Sr.No.Q.Paper — : 3103 7 Unique Paper Code : 12271501 (cBCS) Cine) Name of the Paper. : Paper- II: INDIAN BCONOMY-1 Name of Course .) Economies III Year Semester : 3Hours Maximum Marks 75 ‘Altempt any five question}. All questions carry qual marks (16 marks each) Q.1:Do'you think the Nehruvian Era (1950-64) was able to meet the imrhediate challenges before the Indian economy in 1947 ? Analyze some ofthe perceived criticisms of the Nehru-Mahalnobis strategy of industrialization. : BeT=15 ‘Ans. When the British imperialists q two eentories of colon ‘embarked on the New Econom Long before India attained independence, Nehru had visited the Soviet Union “asaninvitee for the tenth anniversary ofthe October Revolution when he saw stupendous socto-econom He was immensely impressed, and now’ position In economic thepry “there was a wide eonsensus enierging around the notion thatthe role of the state would not only involve the proper use of fiscal, mo Instruments of anomie policy and state control and-sup rowth process but would also have to ion of Congres is that ‘the State shall own or control key industries and services sli retources, railways, waterways, shipping.and other means.of publ transport-The critical reason for business support to the publ elaborated ment for India, popularly called the Bombay PI Aabalast t rs end ge, Thus, Vakil nd Brahrnonona spd ier Panglieecconumellyyontere whe ere be aapiyoftnccouny Wale == Input pers prc onsen tured ote besomehat cppoced te the mole = had given doe document whigh 2s, Shenoy's is a well the alloca ney of the market iichanism eanot be improved upon, While thisisa useful intervention it was known even by queried the use of eontrolsa p in the 1950s was to raise per capita on. Thevehiclefor this wasthe Nehru- Inaving been taken of the Congress ‘Subhae Chandra Bose during his‘all-too-bref and il-fated ps theparty, Thecommittee was chaired by Nehru. Thecomerstone ofthe strategy I status to the strategy, wvas the so-alled “plan frame" that had guided the 3m of spending. In allocation ofinvestment across lines of production in the Second 3m given also to infrastructure, of the economy then — the public sector alone would have initiated. 107BOL much stronger in Hindu growth r ‘an annual average rate of 8.6 perc 1990 to 2007 the growth rate av terms). The shift to a higher growth path during ‘of.the-1980s is referred to as the Indian growth turnaround. Fast growth in India since the ‘early 1980s has placed it amongst the top nine rapidly growing economies in the world (Ahmed and Varshney 2003) ‘These numbers reflect simple averages and are measured in 1909-2000 ‘The per capita averages for the 1990-2007 period is until 2004, the ‘year for'which poptlation numbers are available onthe Penn World Tables over whi second regime 1980, with an sed 100 per epit probability of being in the high, growth regime by 1980s, More recently, between 2003-04 and 2007 08, real GDP growth increased further, averaging 8.8 per cent. The is consistent with of studies using aggregate data (ave Redrik and ‘Subramanian 2005; Balakrishnan and Parameswaran 2007), More recent work Using disaggregated data points to a rather ‘suggesting a confice between both appreaches, these two attempts to time the tumaround in more detail later; but the key issue on which al tue 1e cconomie discourse in the early 1980s. There was widesp India's macroeconomic performance - perhaps, best éa indicators of development have remained stuck at very unsatisfactory levels...The stability of numerous parameters would not bea matter of concern the fact that their stable values epitomise a large and a growing mass lieved suffering. For 32 years the rate of growth of nations been stagnating around a miserable mean of about 3.5 per cent. This keeps India as low as 71st in the hstof 104 countries ordered according to the rate of growth of income per capita. Now, consider the discourse, one and half ‘the ificant declining trend in poverty, trend that appears to have cor after the recovery from the 1991 erisis and reform economic reform {in 1991 have improved economic growth with a continved positive effect in reducing poverty has raade scholars optimistic that accelerating the growth {Suitherwillbanish poverty very quizkly dispute about the poverty numbers India merely reflects the fact that rapid growth has sot occurred or ha: been sustained to mak Tailed to raise growth show that ifthe growth: 3t China has seen, by 2008 ‘he poverty ratio can fall {rom its current rate of over 80 percent to just over 5 ‘percent. These views reflect the dramatic change in the profesional perception about the elevation”, He further contended: “As we enter the new century, the economy stands at the eroserodds. It can fale alles de ‘sines as usuff rad which means continued poverty and the low-groith trap or the high odd to presperity through accelerated sefoume” ‘Thus, the emerging consensus is: ¥ t raproved economic growth since in. 1980-81 has reduced poverty igniieanty. Te iniproved as a result of the economic reforms initiated 1901, without affecting the trend decline in poverty ) Therefore, mere reforms - popularly called the ‘seéond generation reforms, or ‘completing the reform agenda} will further improve the growth rate and reduce poverty ‘More retently, there is a growing view economy isinereasingly driven by services, as the te {or close to one-half of GDP. Therefore, India is perc socity -2’knowledge’ based economy. Such optimis 8 the recent spurt in software exports and the perceive! potent services such as information technology, communications and. entertainment ‘The foregoing views and perceptions have considerable significance, both for India, as well as for the development discourse wed for a careful examinatio soundness and empirical vali tment has been recognized a3 an imperative ‘economic growth and development. One oft uring the last two decades is the sp“yes” @BRBHR B.A. Coss) Boonomiilll Year Gemester-Y) investment in. the products were ie Indian economy backward and underdeveloped. Over the last lecades, has completely revolutionized. ee shore modernised sate, THe eabona rahens oats -onomy have changed due ts the increase in festment. Before 1991 the inflow of foreign forin of borrowing. In the second five-year plan of 1956-61, main jports from foreign investments and loans to focus on the rapid india, Furthermore, te inflow of foreign direct investment ‘was encouraged in the pi primary and teftiary sectors were ignored in the period before 199) The table displays that in the period before 1991, the infléw of foreign direct investment was very less and limited to a few Sectors. icant outcome from the trends in savings and omy fs that Indian ceonomie growth has been Gnanced predominantly by dome: far wo Abs. in real GDP grow the Indian economy, hovever, suggests, continuing increase in real GDP growth over each decade since Independence, interspersed with a during the 1970s. Interestingly, growth of manufacturing produel of decadal averages, was roughly constant at around 5.6:5.9 per cent in the first five decades after Independence, except for the 1970s. There are two other features of our growth history that are notable. First, agricultural growth has been subject to large variation over the decades. The 1970s interregnum i particularly marked by the severe deceleration in agricultural growth, by a marked recovery in the 1980s, and a slondown thereafter. Second, until the 1990s, little note had been taken of growth in the services sector. glance at the growth record suggests t the continuing and consistent, acceleration in growth in services over the decades, that had earlier been’ ignored, that really accounts for the continuous acceleration in overall GDP growth, once again, except for the 1970s interregnum. There is nothing particularly special about service sector growth over the last decade. iod of sixth five-year plan 1980-85. However, the * Yaper-11: Indian Economics-{ (1 Dec. 2017) 383 ‘The slowdown of growth witsiessed during the 1970s was reversed during the 1980s; the pick-up benefited from the initiation of some reform measures aimed at increasing domestic competitiveness. Since the early 1990s, growth impulses appeared to have gathered further momentum ja the aftermath of comprehensive refosms encompassitg the various sectors f the economy. There ~~ ‘wag some loss of the growth momentum in the latter half of the 1990s, which coincided with the onset of the-East Asian financial erisis, setbacks fiscal correction process, quality of fiscal adjustma growth affected by lower than nermal monsoon y the pace of structural reforms, The slowdown could alzo be attrib .sm and optimism in regard to investment plans in domesti deregulation, which was followed by significant problems bility and competitiveness. Monetary tightening in the face tionary pressures is also believed by some to have contributed to the slowdown over this period. \ In analysing. the growth record of the Indian economy, various stholarly attempts have been made to identify the turning point from the “traditional” low growth to the modern high growth since the 1980s. The simple orde the data presented here provides a somewhiat different picture of cor slow acceleration in growth except for the 1970s decade. The secular uptrend learly associated with the consistent trends af increasing savings 1eteased continuously from dn average of 9.6 per centof GDP during 19505 to almest 35 per centof GDP al present; over the same peried, the dom@stic * ‘has also increased cintinuously from 10.8 per cent in the 1990s to close to 36 per cent by 2006-07, A'very significant feature ofthese trend’ in savings and that Indian economic growth has been fin predominani savings, The recourse to foreign savings - equivalently, current account deficit -has been rather modest in the Indian srowth process. We may also note that the two decades, 1960s and 1980s, ‘when the curfent account deficit increased marginally towards 2 per cent of . which averaged.() 37 per cent of GDP 50-51 to 1979-80, widened sharply during the 1980s ) 8.2 per cent of GDP in 199091. The resultant. higher borrowing requirements of the public sector led the Government to tap financial surpluses of the household sector through enhanéed statutory pre= emptions from financial intermediaries at below imarket clearing interest rates. (SLR) were resorted to to finance the rising fiscal gap, ie financial repression regime in place. The SLRwas raised from 20 per cent in the early 1950s to 26 per cent by 1964, and it remained at thisou level (or the rest of the decade. Beginning in the. 1970s, the SLR came to be about expansion ofthe services sectorhelped largely bya liber and trade regime. They ao increased consumer choices and reduced poverty considerably. + According to World Bank study the poverty declined by 1:26% points ‘er ancum alter 1991, coszared to that of 0.44% pointe per annum prict to 1981 * The World Bank study shows that ainong olber things, urban growth 1s the meat important contributor tothe rapid reduction in poverty even though rural areas showed growth in the post reform period, + The cfficial estimates based on Tendulkar coinmitte’s poverty shows that poverty declined only 0.74% points pes annum during 1993 WOS05 and it declinad by 22% po + Overall about 122 mllien p40 during post reforms period. T “The Gini evel coeaueaytion feet XOSDE Ne wOK ee in 2011-12. Thore wasa significant rie jatheeGinl coetfltent for urban areas fom 0.34 to 0.99 ducing the sar : : the yor andar se reach hie i odin dit fs inereased Suggestions . * The government rouat continue iauat cont luctive et ploymentiand priding au measure role in eduetion of poverty and nega: He “to focus on these areas more * The poor governance isthe oats, hence future economic’ reférms should focus on eflcle systems of public services. : forms period povérty declined efasiderably but inequity ne extent. India stil has 00 millon peeple below the poverty needs elective policy mechanism to reduce the poverty snd context, the Mike in Indi focus on startope, inclusion, ete. ardjsteps in the right direction. Yhen nations reach a high ratio of such people Fo iae necro Rene lure — which accounts for 5, growing one per cent“4.As many a8 60 pér cent of those ‘with jobs do not fi theentire year, Indicating widespread" underemploytie! 8. The form: jon of-companies has slowed to 2008 le companies are growing at two per cent, the lowest in five years. 