You are on page 1of 18

particularly the changes in gross or net national product and sectoral distribution of gross or net national product.  In India the national income trend are prepared by the central statistical organization ( cso) .Trends in national income occupational distribution  Performance of an economy can be judged with the trend of national income of the country.

the net national product of India at 1999-2000 prices was Rs 2.6% per annum in the period of economic planning and stood at Rs27. as per 2009-10 survey.682 crore in 2007-2008. According to this new series.924 crore in 1950-51 since then it has grown at a moderate rate of 4. .04. NNP is Rs 4632304 crore.67.

.1% in 2007-08 to 3.3% in 2009-10. has declined from a high 8.7% in 2008-09 and then recovered to 5. which are gross measures of welfare in general have declined in the last two years. While the growth in per capita income measured in terms of GDP at constant prices. This is a reflection of the slowdown in the overall GDP growth.Per capita growth  The growth rates in per capita income and consumption.

1 3.4 2.909 20.745 32.012 23.7 5.3 5.626 7.7 8.168 21.012 34.7 % growth .533 37328 38.3 6.620 18.695 40.3 % growth Consumptio n ( Rs) 17.9 8.6 7.Per capita income and consumption at 2004-05 prices Income ( Rs ) 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 29.841 23.745 7.

Rise in Per capita national income  India’s per capita net national product at current prices was Rs255 in 1950-51. it is Rs 43.299 in 2007-08.440 in 1990-91 and to Rs 33. it rose to 5.749 in 2009-10 . it rose to Rs742 in 1970-71.

7 17.Structural changes  Share of ( primary sector) to GDP  The importance of agriculture and allied activities in the Indian Economy has declined during the period of economic planning. % share in GDP 1950-51 1970-71 2007-08 2008-09 55.7 .1 19.8 15.

Structural change of secondary sector  The output in the secondary sector comprising industries.5% .7% 28. mining. construction. electricity etc accounted for 13.7% 24.6%of the GDP in 1950-51( 1999-2000 prices) 1966-67 2007-08 2009-10 20.

6 ( 1999-2000) 2009-10 56.9 (1999-2000) 55.9 (1999-200) .Structural change in tertiary sector % 1950-51 2007-08 29.

. These structural changes indicate that the process of development which began in the early 1950s is still continuing. Thus there is definitely a significant change in the sectoral distribution if gross domestic product.

3 52.Slowly changing occupational distribution % of the work force 72.7 67.4 57.1 ( 2004-05) 1951 1991 2001 2009 .

as their development was considered a pre-requisite to overall growth of the economy. Beginning from 1956 this strategy was there for two and half decades period and consequently a large number of basic industries which produce capital equipment and useful raw materials have .Growth of basic capital goods industries  Under the second plan (1956-66) . a high priority was accorded to capital goods industries.

fertilizers. heavy electricity equipment and petroleum products are of strategic importance. locomotives. Set up making the country’s industrial structure pretty strong. heavy engineering. . nitrogenous. machine tools. iron and steel. heavy chemicals.  Among the large number of industries developed during the planning period on a big scale.

Expansion in social overhead capital  It broadly includes transport facilities. Educational institutions though not sufficient but still they have grown 4 times. Shipping and civil aviation has been equally impressive. energy production units. Road and railways have also progressed. The transport system in India over the past six decades has increased both in terms of capacity and modernization. irrigation     system. . educational system and health facilities.

. banking services have increased and modern banks have reached small towns and villages. specialized industrial financing institutions have been set up.Progress in the banking and financial sector  Since independence significant progressive changes have taken place in the banking and financial structure of India. In this period organization of money and capital markets has improved.

a mixed economy  The Indian economy is a mixed economy.  Under Indian constitution private ownership of means of production has been allowed.  Nationalization of banks and growth of public sector  India has a mixed economy with a dominant private sector. It has acquired this form with the growth of a large public sector since independence. .India.

leather. road transport . jute. IT. vegetable oil. Private  Cotton textiles. and many other . cement. Agriculture.  Public  Railways  defense sugar.

 In India the economic planning has been introduced in a basically economic framework.Economic planning  Economic planning is an integral part of Indian economy since independence. The Indian plans lay down targets even for sectors over which the state has little control. .  The Indian experience is that mixed economy framework is a feasible proposition for a developing country as it allows for a modest rate of growth.