NOTES OF INDIAN ECONOMY

CHAPTER 9TH
CHAPTER 7TH
CHAPTER 8TH
CHAPTER 10TH

AS PER CBSE CHANGES 2022

BY DHEERAJ JAGIYA
CHAPTER 9TH ENVIRONMENT AND SUSTAINABLE
DEVELOPMENT
INTRODUCTION
Environment is defined as the total planetary inheritance and totality of all
resources. It is the sum total of all external forces which surrounds us.

It includes all the biotic and abiotic elements.

Biotic elements include all living elements like birds, animals and plants,
forests, fisheries, etc. whereas, abiotic elements include all non living things
like air, water, land, etc.

India is following Environment protection act 1986.

FUNCTIONS OF ENVIRONMENT

1.) PROVIDES RESOURCES FOR PRODUCTION – environment supply renewable

and non renewable resources. Renewable resources are those which can be used
without any possibility of being depleted. For eg. Tree, water, etc.

Non renewable resources means those resources which get depleted over time like
fossil fuels i.e petrol, diesel ,e tc

These resources provided by environment are used for further production.

2.) ENVIROMENT ASSIMILATES WASTE – the process of production and

consumption generates a lot of wastage which is absorbed by environment.

3.) ENVIRONMENT SUSTAINS LIFE – some basic necessities of life are part of
environment like sun, water, air, land, etc. environment sustains life by
providing these essential elements.

4.) IT PROVIDES ASTHETIC SERVICES – Environment includes land, forests, water

bodies, mountains, etc. people enjoy beauty of these elements which helps in
improving our quality of life also.
NOTE : the environment is able to perform these 4 basic functions without any
problem as long as demand of resources is within the carrying capacity.

Carrying capacity implies two things:

a) Resource extraction should remain below the rate of resource regeneration.

b) generation of waste should remain within the absorption capacity of the

environment.

If above two conditions are not fulfilled, then environment will not perform its
basic functions and leads to ENVIRONMENTAL CRISIS.

REASONS OF ENVIRONMENTAL CRISIS

1.) the population explosion and industrial revolution has increased the demand
for environmental resources, but its supply is limited due to overuse and
misuse.

2.) the massive extraction of resources has exhausted some of vital resources and
thus we are spending huge amount on technology and research to explore new
resources.

3.) due to massive consumption and production, the waste generated are beyond
the absorption capacity of environment.

4.) the development process has polluted atmosphere and water and thus there is
decline in air and water quality . 70% water of India is polluted now a days
and leads to water-borne diseases.

5.) Global environmental issued such as global warming and ozone depletion
also contribute to the increased financial commitments of the government.

HIGH OPPORTUNITY COST OF NEGATIVE ENVIRONMENT IMPACTS

Opportunity cost means cost of next best alternate. Due to global warming,
ozone depletion, decline in air and water quality and due to other
environmental problems, the financial commitments of the government
increased manifolds. Thus we can say that the opportunity cost of negative
environmental impacts is very high.

Government is spending a very huge amount to explore new resources and

technology.

REVERSAL OF SUPPLY-DEMAND RELATION : MAIN REASON OF ENVIRONMENTAL

DEGRADATION

IN THE PAST….. IN the early days of civilization, demand for environmental

resources was less than their supply.

Pollution was within the absorptive capacity of the environment.

Rate of resources extraction was less than the rate of resource regeneration.

As a result, environmental crisis did not arise.

IN THE PRESENT….. IN the present period, the demand for resources is in far
excess of its supply.

Pollution and waste is now beyond the absorptive capacity of environment.

Demand of resources is beyond the rate of regeneration of resources.

Due to population explosion and industrial revolution, demand of resources has

increased tremendously.

Due to this reversal of supply – demand relation, environmental

crisis/degradation arises.

GLOBAL WARMING
Global warming is the observed and projected increase in the average
temperature of earth’s atmosphere and oceans. During the past century, earth’s
temperature has risen by 1.1 degree F OR 0.6 degree Celsius and thus sea water
level has risen several inches.
CAUSES OF GLOBAL WARMING –

Global warming occurs due to increase in the green house gas concentrations
like water vapour, carbon dioxide, methane in the atmosphere.

Following factors are contributing in global warming:

a) burning of coal and petroleum products because it creates carbon dioxide,

methane, nitrous oxide, etc.

b) deforestation (cutting of trees), which increases the amount of carbon dioxide

in the atmosphere.

c) methane gas released in animal waste.

Since 1750, the concentrations of carbon dioxide (CO 2) and methane (CH 4)
rises by 41% and 160% respectively.

MAIN EFFECTS OF GLOBAL WARMING –

Global warming adversely affects the earth:

a) ICE is melting worldwide, especially at earth poles. It leads to rise in sea water
level by several inches.

b) Hurricanes and other tropical storms are likely to become stronger.

c) Increased incidence of tropical diseases like malaria, cholera, dengue,

chikungunya, etc.

d) Species like polar bears are in danger of becoming extinct.

e) Global warming has lead to shift in cycle of seasons as summers are getting
unusual longer than winters.
OZONE DEPLETION
OZONE depletion refers to destruction of ozone in the ozone layer due to
presence of chlorine from manmade CFC(chlorofluorocarbons) and other forces.

CAUSES OF OZONE DEPLETION

The problem of ozone depletion is caused by high levels of chlorine and bromine
compounds in the stratosphere. The origin of these chemicals are:

a) CFC which is used as a cooling substance in AC and refrigerators.

b) Aerosol propellants and BFC (bromofluorocarbons) also called as halons,

which is used in fire extinguishers.

MAIN EFFECTS OF OZONE DEPLETION

As a result of ozone depletion, UV rays (ultra violet rays) come to earth and
cause damage to living organisms.

a) UV rays seem to be responsible for skin cancer in human beings.

b) UV rays lowers production of phytoplankton which affects other aquatic

organisms.

c) UV radiations can also influence the growth of terrestrial plants.

MONTREAL PROTOCOL
AS ozone layer prevents most harmful ultraviolet rays from passing through
earth’s atmosphere. So depletion of ozone layer is a great concern.

Thus for recovery of ozone layer, adoption of Montreal protocol is much required.

• Montreal protocol is a treaty (agreement) designed by the members of

united nations to protect the ozone layer by phasing out (removing) CFC
as CFC is the main reason for ozone depletion.
 • Under the Montreal protocol, all the signing members agreed to freeze the
consumption and production of CFC by the year 2013.
• India signed the Montreal protocol with its London amendment on 17
September 1992.
• Montreal protocol has significantly reduced the burden of CFC in the
stratosphere and helped in Ozone recovery.

Now its time for PRYAVARAN MITRA means friend of environment.

STATE OF INDIA’S ENVIRONMENT AND DICHOTOMY

India has abundant Natural resources in terms of rich quality of soil, hundreds
of rivers and plenty of mineral deposits.

• The black soil of Deccan plateau is particularly suitable for cultivation of

cotton leading to concentration of textile industries.
• The Indo Gangetic plains spread from Arabian sea to the Bay of Bengal
are one of the most fertile and densely populated area in the world.
• India’s forests though unevenly distributed provide green cover for a
majority of its population and natural cover for its wildlife.
• Large deposits of iron-ore, coal and natural gas are found in the country.
India alone accounts for 20% of world’s total iron ore.
• Bauxite, copper, chromate, diamonds, gold’s, lead, lignite, zinc, uranium,
etc. also available in different parts of the country.

INDIA’S ENVIRONMENTAL PROBLEMS POSE A DICHOTOMY

1.) Poverty is causing environmental degradation through cutting down of

trees, overgrazing of animals, pollution of water, etc.

2.) Rising standard of living is causing environmental degradation

because due to increase in population and wealth, demand of resources has
increased which causes misuse and overuse of natural resources.
CRITICAL ISSUES OF OUR INDIA’S ENVIRONMENT

1.) LAND DEGRADATION

LAND degradation refers to a decline in the overall quality of soil, water or
vegetation condition commonly caused by human activities.

It occurs through various natural and man-made process especially water-

logging.

Land degradation leads to the loss of various nutrients and lower food grain
production.

CAUSES OF LAND DEGRADATION

1.) Loss of vegetation due to deforestation.

2.) Overgrazing i.e grazing of natural pastures above the capacity.

