Professional Documents
Culture Documents
CHAPTER 1
Concepts in Development
Introduction
Economies grow and develop, they
expand and advance, and they progress
and prosper. There are phases when they
decline too, and there are economies that
experience continuous decay. If one
considers long stretches of human
history, one knows that economies
(civilizations) disappeared altogether. We
will not take into account such long
stretches of time. We shall not consider
too distant a past either. We will leave
them to historians, may be, economic
historians.
Let us take a normal view. We shall
then accept decline as an occasional,
temporary phenomenon. We shall,
therefore, use positive terms only. Of the
positive terms, which have been used to
describe changes as well as to prescribe
changes, two have survived. They are
growth and development. Because we
shall primarily look at nations and
countries as economies, and use terms
such as economic growth and economic
development. We shall often try to
distinguish economic from noneconomic though there are cases where
it becomes difficult to do so.
In order to accommodate decline in
level, we use phrase negative growth
and to describe perverse tendencies, we
CONCEPTS IN DEVELOPMENT
GROWTH RATE
The growth rate for period t can be defined
in the following manner:
Qt
Q Qt1
gt = t
=
1... (1)
Qt1
Qt1
where
gt = (relative) growth rate of GDP in
period t
Qt = GDPFC for period t
Qt1 = GDPFC for period t1
Suppose GDPFC for period 1999-2000 at
1993-94 prices is Rs 11,52,000 crore and
GDPFC for period 1998-99 at 1993-94 prices
is Rs 10,83,000. We can find out that
gt =
Rs 11,52,000Rs 10,83,000
= 1.06371 = 0.0637
Rs 10,83,000
CONCEPTS IN DEVELOPMENT
CONCEPTS IN DEVELOPMENT
2.
3.
4.
5.
10
7.
8.
9.
Economic Development
Economic Growth
Sustainable Development
Quality of Life
A.
B.
C.
D.
GDP
Health
Environment
Structural Change
A.
B.
C.
D.
Long-term
Redistribution
Future Generations
Structural Change
A.
B.
C.
D.
Productivity
Increase in GDP
Basic Liberties
Non-renewable resources
Economic Development
Economic Growth
Sustainable Development
Quality of Life
Economic Development
Economic Growth
Sustainable Development
Quality of Life
Prepare a table showing relevant series of GDP at current and constant prices.
Calculate growth rate for each year and average growth rate for each decade.
2.
Write down things, places, activities and institutions, which are not economic.
11
INDICATORS OF DEVELOPMENT
CHAPTER 2
Indicators of Development
Introduction
You may recall that we have defined
economic development as a process but
also referred to it as a level. In this subunit, our attention would be focussed on
the level of development achieved at a
given point of time (given year). In fact,
in this conception, you may note that
growth is a quantitative change between
two levels of development or levels of
development at two points of time.
Growth is basically an inter-temporal
comparison. For comparison between
two economies, which we often resort to,
there exists no such term. But such a
comparison is often made.
Most people would agree that
development is a process and the process
is multi-dimensional. When any process
is conceived as multi-dimensional, it
becomes difficult to adequately capture its
character through any index. However,
some attempts have been made to
measure the level. We shall discuss four
alternatives to measure the level of
development: Per Capita Income, Physical
Quality of Life Index, Human Development
Index and Quality of Life Index.
Per Capita Income
Gross domestic product is supposed to
measure the level of output produced by
12
13
INDICATORS OF DEVELOPMENT
2.
3.
14
(indicators) impinging upon industrialisation, urbanisation and modernisation. They went on enlisting indicators,
which they thought, reflected some or
the other dimension of development. At
one stage, they listed as many as 73
indicators though, finally, they selected
only 16 as it was found that many of the
indicators were reflected through others.
UNRISD Core Indicators of
Socio-economic Development
Expectation of life at birth
Percentage of population in localities of
20,000 and over
Consumption of animal protein per capita
per day
Combined primary and secondary
enrolment
Vocational enrolment ratio
Average number of persons per room
Newspaper circulation per 1000
population
Percentage of economically active
population with electricity, gas, water, etc
Agriculture production per male
agriculture worker
Percentage of adult male labour in
agriculture
Electricity consumption, kwh per capita
Steel consumption per capita
Energy consumption, kg of coal equivalent
per capita
Percentage
GDP
derived
from
manufacturing
Foreign trade per capita, 1960 US $
Percentage of salaried and wage earners
to total economically active population
15
INDICATORS OF DEVELOPMENT
16
Index Construction
There are, now, three such indicators.
We may call them (i) Life Expectancy
Indicator (LEI), (ii) Infant Mortality
Indicator (IMI), and (iii) Basic Literacy
Indicator (BLI). These three indicators
are averaged to give what is called the
Physical Quality of Life Index (PQLI):
PQLI = (1/3 ) (LEI + IMI + BLI )
TABLE 2.1
Maximum and Minimum Values of Component Indicators
Dimension
Basic Literacy Rate (BLR)
Infant Mortality Rate (IMR)
Life Expectancy at Age 1 (LEI)
Max
100
229
77
Min
0
9
38
Range
100
220
39
17
INDICATORS OF DEVELOPMENT
18
TABLE 2.2
Maximum and Minimum Values of Component Indicators
Component
Life Expectancy at Birth (LEB)
Adult Literacy Rate (ALR)
Combined Enrolment Ratio (CER)
Standard of Living (SL)
Standard of Living (SL)
Unit
Maximum
Minimum
Years
Percentage
Percentage
PPP$
Log PPP$
85
0
0
100
2
25
100
100
40000
4+2log2
19
INDICATORS OF DEVELOPMENT
TABLE 2.3
Year of
Data
Value
Rank
HDR
Year
Year of
Data
Value
Rank
1990
1987
1991
1988
0.439
94 (130)
1996
1993
0.436
135 (174)
0.308
123 (160)
1997
1994
0.446
1992
138 (175)
1990
0.297
121 (160)
1998
1995
0.451
139 (175)
1993
1990
0.309
134 (173)
1999
1997
0.458
132 (174)
1994
1992
0.382
135 (173)
2000
1998
0.456
128 (174)
1995
1992
0.439
134 (174)
2001
1999
0.571
115 (162)
Source: Human Development Report, Oxford University Press Delhi. Issues from 1990-2001
TABLE 2.4
Value of Human Development Index Since 1975 for India
Year
HDI Value
HDI Value*
1975
1980
1985
1990
1995
1999
0.406
0.433
0.472
0.510
0.544
0.571
0.297
0.439
0.571
20
21
INDICATORS OF DEVELOPMENT
EXERCISES
1.
2.
What are the factors that have to be subtracted from GDPFC in order to get
NNPFC? Should we use NNPFC at current prices or at constant prices if we have
to judge the level of development of a country over time?
3.
Why should we divide NNPFC by population when we are not making comparison
with other nations? Explain.
22
4.
What are the weaknesses of the NNP as an index of development? What are
the three suggestions made in order to make up for some of the deficiencies?
5.
What are the major problems with the attempts made by the UNRISD?
6.
7.
8.
9.
10.
11.
12.
13.
Discuss why per capita income should be measured in purchasing power parity
dollars.
14.
15.
List six constituents along with units, which have been considered by the
authors of On Measuring the Quality of Life.
16. What do you mean by political and civil rights? How strongly do you feel that
they should be considered indicators of development? Discuss.
17. Discuss the evolution of indices of development.
ACTIVITY
Suppose for a country Utopia, the values of different Components of Human
Development Index for male and female sections are given below:
Component
Male
Female
60
66
70
2500
65
50
60
2000
Study the data and calculate HDI for male and female
minimum value as given in Table 2.2. Further, suppose
women are biologically sturdier than men and therefore,
values of life expectancy, can be revised to 30 and 90
HDIs and discuss implications with your classmates.
UNIT II
STRUCTURAL CHANGE IN INDIAN ECONOMY
SINCE INDEPENDENCE
In this unit, you will basically learn the growth of and structural changes
in the Indian economy particularly since Independence. As most of the
data are available since 1950-51, the study of changes will mostly confine to
the period since 1950-51. In one case, data is available from 1960-61 only.
Towards the end, in a section, we shall use data since 1972-73. The end
year of a series will be determined by the relevant publications giving
the data.
With growth, every economy diversifies itself in terms of contribution
of different economic activities. Besides structural changes in the economy
in terms of contribution of different sectors, you will have an idea as to
how the labour force is engaged in different economic activities.
As it is felt that growth will be hampered if our economic infrastructure
in terms of energy, transport and communication is weak, you shall see
how our economy is faring in this respect. We also feel concerned about our
education, health and housing and, therefore, you will have an idea about
these social sectors as well.
It is understood that there has come a great break in our policies in
1991 in terms of what has come to be known as Liberalization, Privatization
and Globalisation (LPG). We shall, therefore, discuss major policy planks
before and after 1991 and contrast the two sets of policies.
CHAPTER 3
26
TABLE 3.1
Gross Domestic Product at Constant Prices (1993-94) from 1950-51 to 2000-01
Fiscal Year
Fiscal Year
1950-51
140466
1980-81
401128
1955-56
167667
1985-86
513990
1960-61
206103
1990-91
692871
1965-66
236306
1995-96
899563
1970-71
296278
2000-01
1211747
1975-76
343924
Sources: National Accounts Statistics: Back Series 1950-51 to 1993-94 and National Accounts
Statistics 2001, both published by the Central Statistical Organisation.
