Economic Development
Every person's morning begins differently. Many people lead their life full of material
pleasure. But maximum people of the world are seen struggling for existence. For these people, called poor, physical pleasure, well-being, or resting is imagination only. How has this situation originated? How to come out of this situation? Such type of questions have their answers: Economic development
In today's modern world, every country is trying to achieve development. But development is not confined to economic development only. It is a process of social change having many faces. Economic development shows a constant increase in the National income of a country
Economic development means
constant increase in national income of a country
increase in per capita income of a country
Improvement in the living standard of the people
This is called economic development. The country's total income is called "National income" By dividing the country's total income with the country's total population, we obtain per capita income. At the same time, the living standard includes the facilities like obtaining food, clothes, education. Health services, transportation services, and shelter Because of the increase in national income and per-capita income in India, after independence, there has been improvement in services and facilities such as availability of food grains, cloth, electricity, education, health services, shelter, etc. The above-mentioned requirements are fulfilled easily and in a better way as compared to the past. So, we may say that economic development is taking place in India.
National Income of India National Income (GDP) of India, which was 87,36.039 crores in 2011-12, increased to 135,67,192 crores in 2015-16.
Difference between economic progress and economic development In an ordinary sense, economic progress as well as economic development, both the words
shown
an increase. But there is a lot of difference between both of them. They are as follows (1) based on the development process: Economic development is qualitative while economic...
Progress is quantitative Economic development is the first stage, while economic progress is the stage after economic development.
(2) According to changes in the economy: Based on new research, and economic increase in production is economic development. Research in hybrid seeds in the agriculture sector has been a many-fold increase in agriculture production. This shows economic development. On the other side, when there is an increase in agricultural production because of increased agricultural land, it is called economic progress.
(3) About developed and developing nations: Difference is seen in both of them in developed and developing nations. An increase in the national income of developed countries is called economic progress, while the increase in the national income of developing countries is called economic development.
Features of Developing economy
The economy of developed and developing countries is separated based on per capita income. As per the world bank's world development report of 2004, countries with less than $ 735 per
capita income are categorized as developing economies. Following are the features of developing economy (1) Less per capita Income: National income of developing countries is less, while the population growth rate is high. So, per capita income remains low. Because of less per capita income, the living standard
of people is low.
(2) Population growth: The population growth rate is high in developing nations. Rate of population
growth is 2% or more in these nations
(3) Dependence on agriculture: The main occupation of the people of developing countries is
agriculture. More than 60% of the population is dependent on agriculture for employment Contribution
of agriculture to the national income of these nations is about 26%
(4) Unequal distribution of income: Unequal distribution of income and factors of production is
seen in developing countries. This inequality is seen in cities and villages 20% of rich people of the country share 40% of national income, and the poorest 20% of people share 10% of the national income. This concentration of income and property is seen in the hand of rich people in developing economies.
(5) Unemployment: Unemployment may be counted as an important feature of developing countries.
In these countries ratio of unemployment is more than 3% of total labor. In these countries, different
types of unemployment may be seen. e.g., seasonal unemployment disguised unemployment, industrial
unemployment, etc. Moreover, the period of unemployment is very long
People who cannot satisfy their primary necessities like food, clothing, shelter, education, and health are called poor. In developing countries, such people constitute one-third of the total population. (6) Poverty: Poverty is also a feature of a developing economy.
(7) Dual economy: The economy of a developing country is based on a dual or mixed system. On
On one side, backward farming, old machinery, orthodox social structure, less production are seen in villages. On the other side, the cities have modern industries, new production, process, modern implements, and modern, sophisticated lifestyle.
(8) Insufficient infrastructure facilities: Crucially vital infrastructural facilities like education, transportation, communication, electricity, health facilities, banking, etc., are less lacking in developing countries, which hinders the development of a nation.
(9) Form of International Trade: The structure of foreign trade of developing countries is different. These countries mainly export agro-products and farm-products as well as mineral ures. These types of products have less demand and low rate So, less income is gained by exporting these goods
While imports include industrial products and machinery, the cost of these products is more su expense on imports rises. Thus, as the conditions of foreign trade are adverse, there is an increase in foreign debt. Thus, we see the above-mentioned features in developing countries. As the Indian economy is developing, all these features are related to India in greater or lesser measure.
Economic and Non-economic Activities Before studying about Indian economy, let us know what economic and non-economic
activities
Economic Activities.
Economic Activity means coming or spending money for the exchange of commodities of ser vices. For example, a farmer, an artisan, a businessman, a teacher, etc., are included in economic activity.
Non-economic ActivitiesStructure of Indian Economy.
Activities that are not aimed at obtaining income or reciprocate something indirectly are called non-economic activities. For example, nurturing a child by the mother, activities of social services done by a social worker, etc., can be identified as non-economic activities.
Various occupations and economic activities are classified into three sections (1) Primary sector
(2) Secondary sector (3) Service sector. This classification of economic activities are recognized as
commercial structure All the three sections and activities included in them may be discussed as follows
(1) Primary sector: Agriculture and agriculture-related activities such as cattle rearing, cattle
breeding, fishing, poultry farm, collection of forest products, mining of raw metal, etc. are included in primary
Sector section.
(2) Secondary sector: Small and large scale industries, factories, construction, electricity, gas, and water supply are included in this section. This section is also acknowledged as an industry, which includes production from a small pin to gigantic machines.
(3) Service sector: Different types of services are included in this section Services like trade, communication, airways, waterways, education, health, banking and insurance, tourism, and entertainment are included in this sector.
Normally the primary sector dominates in developing countries: The primary sector contributes. The most in employment generation and national income, However, as there is a rise in economic develop ment significance of primary sector decreases in comparison to secondary and service sector and importance of the industrial sector and service sector increases.
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