3.) Encroachment into forest lands.

4.) Non – adoption of adequate soil conservation measures.

5.) Unsustainable fuel wood extraction.

6.) Improper crop rotation.

7.) Improper use of chemical fertilizers and pesticides.

NOTE: According to a survey, 174 million hectares means 53% of total land
area in India is facing problem of land degradation and mainly due to soil
erosion.

2.) DEFORESTATION OR FOREST DEGRADATION

DEFORESTATION involves the permanent destruction of indigenous forests

and woodlands. It refers to cutting, clearing and removal of rain-forest
where land is converted to a non-forest use.
 • Deforestation is rising at such a rapid scale that it has totally
disturbed the ecological balance of the country.
• The per capita forest land in the country is only 0.08 hectare against
the requirement of at least 0.47 hectare forest land to meet basic
needs.
• Chances of more floods, soil erosion, changes in climate are some of
the serious consequences of deforestation.

APPIKO MOVEMENT – On 8th September 1963, when felling of trees

started in Sirsi district of Karnataka, then, 160 Men, Women and
children hugged the trees and forced the woodcutters to leave.

These people saved 12000 trees and within months, this movement spread
to many adjoining districts.

3.) SOIL EROSION – Soil erosion takes place when the surface soil is washed
away through excessive rains and floods. Deforestation is the main reason for
soil erosion.

As per the estimates, soil is being eroded at a rate of 5.3 billion tonnes a year,
which is quite high.

The quantity of nutrients lost due to erosion each year ranges from 5.8 to 8.4
million tonnes.

VERY IMPORTANT NOTE: India carries around 17% of world’s total

population of humans and around 20% population of total livestock in world.
But, India is having only 2.5% of total land area in world. Due to this rising
population in limited land, India is facing issue of deforestation and soil
erosion.
4.) BIO-DIVERSITY LOSS – BIO-diversity is defined as the varities of species
available on earth from all sources including terrestrial (on land), marine and
aquatic, etc.

Extinction of any species is called bio-diversity loss. Bio-diversity loss has

serious economic and social costs for any country as many plant and animal
species are threatened by over- exploitation of resources.

There is immediate need for bio-diversity conservation.

NOTE –

WATER POLLUTION: when toxic substances enter rivers, streams and other
water bodies and get dissolved or lie suspended in water, it leads to water
pollution. Water pollution degrades the quality of water and has led to the death
of several animals and posed a serious threat to human life.

5.) AIR POLLUTION

AIR POLLUTION is the presence of materials in air in such concentration
which are harmful to man and the environment.

 Air pollution is widespread in Urban areas where vehicles are major

contributors along with thermal power plants and various other
Industries.
 Emissions from vehicles are main concern as these are ground level
sources and have main impact on general population.
 The number of motor vehicles increased from 3 lakh in 1951 to 6.7 crores
in 2003 and 14.18 crores in 2011. Out of total vehicles in India, 80% are
registered vehicles.
 The central pollution control board has identified 17 categories of
Industries which are main reason for pollution.

WAYS TO CONTROL AIR POLLUTION –

Some of the ways to control air pollution are:
(a) Promotion of Public transport like use of Delhi Metro instead of private
vehicles. Steps must be taken for effective traffic planning and management.

(b) Promotion of cleaner fuels in vehicles like use of CNG instead of petrol and
diesel.

(c) Use of cleaner fuels such as LPG in households to reduce Indoor air pollution.

(d) Promotion of cleaner technologies, proper monitoring system and reporting

system must be there to control air pollution.

CENTRAL POLLUTION CONTROL BOARDS

In order to address water and air pollution in India, the government set up the
Central pollution control board (CPCB) in 1974.

MAIN FUNCTIONS OF CPCB are:

a) They investigate, collect and publish information relating to water, air and
land pollution and laid down standards for emissions.

b) CPCP provides technical assistance to government for cleanliness of streams,

wells and sewage to prevent and control air and water pollution.

c) CPCP carries out and sponsor investigations and research relating to the
problems of air and water pollution.

d) CPCB also organize mass awareness programme for the same cause.

e) CPCB prepares codes and guidelines relating to disposal of sewage waste.

f) They assess the air and water quality from time to time.

SUSTAINABLE DEVELOPMENT
Sustainable development is the development, which will allow all future
generations to have a potential average quality of life which is being enjoyed by
the current generation.
 • The basic aim of sustainable development is to ensure that present
generation should leave resources for next generation also.
• Sustainable development means economic growth of present generation
and environmental preservation for future, at the same time.
• In economics terms, sustainable development maintains when stock of
overall capital assets and resources remains constant and rises over time.
• The term sustainable development has its origin in the
INTERNATIONAL UNION FOR THE CONSERVATION OF NATURAL
RESOURCES (IUCN) in 1980.
• Sustainable development refers to the development which means meeting
the needs of present generations without compromising with the needs of
future generations.

AIMS OF SUSTANABLE DEVELOPMENT –

1.) Equitable and sustainable use of resources to meet the needs of the present
and future generations without causing damage to the environment.

2.) To prevent future damage to our life – support systems.

3.) To conserve Bio-diversity and other resources for long term food security.

HOW TO ACHIEVE SUSTAINABLE DEVELOPMENT?? (OR) Five basic rules

of sustainable development.

1.) RESTRICT USE OF RENEWABLE RESOURCES Renewable resources should

be extracted on a sustainable basis. It means usage of renewable resources
should be less than resource regeneration.

2.) SUBSTITUTE NON-RENEWABLE WITH RENEWABLE RESOURCES Non

renewable resources are depleting overtime, so, renewable resources should be
developed. It means rate of development of renewable resources should be more
than rate of depletion of non-renewable resources.
3.) BECOME INPUT EFFICIENT Technological progress should be made to
become input efficient and not input consuming. It means, efforts should be
made to produce more output with less input.

4.) CONTROL POLLUTION - Pollution emissions should be limited to the

absorption capacity of the environment.

5.) CONTROL THE GROWTH OF POPULATION – The growth of human

population should be controlled to a level which must be within the carrying
capacity of the environment.

STRATEGIES OF SUSTAINABLE DEVELOPMENT

1.) USE OF NON-CONVENTIONAL SOURCES OF ENERGY – India is hugely

dependent on thermal power plants to meet its power needs which has lot of
environmental impacts.

Non conventional sources like wind energy and solar energy are better ways to
generate electricity but still they are not explored on large scale due to lack of
technological devices.

In areas with high speed of wind, wind mills can provide electricity without any
adverse impact on environment. Similarly, with the help of photovoltaic cells ,
solar energy can be converted into electricity.

Both the sources wind energy and solar energy is totally free from pollution.
Although they are costly but benefits are far better than costs.

2.) USE OF CLEANER FUELS – in urban areas, use of compressed natural Gas
(CNG) is being promoted to be used as fuel. In Delhi, use of CNG public
transport has significantly lowered the pollution.

In rural areas, households generally use wood, cow dung , etc as fuel. These
fuels have adverse environmental impacts like deforestation, excess pollution,
etc. to overcome this problem use of LPG is being promoted as kitchen Gas and
can help in reducing pollution at large scale.

3.) ESTABLISHMENT OF MINI-HYDEL PLANTS – In mountain regions, perpetual

streams (waterfalls) can be found almost everywhere.

These streams can be used to generate electricity via turbines through mini-
hydel plants. Such power plants are environment friendly and generate enough
power to meet local power needs.

In this, transmission cables and towers are also not required and thus it is less
costly.

4.) TRADITIONAL KNOWLEDGE AND PRACTICES – Traditionally Indian people

have been close to their environment. All practices relating to agriculture,
healthcare system used to be environment friendly.

Shift from traditional system to modern system caused large scale damage to
our environment.

For example: India is well known for its AYUSH treatment with 15000 species
of plants of medicines. But, recently we are following western treatment and
causing great harm to our environment. We must adopt traditional system so
as to achieve sustainable development.

5.) USE OF BIO-COMPOST – the use of chemical fertilizers to increase the

agricultural output has not only adversely affected the large areas of
production but also polluted the water bodies.

With the rise in demand for organic food, farmers have again started using
natural compost like cow-dung, etc. environment will be safe with use of bio-
compost/natural compost.