27
28
TABLE 3.2
Annual Growth Rates of Gross Domestic Product at Factor Cost for Different Decades
(per cent per annum)
Period
Average Annual
Compound Annual
1950-51 to 1959-60
3.59
3.56
1960-61 to 1969-70
3.95
3.89
1970-71 to 1979-80
2.94
2.86
1980-81 to 1989-90
5.79
5.78
1990-91 to 1999-00
5.80
5.78
1950-51 to 1999-00
4.43
4.11
TABLE 3.3
Per Capita Income at Constant Prices (1993-94) from 1950-51 to 2000-01
Fiscal Year
PCI (Rs)
Fiscal Year
1950-51
3,687
1980-81
5352
1955-56
4,020
1985-86
6082
1960-61
4,429
1990-91
7321
1965-66
4,459
1995-96
8498
1970-71
5,002
2000-01
10561
1975-76
5,167
PCI (Rs)
29
Year
Fig. 3.2 : Growth of Per Capita Income
TABLE 3.4
Annual Growth Rates of Per Capita Income at Factor Cost for Different Decades
(per cent per annum)
Period
1950-51
1960-61
1970-71
1980-81
1990-91
1950-51
to
to
to
to
to
to
1959-60
1969-70
1979-80
1989-90
1999-00
1999-00
Average Annual
Compound Annual
1.53
1.51
0.55
3.89
3.73
2.16
1.35
0.94
0.17
2.85
3.37
2.05
30
31
2.
3.
Manufacturing
3.1.
3.2.
Registered
Unregistered
4.
5.
Construction
6.
7.
8.
Railways
Transport by Other Means
Storage
Communication
9.
Trade
Hotels and Restaurant
32
TABLE 3.5
Contribution of Different Sectors to Gross Domestic Product at Constant Prices
of 1993-94 for the period between 1950-51 and 1999-00 (Rs Crore)
SECTOR OF ACTIVITY
Agriculture
Forestry and Logging
Fishing
Mining and Quarrying
1960-61 1970-71
97,412 1,21,356
9,704
13,086
2,124
3,197
3,594
5,261
1980-81
1,43,431
11,910
3,952
8,477
1990-91 1999-00
2,00,634 2,66,848
11,751
12,542
6,943
10,944
19,819
26,446
PRIMARY SECTOR
Manufacturing
Electricity, Gas and
Water Supply
Construction
1,67,770
55,436
6,774
2,39,147 3,16,780
1,15,282 1,96,763
16,203
28,225
5,722
10,558
18,107
24,395
SECONDARY SECTOR
Trade, Hotels and
Restaurants
Transport, Storage and
Communication
Financing, Insurance, Real
Estate and Business Services
Community, Social and
Personal Services
18,670
12,137
34,240
20,254
58,997
32,324
86,605
48,883
4,645
8,064
13,759
24,963
42,894
9,380
12,568
17,588
26,156
66,990 1,46,546
13,215
18,908
31,660
46,751
84,380 1,52,117
39,377
59,794
95,331
1,46,753
2,81,156 5,51,495
4,23,073
6,92,871 11,51,991
TERTIARY SECTOR
GROSS DOMESTIC PRODUCT
1950-51
70,456
9,456
1,249
2,085
38,218
58,728
1,69,703 2,83,716
86,892 1,68,355
84,477
33
TABLE 3.6
Composition of Output in Terms of Sectoral Output to Gross Domestic
Product valued at Constant Prices of 1993-94 (in Percentage)
SECTOR OF ACTIVITY
1950-51 1960-61 1970-71
Agriculture
50.16
47.26
40.96
Forestry and Logging
6.73
4.71
4.42
Fishing
0.89
1.03
1.08
Mining and Quarrying
1.48
1.74
1.78
PRIMARY SECTOR
59.26
54.75
48.23
Manufacturing
8.89
10.90
12.62
Electricity, Gas and Water Supply
0.33
0.59
1.18
Construction
4.07
5.12
6.11
SECONDARY SECTOR
13.29
16.61
19.91
Trade, Hotels and Restaurant
8.64
9.83
10.91
Transport, Storage and
3.31
3.91
4.64
Communication
Financing, Insurance, Real Estate
6.68
6.10
5.94
and Business Services
Community, Social and
9.41
9.17
10.69
Personal Services
TERTIARY SECTOR
28.03
29.01
32.18
GROSS DOMESTIC PRODUCT
100.00
100.00
100.00
Source: The same as in Table 3.1
1980-81
35.76
2.97
0.99
2.11
41.82
13.82
1.69
6.08
21.59
12.19
6.22
1990-91 1999-00
28.96
23.16
1.70
1.09
1.00
0.95
2.86
2.30
34.52
27.50
16.64
17.08
2.34
2.45
5.52
5.10
24.49
24.63
12.54
14.61
6.19
7.33
6.52
9.67
12.72
11.65
12.18
13.20
36.59
100.00
40.58
100.00
47.87
100.00
34
35
TABLE 3.7
Annual Rate of Growth of Different Sectors over the Decades (in per cent)
SECTOR OF ACTIVITY
Agriculture
Forestry and Logging
Fishing
Mining and Quarrying
PRIMARY SECTOR
Manufacturing
Electricity, Gas and Water Supply
Construction
SECONDARY SECTOR
Trade, Hotels and Restaurants
Transport, Storage and
Communication
Financing, Insurance, Real
Estate and Business Services
Community, Social and
Personal Services
TERTIARY SECTOR
GROSS DOMESTIC PRODUCT
Population
1950-51 1960-61
to
to
1960-61 1970-71
1970-71
to
1980-81
1980-81
to
1990-91
1990-91
to
1999-00
1950-51
to
1999-00
3.29
0.26
5.45
5.59
3.09
6.05
10.29
6.32
6.25
5.25
5.67
2.22
3.03
4.17
3.88
2.39
5.23
11.14
5.54
5.59
4.78
5.49
1.68
-0.94
2.14
4.89
1.62
4.02
6.82
3.03
3.91
4.22
6.14
3.41
-0.13
5.80
8.86
3.61
7.60
9.11
4.59
6.96
5.92
5.56
3.22
0.73
5.19
3.26
3.17
6.12
6.36
4.89
5.88
7.62
7.82
2.70
0.57
4.43
5.21
2.71
5.67
8.56
4.77
5.59
5.40
5.97
2.97
3.42
4.05
9.86
9.09
5.65
3.65
5.29
3.97
6.08
6.77
5.01
4.27
3.91
1.91
4.77
3.69
2.23
4.41
3.07
2.30
6.72
5.61
2.14
7.77
5.81
1.87
5.42
4.30
2.05
36
37
38
TABLE 3.8
Industrial Classification of Workers from 1972-73 to 1999-2000 (in per cent)
SECTOR OF ACTIVITY
1972-73
1977-78
1983
1987-88
1993-94
19992000
74.0
72.0
68.4
64.1
63.9
59.8
0.4
0.5
0.6
0.7
0.7
0.6
74.4
72.5
69.0
64.8
64.6
60.4
Manufacturing
8.8
10.2
10.7
11.3
10.6
12.1
0.2
0.2
0.3
0.4
0.4
0.3
Construction
1.8
1.7
2.3
3.8
3.2
4.4
10.8
12.1
13.3
15.5
14.2
16.8
Agriculture, etc.*
Mining and Quarrying
PRIMARY SECTOR
SECONDARY SECTOR
Trade and Commerce
5.0
5.8
6.9
7.3
7.6
9.4
1.8
1.9
2.5
2.7
2.8
3.7
Other Services
8.0
7.7
9.2
9.7
10.5
9.6
TERTIARY SECTOR
14.8
15.4
18.6
19.7
20.9
22.7
23.6
27.1
30.3
32.2
37.2
39.7
EXERCISES
1.
2.
3.
4.
5.
39
40
sectors.
Discuss, with the help of tables, as to why the contribution of agriculture to
GDP reduced so drastically despite the success of green revolution and surplus
of agricultural production, especially foodgrains.
7.
How have secondary sector and its sub-sectors fared during post-Independence
period?
8.
Give the salient features of growth of tertiary sector and its contribution to
GDP since 1950-51.
9.
Discuss the changes in sectoral composition of GDP.
10. How do you define public sector? How has it grown since 1960-61?
11. Discuss the implications of reduction in contribution of rural areas to GDP,
which is higher than reduction of its share in population.
12. How is the contribution profile of organised sector changing?
13. Differentiate between industrial and occupational distributions of employment.
14. Discuss the industrial distribution of workers in the Indian economy since
1972-73.
6.
ACTIVITIES
1.
2.
3.
4.
Search the years of decline in per capita income from the Table given in the
appendix. Find out its frequency in each decades. Discuss implications with
your classmates.
Locate negative growth rates in Table 3.7. Reason out why from what you read
outside the class.
With the help of total employment figures given in the bottom row of Table 3.8
and percentage distribution of workers in other rows, prepare a table of absolute
employment for each sector for each year. With the help of this table, formulate
your ideas as to which sectors are displacing labour and which ones are
absorbing it.
Suppose labour productivity of a sector is obtained by dividing absolute
contribution of a sector by the size of employment in that sector. Treat
employment for 1972-73 as if it is for 1970-71, and similarly employment for
1993-94 as if it is for 1990-91 for this limited purpose. Calculate labour
productivity for 1970-71 and 1990-91 for each sector and compare the two
sets of derived figures.
41
ECONOMIC INFRASTRUCTURE
CHAPTER 4
Economic Infrastructure
Introduction
Infrastructure means structure below,
which means foundation. It can,
therefore, be taken as basic to all
activities in the economy, whether
related to agriculture or industry or even
tourism. Infrastructure refers to some
kind of permanent installations, which
are used over a long period of time for
supply of basic inputs: railway lines,
roads, dams, canal system, power
stations, satellites and pipelines;
schools, colleges, universities and
institutes; dispensaries and hospitals;
and buildings for services of state organs
like police and judiciary.
Most economic activities require
some kind of power for transformation
of inputs into output. Power may be
needed to preserve certain commodities
over time as their use may spread over
long duration while production matures
in short duration of time. One also needs
power to use in homes.
All activities require transportation.
