© - Gratulent Publications I*Edition + 2M Editon S*Editim Editon - S Edin PublishedBy - Gratulent Publications Printed by - Shree Graphic Price - Available in all leading book stalls [No par of this pebication shouldbe stored in a tetreval system or transmited in any form or any means, electronic, mechani¢al Photocopying, recording and or otheraise without the prior written permission of the publication.INDIAN ECONOMY - I B. COM. - III SEMESTER-V INDEX UNIT TOPICS PAGE NO. UNIT -I INDIAN ECONOMY AND PLANNING CHAPTER 1. ECONOMIC PLANNING IN INDIA 01-05 CHAPTER 2. REGIONAL PLANNING IN INDIA 06-09 UNIT - I INDIAN ECONOMY AND POLICY CHAPTER 1. ECONOMIC GROWTH AND ECONOMIC DEVELOPMENT 10-12 CHAPTER 2. NATURE OF INDIAN ECONOMY 13-44 CHAPTER 3. INFRASTRUCTURE 15-19 UNIT -IIL POPULATION AND UNEMPLOYMENT CHAPTER 1. _INDIA'S POPULATION 20-25 CHAPTER 2. EMPLOYMENT 28-27 CHAPTER 3. UNEMPLOYMENT 28-35 UNIT -1V INDIA'S PUBLIC FINANCE CHAPTER 1. PUBLIC EXPENDITURE 36-38 CHAPTER 2. PUBLIC REVENUE 39-40 CHAPTER 3. PUBLIC DEBTS 41-42 CHAPTER 4, _INDIA’S FISCAL DEFICIT 43-44 UNIVERSITY QUESTIONS PAPERINDIAN ECONOMY - I ( B.COM- V) Unit I: Indian Economy & Planning: Economic Planning-Characteristics. Features, Objectives and History of Economic Planning in India. Achievements ang shortcomings of India’s Economics Planning. Regional Planning-Concept and challenges. NITIAayog-Aims, Objectives and * ‘Structure. From Economic Planning to NITI Aayog_Dfferences in the two approaches. 1 Unit Il: Indian Economy and Policy: ; Concept of Economie Grovah and Economic Development. Characteristics of Underdeveloped! Developing counties, Broad features of Indian Economy. Infrastructure and Transport System in India-Railways, Road, Water and Ait Transport, Unit Il -Population & Unemployment:India's Population: q Size and Growth Trends, Causes of Population Explosion. Consequences on Economic Development, Remedies, Populaon Policy, Employment and Unemployment-Trends, Structure of Employment in India. Estimates ofUnemployment. Urban and { Rural Unemployment.Causes, Etfect, Government Policy for Removing Unemployment Unit IV: India's Public Finance: : Public Expenditure- Classification, Role of Public Expenditure in india, Causes ofincrease in Public Expenditure. Public Revenue Sources of Pubic Revenue in india, Public Debt-Meaning, Concept, Classification, Role, Problems and Remedies. India's Fiscal Deficit Causes, Recent Policy Measurement towards Controting Fiscal Def QUESTION PAPER PATTERN Time - 3 hours Marks - 80 N.B.~1) All questions are compulsory. 2) All questions carry equal marks Q.No, 1~ Unit a) Theory 08 Marks, b) Theory 08 Marks, OR c) Theory 16 Marks: Q.No. 2—Unitil a) Theory 08 Marks b) Theory 06 Marks oR ) Problem 16 Marks Q.No.3-Unit i a) Theory 08 Matks b) Theory 08 Marks OR ¢) Problem 16 Marks Q.No. 4 ~ Unit a) Theory 08 Marks b) Problem 08 Marks OR ) Problem 16 Marks Q.No.§ ——Unit-I a) Theory 04 Marks. Unit 'b) Problem 04 Marks Unit-il c) Problem 04Marks UnitV d) Problem 04 MaGratulent Publications INDIAN ECONOMY AND. PLANNING CHAPTER 1, ECONOMIC PLANNING IN INDIA INTRODUCTION : After the attainment of independence the Prime Mini in 1950 to assess the county's needs of material capital 4 for their more balanced and effective ut ister Jawaharlal Nehru set up the Planning Commission and human resources and to formulate economic plans sation a ve ru Resources are scarce and have multiple uses. Wants are unlimited. For balancing the resources and wants, planning is essential DEFINITION: jc plannin S t0 rational or best a 1, Economic planning refers to ratonal or best possible allocation of resources to avoid wastage. berate choice of economic priorities by some authorities. 's pre-determined objectives. tis essentially a way of organising advantages in terms of defined social ends’ Planning commission of 4, According to Dickinson, “Economic planning is the making of major economic decisions of a determinate authonty on the basis of a comorehensive survey of the economy as a whole” Economic planning refers to way of organizing and uti Zing the resources to achieve the desired results. FEATURES OR CHARACTERISTICS OF ECONOMIC PLANNING IN INDIA : 1. Democratic Planning : «In democrats planning, the dacisions are taken in accordance with choice of the pie. Then the planned documents are placed for finalization in Parliament debate and Public discussion. ng in Inca 6 thus cartied cut in democratic manner and hence, termed as ‘Democratic Planning’ pes ms 2. Indicative Planning : « indian plans show at there are some regulations and rules of economic activities. It estors, producers, consumers etc, $0 itis called ‘Indicative Plan- arious economic ag 3. Decentralized Decision Making tural people. Hence the planning pro In India planning starts from village-level $0 as to reflect the needs of the ‘edu is termed as ‘Planning from below’ or ‘Decentralized Planning’ 4. Partial Planning ; - The Goverment now emphasis on privatization resulting in decline of public outlay. Now in boralized economy framework the planning is only ‘Partial Planning’. The Government will plan only for some important events 5, Development Oriented Plan ; - Tha planning process aims at development with rapid industrialization and ined economic growth. So we consider it as “Development Oriented Plan’. 6. Prospective And Perspective Planning : - Indian planning is both prospective and perspective .In other words .t is both short term and long term. 7. Comprehensive : « Indian plans are comprehensive and includes all fields of economic activity. Targets are laid down seperately for all the sectors of the economy like the agricultural, manufacturing, services. cnGratulent Publications OBJECTIVES OF ECONOMIC PLANNING ( 4) To increase the national output, national income, per capita income : Planning is necessary to increase © national output and national income. The per capita income can be increased only ifthe national output increases, 4 2) To improve the standard of living : The population of our country is increasing. To increase the per capita t income the output should be increased or the population should be controlled. This can be done by adopting | 4 suitable population policy. 3) To remove illiteracy : Population control can be adopted only ifthe public is aware of the ill effects of population 2 explosion. This can be done through planning, to literate masses. ¥ 4) To control population explosion : Population has been exploding since 1920. The economy can move fast ” ‘only through population control. The population can be checked though planned programs popularly known as j, family planning programs, 7 5) To utilise tho resources optimally : The natural resources aro scarce in relation to its demand. These natural resources have alternative uses. Thus planning helps the utiisation of resources in the best possi ¢ manner, c 6) Improvements in the techniques of agriculture production : Our economy is agriculture based. Nearly % 7 our population depends on agcutre, The development of our economy i possible ithe agriculture produc © increases. Improving the techniques of production can increase the productivity ; 7) Providing price stability : In the economy, Inflation and deflation (price rise and price fall) affects the poor and | economically backward population. A planned investment policy with suitable fiscal and monetary policy helps to = maintain the price stability : 8) To reduce the inequalities of income : In unplanned economy the gap between poor and rich widens. To 4 reduce the inequality of income and wealth, and providing social justice planning is necessary 1 9) To achieve full employment : In a developing nation lke India, the level of unemployment is high. Deliberate efforts are needed through the planning process to reduce unemployment in our country, 10) Rapid industrialization : The main key for economic development lies in the industrialisation of agrarian economy. Planned development of industry will give push to other sectors also, Thus planning is needed to fully exploit the available natural as well as manmade resources. 11) To eradicate poverty : The Britisher's left a legacy of poverty when they left India. To put an end to deep rooted poverty in india economic planning is very essential. 12) Self sustained growth ; Economic development is necessary for self sustained growth And for achiveing growth, economic planning is necessary. 