6.) BIO-PEST – the advent of green revolution has increased the use of chemical
pesticides which not only pollutes food products but also pollutes the water
bodies.
To meet this problem, better methods of pest control are promoted. For example
neem based pesticides should be used as they are environment friendly.

Awareness must be created for use of various animals, mammals and birds like
snakes, lizards, owls, peacocks, etc as they are natural pest cotrollers.

7.) SUSTAINABLE PATTERN OF PRODUCTION AND CONSUMPTION – with

increasing purchasing power, wasteful consumption impact our environment
adversely.

It is important to counter this through education and public awareness.

In several areas, desirable limit and standards for consumption and production
need to be established to conserve natural resources for present as well as for
future.

CHAPTER 7TH EMPLOYMENT

EMPLOYMENT is an activity from which a person earns means of livelihood.
WORKER is an individual who is involved in some economic activity to earn a
living. A worker contributes to GDP by rendering his productive activities.

WORKERS include the following;

• It includes self- employed people like shopkeepers , barbers, etc

 • It includes those people who remain temporarily absent from work due to
illness or any other reason.

• It includes those people who help the main workers.

It means all those who are engaged in some economic activity are called
workers.
MULTIFACETED NATURE OF EMPLOYMENT
➢ some get employment throughout the year, while others get employed for
few months i.e seasonal workers.
➢ Many workers do not get fair wages for their work.
➢ While estimating the number of workers, all those who are engaged in
some economic activities are included as employed.

NUMBER OF WORKERS
➢ During 2011-12, total number of workers in India was 473 million
people. Out of them, around 3/4th were rural workers.
➢ Around 70% of total workers are male and others are female.
➢ Rural women participate in economic activities as compare to urban
women.

LABOUR FORCE
All persons who are working and though not working, are seeking and are
available for work are termed as labour force.
LABOUR FORCE = persons working + persons seeking/available for work.
Labour force is the total of employed and unemployed people.
TO calculate the labour force, subtract the following from total population;
(a) unfit people like old or handicapped people.
(b) people who are not willing to work.
(c) people who are not available for work.
It must be noted that children below 15 years and old people above 60 years are
excluded from labour force.
LABOUR FORCE PARTICIPATION RATE
The ratio of labour force in total population is called labour force participation
rate ( LFPR)
IN 2011-12,
(a) around 40 % of population belonged to labour force.
(b) out of total labour force, 41% in rural areas and 37% in urban areas.
(c) LFPR was 56% for males and 23% for females.

WORK FORCE
The number of persons who are actually employed at a particular time are
known as work force. It includes all those people who are actually engaged in
some economic activities.
Work force = labour force – unemployed people.
It means unemployed people = labour force – work force.
PARTICIPATION OF PEOPLE IN EMPLOYMENT
WORKER-POPULATION RATIO is used to indicate the employment situation
of a country. It is calculated by dividing the total number of workers in India
by total population and multiply by 100.

• It is very useful in determining the portion of population that actively

contributes in the production of goods and services.

• Higher ratio indicates higher population is involved in economic activities

where as lower/medium ratio indicates less population are involved in
economic activities.

• This ratio indicates the status of workers in society and their working
conditions and by this we can determine quality of employment in a
country.

IMPORTANT FACTS AND DATA ABOUT WORKERS IN INDIA –

▪ For every 100 persons, 38.6% are workers in India.
▪ In urban areas, worker population ratio is 35.5% and in rural areas this
ratio is 39.9%.
▪ Rural people have limited resources and participate more in employment
market, whereas urban people mainly look for appropriate job which suits
their qualification.
▪ Females 21.9% and males 54.4% are found to be working.
▪ Ratio of women workers in rural areas is 24.8% than women workers in
urban areas i.e 14.7%. this is all due to poor economic conditions in rural
areas.
EMPLOYMENT
EMPLOYMENT is an activity which enables a person to earn means of living.
SELF – EMPLOYMENT
An arrangement, in which a worker uses his own resources to make a living, is
known as self- employment. Workers who own and operate an enterprise to earn
their livelihood are known as self-employment.
Around 52% work-force in INDIA are self-employed.
Self-employment is a major source of livelihood for both men and women.
In this, a person uses his own land, labour, capital and enterprise to make a
living. For example shop-keepers, traders, businessmen , etc.

WAGE – EMPLOYMENT
An arrangement in which a worker sells his labour and earns wages in return,
is known as wage – employment. Under this, worker is known as employee and
buyer of worker is known as employer.
Workers do not have any other resource except their own labour. They offer their
labour services to others and in return get wages.
If a doctor is running his own clinic, he is self employed where as if that doctor
will work in some hospital , then, it will be wage employment.
WAGE EMPLOYMENT IS OF TWO TYPES;
(A) RAGULAR WORKERS (B) CASUAL WORKERS
REGULAR WORKERS – when a worker is engaged by someone or by an
enterprise and is paid wages on regular basis, then such worker is called regular
worker or regular salaried employee.
Workers are hired on permanent basis and also get social security benefits like
pension, provident funds, etc
Regular workers account for just 18% of total workforce in India.
For example teachers, professors, engineers working in company, etc
CASUAL WORKERS – Workers who are casually employed and in return get
remuneration for the work done, are called casual workers.
Casual workers are not hired on permanent basis. It means they do not have
regular income, regulation from the government, job security and social
security benefits.
Casual workers account for 30% of workforce in India.

DISTRIBUTION OF EMPLOYMENT BY GENDER

• Self employment is a major source of livelihood for both, men (51%) and
for women (56%).

• Casual workers account for second major source for both, men (29%) and
women (31%).

• In case of regular salaried workers, men are found in greater

proportion(20%) where as women found only(13%). Reason behind this
is regular employment require skills and high level of literacy.

DISTRIBUTION OF EMPLOYMENT BY REGION

 • SELF – EMPLOYMENT – it is a major source of livelihood in both, rural
areas(56%) and in urban areas(43%). In rural areas, self employed
workers are more because majority of rural people are engaged in
farming.

• CASUAL- WORKERS – in case of rural areas, casual workers account

for second major source of employment with 35% of workforce and in
urban areas, it is only 15%.

• REGULAR SALARIED EMPLOYEES – in urban areas, it is the second

major source with 42% of workforce. Urban people have variety of
opportunities due to their education. Only 9% of rural people are engaged
in regular salaries employment due to lack of education and skills.

DISTRIBUTION OF EMPLOYMENT IN DIFFERENT SECTORS

We divide all economic activities into following 8 divisions
(a) agriculture (b) mining and quarrying (c) manufacturing (d)
electricity, gas and water supply (e) construction (f) trade (g) transport
and storage (h) services.
For simplicity, all the workers working are divided into three sectors
(a) primary sector – it includes agriculture and mining and quarrying.
(b) secondary sector – it includes manufacturing, electricity, gas and
water supply and construction.
(c) tertiary sector – it includes trade, transport and storage and services.
So, data is
 1.) primary sector is the main source of employment (48.9%) for
majority of workers in India.
2.) secondary sector provides employment to only 24.3% of workforce.
3.) 26.8% of workers are engaged In service sector.

DISTRIBUTION OF RURAL-URBAN EMPLOYMENT IN DIFFERENT SECTORS

EMPLOYMENT IN RURAL AREAS
• 64.1% of workers in rural areas are engaged in primary sector

• 20.4% of workers in rural areas are working in secondary sector.

• 15.5% of workers in rural areas are working in tertiary sector.

EMPLOYMENT IN URBAN AREAS

• 6.7% of workers in urban areas are engaged in primary sector.

• 35% of workers in urban areas are engaged in secondary sector.

• 58.3% of workers in urban areas are engaged in tertiary sector.

DISTRIBUTION OF MALE-FEMALE EMPLOYMENT IN DIFFERENT SECTORS

MALE EMPLOYMENT
• 43.6% of male population is engaged in primary sector.

• 25.9% of male population is engaged in secondary sector.

• 30.5% of male population is engaged in tertiary sector.

FEMALE EMPLOYMENT
 • 62.8% of female population is engaged in primary sector. Quite high
than male population. It happens because men get opportunities in both
secondary as well as tertiary sectors.

• 20% only of female population is engaged in secondary sector.

• 17.2% of female population engaged in tertiary sector.

