THE ECOHOLICS Monthly

Economics
Rewind

MAG NOV
2024 ISSUE

NOBEL PRIZE ECONOMIST OF THE

ECONOMICS 2024 MONTH
WINNERS AND DEBATE

STATE OF THE INDIAN Ph.D AND JRF

ECONOMY ASPIRANTS LOOK OUT
FOR UPDATES
Table of ecoholics.in

Contents
Monthly Highlights 03

News At Glance 06

Decode Reading The Budget 08

National Income Simplified 09

State of Indian Economy 10

Nobel Prize Economics 2024 12

The Debate Around
Nobel Prize 2024 14

A Quiet Revolution in 15
Compassionate Capitalism

Economist of the Month 17

18

21
Sponsored by IAS Origin and Brint Marketing
Thynk Unlimited 01
Report
 FOR OUR
READERS
Dear Readers,
Welcome to our November edition of The
Ecoholics Magazine 2024! As the year
nears its end, we’re excited to bring you
content that keeps you inspired and
informed about the world of economics.
Understanding economics is important
because it helps us make sense of how our
world works and how we can make it
better.
Every choice we make, from shaping
policies to improving business practices,
can impact society in meaningful ways.
That’s why your commitment to learning
economics matters so much. This journey
can be challenging, but it’s also full of
opportunities to make a real difference.
I hope this edition keeps you motivated and
reminds you that your efforts are part of
something bigger. Together, we can keep
building a stronger and more hopeful
“Every choice in future.
economics has the
With support and encouragement,
power to shape a Sanat Shrivastava
better world” Founder, Managing Director, and CEO of
Ecoholics

WWW.ECOHOLICS.IN 02
 News in Spotlight What’s happening, India?

highlights
India faces serious problem on poverty and hunger

INDIA RANKS 105TH OUT OF 127 AROUND 129 MILLION INDIANS

COUNTRIES ON THE 2024 GLOBAL ARE LIVING IN EXTREME POVERTY
HUNGER INDEX (GHI) IN 2024
With this rank, India falls into the Approximately 129 million Indians, or
"serious" hunger level category 9% of the population, live in extreme
alongside Pakistan and Afghanistan. poverty on less than ₹180 ($2.15) a
India’s score of 27.3 highlights day, as defined by the World Bank.
persistent challenges in food security, Although this is an improvement from
malnutrition, and child mortality. previous decades, it underscores
persistent economic divides.
Experts cite climate, economic
disparities, and limited resources as A broader poverty threshold of $6.85
drivers of hunger in India. Targeted, a day reveals even more economic
sustainable strategies, like those in vulnerability, highlighting the need for
Bangladesh on health programs and inclusive growth to reduce underlying
agricultural investments, could help disparities.
India make meaningful progress.

@ecoholics.in
03
 News in Spotlight How are you doing, India?

highlights
“Agri” and “IT” sectors face the UNEXPECTED change
RISE IN MONTHLY INCOME FOR RURAL
HOUSEHOLDS IN INDIA.
A recent NABARD survey highlights
improved income levels among rural
farming households in India, with
agricultural households averaging
Rs. 13,661 per month—surpassing
non-agricultural households, which
earned around Rs. 11,438.

This growth, largely fueled by increased agricultural activities, has driven a 57.6%
rise in rural household incomes overall, underscoring the role of agriculture in
enhancing rural financial stability​

INDIA’S DIGITAL JOURNEY ILLUSTRATES This disconnect, noted by economist

Robert Solow, suggests that while
THE SOLOW PRODUCTIVITY PARADOX
digital infrastructure expands,
India's rapid digital growth—boosted by translating it into measurable
smartphone adoption, online services, and productivity gains remains a challenge.
initiatives like Digital India—illustrates the However, with India being competitive
Solow Productivity Paradox: despite these in IT driven technologies, the best can
advancements, productivity has not risen at be expected in this sector.
the expected pace.

@ecoholics.in
04
 News in Spotlight RBI Says

highlights
RBI Monetary Policy Committee (MPC) changed its
stance
The Reserve Bank of India’s Monetary
Policy Committee (MPC) recently changed
its stance from "withdrawal of
accommodation" to a "neutral" position.
This means they are taking a balanced
approach, allowing flexibility in their
decisions without leaning towards making
borrowing more expensive or cheaper.

