
Rate (with two third weight) and (b)
Combined (Gross) Enrolment Ratio
(with one third weight)
(6) In HDI, standard of living is (6) In HDI, decent standard of (6) MPI, standard of living
measured by real GDP per capita living is measured by is measured by cooking fuel,
(based on purchasing power parity Percentage of people not using sanitation, Drinking water,
in terms of US $) improved sources of water, Electricity, floor & Assei
and ownership.
Percentage of children, under

age 5, who are underweight
(P3).
Social Exclusion: (7) HPI-2 considers social (7) MPI does not consider
(7) HDI, does not consider social exclusion in terms of rate of long social exclusion in terms of
exclusion in terms of term unemployment. long term unemployment
unemployment.
(8) There is no separate HDI for (8) In case of HPI, HPI-1 is (8) There is no separate MPI
OECD countries. It is common for calculated for developing for specific (OECD) countries.
all the countries. countries and HPI-2 is calculated It is common for all the
for OCED countries. countries.
Organisation for Econome Es- operation and development.

Q-7 Explain Gender Inequality Index in detail.
Ans Gender Inequality Index -
-
inequality
Gender Inequality Index is a new index for determination of gender disparity that was pioneered in the
th
2010 HDI Report 20 anniversary edition by UNDP.

All too often women and girls are discriminated against in health, education, political representation,
labour market, etc.
GII measures gender inequalities in three important aspects: G11-Gender Inequalities

1. Reproductive Health measured by Indone
(a) Maternal mortality ratio
(b) Adolescent birth rates Premature birth.
2. Empowerment, measured by
(a) Proportion of parliamentary seats occupied by females and males
(b) Proportion of adult females and males aged 25 and older
years
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3. Economic Status, expressed as labour market participation measured by
(a) Labour force participation rate of female and male populations aged 15 years and older
The GIl ranges between 0 and 1.
. Higher GII values indicate higher inequalities between women and men and thus higher loss to human
development. 1
. As per HDI Report 2011, India ranks 129 out of 146 countries on GII.
Brasil Russia Zden
■ Among BRICS nations, India has highest inequalities in human development. china
(b) With at least some secondary education.

Gender Employment Measure - In 1995, the UNDP introduced two new indices: a Gender-related
Development Index (GDI) and a Gender Empowerment Measure (GEM).
The GEM is a measure of inequalities between men's and women's opportunities in a country.
It combines inequalities in three areas:
1. Political Participation and Decision Making
"
Female and male share of parliamentary seats
2. Economic Participation and Decision Making

I
Female and male share of position as legislators, senior official and manager
■ Female and male share of professional and technical positions
3. Power over Economic Resources

Female and male estimated earned income
Gender Development Index

The GDI measures gender gaps in human development achievements by accounting for disparities
between women and men in three basic dimensions of human development.
1. Health
▪ Life Expectancy
2. Knowledge
Expected year of schooling
▪ Mean year of schooling
3. Living Standards
• GNI per capita (PPP$)
• The GDI is the ratio of the HDIs calculated separately for females and males using the same
methodology as in the HDI.
It is a direct measure of gender gap.
• GDI together with the Gender Empowerment Measure (GEM) were introduced in 1995 in the Human
Development Report written by the United Nations Development Program.
• The aim of these measurements was to add a gender-sensitive dimension to the Human Development
Index (HDI).
Indicator Minimum Maximum
Life Expectancy at Birth

Female 22.5 87.5
Male 17.5 82.5
Expected years of Schooling 0 18
Means of Schooling 0 15
Estimated earned Income 100 75000
Goal posts for the GDI
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21
Expert
COS
Q-8 Roles of Gender Inequality Index.
Ans - Roles of gender inequality index are as under,
(1) Ruling out unemployment
, among the youth and women,
0
The indexthrough
aims tocreation
contribute
of towards
employment
unemployment
the reduction
o.
p ortunipfties that the development
O
If womenbecome empowered socially, economically, politically it is expected

of a country will be accelerated within short period oftime. , and at the same time,
O
In most regions of the world,

women's knowledge, abilities and and
policy coping mechanisms
programme actionsoftenthatgowillunrecognized.
improve women's access to secure
Achieving change requires
livelihoods and economic resources, alleviate
theirtheir extreme responsibilities
participation in public life, andwithraise
regard
socialto awareness
housework, remove legal impediments to
through effective programmes of education and mass communication.
Taking out steps to ensure gender equality provides fairer opportunity for women and better access to
(2) Bring out Equality
O
education, childcare, credit and employment contribute to their human development.

O
They also contribute to the human development of other family members and to ofeconomic growth.
men in several
O
Women in the modern era are not only equally competent but often times ahead
socio-economic fields, thus making their presence in the work front extremely important.
(3) Promote overall development of society
O
It is the experience of all developed countries that improvement in education level, better health
facilities and reduction in infant mortality rate lead to a lowering of birth rates
small family, reduction in
O
While improved education facilities make people aware of the benefits of a
infant mortality rate reduce the incentive of having large families as fewer deaths are now feared.
get rid of poverty
(4) More measures to
O
Human development has reduced poverty, contributes to ademocracy
healthy civil society, increased
and greater social stability.
O
Pressure on one individual to earn a family's living can be too much to bear, which is why it is
rightful to share the burden amongst one another to provide for a better living condition to their
family members and also to gradually uproot poverty from the country by facilitating proper
distribution of wealth per household.
(5) Means to higher productivity
An essential part of human development is productivity.
O It requires investment in people and economic environment to achieve maximum potential.
O Empowering women means a more efficient use of a nation's human talent endowment, and reducing
gender inequality enhances productivity and economic growth.
ņ Over time, therefore, a nation's competitiveness depends among other things, on whether and how it
educates and utilizes its female talent.
(6) More equitable distribution of income
O More equitable distribution of income and economic opportunities as this is necessary for improving
the general human wellbeing on one hand and for creating a close link between economic growth and
development on the other hand.
O There must be a major reconstruction in the distribution of income through fiscal policy, overhauling
credit system so that poor people's requirements are satisfactorily met, equalization of political
opportunities and undertaking steps to remove social and legal barrier that limit the access of women
for equitable distribution.
(7) Investment in education, health and skill of people
3 These index also induces to make a huge investment in education, health and skill of people and
providing basic social services to all.
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TEMAN 21
O
Experience of a number of countries like China, Hong Kong, Japan, Singapore, and Thailand etc.
shows channeling of significant accounts of resources by the state in these fields greatly enhance
human development.
Topic No 4 - Inclusive Growth
Q-1 What is inclusive Growth? Explain elements and challenges.

Ans: Introduction: Inclusive growth explain comprehensive growth, share growth, and pro-poor growth.
It reduce the fast growth rate of poverty in a country and includes the participation of people into the
development of the country. Inclusive growth gives an impartial allocation of resources with benefits
incurred to every section of the society. Rapid and sustained poverty reduction requires inclusive growth
1 that permits people to contribute to and benefit from economic growth. Rapid growth is necessary to reduce
poverty but for this growth to be sustainable in the long run, it should include all sectors, and inclusive of
the large part of the country's labour force.
Growth Report, Strategies for Sustained Growth and Inclusive Development (Commission on Growth and
Development, 2008) found in report that inclusiveness, a concept that incorporates equity, equality of
opportunity, and protection in market and employment transitions is an essential element of any successful
growth strategy.
In India, governments have introduced several projects, such as Jawahar Rozgar Yojna, Integrated Rural
Development Program, Rural Housing Scheme, Swarnjayanti Gram Swarozgar Yojana and Mahatama
Gandhi National Rural Employment Guarantee Act to promote inclusive growth. Developing India's stellar
gross domestic product (GDP) growth rates have covered rapidly rising relative and absolute disparities
that result in dual face of India. A shining India, which is conflicting internationally and benefiting from
the powers of globalization, technological developments and economies of scale, has grabbed the attention
of the media and the world. On the other hand another facade of India is suffering India.
Elements of Inclusive Growth:
There are several interrelated elements of inclusive growth:
o Poverty Reduction Employment

Generation
o Employment generation and Increase in

Agricultural
Poverty Reduction
quantity & quality of employment Development
o Agriculture Development
o Industrial Development Industrial Elements of Social Sector
Inclusive Growth Development

Development
o Social Sector Development
o Reduction in regional disparities
Reduction in Equal distribution
o Protecting the environment Regional of income
Disparities
o Equal distribution of income
Challenges of Inclusive Growth in India:

afaced challenges. Borrians
• The country remains shackled in dishonesty, red tape, traditional social hurdles and a lack of
transparency.
It is witnessed that growth is not uniform across sectors and large cross-sections of the population
remain outside its benefits.
• Numerous social, political and economic factors need to be tackled for sustaining a high rate of growth,
as well as to make this growth inclusive. to eliminate.
• Indian society has to seriously solve major issues such as eradication of child labour, women
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empowerment, removal of caste barriers and an improvement in work culture.

