Fy Iepp Unit I Final

Mervin Classes P A G E – [ 1]
INDIAN ECONOMIC POLICY & PLANNING
F.Y.B.Com. SEMESTER: II UNIT- I
 INDEX: UNIT PAGE NO.
 ECONOMIC PLANNING : I
[A]. MEANING OF ECONOMIC PLANNING : 02 – 03
[B]. IMPORTANCE/REQUIREME NTS/NEED OF PLANNING : 03 – 03
[C]. PLANNING IN INDIA : 04 – 06
[D]. CONDITIONS FOR THE S UCCESS OF PLANNING : 06 – 07
[E]. OBJECTIVES OF PLANNI NG : 07 – 10
[F]. NITI AAYOG: 10 – 11
[G]. SUSTAINABLE DEVELOPM ENT: 11 – 12
 ECONOMIC DEVELOPMENT: I
[A]. MEANING AND DEFINITION OF ECONOMIC

13 – 13
DEVELOPMENT AND ECONOMIC GROWTH :
[B]. DIFFERENCE BETWEEN E CONOMIC DEVELOPMENT

14 – 14
AND ECONOMIC GROWTH:
[C]. MEASUREMENT/INDICATORS OF ECONOMIC

15 – 24
DEVELOPMENT:
[D]. NEW HUMAN DEVELOPMEN T INDEX [HDI]: 24 – 28
[E]. MULTI – DIMENSIONAL POVERTY INDEX: 28 – 30
[F]. GENDER DEVELOPMENT I NDEX: 30 – 31
[G]. INCLUSIVE GROWTH: 31 – 32
[H]. DIFFERENCES OF VARIOUS INDICATORS: 33 – 37
STEPPI NG STO NE TO SUCCESS PTO – [2]

ECONOMIC PLANNING
What do you mean by “Economic Planning”?
[A]. MEANING OF ECONOMIC PLANNING:

Planning in general means any work done with certain predetermined objectives. Economic
planning refers to conscious and deliberate efforts made by the authority for utilizing the
national resources in the most efficient manner in order to achieve certain long -term
objectives.
Again Economic Planning means a process of deciding in advance, the various economic
activities to achieve rapid economic development.
 DEFINITION ACCORDING TO Dr. DALTON:
“Economic Planning in the widest sense is the deliberate direction by person‟s incharge of large
resources of economic activity towards chosen ends.”
 DEFINITION ACCORDING TO H.D. DICKINSON :

“Economic Planning is the making major economic decisions regarding what and how much to
produce, how much and where to produce, and to whom it is to be allotted by cautious decisions
of a determinate authority, on the basis of comprehensive survey of the economic system as a
whole”.
This definition describes whole structure of planning, it is considered as comprehensive.

Comprehensive means it is applicable in each and every sector of economy.
 This definition mainly includes the following points:
[1]. Economic Planning is carried out by central authority. It means state government decide where,
how, when to produce and how to distribute.
[2]. In economic planning economic decisions should be based on the comprehensive survey of
economic system as a whole.
[3]. Fix the objectives/targets and priority for investment. Where to invest first is to be decided.
[4]. Planning is not only applicable to industries and agriculture but it is applicable in all sectors of
economy.
Thus, Dickinson‟s definition is acceptable in modern economic literature.
 NATIONAL PLANNING COMMISSION:

According to National Planning Commission main following points are included.
[1]. Predetermined and well defined objectives and goals.
[2]. Deliberate controls and direction of the economy by the Central Authority.
[3]. Optimum utilization of natural resources and capital.
[4]. The objectives are to be achieved within given period of time.
[5]. The main objective of economy is to increase employment and to generate maximum
employment to control population.

“Economic planning is must for the developing countries”. Discuss.
[B]. IMPORTANCE/REQUIREMENTS/NEED FOR ECONOMIC PLANNING IN

DEVELOPING COUNTRIES:
We know that Economic Planning is useful to developed as well as developing countries. For
developed country it is useful to accelerate their economic growth that they have already
achieved. While in developing countries it requires to solve the problem of balance of payment
difficulty, to remove inflation to solve the problem of unemployment, etc.
Following are the basic importance of planning in India.
[1]. FOR REQULATIG THE MARKET MECHANISM:
[a]. In most of the developing countries, the market mechanism does not work perfectly due to
following reasons:
 Ignorance of people,
 A large non-monetized sector,
 The product, factor, money and capital markets are not properly organised.
[b]. Price mechanism fails to bring a balance between demand and supply.
[c]. To remove the market imperfections, to make proper allocation and utilization of resources and
to increase the strength of market mechanism, planning is essential.
[2]. FOR PROVIDING GAINFU L EMPLOYMENT:
[a]. In India, there is a problem of widespread unemployment and disguised unemployment.
[b]. In India, there is shortage of capital and abundant labour. So, it very difficult to solve this
problem.
[c]. It is the only centralized planning, which can provide gainful employment to labour force.
[3]. FOR BALANCING DIFFER ENT SECTORS :
[a]. For rapid economic development, it is necessary to bring a balance between
 Development of agriculture and industrial sector
 Social and economic overhead, and
 Expansion of domestic and foreign trade.
[b]. For all these, it is necessary to make simultaneous investment in difference sectors. But, this is
possible only by economic planning.
[4]. DIRECTION FOR ATTAIN ING TARGETS:
[a]. In developing countries, to remove poverty and unemployment and to raise national income and
per capita income, it is necessary to achieve definite targets.
[b]. But, this is possible only if there is economic planning.
[5]. FOR DEVELOPMENT OF A GRICULTURE AND INDUSTRIAL SECTOR:
[a]. To develop agricultural and industrial sector, it is necessary to develop economic and social
overheads. It is necessary to build canals, roads, railways, power stations etc.
[b]. Similarly, it is also necessary to develop training and educational institutions, hospitals, etc.
[c]. But, this is possible only if there is economic planning.
[6]. FOR EXPANSION OF DOMES TIC AND FOREIGN TRAD E:
[a]. For the expansion of domestic and foreign trade, it is necessary to develop financial institutions.
[b]. In most of the developing countries, money markets and capital markets are not properly
developed. Further, there is a problem of economic instability.
[c]. To remove the above problems, it is necessary to develop Central Bank, Commercial Banks and
Financial Institutions. For this, economic planning is necessary.

Explain planning in different economies. Discuss the types of planning. [OR]

Distinguish between financial planning and physical planning.
[C]. PLANNING IN INDIA:

In India, plans are prepared by the Planning Commission of India. The plans also specify the time,
within which they are to be implemented. Each plan is prepared for 5 years. We have a national
plan for the whole country. Within the national plans, there are plans for different areas / sectors.
1) Plans specify the time, within which they are to be implemented. In India, each plan is for a
period of 5 years.
2) The plans also specify the areas, which are covered by the plan. In India, we have a national plan for
the whole country. Within this national plan, we have plans for smaller areas like state plan. Further,
in India the planned activities are controlled and regulated by the planning authority.
3) Plans are prepared by the planning authority. In our country, plans are prepared by the planning
commission of India, since 1951. It is headed by Deputy Chairman.
 PLANNING DEPENDS ON NATURE OF ECONOMY:
[1]. Capitalist economy
[2]. Socialist Economy
[3]. Mixed Economy.
[1]. PLANNING IN CAPITALI ST ECONOMY:
[a]. Under Capitalist Economy government intervention is limited. Here, government formulate the
plan and achieves it through indirect control.
[b]. State gives the guideline, but not the directives/direction.
[c]. The decisions are left to the Market forces.
[d]. Here government lays down the target and try to achieve it through market mechanism.
[2]. PLANNING IN SOCIALIS T ECONOM Y:
[a]. The targets are fixed by government. Directions are also given by State.
[b]. Government is the supreme authority.
[c]. Private and Market sector is limited.
[d]. Planning is carried out by central authority.
[3]. PLANNING IN MIXED ECONOMY:
[a]. It is the combination of capitalist and socialist economy.
[b]. The role of government is indicative and imperative in nature.
[c]. Here government has direct and indirect control over means of production.
[d]. Here state intervene and also participate with private and market sector.
 TYPES OF PLANNIN G:
Following are the different types of planning.
[1]. FINANCIAL PLANNING AND PHYSICAL PLANNING:
[a]. FINANCIAL PLANNING:
[1]. Financial planning means allocation of resources in terms of money. To achieve the target of
planning, it is necessary to estimate the financial requirements & to make provision of necessary
finance through taxation, savings, borrowings, etc. This is the work of financial planning.