THE COMMITTEE (MPC) MAINTAINED THE REPO RATE AT 6.5%, MARKING

THE TENTH CONSECUTIVE MEETING WITHOUT A CHANGE.

While the committee kept the policy

repo rate steady at 6.5%, this change in
stance reflects the RBI's strategy to
carefully balance inflation control with
the support of domestic growth, amid
pressures from global economic
uncertainties and fluctuations in food
and energy prices​

It reaffirmed its inflation forecast at 4.5%,

highlighting potential upward risks from
food prices and geopolitical tensions.

The meeting was notable for being the first under a new policy committee, which
includes three newly appointed external members. This session followed the U.S.
Federal Reserve's recent rate cut, reflecting the ongoing global monetary landscape​.

@ecoholics.in
05
 NEWS AT GLANCE
HAL Becomes 14th Maharatna Company
Hindustan Aeronautics Limited (HAL), a state-owned
defense giant founded in 1940, was recently elevated to
Maharatna status. With its headquarters in Bengaluru,
HAL manufactures aircraft, helicopters, and aerospace
equipment.This new designation allows HAL to make
strategic investments of up to ₹5,000 crore and
pursue global acquisitions.

India’s Core Sector Growth Slows

India's core sectors saw a 1.8% year-on-year decline in August, marking the first
contraction in the Index of Industrial Production (IIP) since FY 2025. With the Index of
Core Industries (ICI) reaching 155.8, this drop raises concerns about the country's
industrial health, reflecting challenges in manufacturing, mining, and electricity
sectors.

India’s Per Capita Income Milestone

India’s per capita income reached $2,730 after 75 years, with projections for an
increase by $2,000 in the next five years. The Gini coefficient has improved, reflecting
reduced income inequality in both rural and urban areas.

@ecoholics.in
06
 NEWS AT GLANCE
Annual Survey Shows Manufacturing Growth
The Annual Survey of Industries (ASI) 2022-23
revealed a 7.5% rise in manufacturing employment, the
highest in 12 years. Manufacturing GVA grew by 7.3%,
signaling formal job creation and stronger industrial
output, while informal sector jobs declined slightly.

India Ranks 3rd in Asia Power Index

India surpassed Japan to become the 3rd largest power in the Asia Power Index
2024, driven by its economic recovery and future resource potential. India’s non-
aligned diplomatic strategy has also boosted its global influence, making it a key player
in the Indo-Pacific.

India Plans GDP Base Year Revision

The Ministry of Statistics and Programme Implementation (MoSPI) is set to revise

India's GDP base year to 2022-23, aligning it with new economic indicators. The
revision aims for more accurate measurement, incorporating GST data and using
improved methods like double deflation.

@ecoholics.in
07
 Back to Basics
Nov Edition

DECODE READING THE BUDGET

The government budget may seem complex, but it’s key to understanding national priorities and economic health.
Here’s a simple breakdown on how to read the union budget.

The Government Budget is divided :

Horizontally and Vertically VERTICALLY
KEY COMPONENTS
Actual Figures of the
last-to-last Financial Capital Receipts: Recovery of loans,
Year (e.g., 2022-23) borrowings, other liabilities.
HORIZONTALLY

Revenue Receipts: Tax + Non-Tax

RECEIPTS
Revenue.
Budget Estimates of
the Previous Financial Budget Receipts: Total revenue
Year (e.g., 2023-24) (capital + revenue).
Capital Expenditure: Long-term
asset spending.
Revised Estimates of
the Previous Financial EXPENDITURE Revenue Expenditure:
Year (e.g., 2023-24) Government operational costs.

Budget Expenditure: Total of

Provisional Actuals of capital + revenue expenditure.
the Previous Financial Revenue Deficit: Revenue
Year (e.g., 2023-24) expenditure > revenue receipts.
DEFICIT Fiscal Deficit: Total expenditure -
Budget Estimates of total revenue (excl. borrowings).
the Current Financial Primary Deficit: Fiscal deficit minus
Year (e.g., 2024-25)
interest payments.

Interest Payments: Servicing

Key Terms
government debt.
Budgeted: Planned allocations.
Revised: Adjustments made based on actual OTHERS Grants for Capital Assets: Funds
for infrastructure creation.
trends.
Provisional: Tentative figures, awaiting final Effective Capital Expenditure:
confirmation. Capital expenditure + capital
grants.
Actual: Final, confirmed figures.