6. With lafge corporations and public-sector banks financially sh \hgaverage size of companies in India is reducing, ata tine when w lunge conipanies are centra! ia creating jobs. ‘ “This indicates thal a very large labour force is movi which does not have the a ‘The report pointed o iss than half Uhe population was fully employed. to amme report said that of 14 lion: Wut Oe Inia tha Chinn suggests amore ited capita ‘wider gap fn Iasi challenge iventeconsnued expesion Tran over the next 36, years” Tehang: ne esonary, and ean ppening over he recat ‘senenpersstndthen the Last seven Ye re can caitalise 09. the raditional route is net learly open to Ladi, bow see eanopraphie dividend? This isa question tha eehiabe sean there isnot auch time. age investmentsin manul ‘Here we can clearly see the role ofthe fovermment nt Investments and prio big eaten is a lack of qualified manpo Wtndians who ean get jobs rl th ronswered surprise Ur Srihei access to reasonably god education has no access to this education resource and j'the modern economy. This is true even at the inister recogaises the problem: and has launched 2 i to equip ailions of people with basi blue-collar ere the results will take tine because the quality of India is very poor. The morecne thinks abot organised . ‘ow India willbe able toveap the benefit ofa demogr benefits of demoerp af mass unemployment and socal unrest i looming unless there Toth intemel and external, that atthe moment nowhere fo be 38 Demographic Change and Economic Growth evel, faster population growth shuld yield stronger GDP growth, tation stems from the standard imnishing factor th generates capital per worker and hence lower per capita income. ty, changing populations have changing age distributions, and rates and youth and aged of dependent counts, ne effects of ageing ide effects of i as they do through the size ofthe labour forer, tend to dominate demoend side changes in averoge saving rates and in the product coroposition of consumption. " demographic change, a 111S expecta ZL ee fly suffer froin unequal «crpThese groups nbed spetial attention a they not arly suffer “idlloiver aeeoss but also produce the worst health outoomes in the country ‘This is priniatily becquse these groups have been traditionally excluded and seriminated; aid therefore solfer from high incidences of poverty and low levels of efueation Qiealll care awareness), among other dissdvantages, which have made their aceess to public health care tougher. While the public health care system required to have ensured beter, care and ied coromunitia, evidence shovs tat access = “4. Compl Jonigevity, abo arise, however, when the interdependence of fert (2005) predict that improvements in hea ig Patural retirement ages Gncreased a pation) but de anger working age cohort. Hi paiticularly if policy regimes prevent or discourage later mmargi case increased longevity among these population group. finance a longer retireme: ‘Access to Health Care. ; - retirement ages of 60 for roen and 58 for women were set at a line when life Poor housing condition, insafe drinking water, lack of saAitation, use of iiomass feels, exposure to environmental odds asa part ofthe livelihood among the marginal: population group often increase the xisk of numet ‘noted avery high prevalence of minor ailment er. 1,000; i term in nature cause substanti , The prevalence of ly by socio-econcmnie conditions of households. Thes: ‘among the poor and the uieduca ted population and those who belong * ity. The prevalence seéms to réduce with the body benefits from living in sncy Was only 60 yéars, compared with over 70 years now. As longovi continues to rise, later retirement ages wouldbea simple way of expanding the proportion of workers and thereby reducing the burden plated on the fiscal ‘of a rapidly ageing population. ‘Mijch more complicated is the ‘ decisions and savings, spact of alternative pension systems, ince- different measures to deal with” 2 have profoundly different effects. yr determinant of employinent ‘care amongst possible factors that account for-unidcr nuts i . 1046215 i. ‘Although the central government, hing health care iifrastructure, each ofthe: pes for healthcare fnanding and provides il ‘Treatment rates actoes groups donot show much var esses do not require much lsboratory test ie provider for such types of fases due to easy f the cost oF minor Ith in India is a stat jeant part in establis! hypertension, heart diseas ject to 9 number of diagnostic tests. A sizeable ‘areas remain untreated mainly due to, the local vicinityhave shown that only jr illnesces in metro areas romain untreated, whereas 12% of the ‘untreated in theless developed villages. Again, one-fifth ofthe Gisgnosed major illness among the scheduled tribes remain untreated. The households ore usually cated in places, which have fewer hi on tthe unhealthy. onal balers. A maloiy of tee longterm mar e lan document states that sgnaded amongst them. They need to go out of the he 12th plan vl reper villages, which are often isolated to avai _Aecasto heath af every much sapmmetscBeben ral and urben Iodia, the rural residente face far fewer choices. India has.a very vast publ network with sub-centres working at the community level. The bealth sub- Irrespective of the a health care even for minor health care in India, howeve : fack of trained and skilled manpower as ée ‘Access to health care facilities is significantly urban bi the rural areas face the ad 1 disproportionately larger 5 jth respect to access to health c: “Barriers to access woul disadvantaged and those jon that... the SC begiven special attention while: subscanters and anganwadis.~~ “gntres are manned riainly by bare foot health workers and work as a bridse é work telween community and the primary health Sine Re PaO eae cenaet pint botncenvillige community and medical ofbeer; mei Sea aniaterated curative and preventive health eare to the ru ennasterade emphasis on preventive and promotive aspéctsof health care. Corman rh delivery of the health Services. But, availability of any heslth fac not seem enough to attract people to the government facilities: Further noted y of visit {facility for minor illnesses reduce ¢ reduction is Malnutrition is an ecological problem tha¥ does not occur alone. It + accompanies poverty, disturbed family strietn ignorance and despair. ‘Poverty. Because of low purchasing power, oor cannot afford tobuy desired amount and desired quality of food for the family. This adversely affeets.theit spacity for physical work and they eam less. Thus, stars a vicious cycle of Siren unex nutrition, diminiched work capacity low earning and poverty Lack of awareness of nutritional qu tional ‘child rearing and feeding habits family. Infections. Infections like malaria and measles of recurr pitate acute malnutrition and aggravate ‘Metabolic demands for protein are higher van jess food either due toreduced appetite or due to food leading to malnutrition ‘nd the Teatrctons by the mother. Thus, Socjo-cultural factors ~ Inequitable distribution of food in the fam roweholds, women and preschool children espe food than the economically active male members. « Large faraily's Rapid succession of pregnancies adversely affects the cates aval ctatus of the mother. As she tries to manage the big family saernay neglect her own health and antenatal check-ups during vwrey, Under nutrition may lead tolow birth weight baby. In laree I's por eapita availability of fod is also Tess, sality ofhousing, sanitation and water supply. These contribute ealth ond infections thus Contributing to malnutrition. -Ipadequate maternal and child eare- Improving the primary health aoa aid other health exre services in the rural areas wil definitely improve the nutrition proGle of women and children. most of the’ poor girls receive less. Causes of child malnutrition canbe summarised as below. OUTCOME | ‘waLiuTRDDN Amyontte’ [ Hadowate cause >| Delany Wccess 113 POTENTIAL RESOURCES: ENVIRONMENT, "TECHNOLOGY, PEOPLE Groups of popillation most affected Certain groups of population may be most affected because of their, + Biologiéal vulnerability ae in infants, preschool children, pregnant mothers,adolescent girls and old people. + Socioeconomic factors like poor, sodally deprived, shum dwellers; street Kids, ete. 3 « Habitat such asthose iving in inatzesible remote areas, thick forests ‘ sind mountainous regions €-g. tribal population and nomads Type of malnutrition is + Protein energy malciyri 1 which canbe attributed re a chennte demPEL various programs and drivésto incr "children drop out before completing iveyearsef primary school fine and other ~ Deficiency of micronutrients, such as vitamins, ion trace elements. Sometimes this may be 6.0: ‘ outcomes in the field of primary eduestlon is stil very ungai 2 Bxplain. Why do you think that female laboue forte pas became one of the many factors that Jed.td jobless growth tn India? SS 10¥s= 15 ‘subtle ands oten described Ans, In recent decades India‘has made’significant progress on access to schooling and enrolment ratesin primary education but dropout rates and low ges tend cx gerne fe longer-history of publit education than India there are opportunities or India to lear fromthe suceses ai failures inthe American ‘dueation systain and to ellaborate intacklng shared challenges, such test use of technology in primary education * Primary schol enrclraent in India has bein a sucess story, largely due to seentolmentéven in emote areas. With tenrolinent reaching atleast 96 percent since 2009, and girls making up 86 percent of nei” students between 2007and2013,tisclear that mai probloms tof access to schooling have bee addressed, Inproversents to have been a priarty to achieve ths and India now has 1.4 million schoo 7:7 milion teachers so that 98 percent of habitations have a primary schoo] {clase .V) within ne kilometre and 92 peicenthave an upper primary school (class VIVII) within athree-ilraetre walking distance. Despite these improvements keping children in school through graduation is auill an isve and dropout rales continue tabe high Nationally 28 percent of 149 peti before inishingupper primary school Highschool completion iaglys2perent, This lands India among the tp ive nations for out-of-school children of primary ith 14 milion 6 to 11-year ols attending schol. In many sways schools ae not equipped lo handle hf population there sa teacher Shortage of 689,000 teachers in priiiy schocls, only 53 percent of schoola have functional girls toilets and 74 percent have access to drinking water. reports show that ‘Additionally, the quality of learning i a major issue a children are: not actieving cass-appropriae learning levels. According te Prathanvo" Annual Status of Education 2013 report, close to 78 percent of children in Stondard I] and about 60 percentof children in Standard V cannot syet read Standard II texte. Arithineticis alto a cause for concera as only 26 ercentetudentsin Standard V can doa division problem, Without immedia dnd urgent help, these children canned effectively progress io the edueation tystem, and vo lmproving the quality of leaning, i schools 1s Uhe next big challenge for both the state and central goveroments.” Inaproving learning will require attention to many things, Including Increasing teacher acountability. According vo school visits teacher attendance is just 85 percent in primary and mide schools and raising the amount of asthe ing tea¢Neri'spenidOn-task and inciéasing their responsibilty for student jaring also neods improvement: Part.of this process requires better’ assestrient.at each grade level and more efficent. monitoring and support systoms. Overall, the publieschool system also needs a better general ‘manogement sytem, : India alo faces many challenges that ould be tackled through the education syslem. For one gender igsues have come tothe fore because ofthe spate of receht cases of violonce against girls Changing génder mindsels seems to be imperative and gender studies education sone way of.doing sa, Als, Inia, along with nest countries is conosrned withthe future ofthe labour market ‘and employability; Prince Minister Mr, Narendra Modi wants to emphasize skill developmentin order to fnakeschool education more practically relevant. Teacher education: The lack ofeaming in india’ schools el x changes Loteacher education. A collaboration bebxeen American universities schools af education with Indian teacher taining institutes could help buil cap and upgrade eacher education bth ntermsof curriculum and pedagogy, i is much needed in Indian teacher education institutions like the Dist Institutes of Bucation and Training: Such collaborations could be facilitated through technology, collaborative research projects, teacher éxchanges, and subsidized online courses for teachers in India by universities in the United States. ‘Resources: Currently spend 2.4 pereent ofthe GDB ThesUS-pighe'Ge able Pepin he poveraer.pinzease spedig on eet > * "i resent evince from NSS reveals decline in female labour force in terms of participation in Indie, The decline s dificult to expla conomicvariable as county is experiencing rapid economic changes. Perhaps ze and cohort factors meaning that-educational and time period advantages: might be leading to postponement oflabouinarket participation The objective of-the study is to investigate the declining trends in female labour force parlpaig by Sortig out the ends it age period and ohort eet. The Findings suggest tal age and period change can account fo a sbstantil ds in labour force participation though the importance of cohort is not tnderrhned, Provision of higher edvation and creation of employment oppdrtunitiés to younger- cohorts of women Wi ease the labour force ptiipatin rate near fut iar of T's aboor market was the lator fce {Sect women remain stagnant faa lng time with he exertion of 2004-08. The recent data on employment and ‘unemployment shows. ‘disturbing trend eflbour forge paticpalon rate which doppedte percent in 2009-10 from 43 percent in 2000-05 and the decline is noticed especi ‘bour foree participation rate shows a steep fall fr ‘in 2009/10, Between the period 2004/05 snnaaly atthe among fle Femalé ll 29.4 percent in 2004/05 to 23 percent: ‘and 2009/10, there has been a decline in female ‘employmentbe ssenasa signal ofdeclining dizer women: Q.7. How far would you agree iat the aie of poverty reduction bas increased in the post-reform perlod, compared to he previous 30-year pertod ? Explain. What do you observe about India’s inequality, Comparing the period of 1980s with theearlier period? S628 ‘Ans. In July 2013 Planning Commission eane out with data that showed sharp reduction in poverty inthe last seven sight years, According its dat, population living below poverty line hss daclined fom 37.2% in 2004.08 doponistand pelicans aregiving edt es f exuoate reforms for this sharp ean. Some economists and journalists, who defend the proces of economie liberalization sen arguo that economierekrmshavéhelpe poverty reduction inthe counts and Ingia would have achieved much more in sel, had it started ecohomic reforms in the.1970s. They-argue that poverty in India has Teduced st a higher fat jo the era ofesihomic reforms and India could never hhove achieved tis in te pre‘efor period with 29 or 3 4"Ilindu gromth Tn ots words; they are zing that polides in Liberalization Privatization and Globalization (LPC) era have helpedinreducing poverty ato much higher Tate which did pot happen earlier, Tet alms call for looking ab poverty eduction statistics in the pre and post reform periods. Te is diffe to find a single source that has comparative data of poverty eduction between 1947 to 2102 a5 there i no study that has ellcted data aeroce decades using the same method. What is available i the following data fom the Planning Commission and World Bank which suggests that there is ao drastic reduction in poverty in post reform period, despite popular belie. Planning Commission: Year . asta ae 1983 46.9% 3987-88 99.1% 1993-94 3% ~ 2000 21% World Bank he above data, pov between I974and 1988 (pre-reform period) This me: per Planing Com that there was a 174% drop in poverty rate ine yeare which intalmost 125 evetpyear > bested 1068 and, 2000 in he ims soies (12 over atecame down from 981% 927%. Thie teanslatesino 12595 drop in I2yeasoralmavatd We peryears ne ~ Lafetdata ofthe Planting Commission for 2011-1215 nt comparable to deta as itus diferent methodslory: But stil, Tonecomyarts the previae data, poverty 2004-2008 to 2.8% in akin Ione compares results are even reformperiod, poverty éame down from.5 % in 16 years with an average of 1.98% per: the past reform period, poverty came down from 33% in 1990 to 28% in 2000, between 1994 and 1997. Figures Poverty rose fom 28% to 34 % Thetween 2000 and 2010 are more astons! inthis period. im periods. Most of ‘eform peri and between 5.7% and 10.5% growth rate in post reform peri 115ou one compares poverty reduction rte with gfowth rate, one would know what share of growth has gone into povorly reduction in the pre and post reform periods. . . ‘love looks at the above data, oly the Plainning Commission data between 2004 and 2011 says that poverty! the périod which cannot ly be called a drastic reduction in context of growth: this estat ainetine as Tendulkar 77%, that these Independenée. jm that past reform era has seen argaragnt from pro + So, considering the abovedata one can't a'grcater poverty reduction than pre-refo ‘economic reforms economist that economic reforms groups 3 0 help margin ‘and poverty reduction in ‘what extent this trickledown criteria ag planning coinmlssion—'Criteria. of definition, anyone whe Ras résourees to, afford 2200 in urban area is abote poverty line loos not take eare of other important aspect as education health and shelter). ‘hs per Ms UtsaPatnayak and Mr. Prabhat not have regources buy 2100 calories in 1983-84. This situation to 57%. However, there is tion which cannot afford 2100, 2004 and it further to on could afford 2100 population Improved in 1999-94 and the number red constant inerease in percentage of urban pop\ ‘ural population, the situations worse As much as 56% of the Wn did nat have resourees to buy the requisite calories in 1999: + inereased to 76% in 2008-10. This means only 24 % of the could afford 2200 calories—the energy intake separating the non-poor as per planning con per year availability of grain was 177 kg in 1991 (when reforms has reduced to 155 kg in 2004. According to Utsa these figures. 1. According to het, current per capita thatthe minimum support price (MSP) for farmers.has increased many folds 9000, ‘There must be some inayal, have done thoir research using same! ries Intake"- As per the , Tacsisary to examine idee tall claims. It is true that MSp mest by 240 % in last 15 years. However. it needs to be inderlined that the MSP hai aan nae 07 and meat underlined ih he ppened between 2008 and 2013, However, infation hag eased by 7.5 % (on average) inthis period. Ifyou take into account, Sar uid have increased by 275 % to.stay at the came level. ay, is a well-known fact that subsidies and soft long 1 agri ture sector have been cut drastically in this ps have data regarding extentot * spurchase by goverament at MSP Ti be intereating to extmine the coverage of MSP in the Saivath ap Patnaik suggest thot sopport to arcs st reform period and th ie ody by P Saath, 70,40 fons have om and 2011 and forty-six farsiers are committing $000."There Feasons behindsqlmost 9000000 Taner inthisera. Iti in this period. ‘when economic reform started, India was'at 123rd place in the takes cares of wider’range of component \péd tothe 134th place in 2013, In Glzbal Developraent Index 2011, 4ndia ranked 65,among 75 nations, was ranked lower than both Pakistan (67) and Srilanka (36). Currently India. * has highest number of malnourished childrei in the world and 50 % of wornen _ that prijes that the current developiment made! is Gobless'growth az describe by many) and not Teas not ‘behedted marginalized sections and the trickledown theory, the argument given in favour of ’ has not worked. ‘The Indian economy aitnesced a highér growth inthé grose démestic product = (GDP) associated with risibg concentration of income and wealth. The growib cof employs reform period (1993:94 to 2004-05) was mainly concentrated in the selfemployment category, while the growth of wage reinained more or less stagnant. The rise in self-employment is 88 moyetient from wage employment, which’ also enhances emple} F would increase, wage differential betweensklled and unskilled laboor {pected to rise. The overall impact would depend an how broad based the et in the economy is, whether movement across skill-ba vel ions for retraining and redeploymentaré Pr2iaee Mest of the studies in past are limited ta grouped data and don rad iegauth dzaatregation inorder to have a clear idea about e27262 in different segments of the labour markets, However, thesestudies indicate that labour market gen i tsinings that 16 bated on gecpraphic ieee roup and gender. There is the recent growth had beret Terences in wage rate and errthere vel of educatior industry, : rihaememne ong te reserchey few and led to. ‘among regular and casual inequality in ineome workers. In the second séet (consumption) of household Before getting into the analytical pa his study. In this study, unit level Organisation (NSSO) for the years, 198: have been used. The wage data is availabl themselves as casual or regular work ‘wage rateis the average daly wage. sningsreceived in a week by the tt wage rate is further deflated re successful resource mobilisation, ‘manufacturing gre at 9.5 per rom 1965-80, Als, China managed itz 117 1 the monumental econiorsic progress, forms pushed by Deng ch aceording to his work ism and efficient economic Q. 8 Comparing the growth performance of India and China essentially understanding. economies. Comment. Why’ also? politcal desoc the existence of multiple polite pa development, ‘The average Indian was slightly better off inital years after indian independence, But China's approach todevelopment has varied markedly over the act 40 years and has been so sucessfol that it cblems are compounded by then token the indus th no coherent approach ° hile asking oom forthe an the average Chinese inthe Iso miade possible by avery lange nel direct investment, a sign of confidence in the Chinese econo wvestors, China is the leading ry by outside ination in exportsand thesecond largest ceanomey income ore than undp to abot FPP £13000 and aj povery ws arpa * ncomeineiity increased) Chin's Mega from 4231980099 013 acting Programe 2014 : ina nd nda, despite ting sch large cous, accounted for only 48 ‘Against Chinas sucess, oda’ achleveeny though pies secant ard 12 perce of gull ODP in 1880 In hg Pore Pry cook fore independenc, i modest aia les Ubpbynms Theceied ChnssooPtndivovnet nt 9B G28 lo ure ea ep hn a $204 billion): in 1960 it was 1 08 ($239 billion/$222 bilon). Estimates of per from theconstaine food pinay ($5,720 equivalent the United Nations DevelopmentSLL India didnot manage to apply toits industrial sector the lessons it learnt inits, ‘agricultural revolution — using foreign knowledge, relying on thé private sector and deploying subsidies selectively. Instead, foreign borrowing was used to ‘ease the consumption constraint inthe publié sector and to cushion loss-making public enterprises. i, Indian policy underwent directional changes in-1991. Prime Minister Norasimha Rao ushered in reforms which were implemented well by his Finance Minister Manmohan’ Singh, who then became the second-longest, serving Prime Minister of India. Indian ecorioinic growth accelerated duri 2008, but could not maintain the momentum duiee pel es that were necessary for economie-grovithy:Giesin 1980 19 0.586 in 2018. Primary difference. The prisiary difference between the performance of ‘GheIndiam and Chinese economy has been the faster growth of eapital stock in ‘China. With only a slight difference in the growth of employment, this translated into a more rapid growth of capital intensity. The growth of total factor productivity has also been faster in China. This appeats to reflect a freater ease for labour to move out of agriculture into higher productivity China than in India, China has outdistanced India in every area of teonoinic endeavour in the last 36 years, except in computer software industry and agricultural research. Despite international border iasues that still exist between India and China, the two countries are trying to create a cooperative relationship — China has ‘become India's largest trading partner in 2013, India’s trade deficit with China ‘about $36 billion, President Xi has offered $20 billion for investment in Indian infrastructure and other industries, and a 100-person delegation of, ig province has signed MoUs with India totalling about $2.46, india will most probably overtake China as the most populous country i the world in 2080. China is better placed structurally than India for a good economie performance, but itis most likely to be much lower than its recent average performance of about 10 per cent a year, How much lower it would be Would depend on its ability to maintain current labourproductivity levels and the benefit Likely to Mow from its proposed trans-continental rail system and ‘other ansport-related activities. Troubles in China's financial markets, 2 declining young and increasing older population as apreportion ofthe working ‘age population, increasing wages in general and export industriesin particular, qoute aeseeiated with cleaning up serious environmental pollution, increasing competition from other countries in export industries using low skill and sera shill labour, lower savings rate and a possibly lowerinvestment rate will have a negative effect on its growth. 000Name of the Paper |} Indian Eeonomy—t Name of the Course = B.A. (Hans.) Economics CBCS + Maximum Marks :75 “AU questions carry equal marks (15 marks each). Attempt any five questions. Q. 1. How far would itbe correct to argue that lack of agricultural (964? The argument that economic reforms post 19903 lead either alleviate poverty eradication is a myth or cuss. (148=18) dian agricultural sector was known for its low productivity. The: fnew technologies, ledge and the high prices of advanced nologies, was responsible for a stagnation in this sector. There were also very high incidents of disguised unemployment in the sector during 1960 and 0 poor agricultural techniques, farmers depended largely on rainfall. jear that receives the least rainfall would see the least growth of this ‘Therefore, there was a very high dependency on rainfall, 3 from farmersand depriving them of their ne Jssue in the nation’ agricultural sector. agriculture, which grew at the rate of about inum in the post-Independence era. Expansion of area was the grovrth in the period ofifties and sixties after th Land reforms, inauguration agricul ensure remunerative prices § producers, new agricultural strategy, investment in research and extension krvices, provision of credit facies, and fmproving rural infrastructure are 1"jotndominant nature of ogrculture and decdera i dnt set nar owning ef falure ofall development policy for agriciltureisthat there iso availablity tfany separate development strategy for Indfan agriculture, This eae te fact that we had_not available necessary data lo study the characteristics er Indian agriculture. But presently we have comea long waj from Independenes and now-we have long-terms data pertaining to Indian agriculture. So the” prevent study makes attempt to fill this gap. ae ‘The Gist phase of agricultural policy witnessed tremendous agrarian re iasttional changes, development of major iigaian project sad strengthen ~ cfeooperative edit institution. The most mportanteontribution af land reforms was abolition of intermediaries and giving land tls ta the actual eativaters This released productive forces and the owner cultivators put in their best to augment production on their holdings. Land ceforme were importa increasing agricultural production during this phase. The C. trade and disprotection to industry. During this period opening up of domestic market due to new international trade accord and WTO was another change that affected agriculture. This raised new challenges among policymakers. Because ofthis, a New Agricultural Policy was launched by Indian Government sn July 2000. ‘A’common criticism of India's economic reforms is that they have been excessively focused on industrial and trade policy, neglecting agriculture which provides the livelihood of 60 percent of the population. Critics point to the deceleration in agricultural growth in the second half ofthe 1990s as proof of fe notion hat trade policy changes have not helped agriculture is cleaily a misconception, The reduction of protection to industry, and the accompanying depreciation in the exchange rate, has tilted relative prices in favor of agriculture and helped. agricultural exports. The index of ‘gricultural pries relative to manufactared pred increased by almost 20 percent in tne past ten years. The share of India's agricultural exports in ‘World exports of the same commodities increased from 1I.1‘percent in 1890 to ‘9 pereentin 1998, whereas ithad declined the ten years before the reforms. But while agriculture has beoefited from trade policy changes, it has suffered in other respecte, most notably from the decline in public investment in areas dural growth, suchas irrigation and drainage, sil conservation ‘ment systems, and raraloads, As pointed out by Gulati and Bathla (200), this decline began much before the reforms, and was-actually sharper in the 19805 than in the 19903. They also point out that while public lopment Programmes wore als¢ agricalture that had stagnated during the Britsh period. In order to engourage the farmers to adopt better technology, incentive price policy was adopted 1064 andthe Agricultural Price Commission wasset upto advice the Governmea on the fxation of support prices of agrvultorl eros. Despite the snsttutens changes and development programmes troduced by the Goversment ducing this phase, India remained dependent upon foreign countries,for-food tof therising population. > ‘The secosd phase in Indian agriculturestarted in mid 1960s with adorti ‘caltural strategy. The new agricultural strategy relies on high-yield ‘of crops, multiple cropping, the package approach, modern fi ‘ces and spread of irrigation facilities. The biggest achievement ofthis Ftrategy has been attainment of self sufficiency in