[2]. In financial planning, attempts are made to bring a balance –
 Between income of people & supply of consumer goods,
 Between fund available for investment in capital goods & supply of capital goods, and
 Between foreign payments & receipts.
[3]. Thus, the main purpose of financial planning is to achieve a balance between demand & supply,
to avoid inflation and to achieve economic stability.
LIMITATION:
[I]. If government tries to mobilize more resources by heavy taxation, it may reduce private saving &
capital formation.
[II]. In developing country, there is a larger non-monetary sector and small monetary sector. This
creates an imbalance between two sectors. Such imbalance may create the problems of
shortage & inflation.
[III].When attempts are made to increase supply by more imports, it will create balance of payment
difficulties.
[IV]. To be successful, financial planning must be free from all the obstacles & particularly from
inflationary price rise.
[V]. Financial planning is unsuitable to underdeveloped countries, because it may increase
unemployment and inequality in income and wealth.
[b]. Physical Planning:
[I]. Physical planning means allocation of resources in physical terms like man, materials, etc. to
attain the goals.
[II]. In Physical Planning, we have to estimate the requirement of men, materials & machines to
achieve the targets of planning.
[III]. In physical planning, attempts are made to bring a balance between –
 Requirement or resources, and
 Availability of all physical resources (such as raw materials, man power, machines etc).
[IV]. This type of planning tries to achieve a balance between requirement of resources & available
resources to avoid scarcity.
LIMITATIONS:
[1]. In UDCs, accurate data & information regarding available resources are not available. So, it is
difficult to set physical targets & to achieve; he targets.
[2]. To achieve the targets of planning, we must achieve a balance between various sectors of
economy. But in developing countries, it is not possible to maintain such balance due to
unexpected difficult such as failure of monsoon, crops failure, power shortage, etc. These create
problem of shortage.
[3]. Shortage may give rise to the problem of inflation (rising price level).
[4]. Physical planning cannot achieve the targets without financial planning.
Financial planning & physical planning, both are complementary. Both are inter-dependent and
both are essential for economic development.
[2]. INDICATIVE PLANNING AND IMPERATIVE PLANN ING:
[a]. indicative planning:
Such planning is used in France and it is flexible and not rigid.
 In this type of planning, the private sector is expected to achieve the target but it is not rigidly
controlled by the Government. Further, it is not directed to fulfill the priorities and targets of the
plan.

 Government provides all types of facilities to private sector, but does not give directions
regarding investments.
 The government provides incentives to the private sector in the form of grants, loans, tax
exemptions, etc.
 It gives guidance to the private sector but does not issue directions.
[b]. imperative planning:
Such planning is used in China and Russia.
 In this type of planning, all the resources and factor of production are under complete control of
the Government.
 All economic activities are also controlled by the Government.
 There is no freedom of production and consumption.
 Decisions regarding production (such as what and how much to produce) are taken by the
Central Planning Authority.
 The decisions and policies of the Government are rigid in nature. So, they cannot be changed
easily.
[3]. COMPREHENSIVE PLANNI NG AND PARTIAL PLANN ING:
Comprehensive Panning means that types of planning, where plans are prepared to develop all
the aspects or sectors of the economy. Comprehensive planning covers the aspects or sectors of
the economy.
On the other hand, when a plan is prepared to cover one or few sectors of the economy, than, it
is known as partial planning, e.g. if the plans prepared only for agriculture or for agriculture sector
and industrial sector, but not for commerce, transport, etc., it covers only a part of the economy.
And therefore, it is known as Partial Planning.
Partial Planning will not be effective as comprehensive planning. Generally, for the balanced
growth of underdeveloped countries, comprehensive planning will be more beneficial.
What are the pre-requisites for successful planning in developing countries?
[D]. CONDITIONS FOR THE SUCCESS OF PLANNING:

In developing countries, for successful implementation of plans, following conditions are
necessary:
[1]. ESTABLISHMENT OF PLA NNING COMMISSION:
 For the preparation and successful implementation of plans, there must be a planning
commission. It should consist of number of experts like economists, statisticians, demographers,
engineers etc.
 The planning commission should be divided into number of divisions and each divisions and they
should be headed by experts for dealing with different aspects of the economy.
[2]. STATISTICAL DATA :
 For preparing plans, we must have necessary information statistical data regarding the existing
problems of economy & the available resources (capital & human resources).
 For this, a country should conduct a detail survey of the whole economy.
 Data must be adequate, reliable & accurate. This is highly essential because, decisions
regarding plans are based on such data.

[3]. FORMULATION OF OBJECTIVE:
Planning must have definite objectives, depending upon the needs of the economy. The
objectives may be to remove poverty or to increase employment and income, etc. The objectives
must be realistic and flexible.
[4]. FIXATION OF TARGET AND PRIORITIES :
 The next step is to decide the targets and priorities of the plan.
 Targets should be both- global and sectoral targets. Global target means the targets of various
aspects of economy, such as agricultural production, industrial production etc.
Similarly, sectoral targets mean the targets for individual industries and products.
 Planning commission should also decide macro targets and micro targets as well as short term
and long term targets.
 After deciding targets, the next step is to decide priorities on the basis of the requirements of the
economy.
[5]. MOBILIZATION OF RESOURCES:
 For the success of planning, the Government should make provision of necessary resources. There
are two types of resources- Internal and external resources.
 Internal Resources include savings, profits of public sector, net market borrowings, taxation and
deficit financing.
 External Sources include net budgetary receipts.
[6]. BALANCING THE PLAN (MA INTAINING PROPER BAL ANCE):
 For the successful working of plan, there must proper balance in the economy. There should not
be any shortage or surplus.
 There should be proper balance between-
 Saving and investment
 Consumer goods industries and producer goods industries,
 Supply of goods and demand for goods,
 Manpower requirement and its availability
 Demand for imports and availability of foreign exchange, and
 Exports and imports.
[7]. INCORRECT & EFFICIEN T ADMINISTRATION:
 For the achievement of the objectives of planning, there must be a strong, efficient and incorrupt
administration.
 If the administration is corrupted & Inefficient, it will not be possible to achieve the target of
planning. So, there must be competent & honest staff in various ministries.
[8]. PUBLIC CO-OPERATION:
 In democratic country, there is planning by inducement. For the success of such planning, there
must be full public co-operation to Government measures.
Explain the main Objectives of Indian Plans.
[E]. OBJECTIVES OF PLANNING:

 Brief History of Planning in India:
The initiative for planning in India started in 1934 with the publication of Visvesvarya‟s book
“PLANNED ECONOMY FOR INDIA”. Different plans have described their objectives differently
as per the circumstances prevailing at the time of preparing each plan.

Broadly, the main objectives of the Indian plans are as follows:-
[1]. ECONOMIC GROWTH:
The primary objective of five year plan is to achieve economic i.e. to increase national income by
increasing production of goods and services.
During the five years plans, the target of the rate was around 5% p.a. (except in the first plan, in
which it was 2.1% p.a.). Further, the target of growth rate was higher than the growth rate of
population, so that we can raise per capital income of people. For this purpose, it was necessary
to increase the production of capital goods and consumer goods.
The various 5 year plans , growth objective & Achievements:-
Plan Target growth rate Actual growth rate
1st Plan (1951-56) 2.1 % 3.6%
2nd Plan ( 1956 – 61) 4.5% 4.3%
3rd Plan ( 1961 – 66) 5.6% 2.6%
4th Plan (1969 – 74) 5.7% 3.3%
5th Plan ( 1974 – 79) 4.4% 4.8%
6th Plan (1980 – 85) 5.2% 5.7%
7th Plan (1985 – 90) 5% 6%
8th Plan (1992– 97) 5.6% 6.8%
9th Plan (1997 – 2002) 6.5% 5.4%
10th Plan (2002 – 2007) 8% 7.6%
11th Plan (2007 – 2012) 9% 8%
12th Plan (2012 – 2017) 8% NA
 Achievements:
[a]. During the first three decades of planning, the rate of economic growth was not satisfactory.
[b]. Till 1980, the average annual growth rate of GDP was 3.73 percent against the average annual
growth rate of population at 2.5 percent. So the per-capita income increased only by 1 percent.
[c]. But, from the Sixth Plan onwards, there was considerable change in the Indian economy. In the
Sixth, Seventh and Eight plans, the growth rate was 5.7 percent, 6.0 per cent and 6.8 percent
respectively.
[d]. The Ninth Plan targeted a growth rate of 6.5 percent per annum and the actual growth rate was
5.5 percent.
[e]. In the Tenth and Eleventh plan, the growth rate was 7.6 percent and 8.0 percent respectively.
Growth rate of 8 percent is targeted for Twelfth Five year plan.
[f]. In respect of economic growth, our performance was satisfactory. During the planning period, the
annual growth rate was around 4 percent p.a.
[2]. SELF RELIANCE:
One of the major objectives of economic planning is to achieve self reliance. Self -relience
means to reduce our dependence on foreign aid, diversification of domestic productio n,
reduction in imports of critical commodities and expansion exports.

Formally, at the time of independence, India was highly dependent on foreign countries for
the import of food grains, capital goods and foreign aid. So, emphasis was given on self
reliance.
To achieve this objective, it is necessary to take following measures.
[a]. To reduce (& finally to eliminate) our dependence on foreign aid & concessional loans.
[b]. To reduce (& finally to eliminate) our dependence on imports of certain critical commodities.
(By developing import substitution industries).
[c].To achieve expansion and diversification of our exports, (to increase our exports) by export
promotion measures (so that we can earn sufficient foreign exchange).
 Achievements:
In respect of self relience, we have made two achievements. They are as follow.
[a]. Particularly after NAS, we have achieved self relience in food grain.
[b]. In the field of industries, we have been able to develop a variety of capital goods industries.
[c].In the field of science and technology, our achievements are remarkable.
[d]. We have been able to reduce our dependence on imports of critical products such as steel,
machinery and fertilizers.
[3]. REMOVAL OF UNEMPLOYM ENT:
One of the objectives of economic planning is to remove unemployment by expanding
employment opportunities. This objective emphasized from 4th & 5th plan.
For this purpose, it is necessary to develop agriculture, industries and tertiary sector & to expand
employment opportunities by various unemployment removal programmes.
 Achievement:
Government has taken following measures.
[a]. Direct employment programmes for providing seasonal employment to agricultural labourers, on
rural work projects.
[b]. Target group oriented programme of asset creation, input deliveries and creation of credit and
marketing infrastructure.
Even after the 65 years of planning, we have not been able to solve the problem of
unemployment.
[4]. REDUCTION IN INCOME INEQUALITIES :
One of the major objectives of economic planning is to provide social justice to poor people.
Social justice means to reduce the inequality of income and wealth, particularly in rural areas.
For this purpose, government decided to take following measures.
[1]. Land reforms (like ceiling on land holding)
[2]. Supply of certain items at concessional rates.
[3]. Subsidy to poor people.
[4]. Special employment programme, like Jawahar Rojgar Yojna.
[5]. To reduce regional disparities / imbalance by developing backward areas.
[5]. ELIMINATION OF POVER TY:
One of the objectives of economic planning was to remove poverty. This objective was given
importance from 5th Plan. The problem of poverty is related with the problems of poor purchasing
power, low saving, low capital formation, low productivity and low level of output. So, the long run
objective of planning was to free the economy from the vicious circle of poverty.