@ecoholics.in
08
 Back to Basics
Nov Edition

NATIONAL INCOME 101 SIMPLIFIED

National income calculation is an essential part of economics that gives a comprehensive view of
the economic activity within a country. Hence, here we break down the basic formulas and
concepts to understand how we calculate national income.

Income Method
This approach sums all the incomes earned
From Gross to Net or Vice Versa by the factors of production within a
country, reaching NDP at Factor Cost.
Gross Value = Net Value + Depreciation (Dep)
Components:
Net Value = Gross Value - Depreciation (Dep)
Compensation of Employees (wages,
salaries, social security contributions)
From Gross to Net or Vice Versa
Operating Surplus (rent, royalty,
interest, profit)
Market Price (MP) = Factor Cost (FC)
Mixed Income
+ Net Indirect Taxes (NIT)
Factor Cost (FC) = Market Price (MP)
- Net Indirect Taxes (NIT) From Domestic Income to
Net Indirect Taxes (NIT) = Indirect National Income or Vice Versa
Taxes - Subsidies
Domestic Income = National Income -
Net Factor Income from Abroad (NFIA)
Methods to Calculate National Income
National Income = Domestic Income +
Value Added Method Net Factor Income from Abroad (NFIA)
This method sums the value added at each
NFIA = Factor income earned by Indian
production stage, called Gross Value Addition
residents abroad - Factor income
(GVA), which equals GDP.
earned by non-residents in India
Formula: Value Added = Value of Output -
Intermediate Consumption

Expenditure Method
This method sums all expenditures on final goods and services, reaching GDP at
Market Price.
Components:
Private Final Consumption Expenditure
Government Final Consumption Expenditure
Gross Domestic Capital Formation (including Gross Fixed Capital Formation and
Change in Stock)
Net Exports (Exports - Imports)
@ecoholics.in
09
 STATE OF INDIAN ECONOMY
Nov 2024 Edition
@ecoholics.in

The economy proved its strength in the first half of 2024, as falling inflation gave households a
well-deserved boost in spending power. Optimism is on the rise as we look forward to what’s next.

Consumer Confidence

People are feeling more hopeful about the

future (with the Future Expectations Index
CPI Inflation in the Economy around 115) but less positive about the present
(with the Current Situation Index under 90).
Inflation varied a lot over time, falling from high
levels in late 2022 and early 2023, then leveling off
at around 5.5% by mid-2024.

Food prices were a major reason for inflation changes,

with food inflation rising to 8.4% by September 2024.

Fuel inflation dropped sharply, even going negative in

early 2024, before slightly recovering to -1.4% by
September 2024.

Overall inflation was mostly driven by food prices,

while fuel had less impact and even contributed to
Labor Market Update
lower inflation in 2024
More people are working or looking for work than
ever before! The Labor Force Participation Rate
(LFPR) is now at 60.1%, and the Worker
Population Ratio (WPR) is at 58.2% — both the
highest since the survey began. The unemployment
10 rate stayed the same at 3.2% in 2023-24.
 STATE OF INDIAN ECONOMY
Nov 2024 Edition
@ecoholics.in

Economic Activity Index

The curve shows a clear and steady rise from the

sharp dip in early 2020, reflecting a continuous
economic rebound. The gradual and consistent
upward slope indicates that the recovery has been
stable, with no major setbacks or disruptions over
the period.

Supply Chain Pressures

The Index of Supply Chain Pressures for India
(ISPI) shows a sharp decrease from elevated levels in
early 2023 to near-average levels by mid-2024. This
significant improvement means that supply chain
disruptions have eased, providing stability for
businesses. As a result, companies are now facing far
fewer logistical and supply challenges compared to the
peak disruption periods observed in previous years.

GDP Growth Nowcast

The curve shows a steady rise in GDP growth after the
big drop from earlier disruptions. By September 2024,
the economy is expected to grow at 6.8% year-on-year,
which is a sign of strong and healthy performance. The
smooth upward trend on the graph means the economy
is consistently getting better and growing steadily
without major setbacks.