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In order to accomplish major objectives for progress Indian government must focus on rapid growth in
●
the rural economy.

●
The reality remains that the fund is limited. Even if national funds distribution is perfect, it will not
reduce poverty level in country.
It is well observed that corruption is wide spread in the country. It is weakening the economic status
of India.
. Secondly, growth has been uneven across sectors and locations.

●
Third is the rapid rate of globalization. Due to trade competitiveness, foreign direct investment and
new technologies has demanded skilled labour.
Rassham Parechal
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9825415139
Unit: -2 IEPP Semester:-2
Topic No. 1 - Green Revolution/Second Green Revolution/NAS 2000
Q-1 Discuss Green Revolution. Explain achievement and weaknesses of Green revolution.
Ans - Introduction of Green Revolution
Food problem in India: India faced 1st serious food crisis in the form of severe Bengal famine of
1943, when millions died due to starvation. To bring about equitable distribution of scares food supplies,
the government introduced rationing system. The partition of the country in 1947 India
foreand
on the food front, as India received 82% of the population, but only 75% of acregelinder and 69%
of irrigated area. West Punjab & Sind were surplus areas & used to supply about 10-12 lakh tons of food
grains every year to other states while separation of Burma forced to India to import rice, the partition of
the country made India dependent on foreign countries for wheat too. So, India's food problem is older
than our independence.
After independence many food policies came into existence. Initially the major concern of the
government was to increase domestic supplies. In the 2nd half of the 1950's & during 1960's the major
concern of the government shifted to control of food grain prices.
The new agricultural strategy was adopted in India during the Third Plan, i.e., during 1960s. As
suggested by the team of experts of the Ford Foundation in its report "India's Crisis of Food and Steps to
Meet it" in 1959 the Government decided to shift the strategy followed in agricultural, sector of the
country.
This report suggested introducing intensive effort for raising agricultural production and
productivity in selected regions of the country through the introduction of modern inputs like fertilisers,
credit, marketing facilities etc.
Accordingly, in 1960, from seven states seven districts were selected and the Government
introduced a pilot project known asIntensive Area Development Programme (IADP) into those seven
districts.
Later on, this programme was extended to remaining states and one district from each state was
selected for intensive development. Accordingly, in 1965, 144 districts (out of 325) were selected for
intensive cultivation and the programme was renamed as Intensive Agricultural. Areas Programme
(IAAP).
In the kharif season in 1966. India adopted High Yielding Varieties Programme (HYVP) for the
first time. This programme was adopted as a package rogramme as the very success of this programme
depends upon adequate irrigation facilities, application of fertilizers, high yielding varieties of seeds,
pesticides, insecticides etc. In this way a new technology was gradually adopted in Indian agriculturc.
modern.
This new strategy is also popularly known as medem agricultural technology or green revolution.
As the new HYV seeds require shorter duration to grow thus it paved way for the introduction of
multiple cropping, i.e. to have two or even three crops throughout the year.
Achievements of Green Revolution Remarkable,
The most important achievement of new strategy is the substantial increase in the production of major
cereals like rice and wheat..
The production of rice has increased from 35 million tones in 1960-61 to 54 million tones in 1980-81 and
then to 106.5 million tones in 2013-14, showing a major breakthrough in its production. The yield per
hectare has also improved from 1013 kgs in 1960 to 1,101 kg in 2013-2014.
Again the production of wheat has also increased significantly from 11 million tones in 1950 to 36
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million tones in 1980-81 and then 95.9 million tones in 2013-2014. During the period, the yield per
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increased by
hectare also increased from 850 kgs to 3,075 kgs per hectare which that the yield rate has
369 per cent during last six decades. All these improvement resulted from the adoption of new
agricultural strategy in the production of wheat and rice. 2013-14
Items 1980-81
1960-61
Rice
106.5
35 54
95.9
Wheat 36
11
245.5
(a) Total cereals 69 119
19.3
(b) Total pules 13 11
264.8
(c) Total Food grains (a+b) 82 130
Total production of food grains in India has been facing wide fluctuations due to vagaries of monsoons.
In spite of these fluctuations, total production of food grains rose from 82 million tones in 1960-61 to 130
million tones in 1980-81 and then to 213.5 million tones in 2003-04 and then increased to 264.8 million
tones in 2013-14
The new strategy was very much restricted to the production of food grains, mostly wheat and rice. Thus,
the commercial crops like sugarcane,cotton, jute, oilseeds could achieve a significant increase in its
production.
Items 1960-61 1980-81 2013-14

1970-71
Sugarcanes (m.tones) 110 126 134 350.0
Cotton (m.bales) 6 5 7 36.7
Jute & Mesta (m.bales) 4 6 8 11.6
Oilseeds(m.tones) 7 10 9 32.9
Weakness of Green Revolution
1. Adoption of new agricultural strategy through IADP and HYVP led to the growth of capitalist farming
in Indian agriculture as the adoption of these programmes were very much restricted among the big farmers,
necessitating a heavy amount of investment.
2. The new agricultural strategy failed to recognize the need for institutional reforms in Indian agriculture.
3. Green revolution widened the disparity in income among the rural population.
4. New agricultural strategy along with increased Mechanisation of agriculture created a problem of labour
displacement.
5. Green revolution widened the inter-regional disparities in farm production and income.
6. Green revolution has led to some undesirable social consequences arising from incapacitation due to
accidents and acute poisoning from the use of pesticides.
Q-2 Explain the new agriculture policy 2000?
Ans - The Government of India announced a National Agriculture Policy on July 28th, 2000. The objectives
of the New Agriculture Policy are
1) A growth rate in excess of 4% in agriculture sector.
2) Growth based on efficient use of resources, conservation of soil, water and bio-diversity.
3) Growth with equality i.e. widespread across regions and farmers.
4) Growth is demand driven catering (reaching) to domestic markets and farmers.
5) Growth is sustainable: technologically, environmentally, and economically.
FEATURES of New Agriculture Policy 2000:
Publication Expert
The main features of the new agricultural policy are:
26

A6B04C22@1500N
1) Creation of favorable economic condition for increasing capital formation.
2) Private sector investment invited in agriculture in area of agriculture research, post-harvesting
management and marketing management.
3) Domestic agriculture markets should be liberalized and all controls and regulations should be reduced
to ensure that farmers receive prices in accordance with their efforts and investments.
4) Restrictions on the movements of agricultural commodities throughout the country progressively
dismantled.
5) Private sector participation promoted in control farming and land leasing arrangement for technology
transfer, capital inflow and assured markets for crop produced specially for oilseeds, cotton and
. fruits, Howers, vegetables.
6) Coverage of future markets to minimize price fluctuations. It gives fare prices to farmers and consumers.
7) Development of animal husbandry, poultry and dairy.
8) Excise duty in farm machinery, implements, fertilizers and post-harvest storage and processing
removed.
9) Agriculturist should outside tax collection.