Raw materials may be away from
production premises. Both production
units and consumption units may be
away from markets. A product may be
used in production or consumption. It
may need to be transported from one
production unit to another production
42
43
ECONOMIC INFRASTRUCTURE
TABLE 4.1
Pattern of Energy Consumption (in per cent of million tonnes of oil equivalent)
Year
Primary Energy
Commercial
NonCommercial
Coal
Electricity
1953-54
28.4
71.6
80.1
16.7
1960-61
34.7
65.3
75.3
19.9
03.2
04.8
1970-71
40.6
59.4
56.1
34.1
0.6
09.2
1980-81
46.9
53.1
47.9
40.3
1.1
10.7
1990-91
59.3
40.7
35.9
43.6
5.5
15.0
1996-97
65.9
34.1
28.9
47.7
6.3
17.1
Source: Ninth Five-Year Plan 1997-2002, Volume II, Planning Commission, Government of India.
44
TABLE 4.2
Production of Coal and Lignite (Million Tonnes)
Coal
Lignite
Total
1950-51
1960-61
1970-71
1980-81
1990-91
2000-01
32.20
32.20
55.23
55.23
72.95
03.39
76.34
113.91
5.11
119.02
211.73
13.77
225.50
309.63
22.95
332.58
Source: Economic Survey 2001-02, Economic Division, Ministry of Finance, Government of India.
TABLE 4.3
Sector-wise Coal Consumption (Million Tonnes)
1980-81
1985-86
1990-91
1995-96
2000-01
Power
Steel
Cement
Railways
Others
Total
34.5
72.9
118.6
184.5
17.6
24.5
24.5
26.4
4.3
7.9
10.1
11.0
10.9
9.1
5.0
0.3
27.7
40.7
47.0
48.9
95.0
155.1
205.2
271.1
ECONOMIC INFRASTRUCTURE
45
46
TABLE 4.4
Petroleum Statistics: Production, Availability and Refining (Million Tonnes)
Production
Import
Availability
Refinery
Throughput
1950-51
1960-61
1970-71
1980-81
1990-91
2000-01
0.3
0.5
6.0
6.5
6.6
6.8
11.7
18.5
18.4
10.5
16.2
26.7
25.8
33.0
20.7
53.7
51.8
32.4
74.1
106.5
103.4
0.3
Source: Economic Survey 2001-02, Economic Division, Ministry of Finance, Government of India.
47
ECONOMIC INFRASTRUCTURE
TABLE 4.5
Electricity Generated (Gross) in Billion KWH
Utilities
Year
1950-51
1960-61
1970-71
1980-81
1990-91
2001-02
Thermal
Hydro
2.6
9.1
28.2
61.3
178.7
424.4
2.5
7.8
25.2
46.5
71.7
73.5
Nuclear
Total
2.4
3.0
6.1
19.5
5.1
16.9
55.8
110.8
264.3
517.4
Non-utilities
Total
1.5
3.2
5.4
8.4
25.1
61.7
6.6
20.1
61.2
119.3
289.4
579.1
Source : Economic Survey 2001-02, Economic Division, Ministry of Finance, Government of India.
TABLE 4.6
Consumption of Electricity from Utilities by Categories of Consumers (in per cent)
Year
1950-51
1960-61
1970-71
1980-81
1990-91
2000-01
Industrial
Agricultural
Commercial
Traction
Domestic
Others
62.6
69.4
67.6
58.4
44.2
33.9
3.9
6.0
10.2
17.6
26.4
31.2
7.5
6.1
5.9
5.7
5.9
6.4
7.4
3.3
3.2
2.7
2.2
2.3
12.6
10.7
8.8
11.2
16.8
21.2
6.0
4.5
4.3
4.4
4.5
5.0
48
ECONOMIC INFRASTRUCTURE
49
50
TABLE 4.7
Progress of Railways in Post-Independence Period
Route/Track (kms)
Route length
Route electrified
Rolling Stock
Locomotives
Diesel
Electric
Coaches
Wagons
Throughout (MT/MTK/M/MK)
Goods traffic originating (MT)
Goods carried (MTK)
Passenger originating (M)
Passengers carried (MK)
Productivity (kms)
Average lead (passenger)
Average lead (freight)
1950-51
1960-61
1970-71
1980-81
1990-91 1999-00
53596
388
56247
748
59790
3706
61240
5345
62367
9968
62759
14261
8209
17
72
19628
205596
10624
181
131
28439
307907
11158
1169
602
35145
383990
10908
2403
1036
38333
400946
8417
3759
1743
38511
346102
7517
4651
2810
41349
244419
93
44117
1284
66517
156
87680
1594
77665
196
127358
2431
118120
220
158474
3613
208558
341
242699
3858
295648
450
301510
4411
403088
51.8
470
48.7
561
48.6
648
57.7
720
76.6
711
91.6
644
51
ECONOMIC INFRASTRUCTURE
4.
52
5.
Roads
Roads can reach the doorsteps. There
are areas, which can be reached through
road only. Vast hinterlands of the
country can be linked only through
roads. We have more than 6 lakh
inhabited villages with more than 10
lakh habitations. We can reach them
only through roads. We have only 7000
railway stations. From railway stations
to cities and within city to ones shop
and residence, one can reach only
through roads. Short distances to
connect railway system have to be
covered through roads only. The railways
have certain limitations in terms of
flexibility.
When major transportation was
carried through carts and camels, we did
not need modern surfaced roads. We
might have had one crore bullock-carts
engaging two crore heads of cattle and
one crore persons engaged in bullock
cart transportation. Only cities had
pucca roads for use by horse carts. Now,
we are having motorised vehicles, which
need pucca roads. Rural-urban link has
53
ECONOMIC INFRASTRUCTURE
TABLE 4.8
Roads by Broad Classification (in Kilometres) and Vehicles (in Number)
National Highways
1950-51
1960-61
1970-71
1980-81
1990-91
2000-01
9,800
21,000
23,300
31,500
33,400
57,700
Surfaced
1,57,019 2,63,015
3,97,000
6,92,171
10,91,043
14,00,000
All Roads
3,99,942 5,24,478
9,17,880 14,91,301
23,31,086
25,00,000
All Vehicles
Goods Vehicles
82,000 1,68,000
3,43,000
5,54,000
13,56,000
30,00,000
Buses
34,000
57,000
94,000
1,62,000
3,31,000
6,00,000
29
46
75
Note : Figures for 2000-01 are rounded ones and somewhat conjectural in nature but based on
government statistics for the late nineties.
Source : Indian Planning Experience: A Statistical Profile, Planning Commission, Government of
India, 2001 and Economic Survey 2001-2002, Ministry of Finance, Government of India.
54
ROAD USERS
Roads are basically constructed for vehicles to ply on. Motorized vehicles are of two varieties
passenger or bus service and goods or truck service. But, then there are personal cars/
jeeps, taxies, two-wheelers and tractors. According to registration statistics, we can expect
on the roads, about six lakh buses, 25 lakh trucks, 50 lakh cars/jeeps/taxies, 2.8 crore
two-wheelers and 45 lakh other vehicles which may include tractors, trailers, and threewheelers (passengers and goods). Total vehicle population is thus around 4.0 crore, some
of which might have become scrap.
However, in order to economize on cost and time as well as to quickly move to a place,
we need better roads and better vehicles, which do not pollute too. This consideration
became more prominent after pollution levels rose to alarming proportions in many cities.
55
ECONOMIC INFRASTRUCTURE
NATIONAL WATERWAYS
National Waterway No.1 is on Ganga between Allahabad and Haldia (1620 kms), via
Patna, Bhagalpur and Farakka. Depth between 1.5 and 2.0 metres is maintained between
Patna and Haldia for major part of the year.
National Waterway No.2 is on Brahmaputra between Sadia and Dhubri (890 kms),
via Guwahati (Pandu). There exists an Indo-Bangladesh Protocol for connecting the way
to Kolkata.
National Waterway No.3 is on West Coast canal between Kottapuram to Kollam
through Champakara and Udyogmandal Canals (205 kms).
56
57
ECONOMIC INFRASTRUCTURE
TABLE 4.9
Growth of Civil Aviation in Terms of Passengers/Cargo Services (in Thousand)
International
Passengers
Cargo (Tonnes)
Domestic
Passengers
Cargo (Tonnes)
Handling by Airports
Passengers
Cargo (Tonnes)
1950
1965
1973
1985
1991
1998
150.0
3.2
270.0
10.2
736.0
28.0
2207.0
84.3
2430.0
101.0
3436.0
92.0
303.0
36.9
1135.0
26.7
2636.0
34.3
8617.0
98.9
7912.0
97.0
11547.0
125.0
17723.0
377.3
36974.0
699.0
10738.0*
178.7
2.
3.
4.
Petroleum Products
1.
2.
3.
Natural Gas
1.
58
TABLE 4.10
Growth of Number of Post Offices by Rural and Urban Division
1951
1961
1971
1981
1991
2001
30810
5424
36234
69513
7624
77137
98835
10224
109059
124689
13535
138224
132646
16073
148719
138149
16402
154551
Source : Indian Planning Experience: A Statistics Profile, Planning Commission, Government of India
and Annual Report 2000-01, Department of Posts, Ministry of Communication, Government
of India.
59
ECONOMIC INFRASTRUCTURE
60
Concluding Remarks
We have gone a long way in improving
our economic infrastructure since
Independence. There is multifold
increase and qualitative change in all
spheres. Yet, there is scope for doing
EXERCISES
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
61
ECONOMIC INFRASTRUCTURE
23.
24.
62
CHAPTER 5
Social Infrastructure
Introduction
In the last chapter, we have learnt about
the importance of economic infrastructure in the development of our economy.
But we know that there is always a man
behind the machine. If a man is healthy
and educated, he is likely to contribute
more and in a better manner. How could
people be healthy and educated? If
people eat well, live in clean houses,
enjoy pollution free atmosphere and are
provided proper medical care when they
fall sick, then they will be healthy. Public
health measures help them have clean
surrounding and also check the spread
of communicable diseases.
Similarly, if people, while young, get
enrolled in a school and are taught by
good teachers, they get educated. Later,
when they pursue such studies as make
them employable in productive
vocations, they become responsible
manpower. But the first condition is that
there have to be schools for all boys and
girls; the schools should be approachable
and be at a short distance. Education
and health, besides making people more
productive, make them more capable of
living better.