As we reflect on these economic indicators, the road ahead appears hopeful yet challenging,
with opportunities for growth balanced by the need for continued resilience and adaptability.
11
 Nobel Prize in Economics 2024
The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2024 is
awarded to Daron Acemoglu, Simon Johnson, James A. Robinson "for studies of how
institutions are formed and affect prosperity"

They answered some of the most burning questions for the economists:

Why are some nations rich and others poor?

Why do some nations fail while others succeed in achieving prosperity?

Their research in political economy show how political factors shape institutions and drive economic
prosperity.
Did you know?
The richest 20% of countries are 30 times wealthier than the poorest—and the gap isn't closing!

This year's economics laureates reveal the hidden key to prosperity: societal institutions. "Institutions"
aren't just rules—they shape how we live, grow, and thrive as nations. Weak institutions that exploit
the population hold countries back from true progress.

12
 Nobel Prize in Economics 2024
Nobel Laureates found evidence for the link between politics and nation’s wealth.
Two terms that were highlighted in research :
Inclusive vs Extractive Institutions

Extractive ones
Inclusive institutions
(dictatorship, no rule of law)
(democracy, law, property
keep wealth in the hands of
rights) drive growth.
the few.
The laureates found that colonizers' political and economic systems greatly impact today's
prosperity. Some colonies exploited resources, while others built inclusive systems for lasting
growth.

For example, in the mid-18th century, India outproduced the US industrially, but by the 19th
century, it fell behind due to these institutional differences.

In regions where colonizers faced high risks—due to large local populations or deadly diseases
like malaria—they opted for extractive institutions. In low-mortality areas, colonizers created
inclusive institutions that empowered locals and encouraged growth and prosperity.

The research highlighted on Reversal of Fortune where regions that were most prosperous around 500 years
ago are now among the poorest.

In sparsely populated, less prosperous areas, colonizers introduced institutions that supported
long-term economic growth. However, in wealthier, densely populated regions, more extractive
institutions were implemented, which limited prosperity.

In conclusion, this pattern, consistent across colonies regardless of colonizer nationality.

13
 Nobel Prize in Economics 2024 DEBATE
Authoritarian Economies: Booming Today, But What About Tomorrow?

The 2024 Economics Nobel Prize winners, Daron Acemoglu and Simon Johnson, argue
that inclusive institutions are key to long-term prosperity, but examples like China and
South Korea challenge this idea.

China’s extraordinary economic growth under centralized control raises the question:
Can extractive institutions—those limiting political freedom—deliver lasting success?

Acemoglu and Johnson acknowledge that authoritarian regimes can generate short- to medium-term
growth, particularly during rapid industrialization, as seen in China. However, they argue that
extractive systems eventually hit a ceiling. Without political participation and economic inclusivity,
innovation stagnates, and growth becomes unsustainable.

South Korea, on the other hand, began its economic rise under authoritarian rule but
later transitioned to democracy.

This shift toward inclusive institutions has helped it maintain growth over the long term,
aligning with Acemoglu and Johnson's core thesis. Their research suggests that countries
relying on extractive models, like the former Soviet Union, eventually face limits to growth,
often leading to economic stagnation or decline.

The question remains: Will China’s current model stand the test of time, or will it need to embrace more
inclusive policies to sustain its progress?

Acemoglu and Johnson’s theory is not about short-term wins but long-term, equitable prosperity.
The real challenge for nations like China is whether they can transition toward inclusive institutions
(which also means being concerned about citizens ) to ensure continued growth and stability in the
decades ahead.

14
 RATAN NAVAL TATA
A Quiet Revolution in Compassionate Capitalism
The world bids farewell to Ratan Tata, a leader whose quiet strength and visionary
approach transformed Indian industry and left an indelible mark on the global stage

In a world driven by cutthroat competition, Tata’s philosophy was simple yet

Ratan Tata quietly redefined what it revolutionary: business isn’t just
means to lead. about profits, it’s about improving lives
Under his understated leadership, the Tata - an approach rooted in
Group became a global force. compassionate capitalism.

Two economic thoughts are clearly reflected in his actions: the use of comparative
advantage for global expansion and Amartya Sen’s Capability Approach in his focus on
social responsibility.

Using comparative advantage, he led Tata’s global expansion with key acquisitions
like Tetley, Corus, and Jaguar Land Rover, making India a global player.