13) Balanced sectoral development : In our country certain part are undeveloped or under developed. Economic planning helps in ba clors are developed whereas certain 4 development of economy HISTORY OF ECONOMIC PLANNING IN INDIA In India after Independence, in 1948 an industrial policy statement was announced India adopted the mixed economic system and it was decided to set up a National Planning Commission After the constitution came into force on 26” January 1950, the Planning Commission was set upto frame policies to regulate the mixed economic system, The first five year plan was connected on 1" Apri 1951 ‘Although the first five year plan came into existence in 1951 the idea of economic planning in India canbe traced back to the pre-independent days. In India during and after the years of the Great Agricultural DepressionGratulent Publications (1929-33), the concept of economic planning gained importance. Thus, the history of economic planning in India 3 can be outline as follows: 41) 1934: An engineer-administrator m. Viswesvariya is considered as the pioneerin talking about planning in India. 3 He was the first to give blue prints for India’s economic planning. He published a book “Planned economy for India” in 1934, in which he proposed a ten year plan. This would require an investment of Rs. 1000 crore and result in a six fold increase in the industrial output per annum. 4 2) 1938: The National Planning Committee (NCP) was appointed in 1938, by the Indian National Congress which was headed by Pandit Jawaharlal Nehru . The NCP was appointed to prepare a plan for economic development in the country, The comprehensive plan would address the problems of poverty, unemployment, national defense and economic regeneration. But, the World War-lI was declared in September 1939 and many national leaders, 3 including Pandit Jawaharlal Nehru was put into prison. Therefore, the National Planning Commission could not move ahead. 2 3) 1944: In 1940's one of the most commonly discussed plan was the Bombay Plan or the People's plan or the 3 Gandhian plan. It was prepared by the Indian Capitalists for economic development with certain amount ofgovernment intervention. 4 This plan focused mainly on the industrial sector. It aimed to increase the national income by three times and double the per capita income within a time period of 15 years. MIN. Roy in 1944 gave an altemative to the Bombay Plan. His plan was more socialistic in nature as it was borrowed from the Soviet type of Planning. H's plan gave importance to the agriculture and small scale industries. Jn 1944 The Gandhian Plan was authonzed by S.N. Agrawal laid emphasis on the expansion of small units and 3 agriculture It was based on tha principles of Gandhian economics, which aimed at self-contained villages and development of cottage industries ) 4) 1950 Planning Commission: Ater independence the Planning Commission was formally set up in March 1950. The Planning Commission in Incia adopted five year planning. The firs five year plan was initiated in Apri 1951Gratulent Publications ACHIEVEMENTS OF INDIAN PLANNING 4. Increase in National Income and output : Over a period of 60 years of planning, the national income has increase steadily. The average growth rate is 3.8% per annum. During last decade average annual growth rate at constant prices was close to 6%. 2. Self Reliance : The main objective of planning was to attain self-reliance and long term planning has helped to attain that target. India is fast emerging as a powerful nation, a) India is today able to provide food to ever-increasing population. bb) The country is self-sufficient in consumer goods. The production of steel and cement has increased as publig sector is playing a major role in these sectors. 3. Infrastructural Development : Various projects were started for infrastructural development by the government Itrequired huge investments. These were undertaken through planning process. 4, Development of Agriculture : During the last 60 years of planning .the annual average growth rate o agriculture production was 2.6%. Ithelped the country to attain self-reliance in food-grains | 5, Industrial Development : Industrial sector has attained considerable progress. There is a huge rise it investmentin public sector undertaking lke steel, fertilizers, engineering etc. Index of industrial output has increased from 91.6 in 1991 to 167 in 2001-02. This sector has achieved a good degree of modernization and diversification, 6. Employment Generation : In planning, emphasis is given on creation of employment opportunities both it tural and urban sector. First two plans have generated jobs for 16 milion people. Where as the figure is 41.7 mrlion in 8th plan. The figure is 94 million by 02-03 7. Social Services : There is a great improvement in services like education, health, insurance etc. The rural health centers, hospital has increased with more schools, college, Technical institutes, the number of enrolmeet has increased nearly 6 times in last 5 decades. 8, Foreign Trade and aid : Since 4th plan, the dependence on foreign and foreign aid has declined. We are set reliant in agricultural production, electronic goods, sophisticated technology etc. The foreign exchange resent thas increased from $26 million dollars in 1997 to $73.5 billion in 2003. 9. Improved Export : Planned development has helped to diversify exports. The country now exports handicratts engineering goods, leather goods etc along with traditinal exports from agricultural sector. 10. Development of science and technology : Government spends huge amount of mony on the development of science and technology. FAILURES (SHORTCOMINGS) OF PLANNING Economic planning has achieved a jot but there are certain areas where it has failed. Thos 60 are as follows 1. Unemployment : Planning in India has failed to provide employment opportunities to the ever-increasing work: force. Nearly 90 milion population requires job. But nearly half of work force is unemployed. Planning has Net been able to absorb the ever-increasing work-force. 2, Standard of Living ; Poor have become poorer. Income & wealth is concentrated only in few hands. Hence the gap between rich & poor has increased. Planning failed to achiove the objectives of poverty reduction & distributive justice. Percentage of absolutely poor has increased in planning ora of 55 yoars 3. Failures of production sector : Production from agriculture & industrial sector has been not able to attain the required growth rate, Although plans wore targeted at improvement in productionGratulent Publications 4. Inflation : Objective of economic planning was to reduce, control, and stabilize price level. But last 10 years, India is experiencing upward trend of prices, many times because of framing wrong policies. 5. Lack of implementation : The plans could not be achieved & they failed to reach the target group of people. This was because of dishonesty & corruption at administration level. 6. Lack of Strong Base : The fundamentals of our economy still remained poor, after 60 years of planning, Primary sector stil plays a vital role in economy of our country. Agriculture depends on monsoon as irrigation facilities are not sufficient to fulfill the need of farmers. 7. Concentration of Economic Power in Few Hands : Planning in theory calls for distributive justice. But it failed to provide fair & just compensation to needy & poor. 8, Lack of Political will & undue Interference of Political Strong holds : Many times plans are formulated for ssake of it, but they fail to be carried out because of lack of funds. 8. Unfavorable BOP : In 60 years, mostly, our BOP position has been unfavourable. In 1991 India faced foreign exchange crisis i.e. our foreign exchange reserve were minimum 10. Saving & Investment : In our economy rate of saving is increasing, But still the rate of capital formation is low, i, there is slow mobilization of saving for investment purpose. 