Housing is now being considered an
important priority as a majority of people
are now reasonably fed and clothed. As
63
SOCIAL INFRASTRUCTURE
TABLE 5.1
Population Size and Number of Literates (in crore) and Literacy Rate (in per cent)
Population
Number of
Literacy
Year
All
Age 7+
Literates
Illiterates
Rate (%)
(1)
(2)
(4)
(6) = (4)/(3)
1951
1961
1971
1981
1991
2001
36.1
43.9
54.8
68.4
84.1
102.7
28.3
34.4
43.0
53.6
67.6
86.9
5.5
10.2
15.6
23.4
35.2
56.7
22.8
24.2
27.4
30.2
32.4
30.2
19.2
29.8
36.2
43.6
52.1
65.4
Note: Population aged 7+ and literacy rates are estimated for the years 1951, 1961 and 1971 while
for the years 1981, 1991 and 2001, they are actual ones.
Source: Census of India Series-1 India, Paper 1 of 1981: Provisional Population Totals, Census of India
Series-1 India, Paper 1 of 1991: Provisional Population Totals, and Geeta Chaubey, Literacy in
India: An Examination, IASSI Quarterly, Vol. 16, No. 2.
64
TABLE 5.2
Statistics related to Elementary Education: Enrolment, Schools and Teachers
Unit
Primary
Enrolment
Schools
Teachers
Enrolment Ratio
Upper Primary
Enrolment
School
Teachers
Enrolment Ratio
1951
1961
1971
1981
1991
2000
Lakh
Lakh
Lakh
Per cent
186.8
2.1
5.5
42.6
336.3
3.3
7.4
62.4
570.4
4.1
10.6
78.6
737.7
4.9
13.6
80.5
973.7
5.3
16.2
100.1
1136.0
6.4
19.2
104.1
Lakh
Lakh
Lakh
Per cent
33.0
0.14
0.9
12.9
74.8
0.5
3.5
22.5
133.1
0.9
6.4
34.2
207.2
1.2
8.5
41.9
273.1
1.5
9.7
60.1
420.6
1.98
13.0
58.8
Source : India Yearbook 2001: Manpower Profile, Institute of Applied Manpower Research,
New Delhi.
SOCIAL INFRASTRUCTURE
65
66
TABLE 5.3
Statistics related to Secondary Education: Enrolment, Schools and Teachers
Enrolment
School
Teachers
Enrolment Ratio
Unit
1950
1961
1971
1981
1991
Lakh
Lakh
Lakh
Per cent
12.2
0.07
1.26
5.30
34.63
0.17
2.96
10.60
65.80
0.37
6.29
19.00
88.07
0.51
9.12
17.30
143.65
0.80
13.34
24.00*
2000
185.82
1.17
17.20
67
SOCIAL INFRASTRUCTURE
68
69
SOCIAL INFRASTRUCTURE
TABLE 5.4
Life Expectancy at Selected Ages for Years of Census (in Years)
At
Birth
Age 10
Age 30
Age 50
Age 60
Year
Male
Female
Male
Female
Male
Female
Male
Female
Male
Female
1901
1911
1921
1931
1941
1951
1961
1971
23.6
22.6
19.4
26.9
32.1
32.5
41.9
46.4
24.0
23.3
20.9
26.6
31.4
31.7
40.5
44.7
34.7
33.4
29.6
36.4
41.2
39.0
45.2
48.8
33.9
33.7
29.2
33.6
38.6
39.5
43.8
47.7
22.9
22.5
21.6
23.6
29.0
26.6
29.0
33.5
23.8
23.0
21.8
22.3
27.9
26.2
27.9
32.0
13.6
14.0
14.3
14.3
17.8
14.9
16.5
19.2
14.5
14.3
15.0
14.7
18.2
16.1
17.5
19.7
09.5
10.0
10.7
10.3
12.6
10.1
11.8
13.6
10.0
10.1
11.7
10.8
13.7
11.3
13.0
13.8
Source : Health Information of India 1997 & 1998, Central Bureau of Health Intelligence, Director
General of Health Services, Ministry of Health and Family Welfare, Government of India, 2000.
TABLE 5.5
Life Expectancy at Different Ages Based on Sample Registration System
At
Birth
Age 1
Age 5
Age 50
Age 60
Year
Male Female
Male Female
Male Female
Male Female
Male Female
1970-75
1976-80
1981-85
1986-90
1991-95
50.5
52.5
55.4
57.7
59.7
57.0
58.6
60.8
62.2
63.9
57.5
58.8
60.1
60.9
61.8
19.8
20.5
21.4
21.7
22.3
13.4
14.1
14.6
14.7
15.3
49.0
52.1
55.7
58.1
60.9
55.6
58.6
61.1
62.6
65.1
57.7
60.2
61.8
62.5
63.9
21.3
23.0
23.8
23.7
24.8
14.3
15.9
16.4
16.1
17.1
Source : Compendium of Indias Fertility and Mortality Indicators 1971-1997, based on the SRS, Registrar
General of India, New Delhi, 1999.
70
PUBLIC HEALTH
Impact of industrial revolution on health was bad. It became a matter of community concern
requiring government action on a continuing basis. It was realised that the human cost of
industrial revolution and urbanisation in terms of ill health and pre-mature death was
enormous. It was discovered that communicable diseases spread because of filthy
environmental conditions. An important study on health conditions was published in 1842.
After a struggle for six years, a Public Health Act was passed in 1848 in the British
Parliament. The movement led finally to establishment of Ministry of Health in Britain
in1919.
It may be recorded that Kautilya was particular about public hygiene and sanitation.
He made it a part of civic duties that people should not spoil public places, parks and
streets. He also made spoiling an act of punishable offence. In his days, perhaps industrial
pollution did not exist.
71
SOCIAL INFRASTRUCTURE
STD
HIV
72
MORBIDITY
It is a state of ill health. It makes you feel bad about yourself or cause others to worry
about you. You may be suffering from an acute or chronic ailment. It affects your work by
making you temporarily disabled. Prolonged morbidity may lead to mortality.
In our country, acute respiratory infection (1.5 crore) and diarrhoel diseases (80 lakh)
are two major causes of morbidity, leading to a few thousand deaths.
According to a recent survey conducted by the NSSO, number of persons per thousand,
reporting illness preceding the date of survey was found to be 118 and 88 as against 18
and 12 in Mizoram in rural and urban areas respectively. These are the most literate
states of the country. In Uttar Pradesh, Madhya Pradeh, Bihar and Rajasthan they are
found to be 61, 41, 36 and 28, respectively, in rural areas and 72, 38, 41 and 33,
respectively, in urban areas. These figures defy easy interpretation.
Much of the morbidity could be prevented if our population had good nutrition
standards. According to a survey conducted in a few States, in all categories of boys or
girls, between 1-3 and 16-18, whether males or females with moderate work or sedentary
work, calorie deficiency and protein deficiency are found to be 10-30 per cent. Only exception
is the category of females doing sedentary work where average calorie intake per day is
found to be 1954 kcal as against recommended 1875 kcal and average protein intake per
day, 50 grams as against recommended 50 grams. However, this is an average picture. If
some of them are over-eating, others must be under-eating.
73
SOCIAL INFRASTRUCTURE
3.
74
TABLE 5.6
Institutional Statistics of Curative Health Care System
Period
1951-56
1961
1971
1981
1991-92
1998
Hospitals
Dispensaries
CHC
PHC
HSC
2694
3094
3862
6804
13692
15128
6515
9406
12180
16751
27403
25670
214
2070
2913
725
2565
5112
5740
20433
23179
28489
51405
130964
137006
CHC = Community Health Centre; PHC = Primary Health Centre; HSC = Health Sub-Centres.
Source : Health Information of India 1997 & 1998, Central Bureau of Health Intelligence, Director
General of Health Services, Ministry of Health and Family Welfare, Government of
India, 2000.
Housing
Census House
75
SOCIAL INFRASTRUCTURE
76
TABLE 5.7
Characteristics of Housing Stock by Rural-Urban Division 1951-1991 (in lakh)
1951
1961
1971
1981
1991
644
1045
61
984
222
762
1189
75
1114
219
892
1499
79
1420
305
1107
1903
112
1791
349
1432
541
860
47
813
188
624
947
58
889
178
711
1138
56
1082
242
840
1391
78
1313
262
1050
103
185
13
172
34
138
239
18
281
41
181
354
23
321
64
268
512
44
468
87
382
All India
Total
Vacant
Occupied
Non-residential Units
Residential Units
Rural
Total
Vacant
Occupied
Non-residential Units
Residential Units
Urban
Total
Vacant
Occupied
Non-residential Units
Residential Units
Source : India 1962 : A Reference Manual, Publications Division, Ministry of Information and
Broadcasting, Government of India and Census of India 1991, Series-1 India, Paper 2 of 1993,
Registrar General of India, New Delhi.
77
SOCIAL INFRASTRUCTURE
TABLE 5.8
Dimensions of Housing Shortage for 1991
Homeless Households
Sharing Households
Non-serviceable Kutcha Houses
Serviceable Kutcha Houses in Urban Areas
Total
Rural
Urban
Total
3,05,000
31,13,000
1,03,06,000
1,37,24,000
2,17,000
7,79,000
11,40,000
26,40,000
47,76,000
5,22,000
38,92,000
1,14,40,000
26,40,000
1,85,00,000
Source : Census of India 1991, Series-1 India, Paper 2 of 1993, Registrar General of India,
New Delhi.
78
EXERCISES
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
CHAPTER 6
80
81
A conference of Ministers of
Industries from the Congress-ruled
provinces was held in October 1938 and
a decision was taken to constitute a
National Planning Committee with
Jawaharlal Nehru as the Chairman. The
Committee recommended the State to
play a vital role in development of
infrastructure and setting up of basic
industries under its aegis, to promote
growth of cottage and village industries
under protection, and to abolish all
intermediary interests in land with a view
to unleashing the forces of growth.