Tata Steel acquires

Joins Tata Sons as a trainee after Launches Tata Indica, Corus, making Tata
key milestones

studying at Cornell and Harvard. India’s first indigenous Steel a global leader in
passenger car. the steel industry.

1937 1991 2000 2008

1955 1998 2004

Ratan Tata is born in Becomes Chairman of Tata Tea acquires Introduces the Tata
Navsari, Gujarat, into Tata Sons, initiating a Tetley, marking one of Nano, the world’s
the Tata family. transformative era for India’s first major most affordable car,
the Tata Group. global acquisitions. redefining automotive
affordability.

15
 RATAN NAVAL TATA
A Quiet Revolution in Compassionate Capitalism
Through his leadership, we can view India’s economy through the lens of stakeholder
theory, which emphasizes that businesses should create value not just for
shareholders but for all stakeholders—employees, customers, and society at large.

This was reflected through his commitment to Amartya Sen’s Capability Approach
ensured that business success also enhanced human well-being, with innovations like
the Tata Nano and philanthropic efforts through Tata Trusts to improve education,
healthcare, and livelihoods for millions.

Ratan Tata’s leadership boosted investor confidence, both domestically and internationally.
His strategic acquisitions, innovations, and management style attracted global investments
into the Tata Group, contributing to India's reputation as an emerging market.

key milestones
Tata Group becomes Steps down as Chairman of
India’s most valuable Tata Sons, becomes Briefly returns as interim
brand, with growing global Chairman Emeritus of Tata Chairman during a
recognition. Group. leadership transition.

2008 2011 2014 2020-2024

2010 2012 2016

Tata Motors acquires Jaguar Land Tata Consultancy Ratan Tata begins Tata Trusts, under his
Rover, combining India’s Services (TCS), the IT investing in startups, influence, continues
manufacturing efficiency with arm of Tata Group, including Ola, Paytm, and significant
premium global brands to access becomes the largest UrbanClap. philanthropic efforts.
luxury markets. Indian IT company by
revenue

Though Ratan Tata is no longer with us, his dual legacy of global
business success and compassionate capitalism continues to
inspire, and showed the world that you don’t have to shout to
16 be heard— you just need to act with purpose.
 Joan Robinson
Economist of the Month

Joan Robinson, born in October 31, 1903, was an economist who didn’t just challenge the
status quo—she obliterated it. Her work challenged conventional economic theories and
reshaped how we understand market structures. Her 1933 work, The Economics of
Imperfect Competition, introduced the concept of “monopsony”—a crucial insight into
how single powerful buyers, like dominant employers, can distort markets and drive
down wages. This idea remains vital in understanding labor markets today.

Working alongside John Maynard Keynes and other Cambridge economists, she helped
refine and popularize Keynes’s theories on aggregate demand and economic cycles.

But Joan Robinson’s contributions didn’t stop there.

In the 1940s, she engaged deeply with Marxian economics, blending Marx’s historical
perspectives with Keynesian tools. This allowed her to critique capitalism from a fresh
angle, emphasizing the historical and social forces that neoclassical models often
ignored.

In her Essay on Marxian Economics (1942) she argued that understanding economic
systems required looking at history and class dynamics, not just abstract models of
equilibrium. This synthesis enriched the economic discourse and opened new avenues
for exploring inequality, capital accumulation, and the evolving
nature of capitalism.

Later, with The Accumulation of Capital (1956), she didn’t hold

back from challenging neoclassical ideas. Robinson questioned
the simplistic assumptions around capital and showed how wealth
accumulates unequally over time, sparking fierce debates that
remain relevant to this day.

Never afraid of confrontation, Robinson used her sharp

intellect and sharper tongue to shake up economic
orthodoxy. Her legacy as an economic revolutionary lives on,
challenging us to think beyond neat, theoretical models and
grapple with the messy realities of economic systems.

17
 NOV Edition

If someone is preparing for UGC NET or just keeping an eye on

the latest in academia, there’s plenty to catch up on. This year,
UGC NET shaked things up with new categories, evolving
eligibility rules, and some surprise twists in exam formats.

For those who might be a bit rusty or new to the scene, UGC NET,
conducted biannually by the National Testing Agency (NTA), is the
gold standard for determining eligibility for Junior Research
Fellowship (JRF), Assistant Professor roles, and Ph.D. admissions.