foodgrains. Agrarian reforms, during this period took back seat while research, extension, input supply, ret, marketing, price support and spread of technology were the prime concern of policy makers (Rao, 1996). investment igricalture which accelerated after the reforms. However, th ‘agriculture-related infrastructure is critical for achieving higher productivity and this investment is only likely to come from the public sector. Indeed, the rising trend in private investment could easily be dampened if public investment in these eritical areas isnot increased. is the deterioration in the fiseal position of the state governments and the tendency for politically popular but inefficient and even iniquitous subsidies to crowd out more productive investment. For example, the direct benefit of ‘subsidizing fertilizer and under-pricing water and power goes mainly to fertilizer producers and high-income farmers while having negative effects on the duel @DP during the 1980s (Chand, 2003). There; | environment and production, and even on income of small farmers. A phased, ‘ ly rational user charges finanee investment in ‘The next phase in Indian agriculture began in early staridd witnessing process of diversification which result non-foodyrains output I during this period while public sector spendingin agriculture for infrastructure development started showing decline in real term but investment by farme kept on moving on a rising trend (Mishra and Chand, 1895; Chand, 2000). "The fourth phase of agricultural policy started after initiation of econes reform process in 1991. Economic reforms process involved de reduced government participation in economic activities, and Although there ia no any direct reforms for agriculture but t affected indirectly by devaluation of exchabge rate, liberali lined from 26% in 1993-94 to 27.5% in 2004- 05a decing of 35% a ‘year period. Annual average reduction of, poverty during this period was 0.74%. However, the rate of poverty reduction Goring 1973-74 and 1987-88 wae from 64.9% to 98.9%—a reduetion of 14 421zu percentage points during the 14-year period: So, poverty reduction was at the rate of 1% p.a:, which waé higher than that during the post-reform period even though GDP growth rate during the post-reform period Was much hight than that in the pre-reform period. The number of persons below the poverty line was 300 million in 2004.05 compared to 320 million in 1993-94."This means that the absolute number of poor declined very slowly during the post-reform period. So, the trickledowneffectof the growth process did net benefit the poo A major criticism of the’ process of economic reforms is the neglect of agriculbire—the mainstay of livelihood of two-thirds ofthe population, Due to ‘inadequate attention given to agriculture food grains production did not increase much. Even during 2004-05 and 2006.07, food grains production stagnated at ‘around 2008-09 million tones. As a result foods prices rose sharply. This created inflation and, thus, .was one of the causes of poverty. The reform process has emphasised the growth of manufacturing and service sectors and thus neglected agriculture. As a result, agricultural growth has stagnated around 2% during the last decade, It was 2.1% during the Ninth Plan (1997-2002) and-was estimated tobe 2.9% during the Tenth Plan (2002-2007). ‘The structural weakness ofthe agricultural sector reflected i low levél of spread effect. The neglect of agriculture casts a shadow on sustain agricultural growth unless there isa reorientation of pronti greater emphasison agriculture and raral ndustrialisation, Its ime the state, instead of withdrawing frm investment in agriculture irrigation and rural infrastructure, strengthened public sector investment in these areas. action required to bring In th rate back to the rate achieved during the golden era period 2 What factors can be attributed for the observed divergence of cross states post 1980 ? 0+ =15) ‘Ans. India's dream run in the economy lasted for five years, with close to 94 average anntal growth rate bebveen 2002-04 and 2007-08~ one ofthe wor highest in this period, close behind China’ grovth rate-After the financial {in 2008, growth in the following two years was largely restored b credit a ow interest rates, and Gi) expanding public expenditire, reversing he fiscal consolidation by raising the fiscal det from 2.5% of gross domestic. product (GDP) in 2007-08 to 4.8%in 2011-12 (Beonomie Survey 2011-12) As the wth has faltered: Central Statistical Offie's (CSO) advance fact, as lowas8%, At the hear of therecent(populan) Aispate on "policy paralysis" are the competing perspectives on what the boom vas all about, and how the dream runcan be restored: Wasjta virtuous outcome of sustained market-oriented reforms? Or was it just a cyclical credit boom, boosted by a surge in foreign capital inflows, coinciding with an unprecedented turnaround in world trade only to be punctured by the financial crash? Igrioring the crisis as a blip, protagonists of the former view argue for moving ahead with structural reforms to restore grovith. For many others, the crisis was a ‘wake-up call against the perils of unbridled capital inflows (the adverse effects of which India has fortuitously escaped, at least so far); they argue for safeguarding the domestic economy and itstitutions against the vagaries of financial globalisation. Furthermore, perceiving growth to be demand. constrained after the collapse of the external markets and’ contraction of ~ investment demand, proponents ofthe latter view call for mobilisi i resources and institutional strengths to revive the home m ‘with, itis worth reiterating that th i to Chinas. India’s financial sector, perhaps the only one other warded offthe crisis due to sound regulation and macroprudential normis. Applauding the boom, itis worth recognising that such growth episodes of four to seven years’ duration have not been tincommon in recent times; yet not all (or most) of them get translated ‘nto trend accelerations, as growth reversals are more typical than popularly believed or remembered, ‘The Indian econoray boomed for five years‘ close to 9%6'annually, froni 2003-04 to 2007-08. Output expansion was underpinned by a sharp rise in the investment rate, largely domesticaly-financed, boosted by an unprecedented influx of foreign private capital under benign macroeconomic conditions. What triggered the boom? From the demand side, a sharp upturn in world trade since 2002, and the technological change in communications fa “revolution”, in Alan Blinder’s reckoning), combined with the deregulation ofthe financial sector inthe US gave birth tothe outsourcing industry boosting India’s services exports. Tewassurely an episode of exported growth, with the export to-GDP ratio going upby 9 percentage peintsin fire years. The expansion ofbank cre a flood of foreign private capital. enabled the expansion of aggregate supply. ‘The financial crisis and the world economic slump took away the favourable conditions after 2008. However, growth after the risis was mostly restored, by loosening the monetary policy and stepping up public expenditure, before it tured distinctively adverse by 2012-19, se boombastvo ces: tho real sector, twas an exeptonal phase of ow in the industrial and services sectors for five years. aa cone ‘Tae beginning af th 1980's saw widespread glom in India's macroeconomic performance after the emergency was offal declared over in s07T: Howeres Gusing the peried from 1960.9 the economy began to pickup and the ratect frovih increased to 6 8 percent and was exceeded by only eight oot of 3 tountres Only afer the growth aeclerated i the 1580s was thoes a topitinnt dewnward tend in poverty point ta ote here, however was Chet Shoes GDP growth did pick up by almost 6 per cent in the 1980s, it was driven mainly by a massive expansion inthe country’ fizeal deficit The growine steed inbalancs in the economy te current account defce cea te cnt Bact ceotof the GDP by the end ofthe 1980s and inevitably caminated in a coreee Balance of payments crisis July 1001 It was this balance of peyenets osgotforced Talia to procure a $1.8 billion IMF Mor reform package and acted asin "tipping p lonn that led to the adoption off ein n India eonome isan trade have played a largor nee! v0 played a larger ole, matic Usan tn the ease of China, Still wo wo {phe alvaataged relative to interior regions ni faco much lowor transactions costs in partieip investment, . Second Stage of Demographic Transition s According, to tho theory of rant procs, The fit tae characterined va this stage the Pa growth of pbs tne war nthe Lot neage of demogragble sols fonpned iy hgh birth ate and declining death to thom grow of pollen dis entored the eocond alageof tenon after 1921 102) 0 Innere the 2nd wtago, the otha wan 363 por thovnand.tn 2000- Jstedto rapid growth of ‘ag of demograyble ‘oxpect that constal regions, 991, as the coastal regions ating. in global trade ‘aid’ * Hiat regional differences in g i differences in growth reflect rogional inal productivity of investments hy aut . rturna to investment a {s now panting through the eee ‘developed eounteien are in 3rd stage. nother foature of India's population is ita rapidly ‘age number of people {in India was 117 per ‘Agricalture ean oecantonally ug uéetor in éeonomic growth, ctor on the bags of a spurt in agricultural productivity or om the basis of eashcrop exports vent for surplus"). In the ease of Ind hiral-productivity-od ‘This adversely affects the land- oa of the world but there iz no causal ftghanistan & hyanmar having lower density can be poor. However, frdoveloped country ke adit tal capital and chology the raphy ng donoiy Ip to honey» burden forthe country to bear. x Ratio Cornposition Unfavonrable to Female: Sox ratio refers to 1 number of fas pr thovead mal sition i quite diferent than athor countries For gxamnle, the number af female per thousand males im USA. whereay tis 927 in India in tnia a 972 per thousand in 1901 fo 1991 consus.The sox ra sd to 946. In 1981, sex ratio reduced to934 against 930 per thousand ring, 1991, sex ratio was recorded 927 per thouisand.'The sex ratiois ‘983 per thousand in'2001. State wise Kerala has more females than males. ‘There are 1040 females’ per thousand males. The lowest female ratio was recorded in Sikkim being 832. Among tho union territories Andaman and Nicobar Islands has the lowest i.e. 760, Therefore, we can conclude that sex ratio composition ia totally unfavourable to female. Bottom Heavy Age Structure: The age composition of Indian population ls bottom heavy: It implies that ratio of persons in nge group 0-14 fs relatively high. According to2001 census, children below 14 years were 36.6%. This figure: {slower than the figures of previous year. High birth rate is mainly responsible for large nuinber of dependent ehildren per adult. hi developed countries the population of 0-14 age group ix between 20 ta 25%, Tereduce the percentage of this age group, itis essential to slow down the birth rate. © pops cond largest popul jon was 127 crore tion is growing ata rate of an people are added every year which is more than the of Australi. The th ion, the population growth of a country panses through * 123vel + and bottom-heavy age structure are mainly responsible for low work partiipatic Predominance of Rural Pop population is the dominance of rural poy urban population was 25; population was 27.8. Th index ofthe level of industrialisation of that country. slow and India continues to be land of villages. Population : The quality of population can be judged from’; life expectancy, the level of literacy and level of training of people: Keeping 14, quality of population in India is low. - Process of urbanisation population is a striking feature of In India, Labour force’, means that portion of population which belongs to the age group of 16-69. In 4 other words, the ratio of working population to the total is referred to as work participation rate.This rate is very low in India in comparison to the developed ‘countries of the world. Total working population was 43% in 1961 which dedlined: = to 37.6%in 1991. This positic (60.8 percent)'and vorking’” © of fernale employer in India. ; Symptoms of Over-population : The concept of over‘population essentially a quantitative concept. When the population size of exceeds the ideal size, we call it over-population, According to‘l.R, Malthus, father of demography, when the population of a country exceeds the means of ‘substance available, the country faces the problem of over- population. No doubt, fon basis tonnes but problems xr is overcrowded in needs to address this sue and not just afew counties, The wo isinereasing mainly ve to medical advancements and ineroas shina and India add more to their woes by neglecting substantial increos 12 billion Furthermore, India’s po before stabilising around the mid taken, Today India stretched to control 70 percent of India’ wealth. This economic neq lack of ree medical assistance, lack of social security and bad living condition The iseues are even more critical due to the advancements in Artificial Ttelligence and Avtomation. Automation threatens G9 percent job losses wit) ily occurting in the IT and production sectors. E- up to far due to job cuts and prices that are not as, arketplace. leads to working institutions dystunctionality and ves ineffective. This includes the Indian Government has struggled to endct reforms over the past 69 years since independence-The consequences of population growth are a problem that the whole world will soon face sooner or later. Drinking water, sewage treatment, inadequate rainfall, rapid depletion of natural resources, extinction of many plantand animal species due to deforestation and loss of eco-systems, increased level of life-threatening air and water pollution, high infant and child mortality rate and hunger due:to extreme poverty are some of the results of over- population, ‘Many people are alieady aware of the social and environmental problemas due to overpopulation, butonly a few are aware ofits adverse effects on health. Most Indian tities are badly polluted and have ttle fresh air. This leads to countless airborne diseases and skin infections.I’s not just India’s struggle, Brazil and China are also coping with the ramifications of overpopulation. It’s titne for