11. Parallel Black Money Economy : Fiscal, monetary measures have failed to crab the emergence & transactions of Black money.Gratulent Publications CHAPTER 2. REGIONAL PLANNING IN INDIA ‘ ‘ ' —— Ee INTRODUCTION : : Natural resources are scattered all over the country. Even skils of human resources are different in £ different regions, Planning undertaken by the centre must be integrated with region, as most of over population ¢ lives in rural areas, Growth of urban sector must be accompanied by growth in rural areas, so that overall ¥ development of economy can take place. < ‘tthe time of independence regional planning was associated with planning of natural resources only. Butwith € industialzation and changing structure of economy, the regional planning is used for various purposes. in Why is Regional Planning Reguired? 7 Regional planning also has the objective of accelerating the process of social advancement of the county © through the technique of economic and social planning, Though, the spears of influence of regional plans restricted i toa given region or area ofthe country v 1. For rural development : The regional planning aims at developing rural areas through planned development, F Avillage is selected and it becomes the centre. This vllage provides other nearby villages the services, which are i ‘not availabe in respective villages. Planning links this central village with a town or city. This town or city has ¢ higher order services, not available or less available at central vilage. This helpsin pulling the standard ofvingin , rural vilages. 7 2. Reducing regional inequalities : By employing various employment generation programmes or by planning strategic investment, the poverty can be reduced. The regional planning aims at providing gainful employment. 3, Reducing the incidence of poverty : Careful research and proper regional planning will help in reducing 1 incidence of poverty. Bhar, U.P and M.P have 44% of total number of poor in our country regional planning aims S to take steps for reducing the percentage poor in these states, le 4, Improving HDI : Assam, Jharkhand, MP and Orissa (Odisha) has low HDI. Regional planning is undertaken) 4 improve HDI in these states. 7 5, Regional planning helps to define the hierarchy and indicate which industries or activities shout be located at different levels of the hierarchy so that an overall development of villages and urban centers’ can be insured at 4 minimum cost in terms of money; time, effort. je 6, Regional planning also help to reduce regional imbalance. Almost all the countries with the help of regional planning strives to reduce imbalance. 5 MAGNITUDE OF REGIONAL IMBALANCE IN INDIA if 4, Disparities in Per Capita Income: - There are large variations in per capita income of different states in he ™ country. The PCI of Punjab, Maharashtra, and Haryana are continuously maintained and are comparatively mor® 7 than the other states. Where as the PCI of Bihar, Orissa, Uttar Pradesh are comparatively low. la 2. Differential Growth Rates: - The poor states performed poorly with growth rate of 1.4% to 1.9% whereas he group of richer states i.e. Punjab, Haryana, Maharashtra, Gujarat, performed much better with much highet growth rates than the poor states over the period of time the disparities between the rich and poor states has increased. 3. Incidence of Poverty: - In India poverty is found everywhere but the percentage of people living below the poverty line are not same in all states. In states like Punjab, Andhra Pradesh, Haryana, Himachal Pradesh and Kerala, the percentage of people living below Poverty Line is comparatively low. Perople living in Poverty Line in Bihar, Orissa, Madhya Pradesh, Uttar Pradesh, is comparatively high.Gratulent Publications 4, Disparities in human development: - To measure the level of human development, a device called (HDI), Human Development, Indexis used. Kerala is the state with highest HDI followed by Punjab, Maharashtra, Tamil ' Nadu. The HOI in the states of Uttar Pradesh, Madhya Pradesh, are very low, lowest in Bihar. | 5, Disparities in industrial growth: - Due to the British rule the industries got concentrated in few centers’ and | this exists even in the current times. In 1950 the major industries were concentrated in the western region and || West Bengal. This pattern has not changed the despites of the attempts made; recently the dominance of industries can be in the state of Maharashtra, Gujarat and Tamil Nadu. 1 6. Disparities in agriculture development: - The disparities in agriculture sector have increased over the period of ime. The states of Punjab, Haryana, Uttar Pradesh are moving much ahead than the other states this is due to the use of High Yielding Variety Seeds (HYVS) Other Indicators :- 4. Urbanization : urban population is higher in the states of Maharashtra, Tamil Nadu, Gujarat, Karnataka, Punjab, West Bengal, where as it is comparatively low in the, states of Orissa, Assam, Himachal Pradesh, and Uttar || Pradesh 2 Ii. Disperatities in domestic electricity consumption per capita:- In states like Delhi, Punjab, the domestic electricity § consumption per capita is much higher, where as in Assam, Madhya Pradesh, Bihar, Jharkhand, itis very low . the 1 ili. Deposit mobile by Commercial Banks : This also reflects the level of prosperity of the states. It is higt states of, Delhi and Maharashtra where as low in states j CHALLENGES FACED BY REGIONAL PLANNING IN INDIA | 1. Although the government initiate a number of measures to develop and reduce regional imbalance but the igh the 9} ti c genuine regional planning is entirely missing. | 2. The models of planning in India were sectoral in character and no regional variables were introduce. 1 3, The discussions evolved around allocation of resources among different sectors or among different industries, | but the allocation of resources among different regions were not considered. { 4, The discussion on location of industries did not emerge keeping in mind the regional imbalance but were added simply as an appendage to justify the claim of planners that adequate attention is been given to regional planning and development. ' 5, No in depth studies were carried out to ascertain the effect of investment in the different backward areas. | 6. In 1952, national development council board, consisting of PM and CM of states as members of planning commission through which the state government can voice there opinion, however due to several reasons the | role of NDC remain a subdued one. ' 7. This shows that the role of states is confined only till bargaining for more financial resources and higher allocation. Their role in basic plan formation is negligible,Gratulent Publications RECENT CHANGES IN ECONOMIC PLANNING oi NITIAAYOG : There has been considerable disillusionment with planning in India and many economists in egy times had advocated dismanting the Planning Commission. In line with this thinking, the Government of hg established the NITI (National Institution for Transforming India) Aayog 2s replacement for the Planning Commissy on January 1, 2015 with Arvind Pangariya as its Vice Chairperson. Prime minister will be the Chairperson asi in the case of the Planning Commission. NITI Aayog is a policy think-tank of the Government of India and ins, involve the States in policy making in India. It will be providing strategic and technical advice to the Centalay State governments by adopting bottom-up approach rather than the traditional top-down approach ofthe Pm Commission. The NITIAayog will develop mechanisms to formulate credible plans tothe village level and aggregl these progressively at higher levels of government. It will ensure special aitention to the sections of society may be at risk of not benefiting adequately form economic progress. ‘STRUCTURE OF NITI AAYOG: * Chairperson-Prime Minister * Governing Council- Its members are Chief Ministers and Administrators of the Union Territories * Regional Councils-These are created as per need and its members would be chief ministers and admiistalt of UTS of respective regions. + Vice-Chairperson- The Vice-chairperson ofthe Niti Aayog is appointed by Prime Minister. Further, the NITI Aayog has full ime members (number unspecified), part time members (maximum? these would be scholars from universities and research institutions), Ex-officio members (maximum 4, thes® él ministers from Union Council of Ministers), Special Invitees (appointed by PM for fixed tenure. Finally, theres Chief Executive Officer (CEO) of the Niti Ayog, who is appointed by Prime Minister and has a rank simla'! Secretary to the Government of India, FUNCTIONS OF NITI AAYOG : 1) Shared National Agenda : It formulates strategies and policies for the overall national development wiht active involvement of all the states. It gives a framework for ‘National Agenda’ for the Prime Minister and Chié Minister to implement, 2) State's Best Friend at the Centre : The NITIAayog co-ordinates the various Ministries and provides consulta"? support to the states. It helps the states to solve their problems and work on their strengths and comparalit advantages. 