Towards the end of the War,
respecting the sentiments of industry
and other sections, the Government of
India established a Department of
Planning and Development in 1944. The
Department stimulated the preparation
of post-war reconstruction plans by
different departments of the Central
Government, provincial Governments
and larger princely states. It also sought
plans for development from industry and
labour. Three plans were submitted to it
for consideration, all in 1944: viz.,
Bombay Plan, Peoples Plan and
Gandhian Plan. Sectoral plans for
education and health were also prepared
by the Government of India.
Further,
when
an
interim
government was formed with Indian
WORD PLANNING
The word planning in a managers language and the management books or planning cells
in corporations has little different meaning. Planning is also used by town planners for
physical and spatial planning. Today, environmentalists talk of resources planning. People
also talk of retirement plan.
Planning in our context is different. It is related with welfare of people; it is related with
State action and initiative; and its sphere is economic and social development. By the way,
other planning strategies, such as town and country planning are now getting integrated with
national planning.
82
83
84
85
MIXED ECONOMY
Paul A. Samuelson, a Nobel Laureate in Economic Science and William D. Nordhus, in
their very popular textbook Economics, define mixed economy as one, which primarily
relies on price mechanism for economic organisation but uses a variety of government
interventions such as taxes, spending and regulation to handle macroeconomic instability
and market failures.
Prior to these economists, Joseph E.Stigtitz defined the concept in a much more simple
manner. Stigtitz defines it as a mixture of public and private decision making.
86
87
88
89
90
91
MNEMONIC TO REMEMBER AREAL
MEASUREMENT
100 Hectares =1 sq km =1000000 sq m;
Hectare =100 ares =100 (10 10) sq m
10 Acres = 1 sq furlong = 220 220 sq yd;
Acre = 4840 sq yd = 4000 sq m (approx.)
Hectare = 2.47 acre (approx.)
92
OBSERVATION BY MONOPOLY
ENQUIRY COMMITTEE, 1965
In the period immediately following
Independence, the very forces which are
harnessed to produce the quick
industrialisation of the country worked at
the same time to concentrate power in
industry in a few individuals or families
who were already wealthy and
powerfulThe allocation of resources and
the settlement of priorities which planning
necessarily involves have necessitated a
system of licensing for starting new
industries or expanding the old
established units or starting new units in
existing industries; capital issues had also
to be
controlledEveryone of these
circumstances tended to produce
concentration of economic power.
FINANCIAL INSTITUTIONS
ICICI = Industrial Credit and Investment
Corporation of India
IDBI = Industrial Development Bank of India
IFCI = Industrial Finance Corporation of
India
LIC = Life Insurance Corporation of India
SBI = State Bank of India
93
EXERCISES
1.
2.
3.
4.
Which are the factors determining the manner, the extent and the pace of state
intervention in an economy?
The Constitution of India allows ownership and control of material resources to exist as
well as market to function yet it seeks to intervene. Why?
Where is the provision for economic and social planning in the Constitution?
What were the three models that prompted Indian leaders for deciding in favour of
planning in the late thirties?
94
5.
Who formed the National Planning Committee and when? Who were the Chairman and
Secretary of the National Planning Committee?
What were the key recommendations of the National Planning Committee?
What do you mean by economic planning?
What do you mean by comprehensive development planning?
List some of the economic spheres and the social spheres separately.
List some of the methods of intervention by the State in functioning of the economy.
Write a brief history of our plans, mentioning the reasons why a five year plan was
not formulated when it was due.
Distinguish between planning (long-term) objectives and plan objectives. Write out
planning objectives and provide rationale for the same.
What is our major framework of planning? Is it existence of mixed economy? What do
you mean by the mixed economy?
What are the important features of our economic policy as pursued till 1991? Discuss
in detail each of them, justifying the background.
Discuss our achievement/failure in maximising production, particularly in the case of
foodgrains.
What do you mean by self-employment and wage-employment?
What do you mean by person day?
Discuss our achievement/failure in the matter of employment before the onset of new
economic policy.
What is our record during 1951-1991, about reduction of inequality in (i) distribution
of income, (ii) distribution of consumption expenditure in rural and urban areas, and
(iii) distribution of land holdings?
What is our record in the matter of concentration of economic power particularly in
the context of industrial wealth?
Write a short essay on our achievements during 1951-1991, highlighting relative
success in different objectives.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
ACTIVITIES
1.
2.
3.
If we do not want to depend on imports for our food, how much foodgrains we should
produce at home if each one of us must consume foodgrains @ 500 grams per day and
must ensure 12.5 per cent of foodgrains grown for seed, feed and wastage? You can
remember that net output is reckoned at 87.5 per cent of gross output.
Supposing that there are 40 crore people working for the total person days available
during a particular year is 14600 crore person days (=40 cr * 365 days). Taking 10 per
cent as the unemployment rate, we need to create 1460 crore person days =14600
million person days, taking due care of composition profile of labour force along with
regional dimensions. Try to find out how much employment was generated in terms of
person days by various schemes of employment. Was it half of the requirement?
Group Activity: Look at the Constitution. Try to find out in how many senses the word
State has been used in the Constitution. Discuss among yourselves in the presence of
your teacher.
CHAPTER 7
96
2.
3.
4.
5.
97
external credit.
A default on
payments, for the first time in our
history, had become a serious
possibility in June 1991.
With a view to restoring internal and
external confidence, there was an urgent
need for initiating macro-economic
stabilization measures. It is important
to note that macro-economic stabilisation measures are pervasive and affect
the whole economy, not a particular
sector. Changes in fiscal policy,
monetary policy, exchange rate policy
and wage-income policy are measures,
which may stabilise/destabilise macroeconomic balances -- internal and
external. With a view to bringing
stabilisation, reforms in these major
policies were suggested to be the dire
need.
But the opportunity was also seized
upon to correct many micro-economic
(sectoral) policies too. Or, one could say
that without concomitant changes
(reforms) in micro-economic policies,
reforms in stabilisation measures would
have not been sufficiently effective.
There existed a perception at the national
level and international level that our
policies were distorting prices of goods
98
99
developed
vested
interests
in
continuance of the regime so that they
did not have to face competition. Thus,
the end result was corruption and
delays. This promoted neither growth
nor social justice. It was argued that a
low growth rate lowered the capacity of
the economy to promote social justice.
In one word, intervention turned into
interference.
INTERVENTION AND INTERFERENCE
These words are very often used
synonymously. But, the use of intervention
is better than interference in the context
of relationship between market and state.
People are often seen saying kindly
intervene when they want some conflict
to be resolved amicably through
involvement of a third party.
People are also seen saying please do
not interfere when they do not want
involvement of a third party in the matter
to be resolved.
licensing business
foreign investment
foreign technology agreements
establishment, merger, amalgamation, takeover of units and
appointment of certain directors
(e) simpler exit policies
Licensing was originally limited to
only 18 commodities. Later three
commodities were de-listed: refrigerator,
washing machine and air conditioner.
100
101
(a)
(b)
(c)
(d)
(e)
FDI
(f)
102
EXERCISES
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
UNIT III
CURRENT CHALLENGES FACING INDIAN ECONOMY
In this unit, you will be exposed to some of the challenges that the Indian
economy is facing. Needless to mention, we shall be discussing three
perennial problems that we have been struggling with. These are population,
poverty and unemployment.
It is often emphasised that much of economic development is hampered
because of lack of quality infrastructure. We have already learnt about the
progress we have made in the last fifty years in some of infrastructure
services. Here, we shall review them from the angle of the kind of challenges
they are facing. The infrastructure covered shall, however, be only energy,
transport, communication, health and education.
In the last chapter we shall be concerned with some other emerging
issues. The issues that have been identified are environment, gender
and migration.
CHAPTER 8
Population in India
Introduction
There was a time when growth in
population was considered desirable.
There are societies--both developed and
undeveloped--where growth of population is still considered desirable. Many
European nations have instituted
incentives for larger families. There are,
however, occasions, when societies
considered the population growth
undesirable, particularly if the growth is
rapid. In India, the growth in population
has been considered high and
undesirable, right from the thirties
when it was discovered that population
between 1921 and 1931 increased by
more than 10 per cent. Thereafter, it
rose at still higher rates and in the
second half of the century, at more than
twice this rate.
Population provides workforce to
produce on one hand and market for the
produce on the other. A small size
population may not promote innovation
and thereby productivity. It may not
promote specialisation and division of
labour. A large size population may
provide too many hands that may not
be absorbed. It may also create problems
for environment and resources.
Whenever the issue of overpopulation is
106
Size of Population
The size of population is measured in
terms of the number of persons. If we
consider the present boundaries of the
country, we were less than 25 crore in
the beginning of the century and we are
more than 100 crore at the end of the
century. During the century we became
four-fold. Our growth was thus three
times the size in the beginning. At the
middle of the century, we were 36 crore.
While our growth in the first half of the
century was, roughly speaking, less than
50 per cent, that in the second half of
the century was more than 150 per cent.
It was indeed 180 per cent in the second
half of the century.
107
POPULATION IN INDIA
TABLE 8.1
Population of India according to Census
during the Twentieth Century
Year
Population
1901
1911
1921
1931
1941
1951
1961
1971
1981
1991
2001
23,83,96,327
25,20,93,390
25,13,21,213
27,89,77,238
31,86,60,580
36,10,88,090
43,92,34,771
54,81,59,652
68,33,29,097
84,33,87,888
102,70,15,247
POPULATION IN CRORES
1901
1911
1921
1931
1941
1951
1961
CENSUS YEARS
1971
1981
1991
2001
108
Absolute Growth
TABLE 8.3
Growth of Population in Different
Decades of the Century (per cent)
Decade
Growth Rate
Per Decade
Per Annum
1901-1911
05.74
00.56
1911-1921
(-)00.31
(-)00.03
1921-1931
11.00
01.05
1931-1941
14.22
01.34
1941-1951
13.31
01.26
1951-1961
21.64
01.98
1901-1911
1,36,97,063
1961-1971
24.80
02.24
1911-1921
-7,72,177
1971-1981
24.66
02.23
1921-1931
2,76,56,025
1981-1991
23.42
02.13
1931-1941
3,96,83,342
1991-2001
21.77
01.99
1941-1951
4,24,27,510
1951-1961
7,81,46,681
1961-1971
10,89,24,881
1971-1981
13,51,69,445
1981-1991
16,30,58,791
1991-2001
18,06,27,359
Rate of Growth
Decadal Growth
Let us compute the growth rate for the
decade as a whole. It means dividing the
absolute growth by the base population
and multiply the quotient by 100.
