INDIAN ECONOMY IN

GLOBAL SCENARIO
Dr. Charu Bhurat

SYBBA
THE NEW NORMAL?
 The New Normal?
Coming late to the class? No traffic, no trains running late, no lifts,
New excuses please !!!!
Mischief in e-class? No yelling, no scolding, no taking to the
dean’s office
Remove Participant
Talking in class? No stop talking, No keep quiet, No class please
pay attention
Mute all
Copying in a class test? No looking here and there, no asking
friends for answers
More one-on-one evaluation, random tests and class activities
 The New Normal?
Eating in class? No sending you out of the class,
no asking you to finish your coffee

Using phone in class? No confiscation of phone,

no taking you to dean’s office

80% Attendance? No proxies, no calling out

present for a friend
Please take note:
■ Attendance will be taken twice/once.
■ A specific time would be given for you to ask your doubts
during class. After every half an hour or after a topic is done.
Note down your questions and only ask when platform is kept
open for doubt solving.
■ Take down your own notes.
■ Paying attention in class will help you secure marks.
Indian Economy- Performance and
Policies ----- UMA KAPILA
 Evaluation Scheme
Hopefully !!

Internal Continuous Term End

Assessment (ICA) Examinations (TEE)

50 50
Internal Continuous Assessment (ICA)-
50 Marks Break up
■ Research Paper + Presentation = 20
■ Vivas/Tests = 20
■ Class Presentation =5
■ Class Participation = 5
COURSE OUTLINE
Module 1 : Issues in Economic Development

■ Economic growth and Economic development, Human

Development Index, India’s ranking in HDI, why is
India’s ranking low. Policies to improve the ranking.
Module 2: Features of the Indian Economy at Independence

■ Composition of national income and occupational structure,

the agrarian scene and industrial structure
Module 3 : Policy Regime

■ The evolution of planning-three phases of planning- changing

role of state over the years- from Planning Commission to
NITI Aayog.
■ The Economic Crisis of 1990s
■ Economic reforms and liberalization.
■ Current challenges and next round of reforms.
Module 4: Growth, development and Structural
Change:
A) Growth and Structural Changes since 1951
■ Periodization of Indian Economic Growth Experience
■ 2003-08:Best Phase of Growth
■ Recent Growth Experience(2008 onwards)
■ Growth and Structural Change of Indian Economy
■ Inter-state Inequality over the years
■ International Comparison- Growth story of South Korea, China
B) Poverty in India: Relative and Absolute Poverty, Poverty Line.Why poverty remains high in spite
of years of high economic growth. Poverty Alleviation Programmes
C) Unemployment In India: Concept and Measurement, Pattern of employment growth in India,
Dualistic Labour MARKET, Employment Elasticity, Labor market Reform, Case of MGNREGA.
D) Demographic Constraints: Interaction between population change and economic development,
India’s demographic transition, Demographic Dividend. Experience of Kerala and Tamil Nadu
Module 5: Sectoral Trends and Issues
A) Agriculture:
■ Land reforms (briefly),
■ Green revolution; characteristics and phases(briefly)
■ Factors affecting agrarian growth potential
■ Policies to improve agrarian growth
■ Agricultural Price Policy and its impact
■ Food Management and PDS( Impact and Challenges)
Module 5: Sectoral Trends and Issues
B) Industry:
■ Pattern of industrial growth (briefly)
■ Why manufacturing growth has stagnated
■ Role and performance of MSME and challenges
■ China’s Manufacturing Success Story
Module 5: Sectoral Trends and Issues
C) Services:
■ Role of Service sector
■ Growth trends
■ Factors underlying services growth,
■ India’s Services Trade, and Future Challenges
Module 5: Sectoral Trends and Issues
D) Foreign Trade and Balance of Payments:
■ India’s Exports and Imports Broad Trends
■ Why exports have failed to pick up?
■ Overview of Trade Policy
■ B.O.P Trends
■ Capital Account of B.O.P. (FDI and FII)
■ Foreign Exchange Reserves
■ Exchange Rate Fluctuations.
THE NEW NORMAL?
ISSUES IN ECONOMIC
DEVELOPMENT
Module 1
Economic Growth???
Economic Growth

■ Increase in output or production

■ Rise in per capita GNP in real terms
Economic Development ???
Economic Development

■ Broader concept than Economic growth

■ Apart from the rise in output, it involves changes in the
composition of output
■ Shift in the allocation of productive resources to ensure social
justice
“There can be growth without development,
but development without growth is
unconceivable.”
The New View

■ Redistribution with growth

■ 3 questions to be answered for development:
– Poverty?
– Unemployment?
– Inequality?
Sen – Bhagwati Debate
Core Values of Development

Sustenance
Self esteem

Freedom
from
Servitude

Development
Millennium Development Goals
■ September 2000, United Nations Development Programme
■ 189 United Nations member countries
■ Goals to be achieved by 2015
Sustainable Development Goals
■ January 2016, Global goals
■ 17 Goals to be achieved by 2030
Characteristics of a Developing World
Low levels of living and productivity
Low levels of Human Capital
High rate of Population growth and Dependency Burden
Higher levels of Inequality and Absolute
Poverty
Larger Rural population but Rapid rural to urban migration
Substantial Dependence on agricultural production and lower levels of
Industrialization and manufactured exports
Underdeveloped financial and other markets
External dependence
 HUMAN
DEVELOPMENT
INDEX
Meaning

■ Pakistani Economist Mahbub ul Haq along with

Amartya Sen created HDI in 1990
■ It is a summary measure of average achievement in
key dimensions of human development: a long and
healthy life, being knowledgeable and have a decent
standard of living.
■ The HDI is the geometric mean
Human Development Index
Steps to calculate the Human
Development Index

1. • Minimum and maximum

Creating values (goalposts) are set to
the transform the indicators
dimension expressed in different units
into indices between 0 and 1
indices
Health : Life expectancy (years)

Minimum
20 years

Maximum
85 years
Education : Expected years of schooling
(years)
Minimum
0

Maximum
18
Education : Mean years of schooling
(years)
Minimum
0

Maximum
15
Standard of living: Gross national income
per capita (2011 PPP$)
Minimum
100

Maximum
75,000
■ Dimension Index =
Steps to calculate the Human
Development Index

2. • HDI is the geometric

Aggregatin mean of the 3 indices
g • HDI= (Hi.Ei.Yi)1/3
Country Groupings
 India has been ranked 129 among 189 nations
in the United Nations Development
Programme (UNDP)'s human development
indices (HDI) for the year 2019.

HDI value: 0.647

 India’s HDI value
HDI value

0.65

0.43

1990 2019
Policies to improve HDI ranking

■ The success of India’s national development schemes like

■ Beti Bachao Beti Padhao,
■ Swachh Bharat,
■ Make in India,
■ Initiatives aimed at universalizing school education and health care
■ Prime Minister’s vision of development for all and the key principle of the Sustainable
Development Goals -- to leave no one behind.”