3) Decentralized Planning : It restructures the planning process into bottom - up model, ie., from the !oa government to the Central Government. 4) Knowledge and Innovative Hub : The NIT| Aayog undertakes research and best practices for good governand through its state of art Resource Centre. 5) Monitoring and Evaluation : It constantly monitors and evaluates the various policies and programmes! identify the weaknesses and bottlenecks. Ithelps to make necessary corrections and encourage better efficiend and effectiveness. 6) Co-operative and Competitive : It enables the states to actively participate in the formation of Nationd Policy. It aims to achieve its targets through combined efforts of the Prime Minister and Chief Ministers of States. CeGratulent Publications IFFERENCE BETWEEN NITI AAYOG AND PLANNING COMMISSION : Particulars NITIAayog Planning Commission |1. No. of members In Niti Aayog the number of members of Full ime members can be less than that in the Planning Commission. The last Planning Commission had eight {full time working members. 2. Role of State State Governments are expected to participate more actively in the working of the Niti Aayog. The State Governments have a more prominent role in Nit Aayog than thattn the Planning Comr ion. The role of State Government in the Planning Commission was limited to the National Development Council and annual interactions during the plan meetings. 13. Allocation of \Funds The Niti Aayog cannot allocate funds to the State Governments or to the ministers or ministries. The power to allocate funds is given to the Finance Ministry. ‘The Planning Commission has the power to allocate funds to the State Governments as well as the Mi |4. Planning The Niti Aayog adopts the bottom up approach to formulate strategy for National Development in market economy which is integrated with the globalised world. ‘The Planning Commission adopts the top- down approach for planning for the government with the help of public sector resources. 5. Established twas established on 1st January 2015. Itwas established on 15th March 1950. (6. Policy Formation] It acts only as a think tank and have no powers to frame policies It frames policies for the states and allocates funds for the projects. [7. Appointment of lSecretary The secretary, known as the CEO is appointed by the Prime Minister. The secretaries are appointed through the| usual process,Gratutent Publications INDIAN ECONOMY AND POLICY 1 CHAPTER 1. ECONOMIC GROWTH AND ECONOMIC DEVELOPMENT \ INTRODUCTION = = On the eve of independence India tumed out to be a poor nation with large population, povey 1 unemployment. Brtishers exploited cur country: However the process of economic growth and developmen, transformed our economy and took us on the path of progress has | Though these two ie. economic growth and economic development are used synionymously but there « ifference in the contents ofthese two terms. Economic growth is related to increase in quantity of output prods § ¢ It is a natural process. ereas economic development is related to increase in quality and Quality of produced. Itis planned and deliberate Economic grouth isthe first step of economic development, UU: ECONOMIC GROWTH MEANING : Economic growth means ong erm and sustained rise in real national income or real per ga income of the country. Pia DEFINITIONS : : 41. According to J. K. Mehta, “Economic growth indicates the quantitative increase in national income. 2. According to Prof. Miller, “Economic growth is a process whereby, an economy's real per capita incom ¢ increases over a longer period of time.” } 3. According to Simon Kuznet, “Economic growth isa long term rise in capacity to supply increasing iver « ‘economic goods to its population, this growing capacity being based on. advanced technology and the ‘institutional and ideological adjustments that it demands.” 7 ‘ 4, Economic growth is defined as a sustained increase in the total amount of goods and services produced ove, a period of time. : FEATURES OF ECONOMIC GROWTH : 1) Economic growth is continuous and sustained process : Economic growth is a “on going" process. lis non-stop rise in production of goods and services. The growth which has been achieved today is maintained and more is also achieved in future, by utilising the resources optimally. 2) Increase in per capita income : Economic growth implies rise in per capita income. When growth of narional income is greater than in rate of growth of population, then the per capita will increases. ' 3) Economic growth is long term process : Economist consider a time period of 10 - 12 yrs for econo growth. Itis sustained growth over a period of time. 4) Economic growth is quantitative : Economic growth is a quantiatve concept. It can be measured in numa terms. Itis calculated as percentage increase in real GDP and real PCI per annum. Itdoes not include qualitative H 5) No structural changes There is no structural transformation in the economy in the process of econ growth. | 6) Provides no solutions to important problems : Economic growth does not give solution to probes | poverty, unemployment, inequalities of income and wealth, etc. i ee eeeDecne aereeeeennegnnnnneernnen nen —it Gratutent Publications ECONOMIC DEVELOPMENT INTRODUCTION : Economic growth plus progressive changes in certain important variables is economic development. When overall progress takes place in an economy of country, then economic development takes place. | DEFINITIONS : 4. “Economic development means growth plus progressive changes in certain crucial variables which 4 determine the well being of people. 5 2. Todaro “Economic development is a multi dimensional process involving major changes in socio economic structure, popular attitudes and national institution, acceleration of economic growth, reduction of inequalities and { eradication of povery.” 3, Prof. Meier "Economic development is a process whereby the real per capita income of a country increases ‘over along period of time.” ‘There are two approaches to the concept of economic development j FEATURES OF ECONOMIC DEVELOPMENT | 1) Broad Concept : Economic development is a broader concept than economic growth. Economic development | includes economic growth. |2) Qualitative and Quantitative Concept : Economic development tries to explain the qualitative as well as ie Quantitative changes in wants, goods, institutions, ete. |3) Sectoral Transformation : The role of primary sector declines and role of secondary sector and service 4g Sector increases, in the economy. 4 4) Public Participation : Economic development is process wherein people of the country part operate, in the process of development. pate and co- 5) Role of Economic and Non-economic Factors : Economic development means changes in both the economic and non-economic factors for better and improved standard of living | Factors i Economic Non-economic 4 2) Supply of capital 2) Political freedom b) Foreign Trade b) Stable Goverment 4 c) Talented entrepreneurs ¢) Good social structure 4 4d) Good infrastructure, etc. 4d) Attitude of the people. 6) Increase in Real National Income : In real national income means increase in availability of goods and ‘ services. When output increases, standard of living of masses increases. This is economic development. , 7) Structural transformation : The economy changes from agrian to industrial economy and ultimately a mature: society with large service sector. This results in decreasing the share of agriculture sector in contribution of GN. ®P. In economic development the basic ideologies of the society changes. There is a change in the age old institutions, altitudes and beliefs. Such changes leads to modernization and urbanization. ‘ Long Term Concept : It implies that the increase in the real national income should be sustained over a long period.Gratulent Publications DIFFERENCE BETWEEN ECONOMIC GROWTH AND ECONOMIC DEVELOPMENT 4. Meaning : Economic growth refers to sustained increase in real output of goods and services in the countr over a period of time. Economic development means economic growth plus progressive changes whic determines the well being of the people in the country. 