10) Progressive institutionalization of rural credit, timely and adequate credit.
11) Rural electrification and use of renewable resources for agricultural purposes.
Q-3 Explain the strategy of New Agriculture Policy.
Ans - Introduction
On 28th July, 2000, the NDA Government made public a National Agriculture Policy envisaging over 4
per cent annual growth through efficient use of resources and technology and increased private investment
while emphasizing on price protection to farmers in the WTO regime.
The policy aimed at catapulting agricultural growth to over 4 per cent per annum by 2005. This growth is
to be achieved through a combination of measures including structural, institutional, agronomic,
environmental, economical and tax reforms.
Strategy of NAP 2000.

1. The unutilized wastelands will be put to use for agriculture and afforestation besides reclamation of
degraded lands. Integrated and holistic development of rainfed areas, conjunctive use of surface and ground
water, on water management, sensitization of farming community with environmental concerns will be
given priority. Survey and evaluation of genetic resources and safe conservation of both indigenous and
exogenously introduced genetic variability in crop productivity and utility needs particular attention.
2. The use of bio-technologies will be promoted for evolving plants which consume less water, are drought
resistant, pest resistant, contain more nutrition, give higher yields and are environmentally safe
Conservation of bio-resources through their exist preservation in gene banks as also in situ conservation in
their natural habitats through bio-diversity parks, etc will receive a high priority to present their extinction.
3. A regionally differentiated strategy for development of crops horticulture, floriculture, roots and tubers,
plantation crops, aromatic and medicinal plants, bee keeping and sericulture shall be adopted. Live-stock
breeding, dairying, poultry, agriculture shall be promoted through generation and dissemination of
appropriate technologies.
4. Research and extension linkages will be broad based and strengthened to improve effective use of new
technologies. Adequate and timely supply of quality inputs such as seed, fertilizers, plant protection
chemicals, bio pesticides, agriculture machinery and credit at reasonable rates to farmers will be the
endeavor of the government.
5. Agriculture in India has suffered for want of infrastructural facilities. The National Agriculture Policy
gives emphasis on stepping up public investment for narrowing regional imbalances, accelerating
Duhliento
27 Denart
particularly rural
development of supportive infrastructure for agriculture and rural development
connectivity.
6. A conducive climate will be created through a favourable price and trade regime to promote farmers'
own investments as also investments by industries producing inputs for agriculture and agro-based
industries.
and setting up of
7. High priority is also given to rural electrification,
development o f m a r k e t i n f r a s t r u c t u r e
agro-processing units to reduce wastage particularly of horticulture produce, and to enhance value addition
with the objective to create off- farm employment in rural areas.
8.To safeguard the interest of farmers, National Agricultural Insurance Scheme covering
a l f a r m e r s a n d
all crops throughout the country with built in provisions for insulating farmers from financial distress
caused by natural disasters and making agriculture financially viable will be made more farmer specific
and effective.
important.
9. Endeavour will begive
mademore
to provide a package insurance policy for the farmers, right from sowing of the
crops to post harvest operations, including market fluctuations in the prices of agriculture produce.
Q-4 Explain the Second Green Revolution.
Ans Introducing / Need for Second Green Revolution
The second green revolution should focus on following aspects.
1. Green Revolution largely restricted to few crops (e.g. wheat), few regions (e.g. Punjab, Haryana &
western U.P.) which were having irrigation facilities, credit and marketing facilities.
2. Further, it benefited rich farmers (rise in their incomes by 50 to 100%) at the cost of marginal and small
farmers.
3. Further there is an increase in demand for protein based food rather than simple cereals. This is due to
increased income and health awareness.
Focus/Measures of Second Green Revolution
The second green revolution should focus on following aspects.
1. The 2nd GR should spread to pulses, oil and horticultural products (e.g. vegetables, fruits, plantation
crops, spices etc.) It also includes animal husbandry (e.g. dairy, fisheries and poultry)
2. It should spread to various regions of India particularly backward, non-irrigated area.
3. Dry land farming technology should be developed to raise agricultural production. Pulses and oil seeds
are relatively less water intensive crops and they can be raised in dry land.
4. It should focus on sufficient production of pulses, because pulses are rich protein food for the
vegetarians. It helps the country to red the rural poverty and rural in debtness.
5. It should focus on the production of horticulture crops (e.g. tea, coffee, rubber, spices, vegetables,
medical plants, flowers etc.) in hilly slopes areas.
6. It should use sprinkler and drop irrigation for effective management of water. It should take the benefit
of water-shed management and check dams.
7. There should be different agricultural strategy for different regions. It should be based on agro-climatic
conditions.
8. There should be a link between production and post-harvesting technology. It means lab to land
demonstration should be used.
9. There should be improvement in the storage facilities and retail trade. Such facilities can reduce the
differences between the price received by farmer and price paid by consumers.
10. There should be a link between farm gate and consumer place.
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11. There should be focus on dairy and poultry. They improve farmer's income. Such foods are highly
nutritious for the consumers.
12. The link should be developed between agriculture and industry through agro-processing industry. Such
link provides non-farm employment and non-farm services such as storage facilities, marketing 1
facilities and transportation facilities.

13. There should be encouragement of science and bio-technology. It is necessary to improve the seed
quality and utilization of herbal and other plants.
14. There should be application of science to animal husbandry to improve the productivity of livestock
poultry.
Dr. M.S.Swami Nathan's report of National Commission on farmers, in February 2004
This report has focused on following five aspects of agricultural development.
1) Soil health enhancement in improving organic matter and macro and macro nutrient content and physics
and micro biology of soil.
2) Water harvesting and sustainable and equitable wage of water.
3) Access to affordable credit and crop life insurance reform.
4) Development and disseminations of appropriate technology and improvement opportunities.
5) Infrastructure and regulation for marketing of agricultural products,
Topic No 2 Disaster Management

Q-1 Discuss disaster management. Explain types, effects and modern phases of disaster
management.
Ans Introduction
Disasters have adversely affected humans since the dawn of our existence. In response, individuals and
societies have made many attempts to decrease consequences of these disasters. Regardless of the approach
adopted, all of these efforts have the same goal: disaster management. That guide disaster management --
the reduction of harm to life, property, and the environment - are largely the same throughout the world.
Some countries and some regions are more capable than others at addressing the problem. But no nation,
regardless of its wealth or influence, is advanced enough to be fully safe from disasters negative effects
Types of Disaster
The following types of disaster are covered in this chapter:
A) Earthquake, B) Tsunami,
C) Flood D) Bushfire (or wildfire)
E) Epidemic, F) Civil unrest

G) Volcanic eruption H) Tropical cyclone (typhoon, hurricane),
I) Landslide, J) Drought, and
K) Major accident
The General Effects of Disaster
Typical effects of disasters are
• Loss of life,
• Injury,
• Damage to property,
• Damage to and destruction of subsistence and cash crops
• Disruption of production
• Disruption of lifestyle
● Loss of livelihood
Loss of livelihood
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●
Disruption to essential services

• Damage to
national infrastructure and disruption to government systems
• National economic loss
●
Sociological and psychological after effects

Modern Disaster Management -A Four - Phase Approach
Comprehensive disaster distinct
management is based upon four components:
1. To Avoid Disaster: Involves reducing or eliminating the possibility or the consequences of a hazard.
To Avoid Disaster seeks to treat the hazard such that it impacts society to a lesser degree. E.g. Fire
Proof wall, Earthquake Proof house who be able
2. Preparedness: Involves equipping people who may impacted by a disaster or may to help
those impacted with the tools to increase their chance of survival and to minimize their financial and
other losses E.g. Training to survive during fire, Floods etc.
3. Response: Involves taking action to reduce or eliminate the impact of disasters that have occurred or
are currently occurring, in order to prevent further suffering, financial loss, Relief, a term commonly
used in international disaster management, is one component of response. E.g. Corrective action during i
disaster & helping people.