Q.) write a short note on jobless growth. ( v. v. important)

Ans. During 1950 – 2010, GDP of India grew positively and rate of GDP was
higher than the rate of employment growth. There was great rise in GDP but
employment rises at a rate less than 2% only. During these years, the gap
between growth of GDP and growth of employment was widening and this is
termed as jobless growth.
JOBLESS GROWTH refers to a situation when the economy is able to produce
more goods and services without a proportionate increase in employment
opportunities.
Jobless growth is actually a situation when there is an acceleration in he growth
rate of GDP without any increase in employment.
Indian economy is achieving GDP more through technology than from labour.
It leads to jobless growth.

IMPORTANT NOTE ;
In 1972-73, 74.3% of workforce was engaged in primary sector and now in
2011-12, only 48.9% of workforce is engaged in primary sector. It shows
substantial shift from farm work to non-farm work.
Secondary sector workforce increased from 10.9% to 24.3% and tertiary sector
workforce increased from 14.8% to 26.8% during 1972-73 to 2011-12.

CASUALISATION OF WORKFORCE
The process of moving from self-employment and regular salaried employment
to casual wage work is known as casualisation of workforce.
FROM 1972-1973 TO 2011-12 –

• Share of self employed workers declined from 61.4% to 52%

• Share of regular salaried employees has stagnated at an average of 14%.

It increased from 15.4% to 18%.

• Share of casual workers has increased from 23.2% to 30%.

INFORMALISATION OF WORKFORCE
It refers to a situation whereby the proportion of workforce in the informal
sectors increases.
The employment structure in India can be studied with two sectors;
(A) FORMAL SECTOR (ORGANISED SECTOR) –
All the public enterprises and private establishments which employ 10 or more
hired workers are called formal sector establishments.
Workers who work in such establishments are called formal sector workers.
Formal sector workers enjoy social security benefits and earn more than
informal sector workers.
The government protects them in various ways through labour laws and these
workers can form trade union also.
This sector provides work to only 7% of total workforce of India.
(B) INFORMAL SECTOR (UNORGANISED SECTOR) –
Informal sector includes all those private enterprises which hire less than 10
workers. Workers who work in such enterprises are known as informal sector
workers. For example farmers, agricultural labourers, etc.
It also includes those casual wage workers who work for more than one employer.
In India, more than 90% employment is found in informal sector like small
farms, household industries, shops and other self-employment units.
Workers in the informal sector do not get regular income and they do not have
any social security protection.

RECENTLY IN INDIA, workers are switching more towards informal sector and
this is called informalisation and it is not a positive sign of economy.

IMPORTANT NOTE –

• Out of total 473 million workers in India. 30 million workers are in

formal sector and 443 million workers are in the informal sector. It
means only 6 - 7% of workforce are engaged in formal sector and rest
94% in the informal sector.

• In the formal sector, out of 30 million, 24 million are male and rest
female. Where as in the informal sector, out of 443 million, 306 million
are male and 137 million are female.
UNEMPLOYMENT AND SOURCES OF DATA
Un employment refers to a situation in which people are willing and able to
work at the existing wage rate but do not get work.
With prolonged employment, workers may also lose their skills and work habits
and become unemployable.

SOURCES OF UNEMPLOYMENT DATA –

1.) REPORT OF CENSUS OF INDIA population census collects information on the

economic activity of people.

2.) NSSO National sample survey organisation collects data through sample

surveys and gives annual estimate of employment and unemployment.

3.) DIRECTORATE GENERAL OF EMPLOYMENT AND TRAINING (DGET) DGET

has been implementing the employment market information scheme over last
30 years. It provides information about the structure of employment,
occupational compositions and educational profiles of people.

All the above sources just provide an estimate of data of employment because
variety of employment prevails in our country.

TYPES OF UNEMPLOYMENT IN INDIA –

1.) DISGUISED UNEMPLOYMENT (HIDDEN UNEMPLOYMENT) (V. IMP) –
It refers to a state in which more people are engaged in work than are really
needed. Foe example if two workers are needed on a land and five workers are
engaged on the same job, then extra three workers are disguised unemployed.
It is the most predominant form of unemployment in the agricultural sector in
India.
IN 1950, AROUND 1/3 of agricultural workers were hidden unemployed.
The main problem of this is all workers seem to be employed but marginal
productivity of extra labour is zero means contribution of extra workers is zero.
2.) SEASONAL UNEMPLOYMENT (V. IMP.) –
Unemployment that occurs at certain seasons of the year is known as seasonal
unemployment.
In India, seasonal unemployment is predominant form of unemployment in
agriculture.
In agriculture work is seasonal and there are no employment opportunities in
the village.
When there is no work to do on farms , men go to urban areas and look for jobs
and during rainy seasons they come back to their village.
Seasonal unemployment varies from state to state depending upon methods of
farming.
3.) OPEN UNEMPLOYMENT ( V. IMP.) –
Open unemployment refers to that economic phenomena in which persons are
able and willing to work at the prevailing wage rate but fails to get work. It is
called open unemployment because such unemployment can be seen and
counted in terms of number of unemployed people. In open unemployment
workers are totally idle where as in case of disguised unemployment, workers
appear to be working and do not seem to be idle.

CAUSES OF UNEMPLOYMENT (VERY VERY IMP.)

1.) Slow rate of economic growth - the actual growth rate always lies below the
targeted growth rate. Employment opportunities created under the plans could
not make progress with increasing labour force (person available for jobs).
2.) Population explosion – the rapid rate of population growth has been another
cause of rising unemployment. It has not been possible to generate so many
employment opportunities to absorb large growing labour force.
3.) Underdeveloped agriculture – heavy pressure of population on land and the
traditional methods of agriculture are responsible for massive rural
unemployment.
4.) Defective educational system – the prevailing education system in India is
full of defects as it fails to make any provision for providing technical and
education. As a result, everyone is getting only general education and are
unemployed even after education.
5.) Slow growth of industry – due to shortage of capital and lack of modern
technology, industrial sector could not generate sufficient employment
opportunities in the country.
6.) Decline of small – scale and cottage industries – a number of traditional
cottage industries have declined over the years due to change in demand
preference and emergence of modern industries. As a result, no. of people are
unemployed.
7.) Faulty planning – the government plans could not stop the migration of rural
people to urban areas, plans were unable to encourage labour intensive
techniques and plans have failed to generate alternate employment programmes
like fisheries, dairies, etc. all these failed planning lead to unemployment in
India.
8.) Inadequate employment planning – there has been complete absence of any
legal provision to implement employment generating schemes.
9.) Low capital formation – low rate of capital formation i.e. less investment has
hampered the growth of agriculture and industries. Thus job creating capacities
have been affected adversely.

REMDIAL MEASURES FOR UNEMPLOYMENT

(OR) MEASURES TO GENERATE EMPLOYMENT
OPPORTUNITIES
1.) Accelerate growth rate of GDP – the aggregate employment problem can be
solved through the process of accelerated growth. Growth rate of GDP between 8 to
9% are needed over next ten years to achieve significant improvement in
employment situation.
2.) Population control – the rapid growth rate of population should be slowed
down, so that additional jobs created do not fall short for new comers in labour
market. It is necessary to adopt an effective population control policy like
family planning programmes.
3.) Agriculture development – increase in agricultural growth is important to
increase labour productivity and quality of employment for existing labour
force. There is a need for agricultural revolution through improved techniques ,
irrigation facilities and land reforms.
4.) Encourage small-scale industries – the small scale sector needs to be
encouraged through multiple initiatives like liberal finance , technical training
and supply of raw material as well as marketing of their products.
5.) Improvement in infrastructure – the infrastructural facilities like health,
education, irrigation, electricity, roads, etc are crucial for overall development of
an economy. Better infrastructure enable agriculture and industries to produce
to their full capacity and generate more employment.
6.) Special employment programs – programs which aim at providing self and
wage employment should be implemented.
7.) Improvement of employment exchanges – the employment exchanges
spreads all over the country are of great assistance in directing the job seekers to
the possible areas of employment. Their functioning should be improved.
8.) Self-employment opportunities – government should provide various
facilities like financial assistance, training of skills, supply of inputs,
marketing of products, etc to generate more self- employment opportunities.
9.) Educational system – the present system of education should be made more
vocational, technical and work oriented. Educational facilities should be more
diversified and training programme is necessary to develop skills of the
educated unemployed people.
NOTE: Indian government launched Pradhan mantra kaushal vikas
yojana(PMKVY) or skill India programme on 16th july 2015 as a skill
development initiative scheme for recognition and standardization of skills.
Under this scheme, the trainees are offered a financial reward and a
government certification on successful completion of training and assessment
which will help them in securing a job for better future.