2. Scope : The economic growth is unilateral and narrow concept The economic development is comprehensive process and wider concept 3. Change : Economic growth does not need structural and institutional change Economic development. It needs structural and institutional change 4, Volume and variety : In economic growth, the volume of goods and services produced increases. It cover Quantitative changes In economic development, the volume increases along with the variety of goods and services Meovers both quantitative and qualitative changes 5. Rate of change [according to Prof. Schumpeter] : In economic growth, the change takes place gradually. I economic development, the change in goods and services produced is spontaneous and sudden. 6. Set up : In economic growth the institutional set up of the country remains same. In economic development, there are changes in the technique and institution as well as arrangements by ‘which output is produced and distributed. 7. Inter-relationship : Economic growth does not necessarily leads to economic development. Economic development is not possible without the economic growth. 8, Process : Economic growth is natural procers. Economic development is deliberate and planned process. CHARACTERISTICS OF UNDERDEVELOPED/ DEVELOPING (COUNTRIES) ECONOMY Following are the main features of an underdeveloped economy: 41. Low per capita income : In an underdeveloped economy, the national income is very low due to poverty, lack of basic infrastructure, etc. To add to this there is rapid rise in population. Therefore the real per capita income : very low as compare to the developing and developed countries. i 2. Predominance of agriculture : An underdeveloped economy is usually based on agriculture. It provider? ‘employment to a large number of people. But, the share of income in agriculture is comparatively less than thé share of employment in agriculture. This clearly reflects low productivity in agricultural sector. ke 5 3. Raid population growth rate : The population growth rates very high owing o very high birth rate. The ith rate is high due to povery,iliteracy, low standard of living, early marriages, etc. i 4, Mass poverty : Population in the underdeveloped countries live below the poverty ine. Majority of populatiote cannot satisfy their basic needs due to lack of income, The human development Index in such countries is a low. in 5. Unemployment and under employment : There exists mass unemployment in underdeveloped countries4. ‘owing to structural defects in the economy. To add to this, there is also widespread under employment in sudoc ‘countries. Under employment is a situation where in the capacities and qualifications of a person are not fh utilized lv 6. Inequalities of income and wealth : Inequality of wealth exists everywhere. But, in the underdeveloped thet@yp, are wide disparities of income and wealth in the society. The major wealth in the society is pockted by a few fin, where as the masses remain poor. |Gratulent Publications CHAPTER 2. NATURE OF INDIAN ECONOMY Il = sich|NTRODUCTION : Economy refers to process wherein economic activites are conducted for consumption, production, and distribution purposes. Each country has an economic structure of its own, On the basis of owners of means of production, the economies are a) Capitalistic, b) Socialistic ©) Mixed On the basis of means of production India is a mixed economy . which has the merits of both capitalism and socialism. Certain industries are public and certain are private, but both take active part in the economic ‘etSgevelopment of the country. With the adoption of liberal economic policies after 1991, the importance of public 28Ssector has decreased. ‘On the basis of means of development, the economies are olf {a) Developed (b) Developing (c) underdeveloped | On the basis of Development, India is a developing economy. India is a developing economy since its real typer capita income is ow. At the same time India has adopted economic planning to attain rapid economic development and is therefore referred to as developing one. | BROAD CHARACTERISTICS / NATURE OF THE INDIAN ECONOMY India is a developing economy. There are unutilized natural resources. If the developing economy is to be fonverted into developed then it is important to understand the basic characteristics or nature of the Indian ‘economy. 4. Occupation Pattern : - The dominance ofthe primary sector isan indication of economic backwardness. The primary sector includes agriculture, fisheries, mining, forestry, and animal husbandry. The share of primary sector Jn India’s national income stood at 17% in 2011 The other countries are also suffering from agricultural backwardness. Although being the primary sector, j@4ricultural sector in these countries remains totally underdeveloped. In India nearly 56% of the population is tengaged in agriculture but contributing only about 17% of the total Income. .. Low Rate of Capital Formation : - The growth of national income depends on capital formation. The basic ,eature of the Indian economy is the existence of capital deficiency in comparison to the rising population, Low Tate of capital formation is the cause of low rate of high population results in high level of consumption hence total saving are low. This results in low rate of capital formation. "Low Level Technology : « Another characters ofthe Indian economy as a less developed economy is se of obsolete and backward techniques of production. Most of the farmers are poor and follow traditional techniques. This results in low productivity, by the same logic the industrial production is also low. Inferior technology yesults in industrial sickness, high cost of production, lack in the competitive strength in the international market, inefficient utilization of resources, low productivity, etc. Hence economy remains backward. #4. Mass Poverty and inequalities of income and wealth : -In India incidence of poverty is very high. Every 3rd Feer person in the world is an Indian. 22% of population is below poverty line. The gap between rich and poor is igh. Less number of people hold large capital and industrial assests. Whereas large percentage of population lives below poverty line. |__ Amajor feature ofthe Incian economy is prevalence of mass scale poverty. The causes of poverty in India are unemployment, illiteracy, lack of opportunities, lack of training, etc. According to the World Bank at least 50% of India's population is below poverty line, 5. Low Per Capita Income : -Avery important feature ofthe Indian economy ists low per capita income. One of theGratulent Publications ‘very important causes for low per capita income in India sits rapid rise in population. India's per capita incomes} 1180 (2009). Because of low per capita income, standard of living of people is very low. 6. Lack of Infrastructure : - Infrastructure or external economies means basic fulfillment of the things require yy to start the industries i.e. power, roads, means of transport, communication water, etc. Availability of infrastructuy ‘simplifies the industrial economic development. Possibility of either lacking the same or availability remains ajo per requirement in many states. Therefore it causes slow development of economy. 7. Heavy Population Pressure : - The main problem in Indias the high birth rate coupled with a falling death ray" and a higher rate of population growth necessitates a higher rate of economic growth to maintain the sam standard of living. Further, high rise in population also increases the labour force and level of unemployment. _ 8. Prevalence of Chronic Unemployment and Underemployment : - In India labour is an abundant factor an, consequently tis very difficult to provide gainful employment to the entire working population. The Indian econ does not find sufficient capital to expand its industries to such an extent that the entire labour force is absor Moreover, in the agriculture sector of the Indian economy, a much larger number of labourers are engagedi Production than are really needed. Accordingly, the marginal product of labour in agricultural soften negigie, 8) 9. Under Utilization of Natural Resources : - Another important characteristics of the Indian economy is thpé under utilization or the unutilized resources. The case is not that the economy is lacking in resources i.e., Wateco forest, minerals etc. but the problem is of capital scarcity. Due to which the resources cannot be exploté properly. 