4. Recovery: Involves returning victim's lives back to a normal state following the impact of disaster
consequence. The recovery phase generally begins after the immediate response has ended, and can
persist for months or years thereafter. E.g. Giving treatment in camp, Rehabilitation services, financial
help etc.
In practice, all of these factors are intermixed and are performed to some degree before, during and after
disasters.
Topic No 3 Rural Credit in India

Q-1 Explain Rural Credit in India. Discuss problems, measures and recent policy initiatives by
the government of India.
Ans - Introduction:
Agriculture credit is an important prerequisite for agricultural growth. Rural credit system assumes
importance because for most of the Indian rural families, savings are inadequate to finance farming and
other economic activities. In India, a multi - agency approach comprising co-operative banks, scheduled
banks and regional rural banks (RRBs) are followed to allow credit to agricultural sector.
Types of Agriculture Credit:
The agriculture credit can be classified based on:
(1) According to Tenure of Agricultural Credit: i.e. the credit requirement based on the time period of
loans. It can of three types:
(a) Short-Term: It refers to the loans required for meeting the short-term requirements ofthe cultivators.
These loans are generally for a period 1 year repaid after the harvest. For example loans required for
the purchase of fertilizers, HYV seed, for meeting expense on religious or social ceremonies etc.
(b) Medium - Term: These loans are for a period up to 5 years. These are the financial requirements to
make improvements on land, buying cattle or agricultural equipments, digging up of canals etc.
(c) Long - Term: These loans are for a period of more than 5 years and are generally required to buy
additional land or tractor or making permanent improvements on land.
(2) According to Purpose of Agricultural Credit: The agriculture credit based on purpose for which the
credit is used can be of two types:
(a) Productive: Productive loans are the loans that are related to agricultural production. For example,
purchase of tractor, land, seeds etc.
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(b) Unproductive: Unproductive credit are used for personal consumption and unrelated to productive
activity for example loans for expenditure on marriages, religious ceremonies etc.
Sources of Agricultural Credit in India:
Sources of agricultural credit can be classified into INSTITUTIONAL and NON INSTITUTIONAL
sources.
(1) Non Institutional Sources: The non institutional finance constituting around 40 percent of total
credit in India. The interest charged by the non-institutional lenders is usually very high. The land or
other assets are kept as collateral. The important sources of non-institutional credit are as follows:
(i) Money - Lenders: The money - lenders charge huge rate of interest and mortgage the property of
the cultivators and in some cases event the Farmer and members of his family are kept as collateral.
(ii) Other Private Sources:
(a) Traders, landlords and commission agents: The agents give credit on the mortgage of crops
which when harvested is used to repay loans.
(b) Credit from relatives: These credits is generally used for meeting personal expenditure.
(2) Institutional source:
(A) Co-operative Societies: The government of India started Cooperative Credit Societies'in India in
1904 with a view to supply adequate and cheap credit to the agriculturists. The progress of co
operative societies was very slow and there is a record of only 3.1 percent total credit in 1951-52.
After independence, there is fast progress in co-operative credit. In 1995-96, it accounted to 22.5
percent.
i. Primary Agriculture Credit Society (PACS): PACS can be started with ten or more person, normally
belonging to a village. The value of each share is nominal so that even the poorest can become the
member. They deal directly with the farmer- borrowers, grant small term and medium term loans.
Loans are generally for shorter period of time normally for one year to carry out agricultural activities.
Shortcoming of PACS
The All India Rural Credit Review Committee brought out the following weakness of the PACS:
A) Cooperative credit societies still form a small portion of the total borrowing of the farmers.
B) Tenants and small farmers find it difficult to satisfy their needs from the PACS alone.
C) Most primary credit societies are financially weak and even not able to meet fully even the production
-oriented credit needs of the farmers.
D) The rising number of over dues indicating the failure of the PACS
E) PACS are not able to meet adequately and timely credit for the borrowing farmers.
ii. District Central Cooperative Banks (DCCBS): They are the federation of the Primary credit societies
in specified areas normally covering the whole district. They have few individuals as shareholders who
provide finance and management. Their main aim is to lend to the Primary Credit society, but they are
expected to attract deposits from the public also.
iii. State Cooperative Banks (SCBs): They form the apex of the cooperative society in each state. They
control the working of the DCCBs in the state. It serves as the link between the NABARD and the
cooperative central banks and the village cooperative societies. It obtains its finance from the
NABARD. Its own share capital and deposits from the general public.
Weaknesses of the cooperative model:
a) The most needy farmers (tenants, landless farmers and share - croppers) get only about share of 3-5%
in the total credit supply.
b) The small and medium farmers get about 35% of share in the credit.
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c) There is uneven distribution of the cooperative benefits in different states.

Expert
31

loan flow to the hilly and
d) The cooperative movement has not been able to increase the productive tribal
regions.
credit societies.
e) There is need for a proper manpower development in the cooperative
(B) Commercial Banks:
in the village area. They are
The commercial banks provide direct and indirect finance to the farmers one
of the important sources of rural credit. Commercial banks provide indirect finance for the distribution of
the fertilizers and other inputs. It even extends its credit to the business, which are allied with the
agricultural sector. For Example, the Pump set business or the agricultural marketing services.
• Shortcomings
a) With the rising need of credit for the farmers and limited resources of the commercial banks, there has
been more pressure on the commercial banks.
b) Commercial banks have been a witnessing some severe financial problem when it comes to credit
delivery and loan recovery.
(C) Regional Rural Banks (RRBs)
The idea Regional Rural banks came from the consideration of
a) Lowering the costs of rural banking, and
b) Operating such banks with local staff in an environment, which the poor people in the villages would
find most homely.
Its main objective is to provide finance to the small and marginal farmers, agricultural laborers and artisans.
The RRBs have played a very important role in the rural economy as they have acted as an alternate to
provide institutional credit.
(D) National bank for Agricultural and Rural Development
It was set up in 1982 by the act of parliament to take refinancing function of the RBI in relation of the
Cooperative banks and the RRBs.
Functions of NABARD:
It has dual role to play;

a) As an apex institution and
b) As a refinance institution.
Function NABARD play role like RBI i.e. performing the role, which was played by RBI. It services as a
refinancing institution for all kind of credit and investment activities. It provides short term and long-term
credit to the state cooperative banks, RRBs and the other institution approved by the RBI. It has the
responsibility to inspect RRBs and the cooperative banks.
Remedies to the Rural Indebtedness (Debtors):
(i) Settlement of old debt:

State govt. and Union territories have passed appropriate legislation to reduce the debts of the small
farmers, rural artisans and the landless laborers. In most states, legislation exists for compulsory reduction
of the ancestral debt and in few cases even for their liquidation also.
(ii) Reduce dependence on the Moneylenders:
Due to reducing the dependence of the rural people on the local moneylenders the network of the
institutional credit is being rapidly expanded throughout the country to provide timely and adequate credit.
However, these services are monopolized by the big farmers.
) Control of new loans:
Only settlement of the old debt will not improve the farmer's situation rather it is important to be see
that they borrow for the productive purposes only & to reduce un-productive loans.
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Q-2 Measures taken by the government to tackle the rural credit problems
Ans - Agriculture and Rural Debt Relief Scheme 1990
It was also called Loan wavier scheme. The scheme provided relief up to 10000 to the borrowers of the
public sector banks and the RRBs. The eligible loans under this scheme included:
a) Chronic overdue including interest
b) Loans taken by the borrower who died before October 2, 1989 and
c) The overdue of borrower who is declared insolvent, or whose petition is pending in the court to be
declared as insolvent.
Recent Policy Measures by the Government
1) Pradhan Mantri Fasal Bima Yojana (2016):
Farming has become an unreliable sector. Often farmers have to face natural calamities like droughts
and floods affecting their yield adversely. To resolve the problem of unpredictable nature of farming
and prevent farmer suicides in the country, the Government launched PM Mantri Fasal Bima Yojana in
early 2016. It's a crop insurance policy with relaxed premium rates on the principal sum insured for
farmers. Implemented with a budget of Rs. 17600 crore, this scheme will provide financial support to
farmers and cover for their losses. This initiative is expected to go on floors from the next Kharif season
of farming that is from June 2016.
2) After green, white and golden, it's time for blue revolution
The Cabinet Committee on Economic Affairs (CCEA) has approved Blue Revolution in India. It's an
integrated scheme designed to increase the productivity and profitability from aquaculture and fisheries
resources, inclusive of both inland and marine. With a budget of Rs. 3000 crore offered by the
government fir the next five years, this scheme aims to maintain an annual growth rate of percent of the
agriculture and allied sector.
3) Government to invest Rs. 221 crore to improve