PERFORMANCE:
Government was undertaken several programmes to remove poverty and the process still
continue.
[6]. MODERNIZATION:
Another objective of economic planning is to bring modernization of economy. Modernization
means to bring certain structural changes and institutional changes in the economy.
 Structural Changes:
They include-
[a]. A shift in the composition of production i.e. to increase industrial production.
[b]. To achieve diversification of economy i.e. to produce and supply a large variety of goods (from
consumer goods to capital goods).
[c].To upgrade technology (use of latest technology) to improve the quality, to reduce costs & to
increase the efficiency of the economy.
 Institutional Changes:
They include followings –
[a]. To develop certain public sector institutions, to supply infrastructure facilities and social services,
(such as banking, insurance, transportation, communication, etc).
[b]. To establish of financial institutions (like IDBI, IFCI, etc) and to expand commercial banks, (to
provide long term, medium term and short term finance to industries).
[c]. To develop human factor, by training, skill formation & Research & Development.
 Achievement:
In the field of modernization, our country has made satisfactory progress. For example, we have
developed many new industries (such as computer, electronic, engineering, electrical and non-
electrical goods) with latest technology. In agriculture also, there is use of new technology.
Conclusion:
So far the performance of planning is concerned:
India has made satisfactory progress in terms of rise in national income, diversification,
modernization, etc. But, we have failed to achieve the long term objectives of removal of poverty,
unemployment and inequalities.
[F]. NITI AAYOG:
[a]. CONCEPT OF PLANNING :
The world famous revolutionary M.N. Roy formulated “Peoples plan”. Always plans are of
historical importance as they exist on paper but were never implemented. They definitely
stimulated the thinking about various aspects of planning.
After independence Jawaharlal Nehru setup planning commission of India in 1950 to access
countries needs of materials capital & Human resources and formulated economic plans for
balance or effective utilization. First 5 year plan commenced in 1951 and it was followed by
series of 5 year plans.
(Source: Various Issues of Economic Survey of India)
[b]. INTRODUCTION (NITI A AYOG):
NITI AAYOG (National Institution for Transforming India) was found through regulation of union
cabinet on 1 January, 2015. It is the premium policy “Think tank” of the government of India,
Providing both directional and policy inputs.
NITI AAYOG also provides technical advice to the centre and states for designing strategy and
long term policies and programmes.

Government replaced the planning commission in order to better serve the needs and aspirations
of the people of India. NITI AAYOG acts as platform of Government to bring states to act
together in national interests. At the core of NITI AAYOG creation are the two hubs.
[i]. Team India Hub
[ii]. Knowledge & Innovation Hub.
Team India Hub leads the engagement of State with the Central government while Knowledge
& innovation hubs builds NITI AAYOG s Think tank & capabilities.
NITI AAYOG is also developing itself as a state of the art resource centre with the necessary
resource, knowledge & skills which will enable it to act with speed, from its research & innovation it
provides strategy policy vision for the government and deals with contingent issues.
(NILERD)National institutes of labour economics, research & development also
exists along with NITI AAYOG. The NITI AAYOG is a successor of The Planning
Commission. The governing council of NITI AAYOG has the Prime Minister as its Chair
Person and the Chief Minister of each state is member. Apart from this it has sub group of Chief
Ministers presently taking care of the
[V]. Swachh Bharat Abhiyan
[VI]. Skill development
[VII]. Centrally Sponsored scheme. (MNREGA)
In has also constituted a Task Force mainly to focus on agricultural development of the country &
for elimination of the poverty.
[c]. NITI AAYOG‟S ROLE :
 NITI AAYOG has been entrusted with the role to coordinate and transform our world, the 2030
Agenda for sustainable development which is called as SDG (Sustainable development Goal).
 Moving Ahead from MDG (Millennium development goals). SDG have been developed through a
long progress for the achievement of sustainable development goal during the period of 2016-
2030.
The SDG covered 17 goals and 160 related target determined by the United Nation submit which
was conducted between 25th to 27th September 2015.
This submit was attended by the Prime Minister of India. This SDG will stimulate and accomplish
action over the 15 year period in area of critical importance for the humanity and the planet.
 The task at hand for NITI AAYOG is not merely to critically collect data on SDG but to act & protect
fruitfully the goal and the target not only quantitatively but also maintain high standard of quality.
Ministry of statistics and programme implementation has already under taken a part exercise of
interaction with the minister to develop indicators reflecting the SDG goals & targets. The centrally
sponsored scheme including core, core & optional scheme being implemented by the states have
been mapped along with some of the recent initiatives under taken by the central government.
Write a short note on Sustainable Development.
[G]. SUSTAINABLE DEVELOPMENT:

[a]. CONCEPT OF SUSTAINAB LE DEVELOPMENT:
The concept of sustainable development was first used by the World Conservation Strategy in
1980. Thereafter, it was used in 1987 by World Commission on Environment and Development. It
was used by Brundtland in his report named as “our common Future.”
In the race for growth, our environment has been subjected to constant damage, resulting into
irretrievable loss of fertile soil and invaluable forests, gross air pollution and visible deterioration in
animal and human resources.

Time has come to get out of this growth mania where all success is measured in terms of achieving
certain growth rates. We need to replace this misleading guidepost by one which measures what is
happening to the people, to the environment, both for today and for the future.
This brings us to the alternative criteria, i.e., Sustainable Development.
[b]. MEANING AND DEFINITI ON OF SUSTAINABLE DE VELOPMENT:
(1) According to Brundtland Report, sustainable development means
“Meeting the needs of the present generation without compromising with the needs of the future
generation”.
(2) Sustainable development means to maintain and improve the quality of Life of both present and
future generation without harming natural resources and environment.
(3) Sustainable development tries to maintain the quality of life for both- present and future
generations, without harming natural resources and environment. (Thus, this concept gives
emphasis on intra-generational and inter-generational justice).
(4) Sustainable development means to maintain and improve the quality of life of both- present and
future generation without harming resources and environment.
[c]. OBJECTIVES OF SUSTAI NABLE DEVELOPMENT:
The main purpose of sustainable development is to ensure continuous improvement in the
quality of life of all the people.
Its main objectives are as follow:
 To meet basic needs of people
 To raise economic growth
 To provide the health and educational opportunities to people
 To give a change to every one to participate in public life
 To ensure clean environment
 To promote inter – generational equity
 To maximise net benefits of economic development by maintaining environmental and natural
resources for future generation
[d]. CONCLUSION:
The main objective of sustainable development is to achieve continuous improvement in the life
of all the people, without destroying the natural resources and environment, so as to protect the
opportunities for future generation.
In India, the idea of sustainable development was first time introduced in the 7th five year
plan.
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ECONOMIC DEVELOPMENT
Explain the concepts of economic growth & economic development.
[A]. MEANING AND DEFINITION OF ECONOMIC DEVELOPMENT AND

ECONOMIC GROWTH:
Till the 1960s, the term “Economic development” was often used as a synonym of “Economic
Growth” in economic literature.
But, thereafter they have been used in different senses. The economic development is more
comprehensive term as compared to economic growth.
Definitions of “Economic Growth” and “Economic Development”.
Economic Growth means a rate of expansion that can move an underdeveloped country from a
near subsistence mode of living to a substantially higher levels, in a comparatively short period of
time. i.e. in decades rather than in centuries.
Economic Development means growth plus progressive changes in certain variables, which
determine welfare of the people.
The progressive changes include the reduction and elimination of malnutrition, illiteracy,
unemployment & inequality.
Economics of development refers to the problems of the economic development of developing
countries; economic development refers to the problems of developing countries.
A developing country is one, which is characterized by low per capital real income and
underutilized resources.
Economic development, therefore, means a process of transforming from low-income countries
into high-income countries by better utilization of resources.
The term economic development has been defined by many economists in different ways.
 Some of the definitions are as follows:
[1]. According to Meier, Economic development is the process whereby the real national income of a
country increases over a long [20-25 years] period of time. This is the fundamental and traditional
definition of economic development.
[2]. He amended this definition and gave new definition of economic development based on real per
capita income.
According to Meier, Economic development is the process whereby the real per capita income of
a country increases over a long period of time.
According to this definition, the increase in per capita real income will improve standard of living
in developing countries. So, this improvement in standard of living indicates economic
development.
[3]. Economic development is also defined as a process, which results into reduction or elimination of
poverty, unemployment, control of population growth and reduction in income inequalities. This
definition indicates the effects of definition.
[4]. Economic development is a process whereby per capita consumption of the country increases
over a long period of time. This definition is the broadest definition and gives importance to the
welfare of the economy.

