MVP SAMAJ’S K.R.T. ARTS ,B.H.

COMMERCE
& A.M.SCIENCE (KTHM) COLLEGE, NASHIK.
DEPARTMENT OF COMMERCE
2021-22

INDIAN AND GOLBAL ECONOMIC DEVELOPMENT

• NAME : SHLOK JAYANT KHERDEKAR

• CLASS : T.Y.B.COM (SEM V)
• DIVISION : D
• ROLL NO. : 719
• PRESENTATION TOPIC : MEANING & INDICATORS OF
ECONOMIC DEVELOPMENT
• GUIDE BY : PROF. VISHNU DIGHE
 * MEANING OF ECONOMIC
DEVELOPMENT:
ECONOMIC DEVELOPMENT IN AN ECONOMY IS THE PROCESS
WHEREBY LOW- INCOME NATIONAL ECONOMIES ARE TRANSFORMED
INTO MODERN , INDUSTRIAL AND HIGH INCOME ECONOMIES .
ALTHOUGH THE TERM ECONOMIC DEVELOPMENT IS SOMETIMES
USED AS A SYNONYM FOR ECONOMIC GROWTH , GENERALLY IT IS
USED TO EXPLAIN A CHANGE IN THE COUNTRY’S ECONOMY WHICH
INVOLVES QUANTITATIVE AS WELL AS QUALITATIVE
IMPROVEMENTS.ECONOMIC GROWTH HAS A QUANTITATIVE
DIMENSIONS WHILE ECONOMIC DEVELOPMENT HAS A QUALITATIVE
DIMENSIONS.THUS, ECONOMIC DEVELOPMENT IS ECONOMIC
GROWTH PLUS SOME PROGRESSIVE CHANGES IN SOME SPECIFIC
IMPORTANT VARIABLES SUCH AS HEALTH ,EDUCATION ,
 * INDICATORS OF ECONOMIC
DEVELOPMENT:
1. GROSS NATIONAL PRODUCT (GNP) / NATIONAL INCOME
(NI)
2. PER CAPITA INCOME (PCI) INDEX
3. PER CAPITA CONSUMPTION (PCC)
4. PHYSICAL QUALITY OF LIFE INDEX (PQLI)
5. HUMAN DEVELOPMENT INDEX (HDI)
6. INDUSTRIAL PROGRESS
7. CAPITAL FORMATION
 1. GROSS NATIONAL PRODUCT (GNP) /
NATIONAL INCOME (NI) :
ACCORDING TO ECONOMISTS LIKE PAUL ALBERT, SIMON
KUZNETS, ETC., INCREASE IN REAL GROSS NATIONAL
PRODUCT (GNP) / NATIONAL INCOME OVER A PERIOD OF
TIME IS ONE OF THE IMPORTANT INDICATORS OF
ECONOMIC DEVELOPMENT. THE REAL GNP IN AN ECONOMY
WILL INCREASE WHEN THERE IS AN INCREASE IN THE
ACTUAL PRODUCTION ACTIVITIES IN THE ECONOMY.
INCREASE IN ECONOMIC ACTIVITIES RESULTS IN MORE
EMPLOYMENT OPPORTUNITIES WHICH ULTIMATELY HELPS
2. PER CAPITA INCOME (PCI) INDEX :
• PER CAPITA INCOME IS THE AVERAGE LEVEL OF INCOME OF PEOPLE LIVING
IN THE COUNTRY.THIS PER CAPITA INCOME INDEX IS MAINLY SUITABLE TO
MEASURE THE LEVEL OF DEVELOPMENT IN THE DEVELOPING COUNTRIES.

3. PER CAPITA CONSUMPTION (PCC) :

• LIKE PER CAPITA INCOME, PER CAPITA CONSUMPTION IS ALSO AN
AVERAGE MEASURE. THIS IS CALCULATED BY DIVIDING TOTAL
CONSUMPTION BY TOTAL POPULATION OF THE COUNTRY. AN
INCREASE IN THS LEVEL OF PER CAPITA CONSUMPTION SHOWS
BETTER QUALITY OF LIFE AND HENCE HIGHER ECONOMIC
DEVELOPMENT OF THE SOCIETY AS A WHOLE.
 4. PHYSICAL QUALITY OF LIFE INDEX
(PQLI) :
• THE PQLI WHICH IS A COMPOSITE INDEX WAS DEVELOPED BY
MORRIS D MORRIS .IT IS COMMON INDICATOR OF ECONOMIC
DEVELOPMENT AND IS COMPUTED FROM INFANT MORTALITY RATE,
LIFE EXPECTANCY AT BIRTH AND LITERACY RATE. IN INFANT
MORTALITY RATE IS LOW , PEOPLE ARE LITERATE AND LIVE
LONGER , THE PQLI INDEX BE HIGH.
5. HUMAN DEVELOPMENT INDEX (HDI) :
• THE HDI INDEX TRACKS THE LEVEL OF DEVELOPMENT ACHIEVED
BY THE COUNTRIES OVER TIME. UNITED NATIONS DEVELOPMENT
PROGRAMME (UNDP) HAD INTRODUCED THE HDI INDEX IS N 1990 IN
ORDER TO PROVIDE A MEANS OF MEASURING THE LEVEL OF
ECONOMIC DEVELOPMENT IN THREE BROAD AREAS : A) PER CAPITA
INCOME , B) EDUCATION & C) HEALTH.
6. INDUSTRIAL PROGRESS :
• INDUSTRIAL PROGRESS IS ANOTHER IMPORTANT INDICATOR OF THE
LEVEL OF ECONOMIC DEVELOPMENT OF A COUNTRY. PER CAPITA
INCOME AND THE NATIONAL OUTPUT OF THE COUNTRY INCREASE
WHEN THERE IS PROGRESS IN THE INDUSTRY SECTOR .

7. CAPITAL FORMATION :
• CAPITAL FORMATION MEANS INVESTING IN ROADS , BUILDINGS ,
TRANSPORT, ELECTRICITY , IRRIGATION , TECHNOLOGY, ETC.
GENERALLY HIGHER CAPITAL FORMATION LEADS TO HIGHER
ECONOMIC DEVELOPMENT IN A COUNTRY.
*THANK YOU...*