Economic Development and Indian Economy (Indian Economy - A developing…
Economic Development and Indian Economy
Economic growth means continuous increase in total volume of production over a long period.
Any increase in the volume of goods and services due to some sudden occurrence (i.e., one time increase) cannot be termed as economic growth.
Example: If agricultural production increases only in one year but does not increase in subsequent years, then, it will not be termed as economic growth.
Economic development is a concept wider than economic growth. Economic growth accompanied by increase in real per capita income, reduction in inequalities of income and in the number of poor people, and generating institutional changes and development of technology that affect growth, is called economic development.
Developed and Developing Economies
Developed Economy characteristics
High level of income and consumption
Quality of life in these countries are much better
They have advanced technology and industry
The basic needs of all the people are met
The rate of growth of population in most of these countries are low
Developing Economy characteristics
Level of income and consumption is low
The quality of life is poor
There is unemployment and poverty
Agriculture is the main occupation
Rate of growth of population is high
Indian Economy - A developing Economy
Low level of income
Predominance of agriculture
Capital - deficiency
Inadequate infrastructural facilities
High rate of growth of population
High rate of illiteracy
High infant mortality
Tradition bound attitudes towards work and life
Joint family system