Give differences between “Economic Development” and “Economic Growth”.
[B]. DIFFERENCE BETWEEN ECONOMIC DEVELOPMENT AND

ECONOMIC GROWTH:
Sr. POINTS OF
ECONOMIC DEVELOPMENT ECONOMIC GROWTH
No. DIFFERENCE
[1]. 1Meaning According to Friedman in economic According to Friedman in

. development there is an increase in economic growth there is only an
real national income with fundamental increase in output. But, techniques
changes in techniques of production. of production do not change.
These are Socio-economic changes.
[2]. 1Countries Economic development is used for Economic growth is used for
. underdeveloped countries. advanced countries.
[3]. 1Quantitative and There are changes in quantitative as In economic growth there is a
. Qualitative well as qualitative aspects of change in only quantitative aspect
Approach economy. Therefore, development is of economy.
a qualitative aspect of economy.
[4]. 1Narrow/Broad Economic development is a wider Economic growth is a narrow

. term because it includes economic terms. It is a part of economic
growth as well as fundamental development.
changes in economy.
[5]. 1Resources According to Mrs. Ursula Hicks According to Mrs. Ursula Hicks in
. Economic development is concerned economic growth efforts are made
with the utilization of un-used idle to use available resources.
resources.
[6]. 1Planning Economic development requires Economic growth is in the

. direction, regulation and guidance advanced countries as a result
which are necessary for expansion. guidance not necessary.
[7]. 1Period Economic development is a Economic growth is a gradual and

. discontinuous and spontaneous (not steady change in long-run.
steady) changes.
[8]. 1Indicators When there is an increase in income When there is an increase in

. and output due to changes in output and income by employing
techniques of production it is more labour more material only, it
economic development. can be considered economic
growth.
[9]. 1Income According to Maddison rising of According to Maddison, rising in

. income in poor countries. income in rich countries.
[10]. 1Sectoral Changes Shift from Agricultural to Industrial or No such shift in Primary,
. from low productivity to high Secondary and Tertiary Sector.
productivity.
[11]. 1Measurement Development not measured in Money Growth Measured in Money and
. and Output. output.

Discuss various income indicators of economic development. What are their

limitations?
[C]. MEASUREMENT/INDICATORS OF ECONOMIC DEVELOPMENT :

[a]. INCOME OR ECONOMIC INDICATORS :
[1]. REAL NATIONAL INCOME [GNP]:
“Real National Income” is one of the income methods to measure economic development.
 According to these indicators,
“Economic development is defined as a process whereby the real national income of a country
increases over a long period of time”.
The word Process means that certain forces bring about a slow and gradual change in certain
variable. Various types of economic changes take place during the development process.
 The most important of these changes can be divided into two categories:
 Changes in the supply of fundamental factors, and
 Changes in the structure of demand for the product.
[i]. Changes in supply of fundamental factors take place due to discovery of additional resources,
capital accumulation, population growth, adoption of better techniques of production and
institutional changes.
[ii]. The other variable is change in the structure of demand for the products, which depends upon
change in size of population, change in level and distribution of income, change in taste, etc.
Hence, economic development may be defined as development of factor supplies and product
demand.
[iii]. The term real national income refers to the country‟s total output of final goods and services in
real terms rather than in money terms. It means that changes in prices are not considered while
calculating real national income.
[iv]. Long period implies that the real income increases slowly and continuously for a period of 20 to
25 years. If national income increases in a short period because of upswing of the business
cycle, then it will not be considered as economic development.
It means that economic development does not take place with temporary increase in production
during a period of business cycle. Thus, economic development is possible only when the real
national output increases over a long period of time.
 LIMITATIONS:
This indication of economic development is not considered to be satisfactory because –
[i]. It ignores the changes in the prices of goods and services. In reality, we find that changes in
prices are unavoidable in a developing economy. Because of many structural changes like
discovery of new techniques, institutional changes, population growth, changes in the level of
income, etc. prices are bound to change.
[ii]. It does not take into consideration the growth of population. If the growth of population will be
greater than the increase in the national income, then there will be no economic development.
On the contrarily, it will be the case of retardation.
[iii]. The GNP figure does not reveal the costs to society in terms of environmental pollution,
urbanization, and Industrialisation and population growth.
Further, it does not tell us anything about the distribution of income in the economy. So, in this
indicator of economic development we must add cyclical swings, changes in value of money
[prices] and growth of population, while measuring real national income.

[2]. PER CAPITA REAL INCOME [GNP Per Capita]:
This is the income measure/indicator of economic development which relates to an increase in
the “Per capita real income” of the economy over the long period.
We can measure the economic development if we know that what is happening to per capita real
income.
 Meier defines –
Economic development is the process whereby the “Real per capita income” of a country
increases over a long period of time. The per capita real income can increase, if the increase in
the national income is faster than the rate of growth of population. It means that to increase real
per capita income, the country should not only increase its NNP but also needs to control the
population.
The increase in per capita real income improves the standard of living in developing countries.
So, this improvement in standard of living indicates economic development in any country.
 LIMITATIONS:
This indicator of economic development has some difficulties/limitations. They are an increase in
per capita income may not improve or raise the standard of living of all people or masses. It is
possible that per capita real income may increase, but per capita consumption might fall.
In other words, if income of people increases, but they consume less and save more, then
standard of living will not improve.
[i]. This indicator does not give importance to distribution of national income. If there is an increase
in real income but distribution of national income is unequal, rich people might become richer and
poor might become poorer. It means that if increased income goes to only few rich people,
instead of going to the many poor, economic development will not take place.
[ii]. Another, reason is that if the government spends increased income for military or other purposes,
then also standard of living will not improve.
[iii]. This indicator does not take into account the problems associated with the basic needs like
nutrition, health, education, etc. It means that improvement in standard of living cannot be
measured with the help of per capita real income.
[iv]. This indicator fails to consider the cost of increase in real per capita income in the form of
environmental pollution, urbanization and industrialization.
In all these cases, even if per capital real income will increase; the standard of living of people
will not improve. So, we can say that we cannot measure economic development properly, if we
use the per capita real income criterion.
Explain the physical quality of Life Index as non-economic indicator.
[b]. NON-INCOME INDICATORS:

 PHYSICAL QUALITY OF LIFE INDEX [PQLI] :
This is one of the social or non-income indicators of economic development. Morris D. Morris
constructed a composite physical quality of life index in 1979. This is composite index of 3
elements of human life-namely the life expectancy, the infant mortality rate and the literacy rate.
[i]. Life expectancy:
It shows the average nos. of years a person is expected to live.
[ii]. Infant mortality rate:
Infant mortality rate refers to the death rate among newly born infants, below the age of one year.

[iii]. Literacy rate:
It means the percentage of population, who can read, write and speak a particular language.
 Formula:
Life Expectancy Indexed (LEI) + Infant Mortality Indexed (IMI) + Literacy Rate (LR)
PQLI =
3
In respect of each of these three components, figures are rated on an index of 1 to 100.
For example, a country with highest life expectancy is given life expectancy index of 100
and a country with lowest life expectancy is given life expectancy index of 0.
Similarly, for the lowest infant mortality and the highest literacy, the assigned numbers are 100
each. In between the highest and the lowest, either countries are ranked 100 = absolutely best
performance and 0 = absolutely worst performance].
After deciding index for each component, index is prepared by averaging the three indices, giving
equal weight to each of them.
This index will be highest at 100 for a country with the most favourable life expectancy, the
lowest infant mortality and the highest literacy in the world.
The index will be lowest at 1 for a country with the most unfavourable life expectancy, the highest
infant mortality and the lowest literacy. Between these two extremes will fall other countries
according to their ranking.
In other words, we can say that different countries can be ranked on the basis of three elements/
components. The countries with most favourable figures of PQLI are considered as developed
countries and the countries with most unfavourable figures are considered as underdeveloped
countries.
When there is improvement in the physical quality of life index, it indicates economic
development of a country. This means when life expectancy increases, literacy rate increases
and infant mortality rate decreases, it is considered as a sign of economic development.
This index [PQLI] is supposed to be superior index to that of per capita income because it shows
the end result of the use of national income in terms of longer life expectancy, more literacy and
low infant mortality rate. This end-result does not depend on PCNI i.e., it is the use of National
Income, and not mere increase in the PCNI [Per Capita National Income].
Following table shows PQLI of the developed and underdeveloped countries:
Average annual GNP per
Countries PQLI
capita Growth rate
1950 1960 1970
India 14 30 40 1.8
Sri Lanka 65 75 80 1.9
Italy 80 87 92 5.0
USA 89 91 93 2.4
This table shows that
INDIA AND SRI LANKA:
During 1950 to 1970, PQLI of India has increased slowly, which Morris called “Basket case”. But
the PQLI of Sri Lanka was much higher than India even though the growth rate of GNP per
capita was almost same, during this period for both countries.

ITALY AND USA:
The PQLI of Italy and USA was very high. But the growth rate of GNP per capita of Italy was
more than that of USA.
According to Morris, there is no automatic link between GNP per capita & PQLI. He said that,
PQLI depends upon social relations, nutritional status, public health, education and family
environment.
SIGNIFICANCE (IMPORTANCE) OF PQLI:
[1]. PQLI is superior to RPCI because, it shows optimum use of NI. When PQLI is higher, it shows
optimum use of NI in terms of longer life expectancy, more literacy & low IMR.
[2]. When PQLI improves, it shows economic development. It means life expectancy and literacy are
increasing and IMR is falling.
[3]. PQLI gives an idea about presence or absence of certain basic needs like food, medical facility,
education etc). Higher PQLI means presence of basic needs and Lower PQLI means absence of
basic needs.
 LIMITATIONS:
No doubt, this index is an improvement over the per capita income index. But, this is true only
partly because of the following limitations –
[1]. This method measures the quality of life, which is essential for poor people but fails to measure
the total welfare.
[2]. It has been criticized on the ground that rates of three variables of physical quality of life are
decided by some superior power [arbitrary].
[3]. Morris D. Morris himself admitted that this measure is complementary to income measurement
but cannot substitute income measurement. It means that it does not measure economic growth.
[4]. It does not explain the structural changes of the economy and social organization.
[5]. In most of the developing countries, population is rapidly rising, so a little can be spared for
improvement in the quality of life. In most of these poor countries, per capita incomes are low, so
income index has to be accepted as the right index of development.
 SIGNIFICANCE:
This indicator shows the end-result of the use of the national income in terms of deposit of
individuals.
These individual desires are – to enjoy longer years of life, to live a healthy life, to see their
children grow, etc. Individuals are also interested in more education and training so that they can
avail greater opportunities.
Thus, in a country where PQLI is rising year after year, the physical quality of life is improving.
Explain HDI as a combination of economic and non-economic indicator.
[c]. COMBINATION OF INCOME AND NON-INCOME INDICATORS:

[1]. HUMAN DEVELOPMENT INDEX [HDI OLD METHOD] :
The Human Development Index (HDI) is a composite statistic of life expectancy, education and
income indices used to rank countries into three tiers of human development.
It was created by Indian economist Amartya Sen and Pakistani economist Mahbub ul Haq in
1990 and was published by the United Nations Development Programme. HDI is a composite
index that measures the average achievement of a country in three basic dimensions.

