SHANAVAZ.N.

CHARANIA
S-202
SUB-ECONOMICS
IN.CHARGE-BHAVNA MISS

INDEX

SR.NO TOPIC PG
1 NATIONAL INCOME 1
2 HUMAN DEVELOPMENT 6
3 GENDER EMPOWERMENT 10
OF INDIA
4 BIBLOGRAPHY 18
 ACKNOWLEDGEMENT
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 NATIONAL INCOME
DEFINATION
The income earned by a country's people, including labor
and capital investment.

The study of National Income is important

because of the following reasons:
• To see the economic development of the country.
• To assess the developmental objectives.
• To know the contribution of the various sectors to
National Income.
Internationally some countries are wealthy, some countries
are not wealthy and some countries are in-between. Under
such circumstances, it would be difficult to evaluate the
performance of an economy. Performance of an economy is
directly proportionate to the amount of goods and services
produced in an economy. Measuring national income is
also important to chalk out the future course of the
economy. It also broadly indicates people’s standard of
living.

Income can be measured by Gross National Product (GNP),

Gross Domestic Product (GDP), Gross National Income
(GNI), Net National Product (NNP) and Net National
Income (NNI).

In India the Central Statistical Organization has been

formulating national income.

However some economists have felt that GNP has a

measure of national income has limitation, since they
exclude poverty, literacy, public health, gender equity and
other measures of human prosperity.

Instead they formulated other measures of welfare like

Human Development Index (HDI)

Calculating National Income

There are various methods for calculating the national
income such as production method, income method,
expenditure method etc.

Production Method
The production method gives us national income or
national product based on the final value of the produce and
the origin of the produce in terms of the industry.

All producing units are classified sector wise.

• Primary sector is divided into agriculture, fisheries,
animal husbandry.
• Secondary sector consists of manufacturing.
• Tertiary sector is divided into trade, transport,
communication, banking, insurance etc.
Income Method:
Different factors of production are paid for their productive
services rendered to an organization. The various incomes
that includes in these methods are wages, income of self
employed, interest, profit, dividend, rents, and surplus of
public sector and net flow of income from abroad.

Expenditure Method:
The various sectors – the household sector, the government
sector, the business sector, either spend their income on
consumer goods and services or they save a part of their
income. These can be categorized as private consumption
expenditure, private investment, public consumption,
public investment etc.

Calculation of National Income of India: A Brief

History
The first attempt to calculate National Income of India was
made by Dadabhai Naroji in 1867 -68. This was followed
by several other methods. The first scientific method was
made by Prof. V.K.R Rao in 1931-32. But this was not very
satisfactory. The first official attempt was made by
Prof.P.C.Mahalnobis in 1948-49, who submitted his report
in 1954.

Difficulties in Calculation of National Income

In India there are various difficulties in calculating the
national incomes .The most severe one is the finding of
reliable data. Most of the time, it is based on assumptions.
Soon after independence the National Income Committee
was formed to collect data and estimate National Income.
The two major problems which remain in the calculation of
National Income are:
• Most of the data is not from the current year.
• Even if current data are available then values are
underreported.

Obstacles in High Growth of National Income of India

Even if the Indian economy grows faster than the BRIC
countries and G 6, the benefits of the growth would not be
evenly distributed. India’s progress in education cannot be
termed as satisfactory. In terms of higher education it has
achieved tremendous success, but its unsatisfactory
performance in primary education and secondary education
has been a major obstacle to growth. Similarly India’s
healthcare system is in a less than desirable state.
Governments’ spending on public health has not been up to
the required levels.

Growth Of National Income In India

Sector 1950-1980 1980-2005

 GDP Total 3.5 5.6
GDP Per capita 1.4 3.6

Sectoral Composition Of National Income (in percent)

Year Primary Secondary Tertiary Total GDP

1950-51 59 13 28 100
1980-81 42 22 36 100
2002-03 24 24 52 100

HUMAN DEVELOPMENT
The Human Development Index (HDI) is a composite
statistic used to rank countries by level of "human
development" and separate developed (high development),
developing (middle development), and underdeveloped
(low development) countries. The statistic is composed
from data on life expectancy, education and per-capita
GDP (as an indicator of standard of living) collected at the
national level using the formula given in the Methodology
section below.

Origins of the HDI

The origins of the HDI are to be found in the United
Nations Development Programme's (UNDP) Human
Development Reports (HDRs). These were devised and
launched by a group of economists in 1990 and had the
explicit purpose: ‘‘to shift the focus of development
economics from national income accounting to people
centered policies’’.To produce the HDRs, they brought
together a group of well known development economists
including: Paul Streeten, vaishnav, Frances Stewart, Gustav
Ranis, Keith Griffin, Sudhir Anand and Meghnad Desai.
But it was Amartya Sen’s work on capabilities and
functionings that provided the underlying conceptual
framework. Haq was sure that a simple composite measure
of human development was needed in order to convince the
public, academics, and policy-makers that they can and
should evaluate development not only by economic
advances but also improvements in human well-being. Sen
initially opposed this idea, but he went on to help Haq
develop the Human Development Index (HDI). Sen was
worried that it was difficult to capture the full complexity
of human capabilities in a single index but Haq persuaded
him that only a single number would shift the attention of
policy-makers from concentration on economic to human
well-being.
The HDI has been used since 1990 by the United Nations
Development Programme for its annual Human
Development Reports.