al global forums to provide effective solutions in order to resolve this problem. Overpopulation can only be solved by spreading awareness of and implementing measures like birth control and access to birth control devices. Q. 4. How far would it be accurate to say that (a) insufficient .vestment in public sector is a major factor affecting equity in Access }o Health Services and (b) actual learning outcomes as a yardstick of sducational perforimances haveremained poor ? ‘that insufficient investment in publiesectoris ‘equity in Access to Health Services. India's health system ig of responding to the needs of the most disadvantaged ety. Despite progress in improving access to health care, inequalities by socioeconomic status, geography and gender continue to persist. ‘This is compounded by high out-of pocket expenditures, with the rising financial burden ofhealth care falling overwhelming on private households, which account or more than three-quarter of health spending in India. Health expenditures are responsible for more than halfof Indian households falling into poverty; the spactof this has heen inereasing pushing around 39. each year. In this paper, we identify key ehallengos toc ‘and equity in financing and financial risk protection in Indi ‘imbalanced resource allocation, limited physi inadequate human resources fo ‘penditures, health spending inflation, and behavioural factors that affect the 2mand for appropriate health care. Complementing other paper in this Series, we argue for the application of certain principles in the pursuit of equity in health care in India. These are the adoption of equity metrics in monitoring, ‘aluation and strategic planning, investment in developing a rigorous \ecess to quality health services high out-of-pocket health 2707.1sn6nw.02—rage bace oflialth syteins résearch; dével sponledee ase of esearch; development of more Sully focused ‘eas of debberative decision-making in health referm, and eieeeieee ee cific responsibiliti Hes of key actors, ‘The plementation olsen togetberwthirngthesiag pbc bal i primary eae, sefvice, provide a approach fer ensuring ms ic SUR eee spec i coming el ‘the inverse care Ta, whereby those withthe greatest need for health éare savethe greatest dfizulty in accessing bealth services and leas likely to have theichealth needsmebhighly. applicable inlndia, We conceptualize access as the ablity ta Yeoeive a specified set af services, at aspeciied level of quality, ‘utjee to specified constraint of inconvenience and cost, and use utiliza of selected health services as a proxy for access. To illustrat the persisting SSequalties and inequities in bealth eare i India, we foeon aseortosaternal and child health services, as the disease burden relating to eommunicab Taternal and pecinatal conditions ate ip part addressed by azess to theie Jervjoes. Utilization of preventive serfiees such ae antenatal immunizations remains suboptimal, with forked variation inthe wl po eee reel these services by gender, oeloeconémie status and geography. La 2006-6, the tatioual Immunization coverage was 44%, Tnequalitca jn immunization exist Ey household wealth and education, with abeclite and relative inequalities Rowing signs af reduction over time, Inequalities exist by cast; 2008-6, immunisation coverage among scheduled tbes and ccheduled cass was 1.3% 1nd 99.7% sespecively compared to 58.8% among other castes ith absolute Tequaliesbetncen Dnese castes increasing overtime Coverage remains higher WeaiEu creas (84%) compared to rural area (99%), although absolute and ois baasural aforences have decreased over tine. Overtime, the sivte gender gap hasincreased with an absolute 2.6% génidergapin 1992-8 easing to 3.0% gender gap in 2005-6. Inadequate aécers to appropriate maternal health services remains an important icteraieaot ofmatermal mortality Although the ratesfinstittional seketiy have ineteased over time, only 40% of women in India report giving firth in a bealthfality for the last bist in 2005-6, There exits a six-fold Gldrence betwee the sichest and poorest quintile fn institutional delivery. eats ference i inequality has declined Gver ime the absolute ral delivery between ge sector health services demonstrated that the prever immunization and antenatal visits show a more equitable distribution than ‘most curative care.In summary, even though progress has been made, equalities continue to persict in access to services. There are differential trends in relative and absolute inequalities suggesting differential uptake and access to services by different groups and understanding these nuanced patterns has policy implications for better targeting services tovulnerable groups. (B) The actual learning outcomes as a yardstick of educational performances Wve remained poor. Rapid globalisation and modernisation are posing new-and ‘and societies alike. Increasingly diverse id technological change in the workplace ‘everyday life, and the instantaneous availability of vast amounts of ‘information are just a fow of the factors contributing to these new demands. In ally but internationally. competition among countries now revolves around the qu: capital. The effect of these developments is to raise wages in less-developed countries and deprose wages in the most industrialised countries. But these developments do not affect all workers equally. Job automation is proceeding ‘even faster than the integration of the job market. If the work is routine, itis. jereasingly likely to be automated, although some jobs will always be done by sman beings. The effect of automation, and more generally of the progress of .chnological change, isto reduce the demand for people who are only eapable of doing routine work, and to increase the demand for people who are capable of doing knowledge-based work. This means that a greater proportion of people \ill.need to be educated as professionals. High-wage countries will find that context, governments need to create education systems that are to everyone, not just a favoured few; that are globally competitive in at provide people from all clas ;here are marked variations in general hospitalization rates by and urban-rural residence.Some of this variation may be due to afford, The aim is ne longer justo provide a basic education for al, but 10 Provide an education that will make it possible for everyone to become "knowledge workers" Such esation will need to bull the very high sls levels required to solve complex problems never seen before, to be creative, to synthesise materia) from a wide variety of sources, to see patterns in the information that computers cannot see, to work with others in productive ways, 1 to be able to both leadl and be a good team member when necessary. This is +hatis required in today’s “fat? world — where all iwork thatcanniot be digitised, {ctual and perceived need and health seeking behaviour; ind lence of fender inequalities in untreated morbidity with the underreporting of illness anong women. Although the poor are more likely seek care in the publie sector, the rich capture more of their share of publi: services because they are more likely to ulilize these services, and also sed 1259zL ed Critical resources such as land are also unevenly distributed by gender. Wom aoe enjoy property ownership rights directly in their names. They have litte controbover decisions made ia reference to Yand. Even with and in Nae e car they may not have actual detision-making power in terms of Capping patveras sale, mortgage and the purchase ofland. In Indiaenly 14.9% Seeing Pde are female headed. Access to credit is difficult, since women lack aniomated and outsourced can be done by the tiost effective and competiti individuals, enterpriges or countries, regardless oftheir location. “The ongoing economic crisis has only increased the urgency of investing in the acquisition and development of citizens’ skills—both through the education ~ System and in the workplace. Ata time when publicbudgets are tight and there. §f little room,for further monetary and fiscal stimulus, investing in structural reforms to boost productivity, Such as education and skills development, is key to fature growth. Indeed, investmeat in these areasis essential to support the” recovery as Well as to address long-standing issues, such as youth unemployinent- and gender inequality-This could be attributed toa number of factors, including large class sizes, a shortage of qualified teacherd, unsuitable pedagogy and “! curriculum, and pressure on teachers to complete the prescribed syllabus. Targeting lessons to the learning levels of studentsis one pedagogi tw addressing the challenge of low learning levels. Teaching at thi (TaRL), which encourages teachers to focus on basic literacy and mimeracyby ©” ‘targeting lessonS to the actual learning;levels of their students rather than focusing on completing a standard curri i ceveral contexts and found to be effective when implemented. by community volcateers, contract teachers, or by government teachers supported by Yolunteers during the summer holidays. To date, however, there has been no evideses that this methodology is similarly effective when implefnented by government teachers within the formal schooling system. Without access to capital or household decision making abilities women lack the. ereee thet sae necessary for their labour stability and stability oftheir. “honseholds. Furthermore, without access to support from the National Bank for ‘ment, banks,and cooperative societies; women wn that would make their production more ets.The traditional systematic denial of agriculture causes them to often be , thus further entrenching the exclusion attainment of these necessary life structures is determined by cultural norms ‘as well as the economic standing of the family.Land ownership opportunities” also have a critical impact on human development with freedom from violence. According to a 2005 study of marital vidlence and property ownership, 49% of. propertyless women experience physical violence and 84% experienced psychological abuse Ovmershjp rights saw a drastic decrease in violence. Among women who owned both land and-house there was only 7% physical violence 16% psychological abuse. i employment and limited em immediate cballenges for India's labour market? percentage of women who dépend on agri ‘a5 84%, Women make up about 33% of cultivators, Labour marketin Indias suffering from surplus labour force:A huge nimbet urers are rendered surplus due to lack ofadequate demang afiingoutot both primary. secondary and tertiary sector. Due to high’rate of growth of Ippulation,¢ huge number of labour forees is continuously being added with force leading to a huge surplus in the labour market. its, nuts, beverages, and al sectorsis about 47%in t seeds and 89.195 workis considered quite unskilled. Women also heavily P agricultural activities. According to the Food and Agri Indian women represented a hare of 21% and 24% ofall fishers and fish farm respectively Despite their dominance of the labour force women-in India still face extreme disadvantage in terms of pay, land rights, and representation local farmers organizations. Furthermore, their lack of empo) results in negative externalities such as lower educational attai children axid poor familial health Labour market in India is al our marke is also suffering fr ei of adequate information regarding jks Taco ur force, child labour practices, rious hurdles in the among the Indian j, ried in various pe force is not at all good. Whateves ia AMA: BA. (Hons) economics uy 1 went ork. culture. This has been: resulting ink ¥ , ‘ A lesser ; oduction system which restricts indirectly ite abcorstion spon te Labour market is also facing ; ee umber of work forces of cuir co creas problem of sinem| yuntry remain parti throughout the year or some part of the sone ay ofrural poverty. reasiny settlementsare assimilating m ployment. Mhage i Pace of developmentin these countries, urban, or wholly unemployed Aclwhe culibe valneabioand porin ih trbaneiemenes Pee Min rasimha Rao along with his finas ster Dr. Mi mi oh a : Rao aon rie minister Dr Manmohan iy {he economieiteraisaton of 1991. Te reform dd away with he Licence ep (nvestment, industrial and importlcensing)and ended many pubic nonopelics ‘wing automatic approval of foreign direct investment in many sectors e ombas remained the tame 2 ted to take on powerful lates such as the trade unions and farmers, or contentious ses such ae reforming stout Jaws and reducing agricultural subsidies. ‘By the turn of the century, I a hed Progressed towards a free-market economy, with a substantial reduction in state control of the economy and increased finan ct iberalisation. This has been accompanied by increases in life expectancy literacy rates and food security While the credit rating of ndia was hit by its niclear tests in 1998, it hasbeen raised to {investment levelin 2007 by S&P and Moody/s.In 2003, Goldman Sachs predicted that India's CDP in current prices will overtake France and Italy by2020, Germany, UK and Russia by 2025 and Japan by 2035, By 2035, it was projected to be thé third largest economy ofthe world, behind US and China < ib gradually becomieetts nore alarming day by day.Moreover, due to the paliey of dovmecine filers both in public and private sector and also in government administration eva servicésiacfai ‘This has also then, the overall direction of liberalisati of the ruling party, although no party hi it; the problem of unemployment is becoraing much more acute: beer putting much pressiire on the latffar-market ofthe country. _ ghabour marketin Indias also suffering from lack of adequiate labour reforts. iprovision. Economic reforms introduced in the country during the 1990s have changéd economic scenario of the coiuntty, But the country is logging behind’ adopting necessary labour reforms which are rational and iriportant underthe present context. We have seen that the labour marketin India his been suffering { from the aforesaid serious problems. Thus, the Government should chalk 08 ‘roper policy for bringing necessary réforms in the labour market fos the greatir Fea a ee an one and non-working) in general. Q.6. Urban economic gi wth seems to have brought gains to bth -ban poor in the post reform peric the rural as well as fastest growing autornobile industries. Se nd Economic