10. Poor Quality of Human Capital : - A glaring feature of the Indian economy is the poor quality of human capt, due to mass illiteracy, low standard of living, etc, which results in the low income of labourers which keeps thet trapped in the vicious circle of poverty. | 41. Demographic Characteristics of a Developing Country : - The average expectation of life is low and infatTF mortality rates are high. As the density of population is high in India, it puts greater burden on land and othe natural resources. Birth rate is high and death rate is low. This isthe feature of an underdeveloped country. This situation’sc present in India, I Fe 42. Low Level of Living : - Major portion of the population in India live below poverty line. So, itis doubtful whet the poor get a minimum intake of even 2,100 calories or nat. p ‘According to world Development Indicators, 46% of the child population in India sulfers from malnutitt The picture regarding the housing is also not good. The percentage of people living in permanent houses is Vel less. About 30% were living in semi-permanent and 18% were living in temporary houses. li 13) Instability of Output of Agriculture : -In India majority of the population is dependent on agriculture to eveec their lvelinood, Still there is uncertainty of agricultural production, as agriculture in India is dependent on monsoot Instability of output of agriculture results in causing instability in related sectors. For e.g. If there is a fall the production of cotton, there will be less availabilty of cotton for textile industry. 5c e CONCLUSION : So summing up it can be said that even after more than five decades of planning, india continue to exhibit the basic characteristics of an underdeveloped economy though it has parsed substantially in certa areas. at xGratulent Publications CHAPTER 4. INFRASTRUCTURE ——— INTRODUCTION : Infrastructure means essential requirement of economic and social development. It is necessary for an economy to function in effective manner. This is social overhead capital. needs huge investment Such investment are taken up by the government of the country. Well developed infrastructure speeds up the overall development of the nation. INFRASTRUCTURE Economic Infrastructure Social Infrastructure Covers physical or technical overheads like Covers social overheads like health energy, transport, communication, etc. services, education, etc. A) ENERGY : Energy is derived from various sources e.g, coal, firewood, electricity, cowdung etc. Itis the power or capacity to perform work. Itis an important input for all economic activities. All consumption and production activities of the country are dependent upon energy. It determines quality of life. SOURCES OF ENERGY | | Conventional (Traditional) Commercial (Non-Conventional) sae are eine | | Non-Renewable Renewable TRADITIONAL (CONVENTIONAL) SOURCES OF ENERGY : |) Itrefers to those sources of energy which are being used since long. Usualy no price is tobe paid for such ‘Sources as they are available in plenty. But recently due to shortage, price is to be paid even for such energy bources. ome are the conventional sources of energy : }) Firewood : tis mainly used in rural areas and small owns mainly for cooking. Almost 60% energy required for ooking and heating in rural areas is met from firewood. i) Cowdung / Ar li) Crop Residue : Such as straw, rise husk, cotton stalks, vegetables, agricultural waste, etc. are used as ‘pooking fuel. Rise in price of kerosene and gas makes people to use more of this waste as fuel. COMMERCIAL (NON-CONVENTIONAL) SOURCES OF ENERGY These are used in recent times. Usually these are costly as they are scarcely available. These can be Jenewable and non-renewable sources of energy al dung : Dung cakes are used as fuel to cook food. Besides it is used as fertilizers also. | ® Non - Renewable Sources of Energy : 1) Coal: Itis one of the most oldest and cheapest source of energy in India. Nearly 60% of commercial energy is bbtained from coal. But it creates huge amount of pollution. The first coal mine was started in 18th century at Raniganj in West Bengal. Main coal areas are Bengal, Maharashtra, Jharkhand, Bihar and Orissa. The National Foal Development Corporation was established by the Government of India in 1956. Major efforts were taken to prove the performance of coal industries after 1970 05)Gratulent Publications 2) Mineral Oil :Itis very limited in India. Only 26% of the total oil demand can be met from the domestic source the remaining is met by imports. Oil and Natural Gas Commission (ONGC) in 1955 and Oil India Limited (OIL) qh 1959 were established by the Government to explore oll. The private sector has also taken active participation in 1 the recent years in the production and refining of mineral oll. Crude oll reserves are in Mumbai High, Assam and 2 in various part of the country. 3 3) Natural Gas : Itis an important source of eneray in the recent times. The main advantage is that such pows generation plants are pollution free. The capital requirement is comparitively low. Liquid Petroleum Gas (LPG) ig widely used for cooking. Compressed Natural Gas (CNG) can also be used as fuels in vehicles, Main areas JE this source are - Tamil Nadu, Rajasthan, Gujarat, Mumbai, etc. \c 4) Thermal Power : Electricity generated by coal and mineral cil and gas is called as thermal power. Coal s thet main source of thermal energy. Nearly 62% of the total energy comes from thermal power. The National Thermal Power Corporation Ltd. (NTPC) was established in 1975. Thermal power stations are located in Uttar Pradesh’ Rajasthan, West Bengal and Haryana. i) Mineral oil and natural gas are limited in India, But their demand is rising, Main areas of this source are Assar Gujarat, and Mumbai High. At present natural gas is mostly used as domestic fuel 2 5) Atomic | Nuclear Power : Energy obtained from uranium and thorium through its atomic fission is atomi4 energy. The increasing requirement can be met by this source. Important centers are Tarapor (Maharashtra Kota (Rajasthan), Kalpakkam (Tamil nadu), and Kakrapara (Gujarat). The Nuclear Power Corporation of Indi (NPCIL) was set up in September 1987 for maintaining the Atomic Power Stations. € N) Renewable Sources of Energy : The energy sources which can be renewed, i. they are inexhaustible i, nature are renewable sources of energy. Only about 12% eneray is generated from these sources. But there isi, great used to develop these sources as these are environmental friendly. « 4) Hydro Electricity : Its generated from water falling from heights. Nearly 14% of total electricity is generat from this source. Important Hydro electric projects are at Bhakra ~ Nangal, Koyna. Krishnarjuna sagar, Hiraku Periyaretc. 2) Solar Energy : The cost of getting this energy is very high. Itcan be only used for heating, cooking, communi lighting, ete 3) Wind Power : In past it was used for minor irrigation and some agricultural operations. Recently itis used generate electricity. It is generated with the help of wind mills in the States of Maharashtra, Tamilnadu, Gujaral Rajasthan, Karnataka, etc \ 4) Tidal Energy : Itis also known as ocean energy. It is generated from high tides. Generation of tidal energy # started on a very small scale in parts of Tamil Nadu near Chen: t 5) Biogas : Used mostly in rural areas for cooking and lighting. Government gives subsidy for biogas. plants. also produces manure. Khadi and village industries commission (KVIC) is mainly responsible for this project. + Problems of Energy Sector : j 1. The State Electricity Boards have to face financial crisis. They cannot function property due to lack of financié funds. 2. There is inadequate generation of power. Itis very less as compared to the requirements. 3. The main problem faced by the energy sector these days is the problem of theft. A lot of electricity is stole during transmission, To add to it here are problems of poor recovery. 