India being the largest producer of milk in the world with an annual output of 130 million tonnes.
However with a milk - producing animal population of more than 118 million, the milk yields per
animal is very low. To meet the steadily growing demand for milk, the National Dairy Development
Board (NDDB) has announced 42 dairy projects, under a budget of 221 crore. These projects shall focus
on improving the milk productivity of major milk - producing states like Uttar Pradesh, Maharashtra,
Karnataka, Tamil Nadu and the likes.
4) Energy -
efficient irrigation to be implemented

A report says that in India more than two thirds of the Agriculture Area lacks proper irrigational
facilities. Taking note of this, Power Minister Piyush Goyal said that the government is planning on
investing Rs. 75000 crore to provide energy efficient irrigational facilities to farmers, over the next
three to four years. Under this scheme, close to 30 million energy-saving pump sets would be given
to farmers and this cost would be recovered via savings in the electricity consumed. This would result
in about 46 billion kWh of power being saved and creation of 20 lakh jobs.
5) Paramparagat Krishi Vikas Yojana (Organic Farming)
The government has launched Paramparagat Krishi Vikas Yojana in order to address the critical
importance of soil and water for improving agricultural production. The government would support and
improve the organic farming practices prevalent in India. Following cluster approach mode of farming,
at least 50 farmers would form a group having 50 acres of land implement organic farming. The
government aims to cover 10000 clusters and five lakh hectares of arable land under organic farming
within three years.
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Soil Health Card Scheme:
Government has initiated Soil Health Card scheme to provide farmers Soil Health Card in a mission
mode. This card will contain the knowhow of the new trend in the soil and accordingly the required
quantity of fertilizers. Through this card, the farmers will know the fertility of their fields. The expert
Iwill sort out the problem concerned with soil. Farmer can monitor productivity & try to improve it
through soil card.
Topic No 4 - Farm Subsidies in India
Q-1 Explain the issues related to direct and indirect farm subsidies in India.
Ans Introduction:
The like education health and infrastructure. According to the UNESCO, India unfortunately has the lowest
public expenditure on higher education per student in the world.
A subsidy is essentially defined as a opposite of a tax. It is financial help to farmers by Gout.
Farm Subsidies
to reduce
Farm subsidies refer to the government financial support paid to the farmers and agribusiness
their input expenditures and supplement their income. Farm subsidies are worldwide phenomenon and India
is of no exception.
To meet the crisis of deficiency of food grains required a shift from the traditional agricultural practices to
modern farm practices. But expensive cost of inputs likes high yielding varieties of seeds, farm
mechanization and modern technology etc., demolish farmers to move towards adaption to new technology.
On the recommendations of food grain price committee 1964, the Government of India started the scheme.
of
.
subsidies on purchase of various agriculture inputs to facilities the farmers.
an
in
of
manner
indirect
farmers
in
but
supporting
the
cash
form
are
not
provided
farm
subsidies
Indirect
For example - Providing cash directly to the farmers to buy fertilizers is an example of direct subsidy
whereas subsidizing fertilizer companies to provide cheap urea to farmers amounts to indirect subsidies.
Other example may include Cheap credit facilities, farm loan waivers, reduction in irrigation and
-
electricity bills, investments is agricultural research, farmer training etc.

Limitations of subsidy:
Subsidies do not reach the marginalized farmers:

Hot able to get proper subsidy.
The fiscal burden on the government:
So Govt. is not giving more subsidy.
The APMC Act
The APMC Act was set up by the government, as a means to improve the efficacy of the process ofthe
farmers getting their rightful price due to them, through the establishment of middlemen acting as links
to the chain. But middlemen started exploitation of farmers.
Topic No 5-Minimum Support Price

Q-1 Discuss in detail Minimum Support Price in India.
Ans-To support farmers Govt. started MSP.

Meaning: Minimum Support Price is the price at which government purchases crops from the farmers,
whatever may be the price for the crops, Minimum Support Price is an important part of India's agricultural
price policy.
Purchase Price:
Sometimes, the government purchase at a higher price than the MSP. Here the price will be referred as
purchase price. The purchase price will be announced soon after the harvest. Publicaton
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Normally the purchase price will be higher than the MSP, but lower than the market price. The price at
which the purchase and buffer stock food grains are provided through the PDS is called as issue price.
When the MSP is announced?
The minimum support prices are announced by the Government of India at the beginning of the sowing
season for certain crops on the basis of the recommendations of the Commission for Agricultural Costs and
Prices (CACP).
What are the Objectives of MSP?
Government's agricultural policy has three important components - the MSP, Buffer Stocks and issue of
food grains through the PDS. The interconnectivity between the three is very clear. MSP help to procure
adequate food grains through FCI, state agencies and cooperatives. The PDS network through the policy of
issue price delivers it to the weaker sections.
MSP is price fixed by Government of India to protect the farmers against excessive fall in price during
bumper production years. The minimum support prices are a guarantee price for their produce from the
Government.
Thus the minimum support price is aimed to:

Assure remunerative and relatively stable price environment for the farmers by inducing them to
increase production and thereby augment the availability of food grains.
• Improve economic access of food to people
Evolve a production pattern which is in line with overall needs of the economy.
●
History and trend
The MSP was declared first time in 1965 as a tool for agricultural price policy to meet the various
objectives.
Who declares and who prepares it? The Cabinet Committee on Economic Affairs (CCEA),
Government of India, determines the Minimum Support Prices (MSP) of various agricultural commodities
in India based on the recommendations of the Commission for Agricultural Cost and Prices (CACP).
What is open ended MSP?
Government considers that some types of crops are vital for food security. To ensure and encourage the
production
MSP.
of such crops the government follows a much liberal procurement policy known as open ended
In this case, there is no procurement target. The government allows the procurement agencies like the FCI
to buy whatever is offered by the farmers for sale at MSP. The major staple food items - rice and wheat are
the two principal commodities where government's role is pronounced.
How MSP is calculated for each crop?
The MSP is calculated and recommended by the CACP. For the calculation of the MSP, the CACP takes
into account a comprehensive view of the entire structure of the economy of a particular commodity or
group of commodities. Other Factors include cost of production, changes in input prices, input-output
price parity, trends in market prices, demand and supply, effect on cost of living, effect on general price
level, international price situation, parity between prices paid and prices received by the farmers.
Commission makes use of both micro-level data and aggregates at the level of district, state and the
country. Different Ministries and Departments help the Commission to arrive at the MSP.
These estimates take into account real factors of production and include all actual expenses in cash and
kind incurred by the farmer in production, rent paid for leased in land, imputed value of family labour,
interest value of owned capital assets (excluding land), rental value of owned land (net of land revenue),
depreciation of farm implements and buildings and other miscellaneous expenses.
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How many commodities are covered under the MSP?
Government announces minimum support prices (MSPs) for 22 mandated crops and fair and remunerative
price (FRP) for sugarcane. The mandated crops are 14 crops of the kharif season, 6 Ravi crops and two
other commercial crops. In addition, the MSPs of toria and de- dry coconut are fixed on the basis of the
MSPs of rapeseed/mustard and copra, mistral crops are as follows.
Cereals (7) rice, wheat, barley, jowar, bajra, maize and ragi
●
• Pulses (5) - gram, tur, moong, urad and lentil

Oilseeds (8) - groundnut, rapeseed/mustard, toria, soyabean, sunflower seed, sesamum, safflower seed
and nigerseed
●
Raw cotton
●
Raw jute
Copra
e
De husked coconut
Sugarcane (Fair and remunerative price)

●
Virginia flu cured (VFC) tobacco
Procurement of agricultural crops is made by the FCI, state agencies and cooperatives.
A counterpart of the MSP is the Market Intervention Scheme (MIS), under which the state government
procures perishable commodities like vegetable items.
Topic No 6- Public Distribution System & Food Security in India