[a]. INCOME FOR DECENT ST ANDARD OF LIVING:
This refers to the income, which is required to satisfy the basic needs of life, such as food,
clothing and shelter. It is a measure of satisfaction available to people from a bundle of basic
goods and services. It is measured by the GDP per capita [PPP $USA].
[b]. EDUCATIONAL ATTAINME NT OR KNOWLEDGE:

It can be measured by literacy rate [the percentage of population, who can read and write a
particular language] and years of schooling [average years of study]. It is measured as Adult
Literacy Rate (2/3 Weight) and Gross Enrolment Ratio is a Combined ratio of primary +
secondary + tertiary enrolment ratio (1/3 Weight). This is necessary to raise the level of skill
formation for economic development.
 GROSS ENROLMENT RATI O [GER]:
Actual Enrolment
GER = x 100
Number of Children in that age group
9,000
GER = x 100
10,000
= 90%
To calculate Educational Attainment Index, 2/3 weight is given to the index of Adult Literacy
Rate and 1/3 weight is given to the index of Gross Enrolment Ratio.
 SUPPOSE:
Index of ALR = 60%, &
Index of GER = 90%
 EA Index = 2/3 (ALRI) + 1/3 (GERI)
 EA Index = 2/3 (60) + 1/3 (90)
 EA Index = 120/3 + 90/3
 EA Index = 40 + 30
 EA Index = 70%
[c]. LIFE EXPECTANCY AT B IRTH [LONGEVITY OF P EOPLE]:
It means the average number of years a person is expected to live [expected average life of a
person]. It indicates progress made in the fields of health of infant and child mortality and nutrition.
Out of the above mentioned three components of this index, the first component i.e., the per
capita income is the economic indicator and the other two are the social indicators. Improvement
in this index indicates the progress in the availability of material goods and services,
employment, literacy and school-level education, infant and child mortality and nutrition. When
there is an increase in the life expectancy, level of income and the literacy rate, human
development index also improves and it includes economic development of a country.
Human development index does not measure the absolute levels of human development. It
ranks countries in relation to each other. The ranking of countries is done on the basis of – how
far they have travelled or progressed from the lowest level of achievement to the present highest
level of achievement. For this purpose, the current minimum value and maximum desirable value
are decided for each indicators of this index.
For example, suppose, for life expectancy, the current minimum value is 60.4 years in Niger in
the continent of Africa and maximum desirable value is 82.6 years in Norway. Now, to rank a
country, we have to measure the distance travelled [progress made] from the minimum towards
the maximum.

Human development index can be calculated by considering three aspects of human
development, viz. Life expectancy, educational attainment and GDP per capita.
 The formula used for calculating HDI is –
Actual Value – Minimum Value
HDI = Maximum Value – Minimum Value
Life Expectancy Index + Education Attainment Index + GDP

HDI =
3
For all the three components, the minimum value and maximum value has been fixed.
Indicators Maximum Value Minimum Value

Life expectancy at birth 85 25
Adult literacy rate 100 0
Gross enrolment ratio 100 0
GDP per capita (PPP US$) 40,000 100
The log value for GDP per capita 4.602 2.000
 HOW TO CALCULATE HDI :
 EXAMPLE-1:
Suppose in country A, the Life expectancy of people is 45 years, the Literacy rate is 40% the
enrolment ratio is 50%, and the PCI is $600. As compared to this, in country B, the Life
expectancy is 50 years, Literacy rate is 35%, and Enrolment ratio is 40% and PCI is $500. Find
out HDI and interpret your answer.
COUNTRY „A‟ COUNTRY „B‟

Actual Value – Minimum Value Actual Value – Minimum Value
INDEX =
Maximum Value – Minimum Value Maximum Value – Minimum Value
 Life expectancy [LE] Index:
L.E. Index = 45 – 25 = 20 = 0.333 50 – 25 = 25 = 0.417

85 – 25 60 85 – 25 60
 Adult Literacy Rate [ALR] Index:
A.L.R. Index = 40 – 0 = 40 = 0.400 35 – 0 = 35 = 0.350

100 – 0 100 100 – 0 100
 Gross Enrolment Ratio [GER] Index:
G.E.R. Index = 50 – 0 = 50 = 0.500 40 – 0 = 40 = 0.400

100 – 0 100 100 – 0 100
Education Attainment Index = Education Attainment Index =
= 2/3(ALR)+1/3(GER) = 2/3(ALR)+1/3(GER)
= 2/3(0.400)+1/3(0.500) = 2/3(0.350)+1/3(0.400)
= (0.267) + (0.167) = (0.233) + (0.133)
= 0.434 = 0.366

 Per capita index:
PCI = 600 – 100 = 500 = 0.013 500 – 100 = 400 = 0.010
40,000 – 100 39,900 40,000 – 100 39,900
 COMPOSITE INDEX:
COMPONENTS COUNTRY A COUNTRY B
Life Expectancy
0.333 0.417
Educational
0.434 0.366
Attainment
0.013 0.010
Per capita income
Total 0.780 0.793
HDI 0.780/3 = 0.260 0.793/3 = 0.264
As the value of HDI of country A is 0.260 and country B is 0.264, we can say that country B is
more developed than country A.
 According to these calculations –
[i]. The countries belong to high development category if their index is more than 0.800.
[ii]. The countries belong to medium development group if the index ranges between “0.500 to
0.799”.
[iii]. The countries belong to least development category if their index is less than 0.499.
 HUMAN DEVELOPMENT REPORT 2018:
As per Report,
Norway is ranked 1st (HDI – 0.953) Switzerland is ranked 2nd (HDI – 0.944)
Australia is ranked 3rd (HDI – 0.939) India is ranked 130th (HDI – 0.640)
Niger is ranked 189 th (HDI – 0.354)
 EXAMPLE-2:
The calculation of HDI for a single country can be done as follows:
In country A the life expectancy is 63 years, adult literacy rate is 66%, the combined enrolment
ratio is 61% and The GDP per capita $2753 (log 3.4).
To calculate educational knowledge/attainment the adult literacy ratio is assumed as 2/3rd and
the enrolment ratio is assumed as 1/3rd.
COUNTRY „A‟
INDEX =
Maximum Value – Minimum Value
63 – 25 38
L.E. Index = = = 0.633
85 – 25 60
 Adult Literacy Rate [LR] Index:

66 – 0 66
L.R. Index = = = 0.660
100 – 0 100

 Enrolment Ratio [ER] Index:
61 – 0 61
E.R. Index = = = 0.610
100 – 0 100
Educational knowledge/attainment:
A L.R. [2/3] & E.R. [1/3] = 2/3 [0.660] + 1/3 [0.610]
= 0.439 + 0.203
= 0.642
 GDP Per Capita Index:

[Log of 2753 is 3.4]
Log [2753] – log [100] 3.4 – 2 1.4

PCI = = = = 0.538
Log [40,000] – log [100] 4.602 – 2 2.60
 COMPOSTE INDEX:
COMPONENTS COUNTRY A
Life Expectancy
0.633
Educational
0.642
Attainment
0.538
Per capita income
Total 1.813
HDI 1.813/3 = 0.604
 EXAMPLE-3:
Suppose in India, the Life expectancy of people is 63 years, the Adult Literacy Rate is 61%
combined gross enrolment ratio is 60%, and GDP is $2892 [log 3.461]. As compared to this, in
China, the Life expectancy is 72 years, Adult Literacy Rate is 90%, and Combined Gross
Enrolment Ratio is 68% and PCI is $5003 [log 3.659]. Find out HDI and interpret your answer.
COUNTRY „INDIA‟ COUNTRY „CHINA‟

Actual Value – Minimum Value Actual Value – Minimum Value
INDEX =
Maximum Value – Minimum Value Maximum Value – Minimum Value

63 – 25 38 72 – 25 47
L.E. Index = = = 0.633 = = 0.783
85 – 25 60 85 – 25 60
 Adult Literacy Rate [ALR] Index:
61 – 0 61 90 – 0 90
A.L.R. Index = = = 0.610 = = 0.900
100 – 0 100 100 – 0 100
 Gross Enrolment Ratio [GER] Index:
60 – 0 60 68 – 0 68
G.E.R. Index = = = 0.600 = = 0.680
100 – 0 100 100 – 0 100