4, There is also the problem of insufficient power supply. Frequent cut offs adversely affects the agriculture an industry,] Gratulent Publications Measures to Solve Energy Problems : 111. Instead of non-renewable sources, more use of renemwable sources should be promoted. 42. There must be proper implementation of tarrf rates. |3. The private sector must be encouraged, so as the power generation capacity increases. |4. More use of non-commercial sources of energy should be promoted. x Everyone must take active participation in order to conserve energy and to meet the Goal- “Power or all.” is 318) Transport : A well developed transport system is essential for economic development. Itinfluences all activities |of the country. It is called as nerves system of the economy. élmportance of Transport : j\1- Trade Expansion :Itpromotes home and international rade, |2. Rapid Industrialisation : It promotes mobility of factors of productions. It helps to create new industries. P Availability of Job Opportu ies : It helps to create employment with more industries and easy mobility. | | |{4. Network of Trade : It isa lik between producers and consumers. Shipping, cargo facies, etc. provides ie for international trade. | lit, Sectoral Linkages : Transport is the link between the agriculture, industry and the service sector. 6. Place Utility : Transport facilitates movement of goods from one place to the other. This creates place utility. "7. Overcoming Scarcity : It increases the size of market. Goods can be easily transported from one place to the ‘other. This helps to solve the problem of shortages. '8. Reduces Regional Inbalances : It promotes social, religious, political and economic integration of people. el [Following important modes of transport : a) Land transport — Rail and Road b) Water o)Air LAND TRANSPORT /1) RAILWAYS : Rail is the biggest Government enterprise with the capital of about 56000 cr.Rs. It is largest in Asia land 4" largest in the world. First rail line was opened on 1853. It covered a distance of 33 km from Mumbai to 'hane. toperates on broad, narrow and meter gauge, with a route length of 63140 km. It carries §1% of passenger's traffic, and 65% of goods traffic. yi Indian Railways underwent major modernization in 1990. Its 20% of steam engines were replaced by ‘diesel and electric locomotives. The National Rail Vikas Yojana of 10th Five Year was started to modernize railways, , Problems of Railways : Railway face many problems. Some important problems are : t t- Inadequate network : A large area is yet to be covered by railways. It can not easily reach hilly areas. 2. Old technology : There is urgent need to replace old equipments and assets. «iG. Poor management : The management is inefficient Corruption, thefts, accidents, ete are becoming common these days. The facilities provided by the railways is not adequate. 4. Huge losses : Railways every year incur huge losses on account of poor management, wasteful expenditure, Jicket less travels, theft, increasing cost of materials and rise in wages of employees. 4 5. Slow expansion : Railways require huge investment on locomotives, rail tracks, coaches, platforms etc. As a Fesult the expansion is very slow. i a : 8. Policy of government : The price of railway tickets is very low. It aims to provide social and economic welfare, As a result, rallways incur substantial losses.ee ee Gratulent Publications Advantages of Railways : i 4. Itis economical and a cheaper mode of transport as compared to roadways and airways. It ‘ 2, [tis useful to transport bulky goods over a long distance. b 3. It provides employment to a large number of people and is a source of revenue to the government, ls ROAD TRANSPORT (- Road transport is the integral part of transport system of our country. India has 332 million km of road network,| is one of the largest in then world. There are mainly 4 types of roads a) National highways : They connect big and important cities. They are managed by the Central Governmentge b) State highways : They are managed by the State Government. | ¢) District roads : They connect different parts of the district. om 4) Rural roads : They connect all the villages inthe country. Roads have connected nearly 75% of he villages, our country. We have made a provision of approximately 89700 cr rs. For our national highway developmet yg programs. The main problems of road transport are as under. Inc 1, Poor road conditions — Road condition is very poor in India. Even national highways are not in goopr condition.50% of the roads are unsurfaced .It creates problems in rainy season. Itincreases cost of maintenand, of vehicles. 2 2, Inadequate ~ Many parts of the country, hilly areas, etc are not inked to the main cities, towns and center, 3. High cost - Increasing prices of spare parts, tyre, petrol and ciesel reduces the proft margin of operator, Heavy taxes puts additional burden, j 4. 4, Large number of operators - In India we have nearly 50000 operators of whom more than 90% are sma operators having less than 5 vehicles. Their small level of operation increases cost and inefficiency. G pos Advantages of Roadways : 1. Itis useful for short distances 2, It creates a link between the producer and the market. New markets can be created witht he help of ro transport. 3, It also provides door to door services and helps to reach even remote areas. 4, Itis best for perishable goods transport. See WATER TRANSPORT In the ancient days, it was the most important mode of transport. Its divided in two parts a) Inland water transport: It includes navigable rivers, canals, Creeks, ete. Inland water transport plays major part in transport of goods and passengers in the states like west Bengal, Bihar, Assam, Kerela, Orissa. | b) Shipping : Itinvolves coastal shipping and overseas shipping. India has 7516 km of coastline and about 1450 km of inland waterways | i) Coastal shipping is important for carrying bulky goods, raw material like iron ore, coal, etc. | {i) Overseas shipping plays an important role in our foreign trade. India has nearly 700 ships carrying goods wo" | 7.1 million tones, We rank 19" in worlds shipping tonnage. Water ways is the cheapest mode of transport. It is convenient for long distances and bulky goods.Gratulent Publications Advantages of Water Transport : 1. Itis the cheapest mode os transport. 2. Bulky goods can be easily transported over long distances with the help of waterways. 3. It creates less pollution as compared to other modes of transport. 4, It helps to foster foreign trade. AIR TRANSPORT This is a modem mode of transport. It is a very quick means but it is unsuitable for heavy and bulky goods. It is very expensive. In India air transport began to operate in 1920, Air transport was nationalized in 1952.Indian Airlines for domestic services and Air India for international service was created. This monopoly was ended in 1997. Today nearly 50% of domestic air traffic is managed by private airlines. International airport authority of India was setup in 1972 tolook after development of airport. Airport authority of India was set up in 1995 to regulate ar transport activity. The Pawan Hans Ltd. was set up in October 41985 to provide helicopter based transport service India has total 125 airports including 11 international airports. Government policy of liberalization, privatization and globalization has improved the business of airlines in India. Problems : 4. High prices - High prices of fuel, landing and parking fees, high salaries to staff, maintenance expenses has: reduced profit margins and Airline companies 2. Inadequate facilities — Infrastructure facilities have not improved along with growing demand. +s, Risk ~ Today there is growing risk of hijacks and terrorism, 4 Staff - Frequent strikes by pilots, staff, and stoppage of work has reduced operational efficiency. B It is also affected by adverse natural conditions. Advantages of Air Transport : 4. It is the quickest means of transport. ®. Itis useful to transport light weight, precious, perishable goods like medicines easily and quickly. 5. Itis very useful in disaster management. 