Q-1 Discuss Public Distribution System in India. Discuss its objective, feature and importance.
Ans - Meaning: Public distribution system is a structure formed by a government and includes chain of.
shops trusted with the work of distributing basic food and non-food commodities to the poor group of the
society at very low prices.
The central and state governments share the accountability of regulating the Public distribution system.
While the central government is responsible for procurement, storage, transportation, and bulk allocation
of food grains, states government hold the responsibility for distributing the same to the consumers through
the established system of Fair Price Shops.
State governments are also responsible for opérational responsibilities including allocation and
identification of families below poverty line, issue of ration cards, supervision and monitoring the
functioning of FPSS system (PDS) is an Indian food security system. Established by the Government of
India under Minister of Consumer Affairs, Food, and Public Distribution and managed cooperatively with
state governments in India. Some of the commodities distributed by food department include staple food
grains, such as wheat, rice, sugar and kerosene, through as ration shops established in several states across
the nation. Food Corporation of India, a Government owned corporation, acquires and maintains the
Public distribution system.
The objectives of the Public Distribution System are as follows:
1. To protect the low income groups (deprived section) by supplying them the essential commodities.
2. To ensure equitable distribution of the food grains and other essential commodities.
3. Regulating the prices of Essential Commodities in the open market.
Publication
36 Expert
FY B.Com IEPP Ur-¹: 1-2 A6B04C22@1500N
Working of the PDS
FARMERS
CENTRAL GOVERNMENT
STATE GOVERNMENT
DISTRICT ADMINISTRATION
BLOCK ADMINISTRATION
GODOWNS
FAIR PRICE SHOPS
BENEFICIARY
Features of the Public Distribution System
The features of the Public Distribution System are mentioned below:

1. Public Distribution System is a system of distribution of selected essential goods through the fair price
shops (ration shops or co-operatives owned by the government) which are operated by private dealers
under the government's control and direction.
2. Rice, wheat and sugar are main food grains throughout the period. The other important items are
kerosene, edible oil that are distributed to deprived section of society.
3. The working of the Public Distribution System did not hamper the functioning of the free market.
Customers have liberty to either purchase through Fair Price Shops or from the open market.
4. The required amounts of food grains and other items are acquired by the government through internal
procurement and or through imports and a buffer stock is maintained to meet the demand of shortage
period.
5. The purpose of Public Distribution System is to offer basic minimum quantity of essential commodities
at lowest prices especially to poorer sections of society.
6. It has been principally an urban oriented system.
Importance of PDS in alleviating poverty's
PDS helps in indirect way to reduce poverty by supplying essential goods at low price families and it
●
perhaps the largest distribution network of its kind in the world.

• It has acted as one of the main pin in reducing the poverty by ensuring a stable food supply to the poor
in the form of daily essential commodities.
• In past India has witnessed some damaging droughts that have had a huge impact on the economy had
particularly the weaker section of the society. So the importance of the PDS as a remedy to alleviate the
poverty.
• Deprived of proper nutritional intake makes a man ill at some point of time, which further demands a
proper healthcare.
Publication
Expert
37
With a limited income poor are always deprived of a basic healthcare facilities and hence results in low
attendance at the farm resulting in a low income. Therefore the person cannot afford a nutritional diet
and again falls ill. The vicious circle of poverty continues and a poor are trapped in the same.
• So, PDS have benefitted largely in removing the poverty by contributing its share in the houses of rural
and urban poor. By providing healthy, essential & good quality food at lowest price.
Q-2 Discuss food security in India in detail.
Ans 1. Concept of Food Security
World Development Report (1986) defined food security as access by all times to enough food for an
Active, healthy life.
Food and Agriculture Organization (FAO, 1983) defined food security as ensuring that all people at all
times have both physical and economic access to basic food they need.
Stats (1990) defined food security as the ability to assure, on a long term basis, that the food system
provides the total population access to a timely, reliable and nutritionally adequate supply of food.
From these definitions, the following points emerge:
1. Food security involves adequate physical availability of food to the entire population in a country.
2. People have enough purchasing power so that they can acquire the food they need.
3. For healthy life, the food available should be adequate in quality as well as quantity to meet
nutritional requirements.
4. A nation may acquire self-sufficiency in food at a point of time, but the concept of food security
necessities that, timely, reliable and nutritionally adequate supply of food should be available on a`
long-term basis.
The following stages of food security may be visualized for a developing country like India:
Stage 1. The most basic need from the point of view of human survival is to make an adequate quantity
of cereals available to all.
Stage 2. In the second stage, we may think of food security as the adequate availability of cereals and
pulses.
Stage 3. In the third stage, food security should include cereals, pulses, milk and milk products.
Stage 4. In the fourth stage, food security should include cereals, pulses, milk and milk products,
vegetables and fruits, fish, eggs and meat.
2. Food Self-Sufficiency and Food Security in India
The Indian planners, right from the beginning, realized the need to attain self-sufficiency in food grains
is one of the important goals of planning. The Government realized that food surplus countries used their
food surplus as a weapon to force food deficit countries to submit to their dictates.
India's first Prime Minister Jawaharlal Nehru Realized that it was with great difficulty that India
was able to avoid the political strings attached with food aid, but it did hurt national pride. In one of his
broadcasts to the nation, Nehru stated very candidly: .
"We have sought help from abroad and we shall continue to so under pressure of necessity, but the
conviction is growing upon me more forcefully than ever now dangerous it is for us to depend for this prime
necessity of life on foreign countries. It is only when we obtain self-sufficiency in food that we can
progress and develop ourselves. Otherwise there is the continuous pressure of circumstances, there is
trouble and misery and there is sometimes shame and humiliation."
Later when India suffered very severe droughts during 1965 and 1966, the then American President,
Johnson, restricted food aid to monthly basis.
Publicaton
38
Expert
The Government of India under Prime Minister Indira Gandhi went in for seed-water - fertilizer
policy popularly known as the green revolution. This policy shared in a revolution in food production in
India. India achieved self-sufficiency in food grains by the year 1976 and since then, Indian imports of
cereals have remained negligible (except in 2006-07).
Despite the gloomy and perfectly ill-founded forecasts or prophecies about India's future disasters,
which were fashionable in the 1960's, the county is no longer exposed to real famines.
The Ninth Five Year Plan (1997-2002) states: One of the first efforts of the country was to build up
a food security system to ensure that the threat of famine no longer stalks the country. The fact that the
-----
country has not witnessed famine and acute starvation on a massive scale in the last five decades is the most
eloquent testimony for the success of these efforts.
Progress on food grains front reveals the following:
(a) Between 1950-51 and 2013-14 food grains production had increased from 51 million tones to 265
million tones before falling to 253 million tones in 2014-15.
(b) The various components of cereal production indicate that whereas cereals accounted for 84 per cent in
food grains in 1950-51, their share has increased to 93.6 per cent in 2013-14, the share of pulses,
however, has declined from 16 percent to just 7.2 per cent during the same period.
(c) Within cereals, the share of the two superior cereals - rice and wheat - which was only 53 percent in
1950-51 had improved to 77 percent in 2013-2014.
Net Availability of Cereals and Pulses
This table is revealing. While India's population was steadily rising, production of food grains - cereals
and pulses, especially cereals - rose equally. Net availability of cereals had gone up except in some year.
Net Availability of Cereals and Pulses

Per Capital Net
Cereals (million tones)
Availability per day (gram)
Pulses
Food
Net
Year Net Change in Grains
Population Net Availabil
Government Cereals Pulses Total
Produc Net
(millions) Imports ity
tion Stocks Availabil
(million
ity
tones)
-4.5 +12.3 11.3 145.6 366.2 30.0 416.2

2000-01 1033 162.5
-2.4 12.7 157.4 390.9 31.5 422.4

2005-06 1103 162.1 -7.2
13.3 168.8 412.1 32.5 444.5

1120 170.8 -3.8 -1.8
2006-07
168.9 407.4 32.5 442.8

177.7 7.0 +1.7 14.7
2007-08 1136.5
-14.4 +17.0 17.6 165.9 374.6 41.8 436.0
2008-09 1153.01 197.2
407.0 37.0 444.0