10.) Manpower planning – the future requirements of educated manpower

should be forecasted and thus intake into various professional courses should be
determined. As a result, excess manpower in market will be eliminated.

GOVERNMENT POLICIES AND EMPLOYMENT GENERATION

GOVERNMENT generates employment in two ways;
1.) DIRECT EMPLOYMENT –
Govt. provides direct employment by employing people in various departments
for administrative purposes. It also runs industries , hotels and transport
companies and thus provides employment their directly to workers. For example;
jobs given to workers during dam construction.

2.) INDIRECT EMPLOYMENT –

Government enterprises purchase raw-material from private enterprises for
production of goods and services. It means if there is rise in output of govt.
industries, private sector will also grow and thus no. of employment
opportunities in the economy will increase. This is called indirect employment.

EMPLOYMENT GENERATION PROGRAMMES

Government has also implemented a number of employment generation

programmes like mahatma Gandhi national rural employment guarantee act
2005, prime minister’s Rozgar Yojana, Swarna Jayanti Shahri Rozgar
Yojana, etc.
Government aims to alleviate poverty through such employment generation
programmes.
All these programmes aim to provide employment.
Note; poverty alleviation programmes (PAPs) and employment generation
programmes are exactly same. Read the same from chapter 4th poverty.

CHAPTER 8TH INFRASTRUCTURE

INTROUCTION;

Punjab, Haryana and Himachal Pradesh are prosperous in agriculture,

Maharashtra and Gujarat have better industrial development, Kerala has
excelled in literacy and health while Karnataka has world class information
technology sector.

These above states perform better than other states because of their infrastructure
in respective areas.

INFRASTRUCTURE;

Infrastructure refers to all such activities, services and facilities which are
needed to provide different kinds of services in the economy.

Infrastructure provides supporting services to the industrial and agricultural

production.

Infrastructure services include the following;

• Roads, railways, ports, dams, power stations, telecommunications, etc

 • Educational system including schools and colleges
• Health system including hospitals
• Sanitation including safe drinking water facilities
• Monetary system including banks and other financial institutions.

Some of above provide direct benefit to the system of production while some have
indirect impact on the development of economy.

TYPES OF INFRASTRUCTURE;

Infrastructure is if two types;

(A) ECONOMIC INFRASTRUCTURE –

It includes infrastructure associated with energy, transportation and

communication. It is important to promote economic activities like production
and trading of goods and services.

• It helps to improve the quality of economic resources.

• It directly supports the economic system.
• It helps to increase the stock of physical capital in the economy.

(B) SOCIAL INFRASTRUCTURE –

It includes infrastructure associated with education, health and housing. Social

infrastructure consists of provision of all those services which improve the
quality of human resource.

• It helps to improve the quality of human resources.

• It indirectly supports the economic system.
• It helps to increase the stock of human capital in the economy.
WHICH ONE IS CRUCIAL SOCIAL INFRASTRUCTURE OR ECONOMIC
INFRASTRUCTURE?

Ans. Economic and social infrastructure together helps in the overall

development of economy i.e. both are crucial for economic growth.

Economic infrastructure improves productivity levels in agriculture and

industries by providing energy, transport and communication

Whereas social infrastructure improves human productivity by education and

health.

So both the infrastructures are supplementary and complementary to each

other.

IMPORTANCE OF INFRASTRUCTURE;
1.) FACILITATES FUNCTIONING OF ECONOMY –

The functioning of an economy depends on existence of infrastructure.

Agriculture, industries and service sectors depend on infrastructure for their
growth.

2.) AGRICULTURAL DEVELOPMENT –

The development of modern agriculture depends on infrastructure like roads,

railways and shipping for speedy and large scale transport of seeds, pesticides,
etc. there is need for banking and insurance also in agriculture so that
agriculture can work on large scale levels.

3.) ECONOMIC DEVELOPMENT –

Infrastructure and economic development go hand in hand. Agriculture

depends on proper development of irrigation facilities while industries depends
on development of power, electricity, transport etc.
Infrastructure contributes to the development of economy by improving the
productivity of factors and quality of human life.

4.) BETTER QUALITY OF LIFE –

Well developed infrastructure leads to better quality of life.

Improvements in water supply and sanitation have a large impact on reducing

various water borne diseases.

The quality of transport and communication can affect health care. Reduction
of air pollution can also affect morbidity (chances to fall ill).

5.) PROVIDES EMPLOYMENT –

Infrastructure helps in generating employment. Many people get employment

in infrastructural projects like construction of roads, railways, electricity
plants, etc. even people are able to get employment in industries and service
sectors after proper development of infrastructure.

6.) FACILITATES OUTSOURCING –

A country with advanced infrastructure is able to take benefits from

outsourcing work. India is now a global destination for BPO, call centres, etc
due to developed IT and infrastructure.

STATE OF INFRASTRUCTURE IN INDIA

• Earlier, government has been solely responsible for developing the
infrastructure of economy but due to inadequate development by
government, private sector in partnership with govt. has started playing a
crucial role in the development of infrastructure.
• Majority of our people live in rural areas and even after so much technical
progress, 90% of the rural women use bio-fuels for cooking like cow dung
and fire wood.
 • Rural people have to travel long distance to fetch fuel, water and other
basic needs. Around only 56% of rural households had electricity
connection.
• Tap water facilities are available only to 24% of rural households only.
• Sanitation is available to only 20% of rural households.
• INDIA invests only 34% of its GDP on infrastructure which is far below
than CHINA.

HEALTH
According to WHO, health is a state of complete physical, mental and social
well being and not merely the absence of diseases.

IMPORTANT POINTS ABOUT HEALTH AND HEATH INFRASTRUCTURE

➢ Health is not only absence of disease but also the ability to realize one
potential.
➢ Health is the process of overall growth and development of nation.
➢ Health improves the productivity and efficiency of a person and he is able
to contribute more in economic development.
➢ Health status is usually measured in terms of life expectancy, infant
mortality, maternal mortality and nutrition level.
➢ Health infrastructure includes hospitals, doctors, nurses and other
paramedical professionals , beds, equipments, etc
➢ Mere presence of health infrastructure does not reflect the health status of
economy, it must be accessible to all sections of society.

HEALTH STATUS AFTER INDEPENDENCE –

 THE govt. has the obligation to guide and regulate all the health related
issues such as medical education, adulteration of food, drugs, medical
profession, mental deficiency etc.
➢ The union govt. create broad policies and plans through central
council of health and family care.
➢ It collects information and provide technical and financial
assistance to state govts for implementation of health programmes
in the country.
➢ India is the second largest populated country of the world but its
health status of majority of people is poor as compared to China.

EXPANSION OF PUBLIC HEALTH INFRASTRUCTURE –

India has built up health infrastructure and manpower at different levels;
➢ At the village level, a variety of hospitals i.e primary health centres have
been set up by the govt.
➢ India has large no. of hospitals run by private sector. These are manned
by professionals trained in medical, pharmacy and nursing colleges.
➢ Expansion in health services is as following;

• No. of hospitals and dispensaries increased from 9294 to

45978

• Nursing personnel increased from 18054 to 23.44 lakh

• Allopathic doctors increased from 61800 to 9.2 lakh

 • Eradication of deadly diseases like small pox, guinea worms,
polio etc.

THREE TIER SYSTEM OF HEALTH INFRASTRUCTURE

(MOST IMPORTANT) (WORDINGS AS IT IS)
PRIMARY HEALTH CARE –
It includes
*Education related to prevailing health problems and identifying methods of
controlling them. *Promotion of food supply and adequate nutrition, water
suuply and sanitation facilities. *Maternal and child health care.
*Immunization against serious infectious diseases and injuries. *Promotion
of mental health.
Primary health centres, community health centres and sub centres in small
village and towns have been set up to provide above mentioned facilities. When
condition of patient is not managed by primary health centres , they are
referred to secondary health care.
SECONDARY HEALTH CARE –
Hospitals which have better facilities for surgery , ECG, are called secondary
health care institutions. They provide primary health care and also provide
better health care facilities. They are mostly located in district headquarters
and in big towns.
TERTIARY HEALTH CARE –
It includes Hospitals which have advanced level equipment and undertake all
complicated health problems which could not be managed by primary and
secondary hospitals. It also includes many premier institutes which provides
quality medical education, conduct research and also provide specialized health
care, like AIIMS in Delhi.