A L.R. [2/3] & G.E.R. [1/3]
A L.R. [2/3] & G.E.R. [1/3]
= 2/3 [0.610] + 1/3 [0.600]
= 2/3 [0.900] + 1/3 [0.680]
= 0.407 + 0.200 = 0.600 + 0.227
= 0.827
= 0.607
 GDP Per Capita Index:
[Log of 2892 is 3.461] [Log of 5003 is 3.659]
Log [2892] – log [100] Log [5003] – log [100]
PCI = Log [40,000] – log [100] PCI = Log [40,000] – log [100]
3.461 – 2 3.659 – 2
= 4.602 – 2 = 4.602 – 2
1.461 1.659
= 2.602 = 2.602
= 0.561 = 0.640
 COMPOSTE INDEX:
COMPONENTS INDIA CHINA
Life Expectancy
0.633 0.783
Educational
0.607 0.827
Attainment
0.561 0.640
Per capita income
Total 1.801 2.250
HDI 1.801/3 = 0.600 2.250/3 = 0.750
As the value of HDI of India is 0.600 and China is 0.750, we can say that country China is more
developed than India.
 EXAMPLE-4:
Find out HDI value of a country A, if it has life expectancy of 47.8 years, Adult literacy rate of
46.8%, combined gross enrolment ratio of 38%, and GDP per capita of $ 1630.
 Solution:
[1]. Human Development Index =

[2]. HDI =
3
[3]. Education Attainment Index = 2/3 (ALR) + 1/3 (GER)
 Calculation of Life Expectancy Index (LEI):

47.8 – 25 22.8
Life Expectancy Index = = = 0.380
85 – 25 60
 Calculation of Educational Attainment Index (EAI):
46.8 – 0
Adult Literacy Index = = 0.468
100 – 0

38 – 0
Gross Enrolment Index = = 0.380
100 – 0
EAI = 2/3 (0.468) + 1/3 (0.380)
EAI = 0.312 + 0.127
EAI = 0.439
 Calculation of GDP Index:
1630 – 100
Gross Domestic Product = = 0.038
40,000 – 100
HDI =
3
0.380 + 0.439 + 0.038
HDI =
3
HDI = 0.857/3
HDI = 0.286
[D]. NEW HUMAN DEVELOPMENT INDEX [HDI]:

The Human Development Index (HDI) is a composite statistic of Life expectancy, education, and
Income per capita Indicator, which are used to rank countries into three levels of Human
Development.
A country scores higher HDI when the Life expectancy at birth is Longer, the education period is
Longer and the Income per capita is higher.
The 2010 human developing report introduced an Inequality – adjusted Human Development
Index(IHDI): While the simple HDI remains useful, it stated that “the IHDI is the actual level of
human development accounting for inequality,” and “the HDI can be viewed as an index of
„potential‟ human development or the maximum IHDI that could be achieve if there were no
inequality.”
The old HDI method is based on simple arithmetic mean while the new HDI is based on
geometric mean.
 The formula used for calculating New HDI is –
HDI = 3 LEI . EI . II
For all the four components, the minimum value and maximum value has been fixed.
Dimension Indicators Maximum Value Minimum Value
Health Life expectancy at birth 85 20
Education Mean Years of Schooling 15 00

Index
Expected Years of 18 00
Schooling Index
Standard of Living Income Index (II) $ 75000 $ 100

 HOW TO CALCULATE HDI :
 EXAMPLE-1:
Suppose in country A, the Life expectancy of people is 79.93 years, the Mean Years of Schooling
Index is 8.37 the Expected Years of Schooling Index is 13.50, and the Income Index (II) is
$13011.7. Find out HDI and interpret your answer.
LE – 20 79.93 – 20 59.93
L.E. Index = = = 0.922
85 - 20 85 – 20 65
 Mean Years of Schooling Index (MYS):
MYS 8.37 – 0 8.37

MYS. Index = = = 0.558
15 15 – 0 15
 Expected Years of Schooling Index (EYS):

EYS 13.50 – 00 13.50
EYS. Index = = = 0.750
18 18 – 00 18
 Education Index:
MYSI + EYSI 0.558 + 0.75 1.308
E. Index = = = 0.654
2 2 2
 Income Index (II):

In (GNIpc) – In (100) In (13011.7) - In(100) 12911.7
II. = = = 0.173
In (75,000) – In (100) In (75000) - In(100) 74900
HDI = 3 LEI . EI . II
HDI = 3 0.922  0.654  0.173
HDI = 3 0.1043
Write a short note on the Limitations and Significance of HDI.
 LIMITATIONS:
[1]. It is wrong to take only life expectancy and literacy rate as social indicators. The infant mortality
rate and nutritional standards as social indicators have not been considered.
It means that three indicators are not enough for measuring economic development.
[2]. The HDI measures relative human development rather than absolute human development.
 SIGNIFICANCE/SUPERIORITY:
The index [HDI] is much better than the physical quality of life index because it includes income,
which is most important in determining the well-being or welfare of poor people in underdeveloped
countries.

Further, it equally gives importance to social progress of people, which is shown by educational
attainment and the life expectancy.
It gives more importance to the quality of life in addition to income of people. It is useful to under-
developed countries to decide the distance yet to be covered by these countries to reach at
desired level of human development.
Explain how to calculate Human Poverty Index for Developing Countries.
[2]. HUMAN POVERTY INDEX [HPI-1 & 2] :

Human Poverty Index talks about the level of deprivation faced by various countries. Human
Development Index measures average achievement but, HPI measures deprivation of 3 different
elements for developing countries and 4 elements for developed countries.
It was introduced in 1997 by United Nations Development Programme [UNDP] in the human
development report.
 Concept of HPI-1 [Human Poverty Index]:
HPI-1 measures deprivation in the THREE basic dimensions of human development captured in
the HDI.
[1]. A long and healthy life/P1:-
This measures the vulnerability to death at a relatively early age, as measured by the probability
at birth of not surviving to age-40.
[2]. Knowledge/P2:-
This measures the exclusion from the world of reading and communications, as measured by the
adult illiteracy rate.
[3]. A decent standard of living/P3:-
This measures the lack of access to overall economic provisioning, as measured by the
underweighted average of two indicators;
[i]. The percentage of the population without sustainable access to an improved water source and
[ii]. The percentage of children under 5 who are underweight.
1/2 (Percentage of Population without improved water) + 1/2 (under weight children below 5
years).Calculating the HPI-1 is more straightforward than calculating the HDI. The indicators
used to measure the deprivations are already normalized between 0 and 100 (because they are
expressed as percentage), so there is no need to create dimension indices as for the HDI.
Originally, the measures of deprivation in a decent standard of living also included an indicator of
access to health services, but because reliable data on access to health services are lacking for
recent years.
 Formula of HPI1
   1/
HPI -1 = 1 P1 + P2+ P3
3
Where,
P1 = Probability at birth for not surviving to age 40.
P2 = Percentage of Adult literacy rate.
P3 = Percentage of Underweighted average of population without sustainable excess to
and improve water source and children below five underweight for their age.
= 3. (Constant i.e. do not change)

 Exemple -1:
In India, during 2000-01, as per human development report (HDR), 2004:
P1 = 15.3% P2 = 38.7%
Population without water source = 16%
Under weight children = 47%
Now,
P3 = Un-weighted Average = ½ (16) + ½ (47)
P3 = Un-weighted Average = 8 + 23.5
P3 = Un-weighted Average = 31.5%
   1/
[
HPI1 = 1/3 (P1 + P2 + P3 ) ]
3 3 3 1/3
HPI1 = [1/3 (15.3 + 38.7 + 31.5) )]
HPI1 = 31.4
As per the value, India‟s rank was 48.Here, it should be remembered that low the HPI, higher will
be the rank of the country.
The Human Development Report [HDR] 2005 calculated the HPI for 103 countries. As per this
report, countries like Cuba and Uruguay had reduced poverty, because their HPI was only 4.8
per cent while countries like Mali had HPI of more than 5.8 per cent.
 From the view point of HPI-1, (in 2005),
 Barbados enjoys 1st rank, with HPI of 3%,
 Uruguay enjoys 2nd rank, with HPI of 3.5%,
 The rank of India is 62 with HPI of 31.3% (33.3%).
 It is 29th for China (11.7%) and 44 for Sri Lanka (17.8%).
Explain how to calculate human poverty index for developed countries.
 CONCEPT OF HPI-2 [HUMAN POVERTY INDEX]:

This index is an extension of HPI-1. It also measures the lack of achievement in reducing
poverty. However, it captures deprivations in four dimensions.
[a]. A long and healthy life:
This measures the vulnerability to death at a relatively early age, as measured by the probability
at birth of not surviving to age-60.
[b]. Knowledge:
This measures the exclusion from the world of reading and communications, as measured by the
adult lacking functional literacy.
[c]. A decent standard of living:
This measures the percentage of people living below the income poverty line i.e. 50% of median
adjusted household disposable income.
[d]. Unemployment:
This measures the percentage of people who are unemployed for long-term i.e. 12 months or
more.