Three New Categories for Ph.D. Admission - For the first

time, UGC NET has introduced three distinct categories for Ph.D.
eligibility, making it more streamlined yet competitive.

Category 1 (JRF-qualified candidates): These candidates

will still need to go through an interview process, following
the UGC Ph.D. Regulations of 2022.
Categories 2 & 3: UGC NET scores can now be used as a
substitute for university-specific entrance exams for Ph.D.
programs. The NET marks will carry 70% weight, and the
remaining 30% will come from performance in an interview
or viva voce. The combined scores will determine admission
merit, and the NET score will be valid for one year from the
result date.

The June 2024 exam threw in one more surprise - OMR

sheets replaced the typical Computer-Based Test (CBT), only for
the re-exam to revert back to CBT. So, what does this mean for
the upcoming December cycle? The mode remains anyone’s
guess for now, but all eyes are on the official notification for
clarity.

18 @ecoholics.in
 Key Questions Asked UGC NET 2024

The UGC NET exam is structured to test aptitude and knowledge across
two papers, and for many aspirants, figuring out where to focus and how to
stay motivated is half the battle. Here’s some way to win the battle.

Should I give more attention to Paper 2?

Paper 1 may seem secondary, but it’s a game-changer.

Strong scores in Logical Reasoning and Data
Interpretation can be a safety net if Paper 2 falters.
Balance is crucial—both papers deserve attention.

How do I stay motivated for months of studying?

Preparation can be tough, but it doesn’t have to be

miserable. Balance study with self-care—take breaks,
stay connected, and don’t feel guilty for resting. Focus on
quality over quantity and celebrate small wins.

How do I prepare effectively for both papers?

Try a 2:1 ratio. For every three hours on Paper 2,
dedicate 1.5 hours to Paper 1. Use past year questions
(PYQs) as your guiding light and make mock tests a
weekly habit. They give a reality check and help fine-tune
your approach.

No negative marking? How should I handle that?

It’s simple: don’t leave any question unanswered. Take an

educated guess if needed. With no penalty for wrong
answers, there is everything to gain.

@ecoholics.in
Nov Edition 2024
19
 THOUGHTS TO LEAD
Economics is the foundation that guides the
decisions of individuals, businesses, and
governments, shaping the future in more ways
than we realize. As we embrace the complexities
of our interconnected world, your research and
analysis become even more critical. Remember,
every thought you put into action has the
potential to leave an indelible impact. Moving
forward in this edition, you’ll be inspired by
scholars' perspective. Together, we explore how
your passion for economics can make a real
difference. Ms. Asawari Savarikar

Dear Readers,
We know that studying economics can sometimes feel
challenging, and it’s perfectly normal to feel stuck or
drained along the way. But take heart—every
challenge brings a chance to grow. In this edition,
we’ve brought together new insights and perspectives
designed to deepen your connection to the fascinating
world of economics.
The goal is to make economics not just a subject you
study, but a lens through which you see and engage
with life around you. Take your time, absorb these
ideas, and let them spark your curiosity

20

Ms. Harpreet Kaur

 New Article

DEMOGRAPHIC
TRANSITION OF INDIA
“The question arises here whether we’ve been able to deploy the
human capital stock in the right way to make it a true asset? “
It was in April 2023, almost one and a half years Will the large population lead us to becoming a
ago, that India’s population surpassed that of global superpower like China? Or will it worsen the
China. With a strength of more than 1.425 billion, already sluggish rate of economic growth?
India became the world’s most populous country. Moreover, what caused the population of India to
China, which had this title, witnessed a decline in explode, to grow at such a phenomenal rate?
population after reaching a peak of 1.426 billion in What was the situation before? What will be the
2022. (UN DESA Policy Brief No. 153) However, it is situation after? To answer these questions, we
predicted that India's population will continue to can analyse the “Demographic transition of India”
grow for several decades for its graph to reach its
peak and then start to decline. Having the world’s
largest population, we have the largest stock of
human capital assets.

A demographic transition is a change in population growth trends from high birth, high death rates, to high
birth and low death rates. This leads to a stable population in the first stage, however, population growth
can be seen in the second stage. In India, this shift in trend can be seen after the year 1921, which is known
as the year of great divide.