ROLE OF PRIVATE SECTOR IN HEALTH FACILITIES

Private sector in providing health services has significantly grown;

• More than 70% hospitals in India are run by private sector.

• Private sector control nearly 2/5 of beds available in hospitals in India.

• 60% of dispensaries in India are run by private sector.

• Private sector provide health care to 80% of outpatients and 46% of in-
patients.

• In 2001-02, there were more than 13 lakh medical enterprises employing

22 lakh people.

• Many NRIs and industrial companies have set up super specially

hospitals to attract India’s rich and medical tourists.

• Some private practitioners are not even registered doctors and are called
QUACKS.

COMMUNITY AND NPO IN HEALTH CARE

 • NPO functions with the idea that people can be trained in primary health
care centres. For example NGO like SEWA in Ahmedabad and ACCORD
in nilgris are working in India.

• Trade unions have built health care services for their members to give low
cost and rational care to people from nearby villages. For example shahid
hospital built in 1983, maintained by workers of Chhattisgarh.

• Some rural organizations have also made attempts to build health care
services.

• Foreigners come to India for various surgeries and treatments. IN 2016,

201000 foreigners visited India for medical treatment and by 2020,
India could earn 500 billion rupees through medical tourism. In mid
2020, India’s medical tourism sector was estimated to be worth US $ 5 to
6 billion.

INDIAN SYSTEM OF MEDICINE(ISM)

India has its own well developed alternate system of health care, namely
AYUSH consisting of six systems – ayurveda, yoga, unani, siddha,
naturopathy and homeopathy.
At present, there are 3167 ISM hospitals , 26000 dispensaries and 7 lakh
registered practitioners in India.
ISM can solve a large part of our health care problems because they are effective,
safe and economical.
However, little efforts have been done to set up a framework to standardize
education or to promote research.
INDICATORS OF HEALTH AND HEALTH INFRASTRUCTURE
India is second largest populated country in the world but the health status of
majority people of our country is unsatisfactory as compare to China.

• Expenditure on health in India is just 4.7% of total GDP and it is very

low as compare to other countries.

• India has about 17% of world’s population but It bears 20% of global
burden of diseases(GBD) . GBD is an indicator to measure no. of people
dying prematurely due to any diseases.

• Every year in India , around 5 lakh children die due to water-borne

diseases. Danger of AIDS is also looming large.

• Malnutrition and inadequate supply of vaccines lead to death of 2.2

million children every year.

• Less than 20% of population uses public health facilities and only 38% of
PHC(primary health care centres) have required no. of doctors and only
30% of PHC have proper stock of medicines.

HEALTH STATUS AS PER RURAL-URBAN DIVIDE OR RICH – POOR DIVIDE

• 70% population of India living in rural areas but only 20% of total
hospitals and 50% of total dispensaries are located in rural areas with
only 30% beds in rural areas.

• Only 0.36 hospitals for every one lakh people in rural areas as compare to
3.6 hospitals for every one lakh people in urban areas.
 • PHCs located in rural areas do not even offer X ray and blood test
facilities.

• Bihar, Madhya Pradesh, Rajasthan and U.P are lagging behind in health
care facilities.

• 380 recognized medical colleges produce 44000 medical graduate every

year, still shortage of doctors exists in rural areas.

• Poorest 20% of Indians living in rural and urban areas spend only 12%
of their income on health while rich spend only 2 % of their income.

WOMEN HEALTH
Women constitute around half of population of INDIA. They suffer many
disadvantages as compare to men in the areas of education and health.
The child sex ratio declined from 927 in 2001 to 914 in 2011. It indicates
female foeticide in the economy.
Around 3 lakh girls below 15 years of age are not only married but have
children also.
More than 50 % of married women between 15 yrs to 49 yrs of age have
anaemia and nutritional anaemia. It caused 19% of maternal deaths.
Abortions are also a major cause of mortality in India.

HEALTH - A BASIC HUMAN RIGHT

The ultimate goal should be to help people move towards a better quality of life.
 ➢ All citizens can get better health services if public health services are
decentralized.
➢ Long term battle against diseases depends on education and efficient
health infrastructure.
➢ Telecom and IT sectors play an important role in improving health
process.
➢ Serious steps should be taken to improve primary healthcare centres.
➢ PPP( private-public partnership can effectively ensure reliability , quality
and affordability of drugs and medicare.

CRITICAL ASSESSMENT/DRAWBACKS/ DEFICIENCIES OF HEALTH

INFRASTRUCTURE IN INDIA ( V IMP.)
1.) INQUITABLE DISTRIBUTION OF HEALTH SERVICES – the existing health
system suffers from inequalities. Around 70% of total population lives in rural
areas but only 20% hospitals are located in rural areas. Most of the facilities are
available in urban areas.
2.) COMMUNICABLE DISEASES – increasing attention is urgently needed for
prevention of communicable diseases like AIDS, HIV AND SARS, through
effective control measures but no measures are still taken.
3.) POOR SANITATION – sanitation facilities are extremely poor in both rural
and urban areas. About 30% of the houses do not have toilet facilities and
condition in rural areas is even worse.
4.) LACK OF MANPOWER – India produces 12000 medical graduates every year
but still there is huge shortage of manpower.
5.) MALNUTRITION – widespread malnutrition poses a major threat to the lives,
especially in case of children.
6.) ROLE OF PRIVATE SECTOR – public sector has not been successful in
providing adequate health structure. There is need to increase collaboration of
public sector with private sector to meet health care needs of people.

CHAPTER – 10TH COMPARATIVE DEVELOPMENTS OF

INDIA, CHINA AND PAKISTAN
INDIA the largest democracy of the world with a secular and liberal
constitution.
CHINA which has recently started moving towards a more liberal constitution
with its command (socialist economy).
PAKISTAN having an autocratic militarist political power structure.

DEVELOPMENT PATH OF INDIA, CHINA AND PAKISTAN

India, China and Pakistan have many similarities in their development
strategies.

• All the three nations started their development path at the same time.
 • India and Pakistan got independence in 1947 and people’s republic of
china was established in 1949.

• All the three countries have started planning their development strategies
in similar ways. India announced its first five year plan in 1951,
Pakistan in 1956 and China in 1953.

• India and Pakistan adopted similar strategies like creating a large public
sector and increase expenditure on social development.

• Till 1980s, all the three countries had similar growth rates and per capita
incomes.

COMPLETE STRUCTURE OF CHINA

HISTORICAL BACKGROUND –

China has one of the oldest people and continuous civilization consisting of
states and culture. The people’s republic of China (PRC), commonly known as
china was established in 1949.

GEOGRAPHY –

China is situated in eastern Asia bounded by the pacific in the east. It is the
third largest country in the world next to Canada and Russia with 9.6 million
square kms.

POPULATION AND LANGUAGE –

China is the most populous country in the world with 1371 million people as per
2015 data and a growth rate of population is 0.5% per annum. Most languages
in China belong to Sino – Tibetan language family. There are also several
major dialects (ordinary language for people) with in Chinese language itself.