 FORMULA FOR CALCULATING :
 HPI -2:
   1/
HPI -2 = 1 P1 + P2+ P3+ P4
4
Where,
P1 = Probability at birth of not surviving age 60 years.
P2 = Percentage of adult lacking functional literacy skill (Percentage of illiterate adults).
P3 = Percentage below income poverty line.
P4 = Weight of long term unemployment.
 Exemple -2: ( For canada)
P1 = 8.7%, P2 = 16.6% P3 = 12.8%, P4 = 0.7%

Now,
    1/
HPI -2 = 1 P1 + P2+ P3+ P4
4
[ 3 3
HPI2 = ¼ (8.7 + 16.6 + 12.8 + 0.7 )
3 3
] 1/3
HPI2 = 12.2
HPI1 is calculated for developing countries.
HPI2 is calculated for OECD (Organization of Economic Co-operation and Development) i.e.
developed countries.
 According to HDR 2007-08:
From the view point of HPI2:
Sweden enjoys 1st rank (6.3%) followed by Norway (6.8%) with 2nd rank.
 According to HDR – 2008-09:
From the view point of HPI-1
Czech Republic enjoys 1st rank, and Croatia enjoys 2nd rank.
Explain the multi-dimensional poverty index.
[E]. MULTI – DIMENSIONAL POVERTY INDEX:

The Multi dimensional poverty index was developed in 2010 by oxford poverty & human
development initiative and the (U.N.D.P) United Nations development programme and uses
different factors to determine poverty beyond income based list. This index has replaced the
previous Human poverty index.
The Multi– dimensional poverty index is an index of an acute multi – dimensional poverty. It
shows the number of people who are multi dimensionally poor (suffering depreciations in
33.33% of weighted indicators) and the number of deprivations with which the poor -
household typically face.

It reflects deprivations in the very basic services and core human functioning for people across
104 countries.
Although, deeply constrained by data limitations, Multi– dimensional poverty index reveals a
different pattern of poverty than income poverty, as it indicates different set of deprivations. The
index uses the same 3 dimensions as the Human development index – Health, Education &
Standard of living. These are measured using 10 indicators.
HEALTH [1] Child mortality

[2] Nutrition
EDUCATION [3] Years of schooling

[4] Children enrolled
STANDARD OF LIVING [5] Cooking fuel

[6] Toilet
[7] Water
[8] Electricity
[9] Floor
[10] Assets
Each dimension and each indicator within a dimension is equally weighted.

The MPI is calculated as follows:
MPI = H x A
Where,
H = Percentage of people who are MPI poor (Incidence of poverty)

A = Average intensity of MPI Poverty across the poor (%).
 INDICATORS USED :
The following ten indicators are used to calculate the MPI:
[a]. HEALTH: (Each indicator is weighted equally at 1/6):
[1]. Child mortality rate:
According to this the person is considered to be deprived if any child has died in the family
[2]. nutrition:
According to this the person is considered to be deprived if any adult or child for whom there is
nutritional information is malnourished.
[b]. EDUCATION: (Each indicator is weighted equally at 1/6):

[1]. Years of schooling:
According to this the person is considered to be deprived if no household member has completed
5 years of schooling.
[2]. Child enrolment:
According to this the person is considered to be deprived if any school- aged child is not
attending school upto class 8.

[c]. STANDARD OF LIVING: (Each indicator is weighted equally at 1/8):
[1]. cooking fuel:
According to this the person is considered to be deprived is the household cook with dung, wood
or charcoal.
[2]. Toilet sanitation:
According to this the person is considered to be deprived if the household‟s, sanitation facility
has not improved (according to guidelines), or it is improved but shared with other households.
[3]. Drinking water:
According to this the person is considered to be deprived if the household does not have access to
safe drinking water or safe drinking water is more than a 30-minute walk from the home round trip.
[4]. Electricity:
According to this the person is considered to be deprived if the household has no electricity.
[5]. Floor:
According to this the person is considered to be deprived is the household has a dirt, sand or
cow dung floor.
[6]. Assets:
According to this the person is considered to be deprived if the household does not own more
than ratio, TV, telephone, bike, or refrigerator & does not own a car/ truck. A person is
considered poor if they are deprived in at least a third of the weighted indicators. The intensity of
poverty denotes the proportion of indictors which they are deprived.
 M.P.T poverty states, a household is considered MPI poor is the total of weighted depreciation.
Score is equal or more.
 Severely MPI poor: It deprivation. Score is 1/2 or more
 Near M.P.I Poor: It the deprevaiation score i.e. 1/5 or more but less than 1/3.
 Not near M.P.I poor: it deprivation score is positive. But <1/5.
Explain in detail gender development Index or GDI.
[F]. GENDER DEVELOPMENT INDEX:

Gender Development Index shows inequalities between the average achievement of men and
women in following 3 dimensions:
[1]. A LONG AND HEALTHY LIFE:
It is measured by life expectancy at birth (average life) & for male and female).
[2]. EDUCATION/ KNOWLEDGE:
It is measured by adult literacy rate and combine enrolment ratio. For male and female.
[3]. A DECENT STANDARD OF LIVING:
It is measured by estimated earned income (in US $).
 STEPS IN CALCULATION OF GDI:
Following are the main steps in calculation of GDI:
[1]. CALCULATE INDEX FOR EACH DIMENSION FOR M & F:
We can calculate index for each dimension by following formula:
Dimension Index =

[2]. CALCULATE EQUALLY DISTRIBUTED INDEX (EDI):
We can calculate EDI by following formula:
[3]. CALCULATE GDI:

We can calculate GDI by following formula:
Life Expectancy Index + Education Index + Income Index

GDI =
3
 Gender Equity is found in Norway, U.K, USA, Japan, Malaysia, Shrilanka & China.
 Gender Inequity in India, Saudi Arabia, Pakistan, Iran, Egypt and Nigeria.
Explain the meaning and challenges of inclusive Growth in India?
[G]. INCLUSIVE GROWTH:

Inclusive growth entails comprehensive growth, shared growth, and pro-poor growth. It lessens the
fast growth rate of poverty in a country and increases the participation of people into the development
of the country. Inclusive growth assumes an impartial allocation of resources with benefits earned by
every section of the society.
But the allocation of resources must be focused on the intended short and long term benefits of the
society such as availability of consumer goods, people access, employment, standard of living etc.
Rapid and sustained poverty reduction requires inclusive growth that permits people to contribute to
and benefit from economic growth. Rapid growth is necessary to reduce poverty but for this growth to
be sustainable in the long run, it should be broad-based across sectors, and inclusive of the large
part of the country‟s labour force.
Growth Report, Strategies for Sustained Growth and inclusive Development (Commission on Growth
and Development, 2008) found in report that inclusiveness, a concept that incorporates equity,
equality of opportunity, and protection in market and employment transitions is an essential element
of any successful growth strategy.
The Commission on Growth and Development (2008) considers systematic inequality of opportunity
“toxic” as it will derail (stop) the growth process through political channels or conflict.
In India, governments have introduced several projects, such as jawahar Rozgar Yojna, Integrated
Rural Development Program, Rural Housing Scheme, Swarnjayanti Gram Swarozgar Yojana
and Mahatama Gandhi National Rural Employment Guarantee Act to promote inclusive
growth.
Developing India‟s outstanding Gross Domestic Product (GDP) growth rates have covered rapidly
rising relative and absolute inequalities that results in dual face of India. A “shining India”, which is
conflicting internationally and benefiting from the powers of globalization, technological developments
and economies of scale, has grabbed the attention of the media and the world. On the contrary,
another side of India is “suffering India”.
ELEMENTS OF INCLUSIVE GROWTH:
There are several interrelated elements of inclusive growth:
[1]. Poverty Reduction
[2]. Employment generation and increase in quantity and quality of employment.

[3]. Agriculture Development
[4]. Industrial Development
[5]. Social Sector Development
[6]. Reduction in regional disparities
[7]. Protecting the environment
[8]. Equal distribution of income
Employment
Generation Agriculture
Poverty
Development
Reduction
Industrial Challenges Social Sector

Development of inclusive Development
growth in
India
Reduction in
Regional Equal distribution of
Disparties income
Environment
Protection
 Challenges of Inclusive Growth in India:

[1]. The country faces many problems such as dishonesty, red tapism, traditional social hurdles and a
lack of transparency in many government related works.
[2]. It is has been noticed that the growth is not uniform across sectors and large cross-sections of the
population remain outside its purview.
[3]. Numerous social, political and economic factors need to be tackled for sustaining a high rate of
growth, as well as to make this growth inclusive.
[4]. Indian society has to seriously examine major issues such as eradication of child labour, women
empowerment, removal of caste barriers and an improvement in work culture.
[5]. In order to accomplish major objectives for progression Indian government must focus on rapid
growth in the rural economy.
[6]. The reality remains that the fund is limited. Even if national funds distribution is perfect, it will not
reduce poverty level in country.
[7]. It is well observed that corruption is wide spread in the country. It is weakening the economic status
of India.
[8]. The growth has been uneven across sectors and locations. For instance agriculture has been lagging
behind and in countries such as India and China; some regions have advanced faster than others.
Policies are also relatively ignored the agriculture sector.
[9]. The rapid rate of globalisation. Due to trade competitiveness, foreign direct investment and new
technologies has demanded skilled labour. In some cases, labour laws also often discriminate against
formal employment and encourage „Casualisation‟ of labour (Taking labour on contractual system).

Give differences between “PQLI” and “HDI”.
[H]. DIFFERENCES OF VARIOUS INDICATORS:

[a]. PQLI AND HDI:
Following are the distinctive points of PQLI:
[1]. The concept of PQLI was introduced by Morris D Morris in 1979. Thus, it is relatively old concept.
The concept of HDI was introduced by United Nations Development Programme in 1990.
Improvements were introduced in the year 2010 in the minimum and maximum values which are
used to measure HDI since 1990.
[2]. PQLI shows the average achievement of a country in three basic elements of human life.
It is based on three indicators of human life,
– Life Expectancy, – Literacy Rate, and – Infant Mortality Rate
[3]. To calculate HDI, first we have to calculate a separate index for all the three indicators.
 It is based on three indicators
– Life Expectancy, – Knowledge, and – Good standard of living
There after, by taking a simple average of three indices.
[4]. HDI is calculated by following formula,
 For Positive Indicators

Achievement Level =
 For Negative Indicators
Maximum Value – Actual Value

Achievement Level =
PQLI is calculated by following formula,
Life Expectancy Index (LEI) + Infant Mortality Index (IMI) + Basic Literacy Index (BLI)
PQLI =
3
[5]. PQLI is a non-income or social indicator.

