2. HISTORY OF ECONOMIC DEVELOPMENT
OF INDIA
Indus Valley civilisation, the first known
permanent and predominantly urban
settlement that flourished between 3500
BC to 1800 BC boasted of an advanced
and thriving economic system. Its
citizens practised agriculture,
domesticated animals, made sharp tools
and weapons from copper, bronze
and tin and traded with other
cities.Evidence of well laid streets,
layouts, drainage system and water
supply in the valley's major
cities, Harappa, Lothal, Mohenjo-daro
and Rakhigarhi reveals their knowledge
of urban planning . One of the theories
about their end is that they eventually
overused their resources, and slowly
died out. Another theory is that invaders
overran their civilisation.RV 6.27.5: At
Hariyupiyah (Harappa) he (Indrah)
smote the vanguard of the Vrcivans, and
the rear fled frightened."
3. HISTORY OF ECONOMICS
•Adam smith was a father of economics
And there are many more economist ,who
participated in this field like karl max,J.B Say,
J.M Keynes,David Ricardo and so on.
4. DEFINITION OF ECONOMICS
It is derived form two greek
words :-
Okios – a household
Nemein ( nomos)-
Management
Economics means ‘Home
Management’. The head of a
family faces the problem
of managing the unlimited
wants of the family members
within the limited income of
the
family. In fact, the same is
true for a society also. If we
consider the whole society as
a ‘family’,
then the society also faces
the problem of tackling
unlimited wants of the
members of the
society with the limited
resources available in that
society
5. MEANING OF DEVELOPMENT
A branch of economics that focuses on improving
the economies of developing countries.
Development economics considers how to promote
economic growth in such countries by improving
factors like health, education, working conditions,
domestic and international policies and market
conditions. It examines both macroeconomic and
microeconomic factors relating to the structure of a
developing economy and how that economy can
create effective domestic and international growth.
6. DEVELOPMENT GOALS OF DIFFERENT
CATEGORIES OF PERSONS
A. Landless Rural
labourers
B. Rich person
1. More days or work
2. Better wages
3. Economic and social
equality
1) Higher family income
2) Better education to
their children
3) To settle their children
in abroad
Category of Persons
Development goals
/Aspiration
7. METHOD OF MEASURING NATIONAL
DEVELOPMENT
National income –it
refers to the market
values of all good and
services which produce
in financial year within
the country
Average income / per
capita income – it’s the
ratio of total national
income of a country
with respect to total
population
PCI = Total income
Total population
8. NATIONAL DEVELOPMENT
In the process of national development ,a heavy
industry is set up
Or we can say that it’s a all round development of
nation
Like – education, health,and national income
9. WORLD DEVELOPMENT REPORT
World bank has used the criterion of per capita
income for classifying into high income and low-
income countries .
Acc to the 2006 WDR:-
a) $10066 per annum and above in 2004 are called
rich countries .
b) countries with a PCI of 825 $ or less per
annum in 2004
c) In the year 2004, india`s PCI was a mere $620
per annum
10. LIMITATION OF PCI
COMPARISON OF TWO COUNTRIES
country Monthly Income of citizen In 2007 ( in Rupees)
I II III IV V PCI
Country
X
8500 9500 8800 9000 9200 9000
Country Y 500 500 500 500 43000 9000
11. DIAGRAM
0 5000 10000 15000 20000 25000 30000 35000 40000 45000 50000
I
II
III
IV
V
PCI
Country Y no of person
country X no of person
12. INCOME AND HUMAN DEVELOPMENT
HDR published by UNDP compares countries based on
educational level of the people their health status and
PCI
Human development indicators
I. Infant mortality rate:- it indicates the number of
children that die before the age of one year as a
proportion of 1000 lives
II. Literacy rate:- it measures the proportion of literate
population in the 7 and above age group.
III. Net Attendence ratio:- it is the total number of children
of age group 6-10 attending school as a percentage of
total number of children in the same age group.
IV. Sex ratio:-it is the total number of female per thousand
of males.
13. COMPARISON OF INDIA WITH ITS NEIGHBOURS AND
ONE DEVELOPMENT ON THE BASIS OF INCOME AND
OTHER CRITERIA
Country PCI IN US $ Life
Expectancy
at birth
Literacy rate Gross
enrolment
ratio for all
level
HDI Rank
Norway 38550 80 ------- 97 1
China 5530 71 91 73 81
Sri lanka 4390 74 91 69 93
India 3139 64 61 60 126
Pakistan 2225 63 50 35 134
14. SUSTAINABLE DEVELOPMENT
Meaning –the word sustainable means something
which is not short lived but can continue in future
also.
Acc to Robert Repetto,” sustainable development is
a development strategy that manages all natural
resources and human resources as well as financial
and physical assests for increasing long term
wealth and well being .”
15. OBJECTIVE OR FEATURES OF SUSTAINABLE
DEVELOPMENT
Sustained rise in th real PCI and quality of life
Reduction in pollution
Rational use of natural resources
To fulfils the requirements of future generations
16. MCQ
Q1:-which one of the following determines the
development of a country ?
a) Average literacy rate
b) PCI
c) Health status of its people
d) All of these
17. Q2 WHICH OF THE FOLLOWING STATES IN
INDIA HAVE HIGH PCI?
a) Punjab
b) Kerala
c) Bihar
d) orissa
Q3 Average income =
a) Population X NI
b) NI + population
c) Population
Development
d) National income
Population