4. It is very important in the defence of the country.Gratulent Publications POPULATION AND UNEMPLOYEMENT CHAPTER 1. INDIA’S POPULATION Se INTRODUCTION : 5 ‘Accountry’s resources are used by its population, ie, human resource for production. Thus population, the country becomes one of the most important resources for the economic development, When population matches the productive resources quantity and quality wise, the process of econom development accelerates. The national income and per capita income both increases. The level of output ing sectors ~Agriculture, Industry, Service sector, rises rapidly. The overall standard of living ofthe country improve with it. The technological changes facilitates availabilty of wide variety of goods and services to the people, In nutshell, higher level of employment, more opportunities, equality ofincome, better social, political an economic order leads the society to prosperity” When a nation has more population than availability of resource? it adversely affects economic development. ° Size of growth of population (In cores) The study of population of the country is extremely important for economic, social & political developer etc. of the country. Along with the size and growth, the composition of population is also studied e ‘At the beginning of 20° century India's population was 236million and as per the 2011census Indi population is 1210 million. iM India has 2.4% of the total land area of the world but has to feed 16.8% of the world’s population. Th burden of population is very high. Not only the population is large but also it is increasing at an alarming rate.|5 India Uttar Pradesh (166 million) is the most populous state followed by Maharashtra (97 Miion) , & Bihar milion). Sikkim has lowest population with only 5,40,493 persons. b c Ifwe carefully study the above table and chart 6 4) Population of our countrys rising rapidly, we may observe one peculiar situation Til 1921 the population ofr country was steady. 5 jn 2) The population has declined in the 1921 census (population growth was negative). This was due to fami and epidemic of influenza in Bengal.Since 1921, the population has rapidly increased. Itis for this reason that t demographers called the year 1921 as the “year of great divide.” | 3) Indias experiencing population explosion Every year we are adding elmost he existing population of Nepal, our county. The average annual rate of rise in population is 2.1%. Every year some 18 milion people are addé in India, Itis believed that if population continues to grow at ths rate, by 2020 we may even surpass China! existing population. Indeed we are experiencing the phenomenon of population explosion. 1 DETERMINANTS OF POPULATION GROWTH st BIRTH RATE AND DEATH RATE : i bi 4) Birth rate : It is defined as the number of children born per thousand of the living population in the count during a year. Itis also called as “fertility rate”. |Gratulent Publications 2) Death rate : It is defined as the number of deaths per thousand of the living population in the country during a year. Itis also called as “mortality rate.” “The difference between Birth rate & Death rate is “growth rate" or “survival rate.” 4) If Birth rate is less than death rate. Population decreases, 2) If Birth Rate = Death rate, then population remains stable. ~3) If Birth rate is greater than death rate, population increases. |The birth rate in India is high. Though it is decreasing very slowly. F \ _-CAUSES OF OVERPOPULATION (| I 1 1 A) HIGH BIRTH RATE B) LOW DEATH RATE ny CAUSES OF HIGH BIRTH RATE :In nda poration I ncrasing aan slang a. The ran reson for A eee ae rua teks cutee ct Tigh Biv rale nd 4s Poverty :=In poo amis the ith aes igh sa poor child stats ering income avery eat age. Adtion seenSY ccpnfecaras incom ore tr |2. Mliteracy : - The level of literacy is low amongst poor. They fail to understand the importance of small size of the ea '3. Failure of family planning : - Family planning programmes have failed in India, due to superstitions, Illiteracy, Se eee ere citys Nicngse ieloun moran! gives her a long child bearing span. And '4. Early marriage : - In India a girl is married off at very early age. TI hence the number of births per female is more. 5. Superstitions : - There are many superstitions, which results in more number of births per famil ja. Children are considered as God's blessings. 'b. ‘Son’ is essential to get deliverance. c. Birth control devices are disapproved by some religion. (6. Univesality of Marriages :- The marriages are universal in India. Every boy and girl, after attaining a given age must marry. Unmarried do not enjoy social status. ‘7. Decrease in death rate : - Death rate has decreased drastically. Therefore, family life now is more. The number of children per family is more. 1 'e. Old age security : - Poor people consider children as the security for old age. They prefer to have more ‘number of children. These are 4 ‘9. Agricultural structure : -In rural areas, more manpower is required, to carry out agricultural operations. Thus. ’a farmer's family needs more children to support agricultural activities. 10. High Infant Mortality : - In poor families, this rate is high. These people therefor prefer to have more children with a hope that some of them would survive. 11. Government Policy : - According to the government policy, family planning is optional in our country. Due to such loose policy, people are not serious about family planning. As a result birth rate is higher. 12. Hot Climate : - India has very hot climate. In such hot climate, the girls mature in early age. Thus they give birth in early age & continue this process for life long period due to illiteracy. This also leads to high birth rate.Gratulent Publications 13, Facilities to Poor : - Government provides free medical and nursing facilities to the poor people. Therefor the poor people are not caring about high birthrate. Infact, they want to breed more and more child’s to exploit th, advantages of these government facilties. 7 B) CAUSES OF DECREASE IN DEATH RATE : In India, death rate reduced very rapidly. Some most importay © reasons for fast decrease in death rate are as follows 4) Eradication of Epidemics : - In India most of the epidemics, viral diseases, infections, etc are controlled ee fi TB., Polio. As a result the death rate reduced rapidly. 2) Decrease in Infant Mortality : - Due to spread-up of education, medical facilities, maternity centers, mui a speciality hospitals, etc, the infant mortality rate reduced. As a result the death rate also reduced. 3) Improvement in Sanitation Facilities : - Due to improved sanitation awareness it becomes possi maintain cleanliness everywhere. This reduced the spread of germs, virus, etc. Thus the death rate also redu ir 4) Discovery of new life saving drugs : - The introduction of some new drugs which helps in saving the ai have increased the life expectancy. It has lead in increase in average life. At present the average life in India is, years. | P 5) Increase in Education : - Increase in education has increased the knowledge of the people about safety precautionary measures which has reduced the death rate, 6) Efforts of Government: - At present various loan facilities are available which are promoted by the governmet These facilities enables operations, medical treatment, purchase of costly medicines, etc. As a result the deaffc rate has reduced , 7) Female Education : - Due to female education, the mothers becomes more careful about their family and thelc child. As a result the death rate also reduced, | 5 8) Medical facilities: - The vast increase in medical facies and wide span of medicinal use, has resulted 4c death rate reduction. « 9) Improvement in Child Health Care : - Due to advance medical facilities, the child health care has imiprovel tremendously. The spread of health care centers, have made possible to maintain health more properly. Thu death rate reduced. E 10) Better Disaster Management : - The new & advance techniques of disaster management & rescue haitc helped to save lives of many people during the time of some natural calamities such as - Earth quakes, floods etc., this has ultimately led to in decrease in the death rate of India. f 11) There are also some other reasons which has reduced the rate of death in our country such as :- \p i, Proper food supply is now available even in remote areas. le ii, Transport facilities have improved to a large extent. ii, Urbanization has taken place to a large extent which has improved the standard of ving and decreased ti death rate of our country 1