It does not consider income of people.
HDI is a composite index because it includes income indicator as well as non-income
indicator.
PQLI assign weights from 100 to 0 to all the indicators, but HDI values are from 0 to 1.

Give differences between “HDI” “HPI-1” and “HPI-2”.
[b]. HDI, HPI-1 AND HPI-2:

Following are the distinctive points:
Index Longevity Knowledge Decent standard of Social
living Exclusion
Human Life * Adult literacy GDP per capita (PPP US -
development expectancy rate $)
Index (HDI) at birth * Combined
enrolment ratio
Human Probability at Adult literacy rate Deprivation in economic -
poverty Index birth of not provisioning measured by:
for developing surviving to * Percentage of people
countries (HPI age 40 without sustainable access
– 1) to an improved water source.
* Percentage of children
under five who are
underweight.
HPI-2 for high Probability at Percentage of Percentage of people blow Long-term
income birth of not adults lacking the income poverty line unemployment
OECD surviving to functional literacy (50% of median disposable rate (12 months
countries age 60 skills income) or more)
In India, proportion of population below international income poverty line is 34.3%, but Human
Poverty Index is 31.3. This is comprehensive measure because it considers differences in
degree of deprivation measured by three variables.
Differentiate between HDI and HPI.
[c]. DIFFERENCE BETWEEN HDI AND HPI:

Following are the main points of distinction between HPI and HDI.
Sr. Point of
HDI HPI
Nos. Difference
[1]. The concept The Concept of HDI was introduced The concept of HPI (I and II) has
since 1990. So, it is relatively old been introduced since 1997. So,
concept. it is relatively new concept.
[2]. The concept The HDI shows the average HPI shows the deprivation (non-
achievements of a country in three achievement) of a country in the
basic elements of human life. same three elements of human life.
[3]. The concept HDI measures the extent of HPI measures the extent of
development of a country. poverty in a country.
[4]. Three
indicators: In HDI, longevity represents life In HPI, longevity represents risk
(a) Longevity expectancy at birth. of death at an early age.
[5]. (i) Longevity In HDI, it is measured by average In HPI, it is measured by
number of years, for which a new born percentage of people, who are
is expected to live. expected to die before age 40 (60
in case of HPI – II).

Sr. Point of
HDI HPI
Nos. Difference
[6]. (b) Knowledge In HDI, knowledge represents the In HPI, knowledge represents
(Education extent of literacy (education). extent of illiteracy (i.e. exclusion
Attainment): from world of reading and
communication.)
[7]. (i) Education In HDI, it is measured by a combination In HPI, it is measured by
of (a) Adult Literacy Rate (with 2/3rd percentage of adults, who are
weight) and (b) Combined (Gross) illiterate.
Enrolment Ratio (with 1/3rd weight).
[8]. (c) Decent In HDI, decent standard of living In HPI, decent standard of living
Standard of represents fulfilment of some represents lack of basic
Living: requirements of life. requirements of life.
[9]. (i) GDP In HDI, is measured by real GDP per In HPI, it is measured by
capita (based on purchasing power percentage of people not using
parity in terms of US $) improved sources of water, and
percentage of children, under age
5, who are underweight.
[10]. Calculation of In HDI, first we have to calculate a In case of HPI, there is no need
Index: separate index of all the three to calculate separate index. We
indicators. Thereafter, by taking can directly calculate HPI, by
average of these indices, HDI is following formula:
calculated by following formula:
Actual Value  Minimum Value
HDI=
Maximum Value  Minimum Value
Where,  = 3
(Life Expectancy Index +
Educational Attainment Index +
Real GDP per capita Index)
HDI= 3
[11]. Value & Rank: Higher the value of HDI, higher will be In HPI, lower the value of HPI,
the rank of country. For example; in higher will be the rank of country,
2005, Norway ranked 1st with highest e.g., Barbados is ranked 1st with
HDI value 0.968. And India was ranked lowest HPI-1 value of 3 percent
128th with relatively lower HDI value and Sweden is ranked 1st with
0.619. lowest HPI-2 value of 6.3 per
cent. And India is ranked 62nd
with relatively higher HPI-1 value
of 31.3 per cent.
[12]. Social HDI does not consider social exclusion In HPI, while calculating HPI-2 for
Exclusion: in terms of unemployment. OECD countries, social exclusion
in terms of long-term
unemployment rate (for 12
months or more) is considered.
[13]. Separate Index There is no separate HDI for OECD In case of HPI, HPI-1 is
for OECD countries. calculated for developing
countries: countries and HPI-2 is calculated
for OCED countries.

Differentiate between Economic Growth, Economic development and sustainable

development.
[d]. DIFFERENCE BETWEEN ECONOMIC GROWTH, ECONOMIC DEVELOPMENT

AND SUSTAINBLE DEVELOPMENT:
Sr. ECONOMIC
ECONOMIC GROWTH SUSTAINABLE DEVELOPMENT
Nos. DEVELOPMENT
[1]. Economic growth means Economic development Sustainable development means

an increase in output (real means increase output along to improve the quality of life of
per capital income) of a with change in technical and both present and future
country for a long period institutional arrangements. generation.
[2]. This concept is generally It is generally used for It is used for both developing
used for developed developing. countries as well as developed
countries countries.
[3]. It ignores distribution of It considers distribution of It considers distribution of income

income income of present and future generations
[4]. It ignores protection of It does not give attention to It gives special emphasis on the
environment and natural protection of environment protection of natural resources
resources. and environment
[5]. It exploits a large stock of It exploits large stock of It makes a rational utilisation of
natural resources natural resources natural resources, so as to
protect the interest of present and
future generations.
===============================================================

NOTES
MERVIN CLASSES
„102‟, BLUE DIAMOND, FATEHGUNJ, VADODARA
ST EPP I NG ST O N E T O S UCC E S S

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Mervin Classes P A G E – [ 1]

INDIAN ECONOMIC POLICY & PLANNING

F.Y.B.Com. SEMESTER: II UNIT- I

 INDEX: UNIT PAGE NO.

[A]. MEANING OF ECONOMIC PLANNING : 02 – 03

[B]. IMPORTANCE/REQUIREME NTS/NEED OF PLANNING : 03 – 03

[C]. PLANNING IN INDIA : 04 – 06

[D]. CONDITIONS FOR THE S UCCESS OF PLANNING : 06 – 07

[E]. OBJECTIVES OF PLANNI NG : 07 – 10

[F]. NITI AAYOG: 10 – 11

[G]. SUSTAINABLE DEVELOPM ENT: 11 – 12

[A]. MEANING AND DEFINITION OF ECONOMIC

[B]. DIFFERENCE BETWEEN E CONOMIC DEVELOPMENT

[C]. MEASUREMENT/INDICATORS OF ECONOMIC

[D]. NEW HUMAN DEVELOPMEN T INDEX [HDI]: 24 – 28

[E]. MULTI – DIMENSIONAL POVERTY INDEX: 28 – 30

[F]. GENDER DEVELOPMENT I NDEX: 30 – 31

[G]. INCLUSIVE GROWTH: 31 – 32

[H]. DIFFERENCES OF VARIOUS INDICATORS: 33 – 37

STEPPI NG STO NE TO SUCCESS PTO – [2]

What do you mean by “Economic Planning”?

[A]. MEANING OF ECONOMIC PLANNING:

 DEFINITION ACCORDING TO H.D. DICKINSON :

This definition describes whole structure of planning, it is considered as comprehensive.

 NATIONAL PLANNING COMMISSION:

STEPPI NG STO NE TO SUCCESS PTO – [3]

“Economic planning is must for the developing countries”. Discuss.

[B]. IMPORTANCE/REQUIREMENTS/NEED FOR ECONOMIC PLANNING IN

STEPPI NG STO NE TO SUCCESS PTO – [4]

Explain planning in different economies. Discuss the types of planning. [OR]

[C]. PLANNING IN INDIA:

STEPPI NG STO NE TO SUCCESS PTO – [5]

STEPPI NG STO NE TO SUCCESS PTO – [6]

What are the pre-requisites for successful planning in developing countries?

[D]. CONDITIONS FOR THE SUCCESS OF PLANNING:

STEPPI NG STO NE TO SUCCESS PTO – [7]

Explain the main Objectives of Indian Plans.

[E]. OBJECTIVES OF PLANNING:

STEPPI NG STO NE TO SUCCESS PTO – [8]

Plan Target growth rate Actual growth rate

1st Plan (1951-56) 2.1 % 3.6%

2nd Plan ( 1956 – 61) 4.5% 4.3%

3rd Plan ( 1961 – 66) 5.6% 2.6%

4th Plan (1969 – 74) 5.7% 3.3%

5th Plan ( 1974 – 79) 4.4% 4.8%

6th Plan (1980 – 85) 5.2% 5.7%

7th Plan (1985 – 90) 5% 6%

8th Plan (1992– 97) 5.6% 6.8%

9th Plan (1997 – 2002) 6.5% 5.4%

10th Plan (2002 – 2007) 8% 7.6%

11th Plan (2007 – 2012) 9% 8%

12th Plan (2012 – 2017) 8% NA

STEPPI NG STO NE TO SUCCESS PTO – [9]

STEPPI NG STO NE TO SUCCESS PTO – [10]

STEPPI NG STO NE TO SUCCESS PTO – [11]

Write a short note on Sustainable Development.

[G]. SUSTAINABLE DEVELOPMENT: