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Issues in Development

and Planning
3. Population and Economic
• People: both the cause and object of all
economic activity
• Size and the nature of human resources
have a bearing on natural resources
1. Human resources and economic
development: two pronged relationship
• Size of the population: crucial determinant of
economic development.
• The age structure of the population
(distribution of population across different
age groups): also a significant factor.
• Theory of Demographic Transition: Three stages:
 Agrarian economy, no industrial development; High birth
rate and high death rate; illiteracy, early marriages; rate of
population is stagnant or very slow.
 Developing economy, industrial development, high birth
rate, death rate falls considerably, causes rapid increase in
population, called population explosion.
 Developed country: birth rate falls sharply,
high standard of living, small family, death
rate falls, population grows at a slow rate.
• Why is population growth so central to environmental problems?
• What is carrying capacity and why is it important?
• What is the global population growth rate? How does it compare to
growth rates in developed vs. developing countries?
• What factors affect population growth rates?
• How can population growth be slowed?
• How does economic development affect population growth?
• What is a "demographic transition? What are its stages?
• What are the differences and similarities between the population
histories of China and India?
• Organism populations increase
exponentially, whereas the environment
does not increase at all (environmental
quality typically decreases with increasing
• Carrying Capacity: the maximum number of
individuals that the environmental resources
of a given region can support.
• Contribution of population growth to economic
 Uninterrupted supply of labour
 Source of increased savings for capital
 Free flow of entrepreneurship
 Bigger market.
2. Trends in Population in India:
• India’s population: 2nd largest populated
country in the world, total population in
the 2001 census at 102.7 crore, which is
16% of the total population of the world.
• Every sixth person in the world is an
• 1921: year of Great Divide
 Census recorded a decline in total
population of India. Reasons?
Famines and epidemics
• Growth rate of population:
Product of
i. migration,
ii. birth rate
iii. death rate.
3. Other Demographic features:
a) Life expectancy: best statistical measure
of the health conditions and of the general
level of mortality of a community.
b) Infant mortality rate: Ratio of the number
of deaths among the 1000 born children
before they become one year old.
c) Density of population
Ratio of the number of persons per sq km
of land area. 2001 census: the density of
population in India is 324.
d) Age composition: The current population
of the young is quite high.
e) Sex composition: Powerful indicator of
the social health of the society.
A higher ratio of male population
933 females to 1000 males.
• State with Highest Female • UT with Lowest Female Sex
Sex Ratio: Ratio:
Kerala (1,058) Daman & Diu: (710)
• State with Lowest Female • District with Highest Female
Sex Ratio:
Sex Ratio:
Mahe (Pondicherry) (1,147)
Haryana (861)
• District with Lowest Female
• UT with Highest Female Sex Ratio:
Sex Ratio: Daman (Daman & Diu)
Pondicherry (1,001) (591)
State Percentage of Urban
f) Rural urban Population
distribution: Himachal Pradesh 9.79

Predominantly rural Chandigarh 89.78

Bihar 10.47
India: 27.78% of
Mizoram 49.50
urban population
Kerala 25.97

Tamil Nadu 43.86

g) Literacy and levels of development:
A person who can read and write with
understanding in any language is termed
as a literate person.
State Literacy Rate
Himachal Pradesh 76.48
Chandigarh 81.94
Bihar 47
Mizoram 88.8
Kerala 90.86
Tamil Nadu 73.45
4. Nature of Population problem in India:
 Large population base, projected to rise
 Consistently high growth rate of
 Dependency ratio high
 Large section illiterate
5. Causes of Growth of Population:

 High Birth Rate

 Declining Death Rate

• High Birth Rate:
 The number of women in the reproductive age is
 The average age of marriage among females is
very low.
 Widespread poverty, children seen as potential
source of income
 Indifference towards family planning
• Declining Death Rate:
 Disease control
 Growing awareness and facilities about
 Provision for better maternity and post natal
 Lack of large scale food shortage
6. Effects on Economic Development:
 Adverse effects on savings:
Burden of dependency: more people in the non
working age groups relative to those of working
 Unproductive investment: increasing population,
share of invest able resources has to be devoted to
reproducing for additional people
 Slow growth of per capita income
 Environmental damage and growing burden
on natural resources
 Underutilization of labour
 Growing pressure on land
 Adverse effect on quality of population
 Adverse social impact, unplanned
7. Need for Population Policy:
Emphasis on:
 Controlling the growth of population
 Increase in the rate of employment
 Remedies for population growth:
Family planning: limiting the number of
children born to a couple to one or two;
determining the spacing of children
8. Achievements and Limitations:
 Administrative- Organizational
 Weakness of the Programme
• Administrative- Organizational
a) Absence of political commitment
b) Absence of integration with other socio
economic sectors.
c) Weak links with development strategy
9. Urbanization: Characteristics:
 Increase in the number of points of
population concentration
 Growth in the size of the population
 Transfer of people from agricultural to
non agricultural occupations
• Urbanization and economic growth:
 Cities: engine of growth: production,
market and service centers
 Industrialization
 Low level of mortality and fertility rate
 High density of population
• Causes of Urbanization:
 Net rural urban migration
 Reclassification of rural to urban places
• Major component of urbanization in India is rural
urban migration
• In industrially developed states of Maharashtra
and Gujarat, the urban growth rate was high till
1971 but slowed down thereafter. In agricultural
states of Punjab and Haryana, the opposite trend
was noticed
• Causes of Migration:
 ‘Push’ factors:
fragmentation of agricultural lands, low
level of agricultural income
 ‘Pull’ factors:
Industrialization, improvement in
transportation and communication and
educational facilities
• Problems due to urbanization:
 Inadequacy of infrastructure
 Growth of economic dualism
• Is further urbanization desirable?
 If the spatial pattern of urbanization is
allowed to continue, urban growth would
further get concentrated in big cities.
 It is necessary to provide basic amenities
and infrastructure in rural areas.
10. Occupational structure and economic growth:
 Percentage of people dependent on agriculture
will decline in the long run.
 Percentage of people dependent on industries
would increase.
 Increase in manufacturing employment
• Occupational structure in India:
 Lopsided occupational structure:
heavy dependence on agriculture
 1901-1971: first sub period: occupational
structure of India did not change at all
1971 onwards: Definite changes in the
occupational structure
 The number of workers in the modern
industries is on the increase.
 The share of cultivators has come down
while the agricultural labourers has gone up.
 In Kerala, T.N., Maharashtra and Bengal, the
population engaged in agriculture has
declined, whereas in Rajasthan and Orissa,
there has been an opposite development.
• Causes of stagnation of occupational
 Nature of technology: Modern technology:
labour saving
 Nature of allocation of resources: Capital
oriented, employment growth lags behind
 Existence of vast rural area.