@ecoholics.in

21
 New Article

DEMOGRAPHIC TRANSITION OF INDIA

India entered into the second phase of The theory of population growth is that it grows
demographic transition due to improvement in exponentially (and not linearly) in a sense that if a couple
sanitation, healthcare, and availability of basic produces two babies, they will in turn produce two more
amenities. Large death rates stabilised the (each), and the resulting four will produce two more
population by somewhat nullifying the large birth (each). Hence a couple can increase the population by
rates in the first phase. However, in the second fourteen times (eight of the latest generation, four from
phase, this scenario had changed for India, once one preceding generation, and two from their preceding
the population started to grow, the growth never generation) in a span of sixty years. (Assuming that only 3
stopped (but has slowed down recently). subsequent generations are alive, and assuming that 25
years is the ideal age of marriage and adding 10 years in
buffer). However, the assumption that a couple produces
The period of 1921-1951 saw a period of steady
two babies is erroneous in itself. We observe that the
growth which was succeeded by a period of
fertility rate of India in 1960 was nearly 6 per woman
population explosion from 1951-81. However, the
(along with a life expectancy of 40-45 years). This was
population growth rate started to stabilize after
supplanted with a severe decline in death rates such as
1981.
U5MR, IMR etc.

A large population implies that we have a larger number of bellies to feed, but it also
implies that we have more working hands to produce more (maybe this argument, when
taken into consideration by households has led to the enormous population growth).

However, to produce more, we must train the One direct implication of having a large population in
population and impart the right kind of skills in developing countries is the presence of a large share of
them, along with it, we must develop the right kind the poor, (it is undoubtedly tough to work on such a
of environment for the population to sustain. multitude of people who belong to a multitude of social
strata to uplift them) today, the poverty rate of India
stands at around 12 percent (with a population of around
“Implications in the context of India”
1.425 billion ) which was no less than 45 percent in 1951
(with a population of merely 361 million). One can clearly
Over the years, India has broadly witnessed two notice that while the proportion of the poor has gone
types of approaches to uplift the quality of life for down significantly, the absolute number of the poor has
its population. The socialist approach which was only slightly changed.
followed largely by the left wing parties until the
90s which was characterized by direct In conclusion, while we should definitely celebrate what
involvement of government in aiding income we’ve achieved by far (in fields such as poverty reduction,
growth, and enhancing well being; and the population stabilization), we must not let those
capitalist approach which we adopted around the achievements obscure our vision of the problems which
90s, largely focuses on ‘incentivizing growth’. still persist owing to the huge population we have.
However, the success and viability of the two
approaches is beyond the subject matter of this
By Utpal Singh Tomar, Economics Hons’
article.
student at Sri Venkateswara College (DU)

@ecoholics.in

22
Our Creative Force
This magazine edition is the result of passionate dedication and
creativity. A special acknowledgment goes to all who played a
part, big or small, in making this project a reality.

Before this, a thank you to our readers for staying with us till the end—your
curiosity and engagement make every bit of this journey worthwhile.

Editor, Writer, and Designer

Kajal Gulab Rai
Leading the way from start to finish, She has shaped this
magazine’s vision, words, and visuals, creating an experience
indulged in Economics around us with creativity and insight.

Inspiration and Support

We would also like to acknowledge the contributions of our team:

Harpreet Kaur – The brain behind helping with the content flow and
providing attention to every detail so you receive the best.

Kanishk Dwivedi – Sparked the inspiration for one of our concept articles. Here’s
to all insightful and curiosity filled conversations.

Mitali Sharma and Nainsi Agarwal- For their invaluable support in gathering
essential data and research insights.

Every contribution, big and small, has helped bring this publication to life.
Thank you to all who played a part in making this issue a reality.
 Magazine Sponsors
We are deeply grateful to our incredible sponsors, whose generous support and
dedication have made this issue possible.

Performance Marketing Graphic Designing

Video Ads Website development
Content Writing Digital Marketing

A pioneer in strategic marketing, Brint Marketing Solutions, brings brands

to life with vision, and expertise.

www.brintmarktingsolutions.com +91 9755332234

UPSC GS
BATCH
IAS Origin is transforming the way UPSC aspirants
learn. Committed to empowering students!

www.iasorigin.com +91 7880009099

 FIND US
ON

THE
ECOHOLICS
NOV 2024 ISSUE Sponsored by IAS Origin and Brint Marketing