Growth rate will be in terms of per cent
per decade. In Table 8.3, we have also
given growth rate per annum for each
decade.
Great and Small Divides
During 1921-31, 1931-41 and 1941-51,
the population growth was 11, 14 and 13
per cent, respectively. Slight decline in
growth rate during the forties is seen
as an impact of migration to erstwhile
Pakistan after partition as also of loss of
109
POPULATION IN INDIA
29
Phase I
Phase II
Phase III
Phase IV
Stagnation
Study Growth
Rapid Growth
Decelerating
24
19
growth
14
9
4
-1
1901-11 1911-21 1921-31 1931-41 1941-51 1951-61 1961-71 1971-81 1981-91 1991-2001
INTERCENSAL PERIOD
110
111
POPULATION IN INDIA
TABLE 8.4
Birth Rate, Death Rate and Rate of Natural Growth (Per Thousand)
Decades
Birth
Rate
Death
Rate
Rate of
Natural
Growth
Year
Birth
Rate
Death
Rate
Rate of
Natural
Growth
1901-1911
1911-1921
1921-1931
1931-1941
1941-1951
1951-1961
1961-1971
49.2
48.1
46.4
45.2
39.9
41.7
41.7
42.6
47.2
36.3
31.2
27.4
22.8
18.9
6.6
0.9
10.1
14.0
12.5
18.9
22.2
1971
1976
1981
1986
1991
1996
1998
36.9
34.4
33.9
32.6
29.5
27.5
26.5
14.9
15.0
12.5
11.1
9.8
9.0
9.0
22.0
19.4
21.4
21.5
19.7
18.5
Source : Compendium of Indias Fertility and Mortality Indicators 1971-1997 based on the Sample
Registration System, Registrar General India, 1999 and India Yearbook Manpower Profile,
Institute of Applied Manpower Research, 2001.
Demographic Transition
Based on the demographic history of
Western countries, it has been argued
that birth rate and death rate are both
high before the onset of transition, giving
low, often fluctuating, rate of growth.
With development, first death rate falls
while birth rate remains the same and
60
= Birth rate
as a consequence growth rate accelerates. In the next phase, both birth rate
and death rate both fall in parallel,
keeping growth rate high and steady. In
the still next phase, while death rate
becomes low and stagnates, birth rate
continues to fall. In this phase, growth
rate declines. Finally, birth rate also
= Death rate
VITAL RATES
50
40
30
20
10
0
1901-11 11-21 21-31 31-41 41-51 51-61 61-71 1971
1976
1981
1986 1991
YEARS
Fig 8.3: Trends of Birth, Death and Growth Rates.
1996
1998
112
113
POPULATION IN INDIA
TABLE 8.5
Sex Ratio in India during Twentieth Century (females per thousand males)
Year
Sex Ratio
1901
1911
1921
1931
1941
1951
1961
972
964
955
950
945
946
941
934
927
2001
933
Source: Census of India 2001 Series 1 India: Provisional Population Totals-Paper 1 of 2001, Registrar
General and Census Commissioner, India.
114
2.
TABLE 8.6
Age Composition of Population for Selected Years by Broad Groups
(per cent)
Group
Age Group
1911
1921
1931
1961
1971
1981
1991
Children
0-14
38.8
39.2
38.3
Adults
15-60
60.2
59.6
60.2
41.0
41.4
39.7
36.5
53.3
53.4
54.1
Old
60+
1.0
1.2
1.5
5.7
57.1
5.2
6.2
6.4
Source: India Yearbook Manpower Profile, Institute of Applied Manpower Research, 2001
115
POPULATION IN INDIA
3.
2.
3.
116
TABLE 8.7
Age-specific Fertility by Age Groups of Reproductive Period (per thousand)
Age Group
1971
1981
1991
1998
15-19
20-24
25-29
30-34
35-39
40-44
45-49
TFR*
100.8
250.8
254.8
202.2
137.8
62.2
24.2
5.2
90.4
246.9
232.1
167.7
102.5
44.0
19.6
4.5
76.1
234.0
191.3
117.0
66.8
30.6
12.1
3.6
54.0
220.3
182.8
104.2
54.3
25.0
9.0
3.2
*TFR =
Note :
117
POPULATION IN INDIA
2.
3.
4.
5.
118
EXERCISES
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
119
POPULATION IN INDIA
14.
15.
16.
ACTIVITY
Note down arguments which people in your vicinity give in favour of large
families as well as in favour of small families. Analyse these statements with
respect to socio-economic profile of the people giving the arguments.
120
CHAPTER 9
Poverty in India
Introduction
Poverty is perhaps the greatest challenge
that the societies like ours are facing.
Poverty, in any society, is intimately
associated with inequality. Everybody
may have worked for himself/herself.
Such societies may not have had the
system of private property nor would
people therein have produced to sell to
others and thereby exchange goods. But
we have had, by now for thousands of
years, societies with poverty, both in
absolute sense and relative sense. There
were always sensible people who wanted
to alleviate, if not abolish, poverty and
there were people who wanted to do away
with inequalities of various varieties.
We shall have, however, a limited
agenda to understand the present
position of our own poverty and
inequality and measures being
undertaken to alleviate them.
We shall concentrate more on
measurement of poverty and its estimates
for India. Towards the end of the Chapter,
we shall narrate some of the specific
measures
undertaken
by
the
Government of India to alleviate poverty.
Absolute and Relative Poverty
There are poor societies and rich
societies. Within a given society also,
121
POVERTY IN INDIA
122
123
POVERTY IN INDIA
Procedure
First, we confine ourselves with
measuring private final consumption
expenditure, which is neither
consumption expenditure on food alone
nor full-blown income. We do not include
public consumption expenditure either.
We incur this expenditure to buy both
food items and non-food items. Nobody
actually buys clothes or burns lights only
after having prescribed food; they buy
food and non-food items almost
simultaneously. Those who smoke beedi,
for example, do not necessarily do so only
after they had food worth so much of
calories. And we treat people as people
and allow them to choose their own
pattern of expenditure.
Second, for each of the group of
people, classified according to household
consumption per capita, we write down
quantities consumed of food and nonfood items in a tabular form.
Third, using calorie content of a unit
of a particular food item, we can calculate
the total calories consumed per capita.
Fourth, starting from the lowest
expenditure class, we move upward and
locate the consumption expenditure
class in which case, the recommended
124
125
POVERTY IN INDIA
carried out by the NSS for the year 197374 was available. The consumption
survey data is tabulated by per capita
household consumption expenditure.
Against a class-interval of per capita
household consumption expenditure,
items of consumption by amount are
written down. Therefore, for an interval,
one can calculate the amount of calories
if we know the number of calories that
consumption of a unit of certain food
item provides to human beings. The
required amount of calories would
coincide with one of the class-interval
or will fall between two intervals. Using
inverse interpolation, one can find with
ease the amount of consumption
expenditure at which minimum calorie
requirement is met. This is poverty line.
Rural poverty line was found to be
Rs 49.09 and urban poverty line,
Rs 56.64 per month at 1973-74 prices.
Estimation of Poverty in India
We may remember that the data with us
is actually sample data. Sample
percentage is accepted as population
percentage. Multiplying these percentages with appropriate population sizes,
we obtain absolute number of poor
persons in rural and urban areas of each
state. These numbers can be added in a
variety of combinations. For finding out
total number of the poor in a particular
state, add the number of rural poor and
urban poor in that state. For finding out
total number of the poor in a particular
group of states, say southern states, add
rural and urban poor in all states in the
group. For finding out rural (urban) poor
in the country, add rural (urban) poor of
all states. For finding out total number
of poor in the country, add rural poor in
Rural
Urban
India
56.4
53.1
45.7
39.1
37.3
27.1
49.0
45.2
40.8
38.2
32.4
23.6
54.9
51.3
44.5
38.9
36.0
26.1
126
2.
3.
4.
TABLE 9.2
Head Count Estimates of Poverty: Rural,
Urban and India (in crore)
Year
1973-74
1977-78
1983
1987-88
1993-94
1999-00
Rural
Urban
India
26.1
26.4
25.2
23.2
24.4
19.3
6.0
6.5
7.1
7.5
7.6
6.7
32.1
32.9
32.3
30.7
32.0
26.0
POVERTY IN INDIA
127
128
ACRONYMS
TRYSEM
DWCRA
GKY
MWS
SITRA
=
=
=
=
=
POVERTY IN INDIA
2.
129
130
Social Security
There is very little worth the name by
way of social security. However, there
are centrally sponsored schemes, 100
per cent funded; (i) for old age persons
without support; (ii) for poor bereaved
families on death of primary
breadwinner; and (iii) for women of poor
households on pregnancy. A beginning
has been made in right direction, though
sums to be paid are too small to
materially change their conditions. The
scheme for the pension for old age
persons is said to be quite successful
whereas awareness about two other
schemes is said to be lacking.
Food Security
Food security to poor people is envisaged
through public distribution system (PDS)
for poor families, integrated child
development scheme (ICDS), and midday meals at schools (MDMS).
The per capita availability of
foodgains in the country during the last
fifty years has risen from less than 400
grams to nearly 500 grams by the close
of the century. However, a lot many
people remain hungry, undernourished
and malnourished due to their low
purchasing power.
We needed to have a buffer stock so
as to ensure price stability of foodgrains,
production of which is subject to vagaries
of nature. As support price for agricultural
commodities were found to be good
incentive to encourage production, our
Government went on building up stock
which is much in excess of needed buffer
stock. While we hardly need 20 million
tonnes, we have 60 million tonnes.
Co-existence of underfed people and
overstocked warehouses of FCI (Food
131
POVERTY IN INDIA
EXERCISES
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
132
17.
18.
CHAPTER 10
Unemployment
Introduction
Unemployment is a great problem. You
might have seen or met people who
are not having a job and you might
have noted anguish in their utterances.
The phenomenon shakes the
confidence of the people in the system.
The basic premise for many of us is
that all able-bodied persons above a
certain age (say 15 years) and below a
certain age (say 60 years) must work
if they are not pursuing any other
useful avocation like higher studies (or
engaged in home-making) and the
system should permit them to work.
There are others who think that all
those, from the above set of people,
who are willing to work must be
allowed by the system to work. There
are still others who think that at least
those, who are actively seeking work,
must get work.
The basic idea is that a person who
is just a consumer without being a
producer simultaneously will not be a
good and responsible citizen. From each
according to ones capacity must be a
dictum for a good healthy society as
should be to each according to his
needs. For being a producer, one need
not be a worker in ordinary sense of the
term or work under somebody. One can
134
Types of Unemployment
There are always some unemployed
people in all economies, not always
because of their choice. Those who are
not working by choice are known as
voluntarily unemployed. We do not worry
much about them though they may have
good reasons for opting out as also good
circumstances permitting them to do so.
There are said to be countless reasons
why people might voluntarily choose not
to work. They may prefer leisure to work
at the going wage rate. They may be
searching for their first job. Lowproductivity workers may choose welfare
or unemployment insurance to low-paid
work, which defeats the purpose for
which such schemes are instituted.
Besides the people who are
voluntarily unemployed, there are people
who are visibly employed but actually
unemployed. This phenomenon is known
as disguised/hidden unemployment.
There may be three persons doing a job,
in agriculture or in a household
enterprise, while two could do it with
ease. If one of them is withdrawn there
is found to be no reduction in output.
Thus, there are two types of
unemployment, viz. open unemployment
and disguised unemployment, which
actually worry us. The concepts may be
elaborated as follows:
Open Unemployment occurs when
persons who are able-bodied, willing to
work or seeking work, and above a
certain age but are not engaged in
any economic activity. Disguised
Unemployment occurs when persons who
are actually engaged and, therefore, seen
employed, are not fully employed as a
part of it could be withdrawn without
causing any diminution of output. In the
UNEMPLOYMENT
135
136
137
UNEMPLOYMENT
138
TABLE 10.1
Labour Force, Work Force and Unemployed Labour Force by Male/Female
and Rural/Urban Divisions (in crores)
Year
Labour Force
1972-73
1977-78
1983
1987-88
1993-94
1999-00
Work Force
1972-73
1977-78
1983
1987-88
1993-94
1999-00
Unemployed
Labour Force
1972-73
1977-78
1983
1987-88
1993-94
1999-00
Rural Male
Rural Female
Urban Male
Urban Female
Total
12.87
14.45
15.59
16.50
18.93
20.02
7.09
8.36
9.13
9.51
10.47
10.50
3.29
41.4
5.02
5.85
6.73
8.07
0.77
1.21
1.30
1.58
1.84
2.00
24.02
28.16
31.04
33.44
37.97
40.67
12.72
14.14
15.27
16.05
18.66
19.68
7.06
8.01
9.04
9.20
10.37
10.40
3.18
3.88
4.73
5.50
6.45
7.71
0.72
1.04
1.23
1.45
1.73
1.89
23.68
27.07
30.27
32.20
37.21
39.68
0.15
0.31
0.32
0.45
0.37
0.32
0.03
0.35
0.09
0.31
0.10
0.10
0.16
0.26
0.29
0.35
0.36
0.29
0.05
0.17
0.07
0.13
0.12
0.09
0.39
1.09
0.77
1.24
0.95
0.80
Source : India Year Book 2001 Manpower Profile, Institute of Applied Manpower Research, New Delhi, 2001.
139
UNEMPLOYMENT
TABLE 10.2
Usual Status Unemployment Rates by Rural/Urban and Male/Female Division
(as per cent of labour force in the category)
Year
Rural Male
Rural Female
Urban Male
Urban Female
Total
1972-73
1977-78
1983
1987-88
1993-94
1999-00
1.2
2.2
2.1
2.8
2.0
2.1
0.5
5.5
1.4
3.5
1.4
1.0
4.8
6.5
5.9
6.1
4.5
4.5
6.0
17.8
6.9
8.5
8.2
5.7
1.6
3.9
2.5
3.7
2.5
2.0
140
EXERCISES
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
CHAPTER 11
Infrastructural Challenges
Introduction
Energy
142
ENERGY
Non-Commercial
Fuelwood
Animal Dung
Biogas/Biomass
Crop Residue
Commercial
Conventional
Coal
Petroleum/Gas
Hydro
Nuclear
Non Conventional
Solar/Wind
Small Hydro
Ocean Thermal/
Wave
143
INFRASTRUCTURAL CHALLENGES
144
INFRASTRUCTURAL CHALLENGES
Transport
The railways and the roadways are the
two modes of transport carrying the
bulk of freight and passenger traffic.
Coastal shipping and inland water
transport hardly contribute 2 per cent
of the total traffic. We have noted earlier
that the railways are eco-friendly and
more energy efficient, and have better
safety. Keeping this in mind, the
145
146
have been consistently pursuing the unigauge policy by converting metre gauge
lines into broad gauge ones and
programme of electrification of important
sections. Hopefully, the electrification of
golden quadrilateral is complete. There
is less emphasis on new lines but
multiplexing of track in busy corridors
is receiving some attention. Renewal and
upgra-dation of track is equally
important as our tracks are quite old and
outdated.
The Indian Railways, with 15.5 lakh
employees, are the largest employer
among the public sector undertakings
and in all undertakings. But this asset
is now being considered a burden as the
wage-bill, including pension liabilities,
constitutes the major portion of
operating cost. The Railways are now
introducing a plan of right-sizing the
manpower. As you know under the
Railways establishment, we also have
certain production units. It has been
decided that many departments
concerned with the running (like
DCW Diesel Components Works at Patiala (Punjab): Manufactures components for diesel
locomotives
147
INFRASTRUCTURAL CHALLENGES
148
149
INFRASTRUCTURAL CHALLENGES
and 12-13 per cent, standard singlelaned. State Highways were hardly multilaned while only 20 per cent were doublelaned. Only 36 per cent of state highways
were single-laned and another 36 per
cent of State Highways, below standard.
It may be noted that on some of the state
highways traffic is as high as on national
highways. Laning or over-bridging a railroad crossing is decided upon number of
vehicles (measured in passenger car units)
that pass per day.
Large sections of National Highways
and some sections of State Highways are
being used well over 100 per cent of their
intended capacity, leading to slow speed,
high
vehicle
operating
costs,
environmental pollution and high
incidence of accidents. Construction of
missing links and bypasses and bridges,
strengthening of weak roads, and
widening of single lanes to two-lanes and
two-lanes to four-lanes have therefore,
been the major programmes in the recent
years.
The National Highways network has
two major networks, which have to be
four-laned. They are: (i) 6,000 kms long
Golden Quadrilateral connecting four
metros, viz. Delhi, Mumbai, Chennai,
and Kolkata, and (ii) 7,000 kms long
North-South and East-West corridors,
connecting Srinagar with Kanyakumari
(via Delhi, Jhansi and Bangalore) and
Silchar with Porbandar (via Kanpur,
Jhansi and Udaipur) respectively. The
:
:
:
:
via
via
via
via
150
151
INFRASTRUCTURAL CHALLENGES
The
second
is
related
to
infrastructure facilities. Airport
Authority of India manages 92 airports,
including five international airports at
Delhi, Mumbai, Kolkata, Chennai and
Thiruvananthapuram, and 28 civil
enclaves at the defence airports.
The third is related to regulatorycum-developmental aspects. The
Department of Civil Aviation,
Government of India, is basically
responsible for it. It is planning to have a
new Civil Aviation Policy. The Government
of India has already sold a part of its
holding of shares in Indian Airlines and
Air India. It is also planning to set up new
international airports at Bangalore,
Hyderabad and Goa.
Communication
The importance of communication in
modern life could hardly be denied. It has
remained important ever since family
members (close ones) have stayed in two
places and manufacturing and market
centres for different purposes came up.
Communication usefully replaces or
supplements transportation of people and
goods. For long, our ubiquitous postal
network did this service, sending messages
and money. Later, physical movement
could be avoided and through some tele
method communication could be made
easier and instantaneous. The
technological advancement has led to
radical changes in communication services
such as telephone, telegraph, fax and
internet. advancement. But, slowly telex
and telegraph are getting out of fashion.
Postal Communication
Nevertheless the importance of post office
does not diminish. Our postal network
152
INFRASTRUCTURAL CHALLENGES
153
154
Year
1950-51
1960-61
1970-71
1980-81
1990-91
1999-00
Elementary (I-VIII)
Boys
Girls
Boys
Girls
Boys
Girls
60.6
82.6
95.5
95.8
114.0
104.1
24.8
41.4
60.5
64.1
85.5
85.2
20.6
33.2
46.5
54.3
76.6
67.2
04.6
11.3
20.8
28.6
47.0
49.7
46.4
65.2
75.5
82.2
100.0
90.1
17.7
30.9
44.4
52.1
70.8
72.0
for
Health
Undoubtedly, over fifty years, our health
conditions have improved. While crude
death rate has reduced from around 2527 in 1951 to less than 9 in 2000, infant
mortality rate has halved from about 145
to 70 and child mortality rate from 57 to
22 over the same period. As a result, life
expectancy at birth has improved from
around 36-37 years to 61-62 years
during this period. Our women now live
longer by about three years.