reformsbrought foreign competition le to privatisation ofcertaio Discuss. Is it correct to assert that Inequality may Wave risen dvi Public sector industries, opened up sectors the 1990s? soit i jc grdwth, the provisill ‘s. ‘The relationship between urban economic ¢1 i : ean oni tynen te on te the importance of the delivery of economic activity and growth but alae Gimensions of urban poverty: In a muta howeye: oon ee might seem, infrastructure mat isan eats aval iene eet peng delivered by local government but one which the ST State at al levelounion state and muntepalin ma Sesto Si are in many urban centres in India, the rate of gro. nt he 1 However, since thea, the grovth rate has been speskaTor indeed, Ya 3S T etost growing urban area in India since 1971. ton ton ee eg sh LO re aeee urban growth rates of 6.6 per cont between Nor Toney stra an 7 a gan sewn a seen ed with the inclusion of areas into the municipal PLENTY og Te cence-eity area has grown from a population of 53,000 0 cent emerge a cae aan 959,000 in 1901, average annval rovth Tk TTT aio tne countrys GDP increased (rm 48 0 208-00 1 0208 Soper cent, respectively. Thisis in contrast Oe" 1057 per cont OHMS oven Indian firms Were Sed among the top a which slowed down from 4.6 per cent ti 108 37 Pee India which ¢ =Aibtie $n most of the developing world is cons herto reserved for the public sector and led to an expansion in the production of fast-moving consumer goods. Post-liberalisation, the Indian private sector was faced with increasing domestic, aswell as foreign competition, including the threat of cheaper Chinese imports. ‘thas since handled the change by squeezing costs, revamping management, ‘and relying on cheap labour and new technology. However, this has also reduced employment generation even by smaller manufacturers who earlier relied on relatively labour-intensive proces ‘Textile manufacturing isthe second largest source for employment after agriculture and accounts for 26% of manufacturing output. India is fifteenth in services output. It provides employment to 23% of, ‘work foree, and itis growing fast, growth rate 7.5% in 1991-2000 up from 4.55% in 1951-80, Ithas the largest sare in the GDP, accounting for 55% in 2007 up 's Uinformation technology, information yusiness process outsourcing) are among the fastest output of services. The inereased demand from foreign consumersintereste. For those looking tooutsource the 127ez ‘The Gini coefficient measured in terms of consumption for rural India increased marginally from 0.29 in 1993-94 to 031 in 2011-12. There was a significant rise inthe Gini coefficient for urban areas from 0.84 to 0.39 during the same period, However, consumption-based Gini underestimates inequality. we use income data from the National Council of Applied Economic Research's India Human Development Survey, the Gini coefficient in income (rural+urban 2004-06 and increased to 0.55 in 2011-12. In other words, inequ higher in India if we use income rather than consumption. If we con sméindicators like health and education, inequalities between the poor and th are much higher. : What is the way forward? The conclusion is that poverty declined faster but ty increased in the post-reform period. However, India still has 300 ‘below the poverty line. What should be done to re ‘companies in the world. In March 2009, annual revenues from-outsourcing operations in India amounted to US$60 billion and this is expected to increase ‘to US$225 billion by 2020. Organised retail such supermarkets accounts for 24% of the market as of 2008. Tourism in India is relatively undeveloped, ‘growing at double digits. Mining forms an important segment of the I ‘economy, with the country producing 79 different minerals (excluding fuel and atomie resources) in 2009-10, includingiron ore, manganese, mica, bauxi chromite, limestone, asbestos, fluorite, gypsum, ochre, phosphorite and silica sand. India ranks second worldwide in farm output, Agriculture and allied éectors like forestry, logging and fishing accounted for 15.79% of the GDP in 2009-1 ‘employed 52.1% of the total workforce, and despite a steady decline ofits sh in the GDP. is still the largest economic sector and plays a significant role the overall socio-economic development of India. Yields per unit area of cropshave grown since 1950, due to the special emphasis placed on’agriculture in the five-year plans and steady improvements in irrigation, technol application of modern agricultural practices and provision of agricultural credit and subsidies since the Groen Revolution in India, India embarked on big-bang economic reforms 26 years back in 1994: 1 “i-Known that GDP growth has been much higher in the post-reform perio However, GDP is only one metric. Ultimately, the success of reforms depends of people, particularly that of poor, inezéased over 1 examine the impact of economic reforms on poverty and ine ee mun enous tow the veld strategy af a ftgmabare mus coms et aught proter i ne a a ee ed dal iene aE TH ee eam f stale, Bae et ductasforehaatoaiapomy Ce ner eae menie ape See een eer asyenmeee ae patent Ee remdar thea bi te pt ee a Ee rT eS See eee ae anmaioc ane poverty twice as that of non-agriculture. We need more diversified agriculture goes re att et ine pene rate Se a eae ane ed fcc cue sere eee cee ae el ee cet \dy shows that ayhong contributor to the rapid eduction in poverty even though rural areas showed growth in the post-reform period. ‘The second conclusion is that in the post-reform period, poverty declined faster in the 2000s than in the 1990s. The official estimates based on Tendulkar commitioe's poverty lines shows that povorty declined only 0.74 percentage points per annum during 1993-04 to 2004-05. But poverty declined by 2.2 pereentage points per annum during 2004.05 to 2011-12. Arourid 198 million people were Tifted above the poverty, line during this period. This indicates the success of ‘The poverty of Schéduled Castes and Scheduled 20002. The Rangarajan committee report: Higher econor jerease in real W. sgraphic dividend is obvious. For reducing inequality, some advocate measures such as redistribution of assets and wealth in favour of the poor via higher taxes for the fich. However, these may not be pragmatic solutions, The taJGDP ratio has to be raised with instruments like public investment in physical and be used to reduce inequality. The new generation inity rather than redistributive measures. Everyone, ss and gender should have equal opportunities in loyment and entrepreneurship. Economic and ies improve with education and skills. The new ality in schools and higher education Finally, economic growth, agriculture grovith, rural non-farm employment 1 for rural labourers, employment in construction and programmes like Mahatma Gandhi National Rural Employment Guarantee Act (MGNREG/reforms should focus more on efficient ‘Feckon that poor governanceiisthe bi delivery systems ofp ‘fanew generation and reductionin lggest constraintin ach ublic services. Many ze loving the aspiratio the accountability efserviee prownern ae : as Amajor institutional { cent literature also focused on eradicating ecu the publi scan inequalities. Issues like electoral reforms, exony comeyng? etnies oulstctttlore ay ep Q.7-Analyze the process of economic ent ee ands impact om Vale that the poll QF reduction in turing jobs ? ‘Ans. If we compare the reforni exp three specif sere snes China ban gone tend Yaws aré liberal, and firms are free to enter‘and ee ae ere eae ern gt do brs eo irom oto he ues Son pr are reserved to be produced exclusively by the small-scale industry. While both. compare special economic zones of China with export processing, zones of Indi We find that although both exports, and generating employment than they. a number of factors for the performance differentials idia has numerous labour Jaws such as those pi Child labour, those that aim to guarantee fair and humane conditions , thosé that provide social security, mis mn wage, right to organis to form trade unions and enforce collective bargaining. India also has numerous iid regulations such as maximum number of employees per company in certain Sectors of economy, and limitations on employers on retrenchment and layofis, requirement of paperwork, bureaucratic process and government approval for change in labour in companies even if these are because. of economic nditions.{ndian labour Jaws are considered to be very highly re rigid as compared to those of other-countries in the world. The these laws have been criticised as the cause af low employment ‘unorganised sectors, underground economy and low per have led inany to demand reforms for Labour market Hex ‘has over 50 major Acts and numerous laws that regulate e relating to industrial relations, employee unions as well as wi enterprises can employ or terminate employment. Many of these laws survive from British colo es, while some have been enacted after India’s independence from Britain India isa federal forin of government: Labour isa subject in the concurrent = listofthe Indian Constitutionand therefore labour matters are in the jurisdiction of both central and state'goverments. Both central and state governments hhave enacted laws on labour relations and employment issues. Scholars suggest India’srigd labour laws and excessive regulations assumed to protect the labour are the cause of slow employment growth in high paying. organised sector. Indie’ labour-related acts and regulations have led to labour. ‘market rigidity. This encourages shadow economy for entrepreneurs, an economy that prefers to employ informal labour to avoid the complicated and opaque laws. In. particular, Ind legislation such as the Industrial i laws and one-sided trade union laws. it layoffs and retrenchments, it does reguireentrepreneurs and companies to get the permission from government officials to fire an employee for absentecism, retrench employees for ecanomie ns, oF to close an economically nonviable company. This bureaucratic Process can stretch into years, and the government officials have consistently and almost always denied such permission. As aresult, the scholars argue that. India's inflexible labour laws have created a strong disincentive to formally register new companies and hire additional workers in existing organised sector Unlike China, Indian businesses have avoided substituting India’s labour for export or domestic opportunities, or use labour instead of ‘equipment for quality control or other operations. These are reasons ‘weak employment growth. ‘More recently, afew scholars have completed a comparative study bet states of India with different labour regulation They compared states of ‘who have amended labour legislations to grant more lexi those states in India that have made their labour laws even more rigid and complicated to comply with: These studies find that states with flexible labour Jaws have grown significantly faster. Flexible labour states have been able to take advantage ofthe export opportunities, andthe per capita househi hhas risen much faster in states with flexible labour laws. States with rigid 129oel : sonsripnereses i fod ovtpa Fer many Indians, population growth might ute gether the bare essentials fr survival, s a big enough struge’e ‘Makes things even worse, especially for the poor re a DA government had Presented a mew ‘ed conce of the population policy was that by “fates whose population is growing too fast lation of these states wil Jabour laws have led local entrepreneurs to prefer casual workers oF contract warkeés with finite employment time period; in essence, more rigid afd inflexible laboir law states see increased informal employment. ‘A 2007 article in The Economist finds India to have the most restrictive labour laws in any major economy of the world India's private secto i its organised manufacturing sector, employs about 10 realed that it ras | : ation ofthe ly eter countries reveals the mos? populous ‘Comparing India's population te country might get old before it gets natioge ia the world, While i . rich, will India get to big te Be 10 in 1992 as compared to $ 220 of The ‘capita GNP in India was $ 31 in ees as BE Fpatistan $470 of China, § 6700 Koren, $20 ofNigeria Bane eng aT0 ofzimbalwe, $640 of BEypt AR. $2570 of South 820 of Kenys an Hof Bthiopia and Tanzania.Average anna growth rate of er ein and oy oonly 31 per cent during 1980-92 as compared to7.8per_ ca ao per cent for Indonesia, 2.1 per cent for Pakistan, 1.8 percent cent for Chinn 0 pr cots Tne © enya 0 pr centr Solh Aiea a ath rates in various African countries like Mali 2.7 per cent), per cent) and Zimbabwe (-0.9 percent) Fea pon experiencing high rate ofinlaton but nao a iaaon experienced these developing countries eyed ee lala hadexperenced an annwal averagerateofinfaton Pe ar ag per cent as aginst 9.1 per cent of Bangladesh, B percent oe pert ofPakstan and 68 per cent in China But the annval con experienced by the African countries during the same atciodcs ac high as 49.7 per ent in Somalia, 428 per cent in Sudan, 25.3 per Font in Tansanis 19.8 pereantin Nigeria, 14-4 per contin Zimbabwe, 143 per ent in South Afica, 132 percent in beypt, 9.3 per cent in Kenya ands low as ier eent and 28 per cent in Mali and Ethiopia respectively. iteracy the condition of the developing countries ie also not at all encouraging, In Indi, the rate of adult literacy in 1990 was 52 Per cent as compared €0 66 per cent in both Bangladesh and Pakistan, 76 per ent in Somalis, 79 per cent in Sudan, 68 per-cent in Mali, 58 per cent a Angola, 52 per eent in Egypt, 49 percent in Nigeria, 26 percent in Libya, 23 per cent in Zimbabwe and 31 per centin Kenya. But this rate of adult literacy has Arann te et Te nota eee sv ‘cen consieraly reduced to 28 per eont in Indonesia and 23 percent in ‘of about US$1,500—making it among the poorest countries in the world ina Thus wehave sen that inspite ofrepeated efforts; nd ould ot make jot only is wealth inevenly distributed geographical, so are scare eso rauch headway in raising its pereapita GNP, average annual growth rate efi Ped phen etree het tana Fesourees. GDP and per capita GNP also toreduce the extent of adult iDiteracy as compared to countries like China, Indonesia, Korea ete. But the eondition of india is fome extent better in comparison to that of Bangladesh and some AMcan sat technology, and