Three dimensions in the HDI

The HDI combines three dimensions:
• Life expectancy at birth, as an index of population
health and longevity
• Knowledge and education, as measured by the adult
literacy rate (with two-thirds weighting) and the
combined primary, secondary, and tertiary gross
enrollment ratio (with one-third weighting).
• Standard of living, as indicated by the natural
logarithm of gross domestic product per capita at
purchasing power parity.

COUNTRIES INCLUDED
The 2009 report was released on October 5, 2009, and
covers the period up to 2007. It was titled "Overcoming
barriers: Human mobility and development". The top
countries by HDI were grouped in a new category called
"Very High Human Development". The report refers to
these countries as developed countries.[They are:
1. Norway 0.971 14. Austria 0.955 27. Israel 0.935 (▲
(▲ 1) (▬) 3)
2. Australia 15. Spain 0.955 28. Andorra 0.934
0.970 (▲ 2) (▲ 1) (▼ 1)
3. Iceland 0.969 16. Denmark 0.955 29. Slovenia 0.929
(▼ 2) (▼ 3) (▬)
4. Canada 0.966 17. Belgium 0.953 30. Brunei 0.920
(▼ 1) (▬) (▬)
5. Ireland 0.965 18. Italy 0.951 (▲ 31. Kuwait 0.916
(▬) 1) (▬)
6. Netherlands 19. Liechtenstein 32. Cyprus 0.914
0.964 (▬) 0.951 (▼ 1) (▬)
7. Sweden 0.963 20. New Zealand 33. Qatar 0.910 (▲
(▬) 0.950 (▬) 1)
8. France 0.961 21. United 34. Portugal 0.909
(▲ 3) Kingdom 0.947 (▼ 1)
9. Switzerland (▬) 35. United Arab
0.960 (▲ 1) 22. Germany 0.947 Emirates 0.903 (▲
10. Japan 0.960 (▬) 2)
(▼ 2) 23. Singapore 36. Czech Republic
11. Luxembourg 0.944 (▲ 1) 0.903 (▬)
0.960 (▼ 2) 24. Hong Kong 37. Barbados 0.903
12. Finland 0.959 0.944 (▼ 1) (▲ 2)
(▬) 25. Greece 0.942
(▬) 38. Malta 0.902 (▼
13. United States 3)
0.956 (▲ 2) 26. South Korea
0.937 (▬)

In this report, Peru was promoted from the "medium"

category to the "high development" category.
Countries not included
The following nations are not ranked in the 2009 Human
Development Index, for being a non-UN member, unable,
or unwilling to provide the necessary data at the time of
publication.
Africa Asia Europe Oceania

• Zimb • Iraq • Mona • Fiji

abwe • North co • Kiribati
Korea • San • Marshall Islands
Marino • Federated States
• Taiwa of Micronesia
n • Vatica • Nauru
n City • Palau

• Tuvalu

GENDER EMPOWERMENT
India is the world's largest democracy and is very proud of
this fact, however its governments are beset by problems
typically facing coalition governments. In the days of
imperial rule, India was considered the 'jewel in the crown'
for Britain and many of the legal institutions and
infrastructure remain in tact. These facilities provided India
with an excellent springboard for development and place it
in a position superior to a number of other newly-
independent former-colonies.

India is a land of extreme diversities in language, religion,

caste and socio-economic class and is characterised by
significant regional variations, it has long been a country of
apparent dichotomies, one of the most obvious
contradictions is its highly patriarchal structure that,
nevertheless, allowed the election of a female prime
minister, Indira Gandhi, who was repeatedly re-elected to
the position and more recently Sonia Ghandi too was
elected to be prime minister, making India a rare country
indeed that has elected two women leaders in its short
history after independence.

Upon independence, the Indian constitution acknowledged

the equality of women and also makes clear that
discrimination against women is illegal and yet current
statistics and indices of development continually show the
gap between men and women in terms of education, access
to health and other primary resources. As such although the
formal legal parameters are indeed in place to protect and
promote women's rights, the reality however is such that
informal rules, customs and norms override and dominate
these rules, making it difficult for women to enter the
formal sector workforce or even in some cases leave the
household.

The objective of this thesis is to examine the role and

significance of institutions on women's empowerment and
their development in India with particular reference to legal
institutions and whether the well-laid out best of intentions
have truly empowered women to be equal amongst men. Or
whether in fact these legal institutions and policies, which
promote equal rights, are left impotent by the stronger
forces of cultural and social norms which cannot be
whitewashed away overnight. It is perhaps education that
will prove the cornerstone in disestablishing these norms
and thus enable women to enjoy the civil and economic
liberties their constitution promises them.

