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    ISC Economics chapter 7 and 9 notes

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    chp-7, 9

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    ISC Economics chapter 7 and 9 notes

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    ISC Economics chapter 7 and 9 notes

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    7 views4 pages

    chp-7, 9

    Uploaded by

    avyas1422
    ISC Economics chapter 7 and 9 notes

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 4

    ​Chapter 7 & 9 .

    1. The limitations of Per Capita Income Index are as follows:(i)A


    rise in per capita income is due to rise in prices and not due to
    increase in physical output, so it is not a reliable index of economic
    development. (ii)It excludes all non-marketable goods and services,
    even though they may be important for human happiness and
    better quality of life. (iii)Rise in per capita income may be due to
    use of modern capital intensive technology in production which
    may be labour displacing in nature, thus, adversely affecting the
    poor masses. (iv)If rate of population growth is higher than the rate
    of growth of national income, it will lead to fall in per capita
    availability of goods and services and economic welfare.
    (v)Contribution of commodity to economic welfare may be higher
    than its money value e.g., money value of salt, needle, thread, etc.
    included in national income is lower than their contribution to
    economy.

    2. China , Norway, Australia.

    3. Per capita income: When the total national income of the country
    is divided by its population, we get the per capita income.(ii)Life
    expectancy: It measures the average age of a person in a country. It
    helps us to know the health facilities of the country. (iii)Literacy
    rate: Education is also one of the most important criteria for the
    development of a country.(iv)Gross enrolment ratio: It measures
    the education gained at three levels—at the primary, secondary
    and higher education level.

    4. i)To provide better nourishment by providing people with more


    nutritional and better food;(ii)Adequate clothing and housing;
    (iii)Essential public services like pure drinking water, sanitation,
    health, medical services; (iv)Better education; (v)Better living
    conditions; (vi)More and better employment, particularly for the
    low end poverty groups; (vii)Reduction in inequality by distributing
    the benefits of economic development.
    5. At the state level, there are wide disparities in the levels of
    human development index. States such as Kerala, Delhi, Goa,
    Punjab, Himachal Pradesh, Tamilnadu, Maharashtra and Haryana
    have better HDI. At the other end, state such as Bihar, Uttar
    Pradesh, Madhya Pradesh, Rajasthan, Odisha, Chhattisgarh,
    Jharkhand and Assam had lower HDI. HDI is higher in Urban areas
    as compared to rural areas. The relative positions of state have not
    changed much since the early 1980’s. In general, HDI is better for
    smaller states and Union Territories .

    6. National Human Development Report for India has been


    prepared by the Planning Commission. Its main findings are :(i)The
    level of HDI is low, but it has improved over the years. (ii)HDI is
    higher in the urban areas as compared to rural areas.(iii)At the
    state level, there are wide disparities in the level of human
    development.(iv)HDI is better for smaller states. (v)In general level
    of human development is positively correlated with the level of
    economic growth at the state levels.(vi)Inequalities in human
    development are lower as compared to inequalities in income and
    wealth.

    7. .NITI Aayog: NITI Aayog stands for National Institution for


    Transforming India. It is a
    GovernmentofIndiainitiativetoreplace65year-old Planning
    Commission on January 1, 2015. The NITI Aayog is headed by the
    Prime Minister and has a Vice-Chairman and a CEO. The new body
    has a governing Council comprising chief ministers of all states and
    Lieutenant Governors of union territories. Niti Aayog is different
    from the planning commission in terms of its main functions. The
    two key activities of Planning Commission was to prepare and
    implement the Five Year Plans and to allocate financial resources to
    the states. Neither of these two activities form part of the activities
    of NITI Aayog. The era of economic planning in India is over now.
    Secondly, NITI Aayog does not allocate any financial resources to
    states. NITI Aayog performs three main functions namely:(i)It
    assists the central government in policy making.(ii)It serves as the
    government’s think tank.(iii)It plays an important role in economic
    federalism in the economy.
    8. Bureaucratic Approach: Plan implementation has been affected
    by bureaucratic approach. Because of various procedural and
    bureaucratic bottlenecks, decision making process is slow in India.
    Delay in decision making and follow up action leads to delay in
    starting and completion of various projects. This results in cost
    escalations, i.e., the actual cost of completion of projects turns out
    to be higher than the estimated cost. Natural constraints: Natural
    factors are also responsible for the limited success of planning.
    Performance of agriculture in particular has been affected by
    natural forces like drought and excessive rainfall. Despite various
    technological developments in agriculture during the planning
    periods, agricultural sector is still dependent on monsoon.
    Financial Constraints: Planning is seriously affected by various
    financial constraints. First, there is the problem associated with
    resource mobilisation, both internal and external, Various projects
    could not be undertaken because of limited resource availability.
    Second, there is the problem of shortage of foreign exchange,
    which at times has played havoc with the economy leads to delay in
    starting and completion of various projects. This results in cost
    escalations, i.e., the actual cost of completion of projects turns out
    to be higher than the estimated cost.

    9. The twelfth five year plan was started on 1 April 2012 and was
    concluded on March 2017. This plan aimed at achieving an average
    annual growth rate of 8% during the plan period. This plan laid
    emphasis on inclusive growth rate so as to cover more poor and
    marginal people under its coverage and on regional balanced
    growth. It had targeted to reduce poverty by 10% in the five year
    period. The plan also sought to generate 50 million more jobs. The
    Twelfth plan focussed at increasing the growth rate in the
    agricultural and manufacturing sectors in particular so as to revive
    the growth rate in the Indian economy. This plan emphasised on
    increasing investment in the infrastructure sector by encouraging
    the private sector investment. It aimed at improving the education,
    health and sanitation facilities. Indian economy realised an
    average annual growth rate of about 6.67% during the plan period
    which was below the target.

    10. The success of economic planning of India can be judged upon


    two broad factors- Achievement and Failures. Achievements of
    economic planning are as follows:(i)Increase in national income:
    An important aspect of progress of the Indian economy is
    continuous increase in national income. The
    growthraterosetoover5%during1974to1992. The rate of growth
    during 1990 to 2002 wasaround6%.Thus,since1993economyhas
    been growing. (ii)Growth in agricultural and industrial Production:
    There has been an unmistakable upward trend in the agricultural
    and industrial output since 1951. The growth rate
    ofAgriculturaloutputhasbeenbetween2.5%and3.5%perannumdurin
    gtheperiodofplanning. (iii)Changes in agriculture sector: The
    production of commercial crops such as sugarcane, cotton, jute etc.,
    has registered a large increase since 1950-51. Network of
    agricultural research institutions in India has increased and it is
    regarded as one of the largest in the world.(iv)Changes in industrial
    scenario: The industrial structure has become highly diversified,
    covering a wide range of industries producing consumer goods,
    intermediate goods and capital goods.

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