s0,suffer iployed more people and were “much bigger companies. This cripples Indian firms ability to rapidly expand or adjust with changes in global economy, beth during early opportunity phase ‘and during economic change.One exception is white collar jobs, where companies have stronger lobbies aind employees are not unionised, so they have managed to operate freely with a much larger workforce and have been able all cases white collar 1 loyees are forced to resign under threat of iegative recommendations and black-listing with industry astociations.Djénkov and Ramalho have reviewed a number of labour studies on developing countries including India. They ind, consistent with above eriticisms, that eountries with, rigid employment laws have larger unorganised sectors and higher ent, especially among young workers. They also report the rigid, bour laws are strongly ‘Ans. Yes, itis right to say that infernal comparisons of India is as essent aé its comparisons on the international basis. According to the 2011 census, butts GDP per person was ranke: below the world average. Makin, even more shocking when the GDI to another country in the world. The Sectors, For most of the population, this signals ashrinking job market, “ ‘other concern when it comes-to its rapidly growing populationSr.No. of Q. Paper + 2810 Unique Paper Code : 12271501 . Namé of the Paper : Indian Economics-I Name of the Course : B.A. (Hons.) Economics CBCS-CORE Semester :V Duration : 3 Hours (Nov. 2013] Maximum Marks —: 75 Nov. 2019) General Instructions: : eT peng ay foe uettos, Alguesons cary eseal marks, —___—_— ‘Q.1. Evaluate the Nebru-Mabalanobis strategy adopted by India in the early phase of its development planning and its role in transforming its stagnant colonial conclave into an economy capable of sustained growth. ‘Ans. Actually this model draws heavily from Feldman-Mahalanobis ‘model which is a Neo Marxian model of economic development, created Rdcpendently by Soviet economist C. Feldman in 1928, and indianised by Jndizn statistician PC Mahalanobis in 1953. Thas the strategy suggests in order to reach a high standard in consumy estment in building a the production of 1 goods is firstly needed. It created I" framework for India’s Second Five Year Plan in 1955 by appointment of PM Nehru, as India felt there was a need tointroduce a formal plan model after the Firat Five Year Plan (1951-1956). This modet is known to have set the statistical foundations for state-directed investments and created the intelectual underpinnings of the license-raj through an elaborate input- output model. This Medel euggested that there should be an emphasis on the in the Indian Economy to a long term higher lan and Industrial policy Resolution ent of Public Sector and license raj ‘werebased upon this model. I essentially focuses on Unbalanced Growth Model which envisages that Industrial growth will naturally stimulate other sectors of economy as well and will lead to “Trickle benefits in Top Down manner. ani ‘turn depends upon the 1e capital goods sector and be greater and hence, given the of growth of investment in the 131his basic bwo-sectar model Mahalanobis divi sehe sector C produces cinsumer goats see cenamy sp bro necessary in ; Produces capital sterasing employment. oppor Zguyment. According to him, productive employm ing the production of capital goods like s ent can be increased only teel, electricity, machinery, on basic heavy industries was al: i Qr s0 di e of meeting the requirements of higher rate of capital ‘sccumulation ling the economy to stop imports, tinguishing feature of the high growth cra (2003-08) was {he increase in privato corporate savings. Do you agrec? Substantiate jour answer. How crucial is the role of investment in infrastructure, india is to sustain a high rate of economic growth in future? Ans. After 2003-04, there was a distinct strengthening of the growth omentum. Restructuring measures by domestie industry, overall reduction in domestic nominal and real interost rates, fiscal consolidati proved torporate profitability, a benign investment climate, strong global ‘demand, and easy global liquidity and monetary conditions all contributed to the high growth during 2003-08. Growth during this period was broad-based, with all the three key sectors-agriculture, industry and services-contributing to the momentum, There was a marked acceleration ia both public and private investment period. The progressive reduction in fiseal deficit freed up resources for investment by the private corporate sector. This improvement, in gross taV/GDP ratio of the Central idies. Thus, the significantly higher conjunction with a inerease in the government and containment of public sector and private corporate broadly stable household savings rate, led to a subst gs rate of the economy, making more resources available for the investment that occurred. The secular uptrend associated with consistent ent over the decades. Gross 1950-65 to over 33 per cent of GDP in 2003-08; Infrastructur 11 per cent of G jnvestinent was the increase sreasing the share of private sector investment Investment in Infrastructure ‘The Eleventh Plan emphasized the importance of investment in infrastructure for achieving a sustainable and inelusive growth of 9% to 10% GDP over the next decade. The development of infrastructure is a central theme of the Government of India’s 11th Five-year plan (2007-12). The plan document states that “The fast growth of the economy in recent years bas easing stress on physical infrastructure such as electricity, infrastructure. Indian Beonomics-1-2019 (Nov.) 529 railways, roads, ports, airports, irrigation, and urban and rural water supply and sanitation, all of which already suffer from a substantial deficit from the past in terms of capacities as well as efficiet in the delivery of critical infrastructure services. With a projected GDP growth averaging 9% per year for the Eleventh Plan, the plan document estimates almost doubling infrastructure spending from its current 5% of GDP in 2006-07 to 9% by 2011-12 (terminal year of the Eleventh Plan). It estimates that investment to the tune of INR 20, 11,521 crore or $502. jon (at an exchange rate of 40/8) is needed during the five-year period in various infrastructure sectors Betweon 2006-07 and 2011-12 public investment constituted around 70% of the total infrastructure investment and was 6.9% of GDP. Q3. “A democratic country can hardly want to become part-Colifornia and part Sub-Saharan Africa.” In light of the above statement explain how India failed to tap the constructive roles of state and market for its growth and development? ‘Ané, Even since the liberalization of Is ‘economy in 1991 the Indian ‘economic growth story has been reported extensively. Some have even referred to India as the next super power along with China. However, this economic ing’ image have benefited only a thin sliver we made it to the Forbes list of global as 55 billionaires (in US$Jand about 100,000 urban and ‘erosion of agrobiodiversity and indigenous knowledge. of 169 countries and territories on the United Nations Human Development Index and remains home to more hungry an other country in the world. OF the 870 9% of the Indian population. In is situation in India a universal istribution System set up Public a minimum food safety ne has been the Green Revolution and industrial farming practices that promoted rice and wheat cultivation across the country (irrespective of the type of soil, rainfall pattern, agro-ecosystem) have eroded the dry-land agricultural systems that were diverse, relevant and nutritious for dependent comm areas. Dr Decean_penit Uttralchand, have been disappear lets which are the mainstay of the entire Rajasthan and the mountainous region of gated to 133vel 30 Deepa :B.A. Hons.) Economies IM Year (Semester-VI multi-cropping syStems not only provided nutrition to animals and humans but most importantly, recycled soil nutrient, retained soil moisture and enhanced soil fertility. Relevance of Food Sovereignty to India Some statistics regarding agriculture in India are relevant here to set the context for the food sovereignty approach. Agriculture accounted for 13.7 per cent of India's GDP in 2012-2013 (down from 30 per cent in 1990-91) and 11 per cent of India's exports. Seventy per cent of the country’s population is directly or indirectly dependent on agriculture. India holds the second largest world’s water resources but has 1415 per cent of the livestock. agricultural land in the world, 4 per cent. to support 17 cent of the world’s poy atic zories (around 20) and al ith this diversity and the responsibility to feed a large human nn, the approach to agriculture and food cannot be the same across the country. It is only possible through local, autonomous food systems (Focus on the Global South, 2014 People most affected by hunger are . the elder) other~backward classes. There are great regional disparities in human development indices. Some of the human development indicators, particularly related to nutrition in Kerala and Himachal Pradesh’ are comparable to developed economies. On the other hand states like Bihar and Uttar Pradesh are even worse than sub-Saharan Africa. This disparity ledjJean Dreze and Amartya Sen to say that ‘a demvoe A California and part sub-S Uncertain Gtory, In to be viewed not only in the larger context of human development but also demands of equity, democracy and social justice in the country (Dreze et af 2013). According to the Agriculture Census 2010-11, small and marginal farm hold about 85 + per cent of the operational land holdings in India which accounts for 44 per cent of the total cultivated arca in the country. ‘The policies adopted to pursue purely and economic growth-orierited model are aligned with the global industrial food system representing interests of the economic elite including large land owners, agrib transnational corporations. There are many examples to show this : Pursuing Foreign Direct Investment (Fi which wi ector. This severely impacts the livelihoods of peasants, © those of urban and rural people employed in the retail sect agriculture, re sjor climate in the world , and particularly geneve enpiiceeing mo ew vty momma Sey the eounty. vil society organizations, activists, severy leading scientists an i - precautionary approach © ill onable greater transparency and oie framework critical decisions being taken about our agriculture and fed system. in the future ther : resource secure i re is an india is to be fo04 ag eso at the food and livelihood secungy ee reed ee eee enirt of vational development objectives. The needs and secur Fee cher farmers, pastoralists and fisher-olk should be a politieal ang a e shere these communities are should govern the Sotial priority. The ecosystem W1 aca e Giolee of polities. The ecosystem where these communities are should govem the choice of policies and programmes. For example in the rain-fed drylands of Rayalseema, traditional agro-ecological practices created an integrated farming system where grains (typically millets), oilseeds, and pulses were intercropped. This facilitated recycling of soil nutrients, thereby maintaining seil health, human and animal health. Green Revolution practices were iirelevant and counterproductive for this ecosystem. These practices eroded local diversity and agro-ecosystems, soil fertility, water resources and human autrtioa through monecropping of ine grains’ (wetland paddy mainly) using resouree-intensive techniques. This is where food sovereignty is relevant International and national studies have shown that small farms are more efficient in terms of productivity (using land and resources) and mitigating impact on climate change compared to large, resources and energy intensive farms (GRAIN 2014b; IAASTD 2009). : Food sovereignty offers a framework that help make a re-orientation and transformation of the food system. In order for government rearient or shift, social and peasant movements Have to keep pl action active, constantly challenging the current paradigm in the country. This is critical to shift the idea of food as being something that is handed accepted by people pas ‘ly to one where people have control over decisions nade about their food. It then becomes a human right (Patel 2009) Practices Alméd at Food Sovereignty The assertion of people’ sovercign right African countries) was wiped out by coloni: British destroyed food sovereignty by forcing farmers into growing commerssl crops like cotton and indigo instead of food erops (Arnold and Guha 1997). Ia independent India, the trend seems to have continued with the Green Revolution and is continuing as policy makers have adopted the globalized " industrial farming modes to feed the population, As in various countries, in India too, social movements and peasant organizations have been engaging in grassroots-based actions that challenge the dominant food model. These actions have enabled poor peasants,ssuuayeni0us COMMUNES, and Vaits to exerci to take greater control of their land, foresie an their rights over the commons, \d other productive resourees in ions include : land struggles ofthe Dalits and displaced by development projects; struggles on of legislation for community and individual Ramen’ striceiay Tsourees for Adivasis and traditional forest dvcliony poneral and eden eneif Tights and against the violence in socily in | general an fare in parti i Bont against So Partin seed sovevinty campaigns and the other marginalized communi to ensure correct implementati rights over forest resources digenous knowledge systems based oan intima i oa a eds mer estan a livelihoods in a sustainable manner. “ene Q44. Can India reap the benefits of the Demographic Dividend? What does the available research indicate regarding. comparison between China & India on the relatioushig beteces population dyaamfes and economic growth? Ans. According to United Nations Population Fund. (UNFPA), demographic dividend means, “the economic growth potential that ca result from shifts in a population's age structure, mainly when the share of the working-age population (15 to 64) is larger than the non-workingeaye share ofthe population (4 and younger, and 63 and older)”. India has one of the youngest populat themedian agen India will just 28 compared t037 in Ci in Western Europe, and 49 in