Gender empowerment measure (most recent)

by country
Rank Countries Amount # 1 Norway: 0.837
# 2 Sweden: 0.824
# 3 Denmark: 0.821
# 4 Finland: 0.803
# 5 Netherlands: 0.781
# 6 Canada 0.777
= 7 Germany: 0.765
= 7 New Zealand: 0.765
# 9 Australia: 0.759
# 10 United States: 0.757
# 11 Austria 0.745
# 12 Switzerland: 0.718
# 13 Belgium: 0.706
# 14 United Kingdom: 0.684
# 15 Ireland: 0.675
# 16 Italy: 0.539
# 17 Japan: 0.527
Weighted average: 0.7

Gender Empowerment Measure Range is from .000

(lowest) to 1.000 (highest), 2002.
The Government of India had ushered in the new
millennium by declaring the year 2001 as 'Women's
Empowerment Year' to focus on a vision 'where women are
equal partners like men'. The most common explanation of
'women's empowerment' is the ability to exercise full
control over one's actions. The last decades have witnessed
some basic changes in the status and role of women in our
society. There has been shift in policy approaches from the
concept of 'welfare' in the seventies to 'development' in the
eighties and now to 'empowerment' in the nineties. This
process has been further accelerated with some sections of
women becoming increasingly self-conscious of their
discrimination in several areas of family and public life.
They are also in a position to mobilize themselves on issues
that can affect their overall position.
They are poor, uneducated and insufficiently
trained. They are often absorbed in the struggle to sustain
the family physically and emotionally and as a rule are
discouraged from taking interest in affairs outside home.
Oppression and atrocities on women are still rampant.
Patriarchy continues to be embedded in the social system in
many parts of India, denying a majority of women the
choice to decide on how they live. The over-riding
importance of community in a patriarchal sense ensures
that women rarely have an independent say in community
issues. Female infanticide continues to be common.
Statistics show that there is still a very high preference for a
male child in states like UP, MP, Punjab etc. The male to
female ratio is very high in these states. Domestic violence
is also widespread and is also associated with dowry.
Leaving a meager number of urban and sub-urban women,
Indian women are still crying for social justice.
A review of government's various programmes for women
empowerment such as Swashakti, Swayamsidha,
Streeshakti, Balika samrudhi yojana and another two
thousand projects reveal that little has been done or
achieved through these programmes. The discrepancy in
the ideology and practice of the empowerment policy of
women in India constitutes its continued social, economic
and social backwardness. Women make up 52% of our
country's population. Hence there can be no progress unless
their needs and interests are fully met. Empowerment
would not hold any meaning unless they are made strong,
alert and aware of their equal status in the society. Policies
should be framed to bring them into the mainstream of
society. It is important to educate the women. The need of
the hour is to improve female literacy as education holds
the key to development.
Empowerment would become more relevant if women are
educated, better informed and can take rational decisions. It
is also necessary to sensitize the other sex towards women.
It is important to usher in changes in societal attitudes and
perceptions with regard to the role of women in different
spheres of life. Adjustments have to be made in traditional
gender specific performance of tasks. A woman needs to be
physically healthy so that she is able to take challenges of
equality. But it is sadly lacking in a majority of women
especially in the rural areas. They have unequal access to
basic health resources and lack adequate counseling. The
result is an increasing risk of unwanted and early
pregnancies, HIV infection and other sexually transmitted
diseases. The greatest challenge is to recognize the
obstacles that stand in the way of their right to good health.
To be useful to the family, community and the society,
women must be provided with health care facilities.
Most of the women work in agricultural sector either as
workers, in household farms or as wageworkers. Yet it is
precisely livelihood in agriculture that has tended to
become more volatile and insecure in recent years and
women cultivators have therefore been negatively affected.
The government's policies for alleviating poverty have
failed to produce any desirable results, as women do not
receive appropriate wages for their labour. There is also
significant amount of unpaid or non-marketed labor within
the household. The increase in gender disparity in wages in
the urban areas is also quite marked as it results from the
employment of women in different and lower paying
activities. They are exploited at various levels. They should
be provided with proper wages and work at par with men
so that their status can be elevated in society.
In recent years there have been explicit moves to increase
women's political participation. The Women's reservation
policy bill is however a very sad story as it is repeatedly
being scuttled in parliament. In the Panchayati Raj
system, however, women have been given
representation as a sign of political empowerment. There
are many elected women representatives at the village
council level. However their power is restricted, as it the
men who wield all the authority. Their decisions are often
over-ruled by the government machinery. It is crucial to
train and give real power to these women leaders so that
they can catalyst change in their villages regarding women.
All this shows that the process of gender equality and
women's empowerment still has a long way to go and may
even have become more difficult in the recent years.
There is no doubt about the fact that development of
women has always been the central focus of planning since
Independence. Empowerment is a major step in this
direction but it has to be seen in a relational context. A
clear vision is needed to remove the obstacles to the path of
women's emancipation both from the government and
women themselves. Efforts should be directed towards all
round development of each and every section of Indian
women by giving them their due share.

BIBLOGRAPHY
www.google.com
www.tradechakra.com
www.nationmaster.com