ECONOMY –

China has been the world’s largest economy. After the establishment of people
republic of China, all the controls were brought under government control.
Following are the points related to economy of CHINA.
1.) GREAT LEAP FORWARD CAMPAIGN –
In 1958, GLF campaign was initiated by MAO to modernize china’s economy.
The aim of this campaign was to transform agrarian economy into modern economy by
rapid industrialization.
People were encouraged to set up industries in their backyards. In rural areas, communes were
started. Under commune system, people collectively cultivate their lands. In 1958, there were
26000 communes covering almost all the farm population.
GLF campaign met with many problems. A severe drought caused havoc in China killing
about 30 million people.
2.) GREAT PROLETARIAN CULTURAL REVOLUTION –
In 1965, MAO introduced this revolution (1966-76), under which students and
professionals were sent to work and learn from the countryside. When Russia had conflicts
with China, it withdrew its professionals who earlier had been sent to china to help in
industrialization process.
3.) REFORMS INTRODUCED IN CHINA –
China introduced reforms in 1978 in phases;
IN THE INITIAL PHASE, reforms were initiated in agriculture, foreign trade and
investment sectors. In agriculture, commune lands were divided into small plots and then
allocated to individual households only for use, not ownership.
They were allowed to keep all the incomes from land after paying taxes.
IN THE LATER PHASE, reforms were initiated in industrial sector. Private sector firms and
township & village enterprises are now allowed to produce goods. Enterprises owned by
government were facing competition at that stage.
4.) DUAL PRICING –
The reform process also involved dual pricing. This means fixing the price in two ways.
Farmers and industrial units were required to buy and sell fixed quantities of inputs and
outputs at a price fixed by the government.
For other transactions, inputs and outputs were purchased and sold at market prices.
5.) SPECIAL ECONOMIC ZONES (SEZ) –
In order to attract foreign investors, special economic zones were set up.

COMPLETE STRUCTURE OF PAKISTAN

HISTORICAL BACKGROUND

Pakistan (Islamic republic of Pakistan), gained independence on 14 august

1947. In 1971, a civil war in East Pakistan resulted in the independence of
Bangladesh. Pakistan’s history is characterized by periods of economic growth,
military rule and political instability.

GEOGRAPHY

Pakistan is located in south Asia and borders central Asia and middle East. Its
borders are with China in the north , towards west and north west are Iran and
Afghanistan , towards east and south east its borders are with India. The
country has an area of 796095 square Kms. Total cultivated area is 221300
square kms and area under forest is 42300 square kms.

POPULATION AND LANGUAGE

Pakistan is the 6th most populous country in the world with 188 million people
as per 2015 data with a population growth rate of 2.1% per annum. 1/3 rd
population lives below poverty line. It has second largest Muslim population in
the world after Indonesia. National language is URDU and official language is
English.

ECONOMY

Following are the points regarding economic system of Pakistan;

1.) MIXED ECONOMIC SYSTEM –
Pakistan follows mixed economic model with co-existence of public and private sectors.
2.) INTRODUCTION OF VARIOUS POLICIES –
In late 1950 and 1960, Pakistan introduced various regulated policy frameworks for growth
of domestic industries. Tariff imposed on imports for protection of domestic goods.
3.) GREEN REVOLUTION –
In case of agriculture, introduction of green revolution and increase in public investment in
infrastructure led to rise in production of food grains.
4.) ROLE OF PUBLIC SECTOR IN EARLY 1970s –
In the early 1970s, nationalization of capital goods industries took place i.e. capital goods
industries under govt. control.
5.) ROLE OF PRIVATE SECTOR IN LATE 1970s –
1n late 1970s, government adopted the policy of de-nationalization and encouraged the
private sector and offered various incentives to them. It created a conductive climate for new
investments.
6.) FINANCIAL SUPPORT IN LATE 1970s –
Pakistan also received financial support from western nations. Remittances from emigrants
to the middle-east. This helped the country in stimulating economic growth.
7.) REFORMS –
IN 1988, various reforms were initiated in the country.

COMPARISON OF DEMOGRAPHIC INDICATORS OF INDIA, CHINA AND PAKISTAN

(YEAR 2015)
1.) POPULATION –
China is the most populous country in the world with 1371 million people and India is the
second most populated country with 1311 million people. Population of Pakistan is very less
i.e. 188 million people. Data belongs to year 2015. Out of every six persons living in this
world, one is Indian and another one is Chinese. Population of Pakistan is around 1/10 th of
India and china.

2.) GROWTH RATE OF POPULATION –

Though China is the most populated country in the world but its annual population growth
rate is just 0.5% per annum as compare to India i.e. 1.2% per annum and of Pakistan its
2.1% per annum. Low population growth rate in China is one child policy introduced in late
1970s. one child policy in China reduced the growth rate but the drawback was after some
decades there will be more elder people in the country as compare to young people.

3.) DENSITY OF POPULATION –

China is the third largest country in the world and growth rate of population in China is
very low as compare to India and Pakistan. Density of population in China is lowest 146
persons living in per square km area. In India its 441 persons living in per square km area
and in Pakistan its 245 persons living in per square km area.

4.) SEX-RATIO –
Due to preference of SON, sex ratio is lowest in all the three countries. Sex ratio is lowest in
INDIA with 929 females per 1000 males. In china and Pakistan, its 941 and 947
respectively.

5.) FERTLITY RATE –

It is calculated as number of children born by a woman in the reproductive age ( 15 – 45 )
years. After introduction one child policy, fertility rate in china has fallen from 3 births per
women to 1.6 births per women. Fertility rate is highest in Pakistan at 3.7 births per woman
and India comes second with 2.3 births per woman. It is calculated on an average.

6.) URBANISATION –
Urbanization is highest in China i.e. 56%. In India and Pakistan, it is 33% and 39%
respectively.

COMPARISON OF GROWTH INDICATORS OF INDIA, CHINA AND PAKISTAN

(YEAR 1980 and 2015)
FIRST of all, you should know about PPP i.e. purchasing power parity. It shows the equality of

purchasing power among countries i.e. quantity of goods and services that can be bought with a unit of

money. All the three countries have different currencies i.e. Indian rupee, Pakistani rupee and YUAN in

China. So GDP of all three countries are expressed in US $ and called PPP US $.

GDP growth rate is considered as the most important indicator of an economy.

CHINA with second largest GDP is estimated to be 19.8 trillion US $. India’s GDP is 8.07
trillion US $ and Pakistan’s GDP is around 12% of GDP of INDIA.
DURING 1980 – 1990, GDP growth rate;

• China was having double-digit growth of 10.3%

• Pakistan’s growth rate was 6.3%

• India was at the bottom of 5.7% growth rate.

DURING 2011-15, GDP growth rate;

• There was a drastic fall in China’s growth rate from 10.3% to 7.9%.

• Pakistan also met with a drastic decline in growth rate from 6.3% to 4%.

• India recorded an increase from 5.7 % to 6.7% growth rate.

SECTORAL CONTRIBUTION OF INDIAN, CHINA AND PAKISTAN IN

PRIMARY SECTOR, SECONDARY SECTOR AND TERTIARY SECTOR –
( YEAR 2014-15)
PRIMARY SECTOR
IN CHINA -
• Due to climatic conditions, area suitable for cultivation is just 10% of total land area.

• Total cultivation area in CHINA is just 40% of total cultivation area of India.

• Till 1980, more than 80% of population was dependent on farming as livelihood.

• Government encouraged people to leave their fields and pursue other activities such as
handicrafts, commerce and transport.

• Workforce engaged in agriculture was just 28% with 9% GDP contribution of

agriculture in total GDP of China.
IN INDIA –
• The contribution of agriculture to GDP was 17%. Proportion of workforce engaged in
agriculture was 50%
IN PAKISTAN
The contribution of agriculture to GDP was 25% and the proportion of workforce engaged in
agriculture was 50%.

SECONDARY SECTOR
In China, secondary sector contributes 43% in the total GDP, where as in India and
Pakistan, the share of secondary sector in total GDP is 30% and 21% respectively.

China has been shifting employment and output from agriculture to manufacturing and
then to services. But in India and Pakistan, the shift is taking place directly to the service
sector.
IN India, proportion of workforce engaged in manufacturing sector is just 21%, In Pakistan
23% of total workforce engaged in manufacturing sector where as in China, 29% of
workforce was engaged in agriculture.

TERTIARY SECTOR
In both India and Pakistan, service sector is emerging a major player of development. Service
sector contributes major share to their GDP. In India, service sector contributes 53% to their
GDP where as in Pakistan, its 54%.
The contribution of service sector was 32% in the total GDP of China.

In 1980s, Pakistan was faster in shifting their workforce to service sector than India and
China.
The proportion of workforce engaged in service sector ;
IN 1980…
In India, 17% workforce was engaged in service sector, 12% in China and 27% in Pakistan.
IN 2014…
In India, 29% workforce is engaged in service sector, 43% in China and 34% in Pakistan.
SO, we can conclude that the contribution of agriculture to GDP has declined.
In the industrial sector, China has maintained a double digit growth rate, but in India and
Pakistan, it has declined.
In case of service sector, China was able to rise its growth rate but India and Pakistan was
stagnant with its service sector growth rate.
China’s main growth was due to secondary sector and India’s main growth was due to
tertiary sector. Pakistan showed decline in all three sectors.