Japan, Since 2016, Ida's working-age population (people between 15 and 64 years of age) has grown larger than the dependant population - children aged 14 or below as well as people above 65 years of age. (1) This bulge in the working-agé population is going to last till 2055, or 87 years from its beginning. India is on the right si transition that. provides golden opportunity world. By 2020, and the US, 45 (2)To reap the demographic dividend, proper investme! is needed by focusin i ‘development and hea India’s improved ran! Index is a good sign. implemented proper J Fotem, Rapid industrialisation and urbanisation because of higher number of employment seeking population that would force higher economie activities. With more than 65% of working age population, superpower, supplying more than half of Asia's potent coming decades, Comparison between China and India on the Relationship between Popula- tion Dynamics China ad India are the two most populouscountries ofthe word. Chi the most populous country with approximately 1.42 billion people in 201 Tadia is second largest country by population with approximately 1.35 billion inhabitants in 2018. China and India together account for 36.28% of total population of China was 554 million. China crossed one billion mark in 1998. By 2029, India will cross the 1.5 : compare to male. Female population is slightly greater than India, China has 94.1 female par 100 's figure is 92.94. Fertility rate (2015-20) of India is 2.30 .63, Population density of India is 440.29 person per square 148.81 af China. So, India is 2.96 times more dense than China. China is 4th and India is 7th largest country in terms of area. Comparison between China and India on the Relationship between Eco- nomic Growth China and India are the two emerging economies of the world. As of 2019, China and India is 2nd and Sth largest country of the world, respectively in nominal basis. On PPP basis, China is at Ist.and India is at 3rd place. Both countries together share 19.46% and 27.18% of total global wealth in nominal and PPP terms, respectively. Among: Asian countries, and India together contribute more than half of Asia’s GDP. China attains maximum GDP growth rate of 19.30% in year 1970 and minimum - 27.27% in 1961. India reached an all time high of 9.63% in 1988 and a record low of - 8.24% in 1979. During period 1961 to 2018, China grew by more than 10% in 22 years while India never. GDP growth rate was negative in five and four years for China and India, respectively. In 1987, GDP (Nominal) of both countries was almost equal. But in 2019, China's GDP is 4.78 times greater than India. Oa PPP basis, GDP of China is 2.38x of India. China crossed $1 trillion mark in 1998, ia crossed 9 year later in 2007 at exchange rate basi espite India’s impressive economic performance after the tion of economic reforms in the 1990s, progress in advancing ith status of Indians has been slow and uneven”. Do you agree? Explain your answer focusing on inequities in access to health services in India. Ans. Despite India's Impressive economic performance after the introduction of economie reforms in the 1990s, progress health status of Indians has been slow and uneven, Large ineq and access to health services continue to persist and have even widened across iia eee 135a eee eae coe ee Fe aa Se pam he as that have their roots in the -s and practices of British colonial Indi which India addresses inequities in provisioning of health services and assurance of quality care. India, over the last two decades, has enjoyed accelerated economic growth, but has fared poorly ia human development indicators and health outeames. Population averages of health status indicators, such as child health and maternal mortality, remain unacceptabl counties in the south and east Asian region that have come levels and rates of economic growth. Underlying the low pop level indicators, worrisome inequiti i the multiple axes of caste, clas: 2 ferences }, a large per iRhourers"The Stor or ada, imi scalp They compre aoe and forwar ether comprise 10% 0 ion (RGI 2001 ve Prise 18% of sntage of who live jinue to play only delivery. It is well known that reduction i 's adopted by the Indian ow the process of urban ficant gains to rural as wel jod? Poverty Measurement is Vital due to two Reasons it serves a normative role in helping the ion of the population of the society or economy into poor and the economic growth which ‘as urban poor during the post reform Ans. 2. Poverty measurement serves a monitoring role and tneretore esusmaus .portant inputs to designing, implementing and cxamining appropriate anti-poverty initiatives. ‘The different methodologies adopted by Indian Government to measure poverty are as follows : Pre-independence India , Poverty has been part and parcel of India’s socio-economic history. Daring toe Ba te eee oun of wealth has been held responsible for the miserable state of people (Naoraji, 1876). The British system of arbitrary and repressive administration caused widespread poverty. Naoroji refers to subsistence as something that is essential for meeting the basic wants of human beings to keep them in ordinary good health and decency. Thus he estimated ‘necessary consumption,’ using the diet for emigrant coolies as prescribed by the Government Medical Inspector of Emigrants. National Planning Committee (1938) In 1988, Indian National Congress, then headed by Subhash Chandra Bose at its Haripura session appointed a National Planning Contmittee with Pundit Jawgharlal Nehruas the Chairman and KT Shah as the Secretary. For the pre-World War !! period, it was noted that the minimum requirement had been estimated by economists, to range between % 15 to € 25 per capita per month (IAPR, 1988) whereas the approximate estimate of the average income per capita per annum was %65 while the average income of the villager was, estimated to be merely 230 per capita per annum, Nehru (1946) states that the National Planning Committee calculated and then aimed at a 200 to 300 per cent ingrease in national wealth within ten years to ensure a progressive standard of living. Bombay Plan (1944) : In 1944, the Bombay Plan was proposed by a group of industrialists charting out the developmental (and reconstruction) aspirations of the ist class for India after independence. This discourse that sought India’s spendence and set the agenda for future course of action clearly echoed the f wealth drain theory as put forward by Dadabhai Naoroji that British rule had accentuated poverty in India. The Plan stated in its tial 15 years of India's rebirth there was the need to achieve - general standard of living which would leave a reasonable margin over the minimum requirements of human life”. The authors considered food, clothing, ‘Working Group (1962). ‘The working group made the following recommendations : (a) The national yum for each household of five persons (four adult consumption not be less than % 100 per month at 1960-61 prices or %20 per cay urban areas, the figure would have to be raised to 125 per household per capita or 825 per capita to cover the higher prices of the lume of commodities on which the national minimum is ealculat $$ —-___ 2202 isniny 97,ae expenditure on health and education, relate RSG pv ne cdo a (0 An element of subsidy in urban housing will have to be provi taking 710 per month or 10 % as the rent element. abl tt nae cea sational minimum of 100 per month Se Poverty Estimation by Dandekar and Rath (1971) V.M. Dandekar and Nilkanth Rath mad seminal contribution in poverty g the data from the National ing in view the average age, gender and work nature, as 2250-2900 localories daily. ar i i Ble ee ie iy. Dandekar and Rath (1971) used this nding in ther sadly to Conclusion Measurement of poverty. has been attempted in India since preindependence years: Various individual and institutional experts in addition to the oficial authorities have defined poverty and attempted measurement of poverty at both all India as well as rural and urban decomposed levels, It is significant to note that despite differesices of opinion, regarding what constitutes poverty and, the manner in which information arameters that define poverty need to be assessed, the werty has evolved to encompass multiple dimensions of been in tune with the widely accepted change of thinking and practice outside India. Q7. What do you mean by jobless growth? Explain the main features of India’s labcar market since 1999-2000 and its impacton job 707 NenRinw n> ‘Ans, Jobless growth is an economic phenomeuon in which a macro economy experiences growth while maintaining or decreasing its level of employment, The term was coined by the economist Nick Perna in the early 1990s, Jobless growth means that while the economy is growing at a decent ing very few jobs, much less than the potenti tothis many people remain unemployed, despite having qualific: often creates lot of socio-economic issues, such as income inequal distress to name a few. In our country, if often leads to demand for reservations, and the recent Patidar agitation in Gujarat is one of them. In a jobless growth economy, unemployment remains stubbornly high even as the ‘conomy grows. This tends to happen when a relatively large number of people have lost their jobs, and i unemployed, under-employed, and those first entering the workforce. Features of India’s Labour Market (1) Labour-force to population ratio (in the age group 15 years and above) at 56 per cent is low in India compared to nearly 64 per cent for the restof the world, statistical measurement of ,¢ proportion of workers contribute a mere 14 per cent to the GDP. ea era dor wich contributes 8 per ent of the GDP barely generates 27 per cent ofthe employment. {@) Levels of education and professional and vocational skills are extremely lov Less than 80 per cont ofthe workforce has completed secondary education or higher, and less than one-tenth have had vocational training, either formal or informal. 4) There is considerable regional differentiation in access to good quality employment. A preliminary Employment Situation Index (ESI) prepared for this Report shows that generally workers inthe southern and westera states of India have much better access to good quality employment than do workers in States in the eentral and eastern regions. _ (6) The labour market is far more complex than the commodity market. It ifference whether a potato is sold in Calcutta or in Bombay tothe (g)In labour market the price that is set tends to be fixed for some length of time. Employers do not want wage rates to fluctuate with every change in demand and supply conditions. | 2 (7) Women in general are ‘disadvantaged in the labour market- In addition ‘employment, greater proportions of them are engaged in low-productivity, low-income, insecure jobs in farms, and in the ‘unorganized and informal sectors as compared to men (8) The essential characteristic of the labour market of an expanding economy is that the vast majority of individuals are employees while relatively small minorities function either as employing persons or as employed managers of employing units. As the vast majorities are labours, they are interested in short-run wage-levels, working hours and working conditions. Impact on Job Creation A wide range of initiatives, both government-led and undertaken by the private sector, can help increase gainful employment in India. In this final @ areas with considerable potential: more appropriate eyment; establishing targeted government programmes to stimulate gainful employment; and removing hurdles standing in the way of investt and innovation. These are not detailed strategies or plans, but rather solution spaces that could be considered, based on current ‘and past labour market trends. India can design and implement a 21st-century labour market assessment system that measures gainful employment and workforce advancement in a more holistic way, using a modern data-collection approach, Wages and incomes could be more comprehensively measured and harmonized with the consumption surveys. 5 Q8. Compare China's experience of economic reforms with India ferent sectors. Why did India fail to transform the ‘on economic growth and growth of total factor 137of China is lose $7 tel i at least 4 times as big as the economy of India, This meas that even if China grows at the rate of a rocager 1.5% and India grows ata rate of 7%, the Chinese economy would have added the same amount in output as the Indian economy would have. Comparing the GDP growth rates of India and China is therefore a pointless exercise. China's growth rate has been consistently higher than India's growth rate over the past three decades or so. Inflation in india ts 6 times higher tha India's GDP growth has been accompanies by runaway i country, Growth rate accompanied by inflation cannot last for along period of time, Instead, such growth rate is indicative ofthe short term impetus that has been given to the economy by the monetary poli. On the other band, China's inflation has been relatively stable at a ible 0.8% for many years. This has been accomplished despite the fact is In China ‘ideally should be reeling with inflation. To the contrary, China has established sovereign wealth funds, which invest the additional cash in foreign asscts ‘keeping the inflation rate low. China's Manufacturing Productivity is 1.6 times than that of India China produces a lot more than India does. It.also does so remarkably more efficiently. Given the better quality infrastructure and better production techniques at China's disposal, itis not astounding that the average Chinese worker produces 1.6 times more output than that of the average Indian worker. This means that the productivity of China as a nation is 60% higher. ‘The Indian manufacturing sector has mi include erratic electricity supply, slow and expensi as lack of increase manufacturing productivity. Workforce le problems. These problems wian economy on the other hand, has a clear strategic advantage when the workforce is considered. The Indian education system was created by ish. As such, workforce is global in nature. They ean speak who face bs for the ustry as compared to the Jobs on the faetory shop floor, a comparinon edyed superpower that ‘at China has been recording fiscal surplus for the past many years and { 8 = 8 8 8