192.4 -7.2 +11.5 15.8 173.7
2009-10 1169.4
189.2 401.7 35.4 437.1
-4.6 -0.5 15.3
2010-11 1185.7 178.0
199.0 410.6 43.0 453.6

8.3 18.8
2011-12 1201.9 198.0 -9.6
408.6 41.7 451.3
11.2 18.4 199.4
2012-13 1212.4 212.0 -19.7
43.3 401.4
19.4 180.0 358.1
209.0 -71.9 -23.6
2013-14 1228.8
47.2 491.2
21.4 223.0 444.1
-19.4 -6.0
2014-15 1244.0
The data reveal that annual net imports were of the order of 4.1 million tons during 1950-51,
they increased to 10.3 million tons during 1965-66. They were around 6.4 million tons per year during Publication
Expert
39 A6B04C22@1500N
FYRC
1966 71. They declined thereafter and since 1976, food imports were ,
India became a net exporter of cereals. In fact India's exports if cereals during 2013-14 was 2.4 million
tons.
Data about per capita availability of cereals and pulses indicates an overall improvement in per
capita availability of food grains from about 395 grams per day to 491 grams between 1951 and 2015.
1
This has two components - cereals and pulses. The per capita availability of cereals increased from 334
gms to 444 gms; but the availability of pulses has declined deeply from 61 grams per day to about 47.2
grams per day - indicating the growing poor quality of food.
day in 1950
Similarly, the per capita consumption of coarse cereals deciined from 116 gms. Per
– 51 to 90 gms per day in 1997 - 98 - a fall of nearly 25%. The Ninth Five Year Plan emphasizing this
point rightly mentions: Coarse grains that are inexpensive can provide substantially higher calories for
the same cost. If made available through PDS at subsidized rates, these will be self-targeting and
improve calorie intake and reduce hunger among the poorest segments of population. , but
has
Obviouslymiserably
whilefailed
moving towards
to increase
thefood grains
cereals
production
of
security,pulses
India succeeded
consistent
with
inthe
termsnofe ds a growing
of
population.
Self-Sufficiency at the National Level
Ninth Plan (1997-2002) discussed the problem of food security at the household level. The Planning
Commissions states: An approach to national food security, which relies largely on domestic production of
food needed for consumption as well as for building buffer stocks, can be described as a strategy of self
emphasized the extension
sufficiency. This strategy was adopted in the early phase of Indian planning.
of irrigation facilities and later in the sixties adopted seed - water - fertilizer technology popularly known
as the Green Revolution. As a consequence of these concerted efforts, India was able to attain its goal of
self-sufficiency in food grains.
Food Security at the Local Level

At the household level, food security implies having physical and economic access to food articles that are
adequate in terms of quantity, quality and affordability. This raises the question of prices of food articles
and the purchasing power in the hands of the population. To help the poor sections, the Government
introduced the Public Distribution System (PDS) and adopted dual price mechanism. At the PDS outlet,
the issue price of food articles was kept lower than the market price to enable the poor to purchase
subsidized food. But due to political pressures, the Government adopted a universal PDS, rather than a
targeted PDS focused on the poor. The result was the non- poor also began to benefit from the PDS and
-
the poor especially the migrant poor - were not able to take full advantage of the PDS supplies.
The Ninth Plan reviewing the situation underlines the stark reality: In spite of mounting food
subsidies, evaluation studies indicate that supply of subsidized, food grains through PDS has not resulted
in improvement in household level food security. Self-sufficiency of food grains at national level and
availability of food grains at affordable cost at local level have not got translated into household level food
security for the poor.
To achieve household level food security, efforts should be directed on the following fronts.
Publicaton
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40

46B04C22@1500N
●
Accelerating growth in food and agricultural sectors which provide direct sources for food and
income with which to buy food;
• Promoting rural development that focuses on the poor;
Improving access to land and other natural resources;
Providing cheap credit for poor households;
• Increasing employment opportunities;
• Introducing income transfer scheme, including provision of public distribution system of subsidized
cheap food;
Stabilizing food supplies and food prices; and

Improving emergency preparedness planning for providing food aid during natural like drought,
flood, earthquake etc.
Food Security and Nutrition
During the last 50 years, there has been substantial reduction in moderate and severe under - nutrition in
children and some improvement in nutritional status of all segments of population.
Under- nutrition is a problem among:

(i) Pregnant and lactating women
(ii) One third of the new-born still weigh less than 2.5 kg. at birth.
(iii) Vitamin - A deficiency exist which may result in blindness in certain cases
1
(iv) Universal access to iodized salt has not been achieved and there has not been marked reduction
in iodine disorders.
(v) Not decline in prevalence of anemia and its health consequences due to iron deficiency.
Prevention of Chronic Energy Deficiency
Applied Nutrition Project (ANP) introduced in 1963 was intended to promote production of protected food
such as vegetables and fruits and ensure their consumption by pregnant and nursing mothers and children.
Special Nutrition Programme (SNP) was started in 1970 with the objective of providing 500 K Cal
and 25 grams of protein to expectant and nursing mothers and 300 K Cal and 10 grams of protein to children
six day in a week.
Integrated Child Development Services Scheme (ICDS)
ICDS started in 1975 was intended to provide food supplementation to children and pregnant/ nursing
women. The ICDS programme as of 1996, covers 4200 blocks with 5.92 lakh anganwadis in the country.
The number of beneficiaries shot up to 18.5 million children and 3.7 million mothers in 1996. Review of
the ICDS programme revealed: While 25 percent of nursing mothers in ICDS areas introduced semi solid
supplements to their breast-fed infants at 6 months. Only 19 percent did so in non- ICDS areas.
Mid-day Meal Programme
Mid-day Meal Programme was introduced for children between ages of 2-14 attending balwadis/schools
at the expense of Rs. 0.44 to 0.90 per beneficiary. The programme does not cover poor children not
attending school. This programme has been renamed as Nutritional Support to Primary Education and
implemented in 1975to universalize primary education. By 2003-04, the programme covered nearly 10.6
crore children. While the mid-day meal programme has been largely successful in Tamil Nadu, Karnataka
and other South Indian states, it was initially a failure in most North Indian states.
Thereafter it has been increasing and we find that total cost per meal reached rupees 3.59 for primary
students and rupees 5.38 for upper primary students (2013-14)
41

meal consists of 100 grams of
Under MDMS for children of Primary classes, a cooked mid-day
food grain (rice / wheat / nutria - rich cereals), 20 grams of pulses, 50 grams of vegetable and 5 grams of
oil/ fat to children to provide 450 calories of energy and 12 grams of protein. For children of upper primary
classes, it consists of 150 grams of food grain (wheat/rice/nutria - rich cereals), 30 grams of pulses, 75
grams of vegetables and 7.5 grams of oil /fat to provide 700 calories of energy and 20 grams of proteins.10.8
In 2013-14, total expenditure on the scheme was Rs. 10927.21 crores with benefit extending to
crore children. Total food grain allocated under the scheme was 29.77 tons.
low
income group (LIG),
Cereals and millets constitute more than 50% of the total food among the
industrial labour and slum dwellers, while for the high income group (HIG) and middle income groups
(MIG), these food groups form about one-fourth and one-third of the total food respectively.
is
33
average gms. In 2006-07
Recommended intake of pulses is 40 gms. Per day. Even the national
and thus, the condition of the poor in intake of pulses has become worse. Region wise, only in Karnataka,
Madhya Pradesh, Rajasthan and Uttar Pradesh, is the mean intake above the recommended level of 40 gms.
Per day. Unless the production of pulses is substantially increased, the nutritional levels will further
deteriorate.
The mean energy intake varies from 2206 K Cal in the lowest income group to about 2600 K Cal in
the highest. Only families belonging to the highest income group have an average calorie intake above the
RDA (Recommended Daily Allowance) level of 2400.
familial
Nutrition education, more especially among families can help to improve intra
distribution. It can help to direct the available resources to use green and leafy vegetables and also such
commodities as iodised salt, which help to reduce iodine deficiency.
Nutrition education to all members of the family is required to ensure that pregnant and lactating
women do eat 1/5th or 1/6th more than their habitual diet. This is a critical input to reduce low birth weight
and give the child a good start in life.
Tenth Plan and Food Security
Tenth Plan has drawn attention to the changes in consumption pattern that have taken place in the post
Green Revolution period. It states: Between 1972-73 and 1993 - 94, the food basket has become much
more diversified, with the share of cereals seeing a dramatic decline of ten percentage points in most
regions. At the all India level, cereal consumption in the rural areas declined from 15.3 kg per capita per
month in 1972 – 73 to 13.4 kg per capita per month in 1993-94. The corresponding decline in the urban
areas was more modest from 11.3 kg to 10.6 kg over the same period. At the same time, consumption of
milk and meat products as well as vegetables and fruits has increased. Such changes are a natural outcome
of economic development.
Restructuring of PDS
Tenth Plan provides the following outline for restructuring of PDS.
1. Since wheat and rice are the basic necessities of the poor, items other than these two should be
excluded from the scope of food subsidies.
2. Sugar should be kept outside the purview of PDS.
3. The subsidy on kerosene should be phased out by raising its supply price for PDS shops since studies
show that the subsidy on kerosene is cornered by the non-poor. Alternatively, if kerosene is to be
retained under PDS, the extent of subsidy provided should be reduced so that there is less incentive
for diversion.
42

A6B04C22@1500N
4. The coverage of PDS and food subsidy should be restricted to BPL population. Any attempt to revert
to the old concept (BPL as well as APL population) of a universal PDS will be a retrograde step and
needs to be resisted.
5. To reduce malpractices, food stamps should be issued to female members of the family who can be
designated as heads of households for the purpose. Under the system of food stamps, the State
Government should issue a subsidy entitlement card (SEC) instead of a ration cards.
6. A food card system could be a superior alternative to the prevalent Fair Price Shop (FPS) system
and perhaps even a food stamp system. The customers could use food credit/debit cards to buy
subsidized food grains from the market and the retailers can claim the subsidy from the Government.
7. A food coupon scheme was introduced in Andhra Pradesh in 1998-99 for distribution of rice and
kerosene through PDS. This system has resulted in saving about 20000 tons of rice, 71 lakh liters
of kerosene every month. The Andhra Pradesh experiment may be replicated with suitable
adaptation in other states as well.
Main Components of the Food SecuritySystem

The main components of the food security system are the following:
(i) Promoting domestic production to meet the demands of the growing population as also to reduce
under - nutrition among quite a large section of the population.
(ii) Providing minimum support prices for procurement and storage of food items;
(iii) Operating a public distribution system; and
(iv)
Maintaining buffer stocks so as to take care of natural calamities resulting in temporary short ages
of food and to maintain price stability.
3. Public Distribution System and its Impact on Poverty
The main purpose of the Public Distribution System (PDS) in India was to act as a price support programme
for the consumer during the periods of food shortage of the 1960s. The basic aim was to provide essential
commodities such as rice, wheat, sugar, edible oil, soft coke and kerosene at subsidized prices.
Since the mid-1980s, the coverage of the PDS was extended to rural areas in some states. Thus it
acquired the status of a welfare programme. An effort was made to extend subsidized food grains in 1985
in all the tribal blocks covering about 57 million persons. With a network of more than 4.62 lakh fair price
shops (FPS) distributing commodities worth Rs. 30000 crores annually to about 160 million families, the
PDS in India was the largest distribution network of its kind in the world, the food subsidy component of
the Central Government is given in table.
It may be noted that there has been a continuous increase in PDS expenditure, which rose from Rs.
650 crores in 1980-81(at current prices) to Rs. 2450 crores in 1990-91. There was a big jump in expenditure
during the period. As a proportion of Central Government expenditure, it was in the range of 2.9 to 3.2
percent during 1980s and 1990s. Since 1997-98 PDS expenditure has been shooting up from Rs. 7500
crores to Rs. 12120 crores in 2000-01 and further to a record level of Rs. 27798 crores in 2004-05. Food
subsidies as percentage of total government expenditure went up sharply from 2.9 percent in 1980-81 to
2.5 percent in 2004-05. Thereafter, food subsidy declined to Rs. 23828 in 2006-07, which was only 1
percent of total government expenditure. In 2014-15 thought it increased to Rs. 122675 (RE) crore, it
continued to remain low is terms of total government expenditure.

Publication
Expert
43
"
Central Government Expenditure on Food Subsidy
Expenditure (Rs. Crores) Expenditure (Rs. Crores)

Year At Current Year At Current
Prices Prices
1980-81 650
1990-91
2008-09 43668
2450
2009-10 58242
2000-01 12010
25746
2010-11 63844
2004-05
2011-12 72822
2005-06 23071
2012-13 85000
2006-07 23828
2013-14 92000
2007-08 31259
2014-15 122675
Source: Planning Commission, Tenth Five Year Plan, Vol. II. Union Budget, 2015-16.
Agricultural Statistics at a Glance, 2010, Ministry of Agriculture

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panchal.Dashon M.

According to New Syllabus

F.Y.B.Com Index Semester:-2nd

Que. Unit Page

Topic: 1 Planning & Economic Development in India 1

1 Economic planning & Its objectives & achievement 3

4 Planning in different economies/types of planning 8

Topic: 2 Economic Development

Topic: 3 Measures of Economic Development

1 Income & Non-income indicators of Economic Development 12

3 New method of HDI 16

Short Note: Human Poverty Index in Developed & Undeveloped

Difference between HDI, HPI & MPI 19

Topic: 4 Inclusive Growth

Inclusive Growth its Elements & Challenges 23

Expert FY B.Com IEPP Unit 1-2. A6B04C22@1500N Rabi

Topic: 1 Green Revolution/Second Green Revolution 2

2 Features of New Agricultural Policy 2000 25

Topic: 2 Disaster Management

1 Disaster Management & Its types, effects & Modern phases of 29

Topic: 3 Rural Credit in India

1 Measures taken by Government to tackle rural credit problems 33

Topic: 4 Farm Subsidies in India

1 Issue related direct & indirect subsidies in India 34

Topic: 5 Minimum Support Price

Topic: 6 Public Distribution System & Food Security in

1 Public Distribution System in India. Its objectives, features &

Topic No 1 Planning & Economic Development in India

(1) According to Dickinson: Economic planning means,

(b) The decisions are taken by the planning authority.

(2) According to the Planning Commission: "Economic planning means:

Following are the basic objectives of planning in India:

Period p.a.) p.a.)

2nd 1956-1961 4.5 4.3

3rd 1961-1966 5.6 2.6

4th 1969-1974 5.7 3.3

5th 1974-1979 4.4

6th 5.2 5.7

8th 1992-1997 5.6 6.8

9th 1997-2002 5.5

10th 2002-2007 7.6

(3) Removal of Unemployment: One of the objectives of economic planning is to remove

(4) Social Justice (Reduction of Income Inequality):

Special employment programmes, like Jawahar Rojgar Yojna,

Conclusion: So far the performance of planning

FY B.Com IEPP Unit 1-2

(1) Establishment of Planning Commission:

(3) Formulating Objectives:

(4) Fixation of Targets & Priorities:

(7) Incorrupt & efficient Administration:

(a) In India, there is a problem of widespread unemployment and disguised unemployment.

(a) For rapid economic development, it is necessary to bring a balance between:

➤ Expansion of domestic and foreign trade.

(4) Direction for Attaining Targets:

Planning is imperative in nature.

➤ Planning in mixed economy is a combination of above two systems.

FY B.C: IEPP Unit 1-2

(A) Financial Planning

(b) In financial planning, attempts are made to bring a balance:

(5) Financial planning is unsuitable to underdeveloped countries, because it may increase

(B) Physical Planning:

FY B.Com IEPP Unit 1-2

Such planning is used in China and Russia.

Iepp Pamaplet Unit 1 & 2

Iepp Pamaplet Unit 1 & 2