HUMAN DEVELOPMENT INDICATORS OF INDIA, CHINA AND

PAKISTAN (YEAR 2016)
1.) HUMAN DEVELOPMENT INDEX –
HDI is an important indicator to study the human development. Higher value of HDI shows
higher level of growth and development. In 2016,HDI for India, China and Pakistan was
estimated to be 0.624, 0.738 and 0.550 respectively.
According to their HDI , global ranks accorded by India, China and Pakistan are 131, 91
and 148 respectively.
Now, In 2018, HDI of India, China and Pakistan is 0.647, 0.758 and 0.560 respectively and rankings
are 130,85 and 152 respectively.

2.) LIFE EXPECTANCY AT BIRTH –

I t refers to the average number of years for which people are expected to live. Higher life
expectancy indicates longer and active life span. China has the highest life expectancy of 76
years. India and Pakistan have life expectancy of 68.3 and 66.4 years respectively.
3.) MEAN YEARS OF SCHOOLING –
It is highest in case of China with 7.6% while the corresponding figures for India and
Pakistan are 6.3% and 5.1% respectively.
4.) INFANT MORTALITY RATE –
It refers to number of Infants dying before reaching the age of one year per 1000 live births
in a year. Low IMR shows better health and sanitation. It is lowest in China with just 9
infants and highest in Pakistan with 66 infants. IMR in India is 38 infants.
5.) PEOPLE BELOW POVERTY LINE –
It means those people who do not even have that level of income and expenditure, which is
necessary to fulfill basic needs. According to international poverty rate, minimum
consumption should be 3.10$ a day.
In India, 37% people are below poverty line, 32% people in China and 44% people in Pakistan
are below poverty line.
6.) MATERNAL MORTALITY RATE –
Both India and Pakistan have not been able to save women from maternal mortality. In
China, for one lakhs births, only 27 women die where as in India and Pakistan, maternal
mortality rate is 174 and 178 respectively.
7.) GDP PER CAPITA –
Higher rank of China in HDI is mainly due to higher GDP per capita. In 2016, China’s GDP
per capita was estimated to be 14,400 US $. It was just 6092 US $ for India and 4866 US
$ for Pakistan.
8.) IMPROVED WATER SOURCES –
It refers to the % of population which has a reasonable access to water and is able to obtain at
least 20 liters per day. China at 96%, India at 94% and Pakistan at 91% in providing
improved water sources.
9.) IMPROVED SANITATION –
Pakistan performance in providing sanitation is better than India and China. China has
provided sanitation to 77% of population, whereas Pakistan provided sanitation to 64% of
population and for India it is just 40%.
10.) POPULATION UNDERNOURISHED –
The % of population which is not able to obtain adequate diet is termed as undernourished
population. China has lowest % of population, only 9% people who are undernourished. In
India, 39% of total population is undernourished and in Pakistan 45% of population is
undernourished.
IMPORTANT NOTE;
HDI is not sufficient. Along with these, we also need liberty indicators.
Liberty indicators may be defined as measure of the extent of demographic participation in the
social and political decision making. Examples of liberty indicators are constitutional protection
rights given to the citizens.

APPRIASAL OF DEVELOPMENT STRATEGIES OF CHINA AND PAKISTAN

CHINA
China introduced various reforms in 1978.
In Pre reforms period;
(a) There had been massive extension of basic health services in rural areas.
(b) Even with commune system, there was more equitable distribution of food grains.
(c) per capita food grain output was same as like in 1950s.
In 1978, China government was not satisfied the slow pace of economic growth under the
Maoist rule. Thus, number of other reforms was introduced in 1978.
So,
In post reforms period,
(a) Each reform was first implemented on smaller level and then extended on massive scale.
(b) Development of infrastructure in the areas of education and health, existence of small
enterprises, etc helped positively in improving the social and income indicators.
(c) Agricultural reforms brought prosperity to a vast no. of poor people.

PAKISTAN
The reform process led to worsening of all economic indicators.
As compare to 1980, GDP growth rate declined in 1990s.
Proportion of poor was around 40% in 1960s, which declined to 25% in 1980 and again
started rising in 1990s.
Reason behind slow growth and massive poverty even after reforms;
(a) Agricultural growth and food supply situation was based on good harvest and not on
technical change.
(b) Most of the foreign exchange earnings come from remittances from Pakistani workers in
the Middle East and through exports of agricultural goods, but not from exports of
manufactured goods.
(c) Growing dependence on foreign loans and difficulty in paying back.

(1) NITI AAYOG (REPLACES PLANNING COMMISSION)

NITI which stands for national institute for transforming India. NITI AAYOG has been established
on 1st January 2015 to replace 65 yrs old planning commission. Aayog will also be chaired by the
prime minister. The govt aims at transforming the development agenda of India and use NITI aayog
as a means to serve the people of India in better way.

REASONS FOR ESTABLISHMENT OF NITI AAYOG –

1.) India’s population has increased three times. With increasing level of development, people now
heading from scarcity and survival to safety and surplus. So planning commission needed to be
replaced to be updated with different India.

2.) India’s economy has expanded from GDP of 1000 crores to 100,00,000 crores to emerge as one of the
largest economies. Hence strategies adopted by planning commission must be changed.

3.) there is growth and expansion of private sector. Now private sector has matured enough to play iys
dynamic role in the economy as the role of govt has drastically changed.

4.) India’s economy is now globalised. This needs a change in policy making along with the function
of government.

MAIN FEATURES OF NITI AAYOG –

(a) it design the development policy according to the needs of nation. It means this will be a fully
integrated planning process.

(b) it has to adopt bottom up approach instead of top down approach of past.

(c) the finalization of plans and required funds, all stakeholders will be having their opinions.

(d) promoting the idea of TEAM INDIA will be working on a common NATIONAL AGENDA.

(e) the aayog has to promote the idea of enabling states to have active participation in the formulation
of national policy.

NOTE from privatization chapter –

When more than 51% of PSU are sold to private enterprise, it is called strategic sale.

When less than 50% of PSU are sold to private enterprises, it is called minority sale.

(2) MAKE IN INDIA

MAKE IN INDIA is an international marketing campaigning slogan coined by the prime minister of
INDIA , on 25th September 2014, to attract business from around the world to invest and manufacture
in INDIA.

OBJECTIVES OF MAKE IN INDIA

(a) the major objective behind this initiative is to focus upon heavy and public enterprises while
generating employment in India.

(b) MAKE IN INDIA IS DEVELOPED TO FACILITATE THE FOLLOWING

- investment

- foster innovation
- enhance skills development

- protect intellectual property like trademarks, copyrights, etc

- to built best in class manufacturing infrastructure.

CHALLENGES IN MAKE IN INDIA PROGRAMME

(a) India’s poor infrastructure with inefficient transport networks makes it tough for manufacturing
companies to achieve on time production.

(b) a large chunk of manufacturers in India even believe that globalization is a myth for them and
they consider foreign industries as a threat for their domestic business.

UJJWALA YOJNA BY MODI GOVERNMENT

The Pradhan Mantri Ujjwala Yojana (PMUY) is a government scheme launched in 2016 by
Prime Minister Narendra Modi. The scheme originally envisaged the distribution of 50
million LPG connections to women below the poverty line. Later, it aimed to provide LPG
connections to eight crore women by March 2020. However, this target was achieved
seven months prior, in September 2019 .

Objectives of Pradhan Mantri Ujjwala Yojana

The Pradhan Mantri Ujjwala Yojana was launched for providing clean fuel to women below the
poverty line. The use of unclean cooking fuel is harmful to human health. The aims of the
Pradhan Mantri Ujjwala Yojana are given below:

• To empower women and protect their health.

• To minimize health issues arising from the use of unclean fossil fuel and other fuel while
cooking.
• To control indoor pollution from the use of fossil fuel which causes respiratory issues.
• To prevent degradation of the purity of the environment that is compromised by
widespread usage of unclean cooking fuel.