Yet, burden of disease continues to
be significant. Communicable diseases
still dominate the causes of mortality and
morbidity but their incidence over time
has significantly reduced.
EPIDEMIOLOGICAL TRANSITION
As life expectancy of a population improves
the relative incidence of communicable
and non-communicable diseases changes.
Earlier, before the onset of the transition
the major cause for mortality and
morbidity used to be communicable
diseases, after the transition the major
cause happens to be non-communicable
diseases.
155
INFRASTRUCTURAL CHALLENGES
EXERCISES
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
156
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
CHAPTER 12
158
159
The Forest Policy of 1952 recommended that we should have a forest cover
of 1,000 lakh hectares, that is 33 per
cent of total land surface, with the
stipulation that hill areas could be
covered to the extent of 66 per cent. In
order to meet growing demand,
Cover
1972-75
1980-82
1985-87
1987-89
1989-91
1991-93
1995-97
46.42
36.14
37.85
38.50
38.56
38.58
36.73
160
161
TABLE 12.2
Details of Areas Suffering from Various Degradations
Total geographical area
Area with serious degradations
Area suffering from water/wind erosion
Area suffering from salinity/alkalinity/water-logging/ravines
Ravenous area
Area with salinity
Area suffering from alkalinity
Water-logged area
Drought-prone area
162
163
Sex Ratio
1901
1911
1921
1931
1941
1951
1961
1971
1981
1991
2001
972
964
955
950
945
946
941
930
934
927
933
TABLE 12.4
Sex Ratio for Age Groups 0-6 and 7+ for 1991 and 2001
Year
1991
2001
945
927
923
935
927
933
Source: Census of India 2001 Series 1 India, Provisional Population Totals, Registrar and Census
Commissioner, India.
164
TABLE 12.5
Male and Female literacy Rates by Rural-Urban Division (in percent)
Year
1951
1961
1971
1981
1991
2001
Rural Male
Rural Female
Urban Male
Urban Female
Male
Female
19.02
34.30
48.60
49.60
57.90
71.40
04.87
10.10
15.50
21.70
30.60
46.70
45.60
66.00
69.80
76.70
81.10
86.70
22.33
40.50
48.80
56.30
64.00
73.20
27.10
40.40
45.96
56.38
64.13
75.85
08.86
15.35
21.97
29.76
39.29
54.16
Source : Economic Survey 2001-2002, Economic Division, Ministry of Finance, Government of India.
165
Year
Lok
Sabha
1952
1957
1962
1967
1971
1977
1980
1984
1989
1991
1996
1998
1999
I
II
III
IV
V
VI
VII
VIII
IX
X
XI
XII
XIII
Lok Sabha
Seats
Women
Members
499
500
503
523
521
544
544
544
517
544
544
543
543
Percent
age
Year
4.4
5.4
6.8
5.9
4.2
3.5
5.1
8.1
5.2
7.2
7.4
7.9
9.0
1952
1984
1990
1992
1994
1996
1997
1998
1999
2000
22
27
34
31
22
19
28
44
27
39
40
43
49
Rajya Sabha
Seats
Women
Members
216
233
245
245
245
245
245
245
245
245
15
24
24
17
20
18
18
19
19
22
Percent
age
6.9
10.3
9.8
6.9
8.2
7.3
7.3
7.8
7.8
9.0
Source : Indian Planning Experience: A Statistical Profile, Planning Commission, Government of India,
2001 and India Yearbook 2001 Manpower Profile, Institute of Applied Manpower Research,
New Delhi.
166
Rural
Male
Female
Regular
Not literate
Educated upto VIII
Secondary
Graduate +
All
Casual
Urban
Male
Female
87.63
105.08
168.16
261.55
169.71
62.26
51.83
64.41
145.73
234.74
295.00
37.71
Regular
71.23
91.63
148.23
220.93
127.32
44.84
40.32
161.48
126.09
159.92
114.01
29.01
Not literate
Educated upto VIII
Secondary
Graduate +
All
Casual
Source : India Yearbook 2001 Manpower Profile, Institute of Applied Manpower Research, New Delhi.
Internal Migration
Migration may, according to motivation,
broadly be divided into two categories,
social and economic. Most women move
from one place to another because of
marriage and married women are
expected to live in their husband's
houses. Economic migration may be
associated with availability of economic
opportunities for some persons in
places different from their respective
places of present stay. This movement
may broadly be called migration of
labour. Even those who move with a
view to setting up some business
establish-ment or opening some factory
are broadly considered workers; workers
include employees, employers and
self-employed.
People just do not move across places
but also across occupations. Mobility
across occupations within the same
place is not considered migration. But it
so happens that places also specialize
in economic activities. For example,
agriculture is the main activity in rural
areas while manufacturing or services
like banking abound in towns. Adam
Smith said that agriculture is the
industry of the country and
167
168
Reasons
Employment
Education
Family Moved
Marriage
Others
Total Migration (crore)
1991
Female
Male
Female
Male
1.9
1.0
14.3
73.4
9.4
14.52
31.8
5.1
30.3
3.3
29.5
6.25
1.8
0.8
11.0
76.1
10.3
16.78
27.0
4.8
26.6
4.0
37.6
6.43
Source: India Yearbook 2001 Manpower Profile, Institute of Applied Manpower Research, New Delhi.
Concluding Remarks
There were three issues we discussed in
this chapter: environment, gender, and
migration. Environment is concerned
with forestry, abatement of pollution,
conservation, bio diversity, etc. We
confined our discussion to pollution of
air and water, and degradation of soil
and forestry.
In the matter of gender, starting from
our commitment to gender equality, we tried
to understand as to how much we have
achieved and where we have failed. We did
it by analysing sex ratio, particularly sex ratio
for 0-6 age group, literacy, political
participation, and economic participation (in
work force) and wages.
Delineating the history and theory
of migration, we discussed both internal
migration and international migration.
Reasons for migration were also
discussed.
169
EXERCISES
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
Contrast past and present thinking with regard to relationship between nature
and development.
What are the important environmental issues, which should receive our
attention?
What are the major causes of air pollution?
How do you justify cost of prevention/abatement of pollution?
Discuss the major causes of water pollution.
What do you mean by degradations of resources?
What proportion of land should be covered under forest? What is the suggestion
for hilly areas?
Discuss the programme of social forestry.
Discuss the salient provisions of Forest Policy 1988.
What is the level of land degradations in India?
What are the causes of land degradations?
What do you mean by gender issues?
Discuss the trend of sex ratio over the century.
What are the factors determining sex ratio?
Why do you think child sex ratio has declined in the nineties?
Discuss the progress of female literacy vis-a-vis male literacy in the last fifty
years.
What is the provision for representation by female in panchayati raj
institutions? Why is there no such provision for the parliament and state
legislatures?
What is work participation scene and average wage position for female workers?
Give an historical account of migration to the New World.
What do you mean by economic migration?
What are pull and push factors of migration?
What is the migration pattern of women in India by reasons?
What is the migration pattern of men in India by reasons?
What do you mean by brain drain?
Argue in favour of and against the new thinking that education is an industry
and that we should export its product.
APPENDICES
CHAPTER 1
Economy
One can safely say that the field of study of economics is economy. But what is an
economy? Looking around, one may feel like saying that an economy is the collection
of farms, factories, workshops, mines, shops; roads, railways, ships, aeroplanes,
pipelines conveying gas and oil or even water; offices, banks, schools and colleges;
cinema, theatre and opera houses; and dispensaries and hospitals. They all produce
goods and services, which have economic value and are consumed directly or
indirectly by the people. This view of the economy is simple, descriptive and
straightforward. It should be acceptable.
However, there are people who point towards the variety of usage of word
economy: national economy, world economy, and international economy; village
economy, rural economy and urban economy; slave economy, feudal economy,
capitalist economy and socialist economy; even household economy. What is the
common feature in all these definitions of economy? Erudite scholars point out
that it is actually a set of relationships, which could be abstracted from, to a large
extent, from other forms of social relationships. These relationships manifest in
use of labour power and provisioning of material needs.
An attempt has also been made to define economy as a structure of relationships
among a group of people in terms of the manner in which they exercise control over
resources, use of resources, and labour for production of goods and services and
define and settle the claims of the members over what is produced.
Modern Economic Growth
Human societies have been increasing production by using natural resources in
more productive manner, improving production techniques, producing more and
more and more varied goods and services and living better lives. But there might
have been long periods when some societies actually declined. There might have
been periods when increase in population exceeded the growth in quantum of goods
and services (In good old days, goods might have meant foodstuff foodgrains and
other eatables). Per capita product might not have had a sustained increase.
Population too might not have had sustained increase.
The history of last two hundred years in the West is, however, considered to be
peculiar. This is the period when population had sustained increase. But increase
in quantum of goods and services exceeded that in population. As a result, there
was sustained increase in per capita product (as well as in per worker output).
The same could be said about the last fifty years in the case of many so-called
developing countries. Here too, population rose more rapidly than it did in the West
in any stretch of fifty years. But total quantum of goods and services rose still
faster. As a result, there was sustained increase in per capita product.
Character of Growth Rate Series
If growth rate remains the same as time changes, we can call it steady growth. A
series of 100, 110, 121, 133.1, 146.41. shows a steady growth of 10 per cent. If
182
we instead find that as time passes, growth rate increases, we can call it a case of
accelerating growth. A series of 100, 110, 122, 135, and 150 portrays a case of
accelerating growth. On the other hand, if growth rate decreases as time passes, we
can call it a case of decelerating growth. A series of 100, 110, 120, 130, and 140
is a case of decelerating growth.
But what happens in reality is that no economy shows such a neat pattern.
There are fluctuations, sometimes very wide. There exists a possibility that these
fluctuations are around a rising or declining or steady trend/path. But there is a
sustained rise in the GDP when considered over long period, say, decade after decade.
CHAPTER 2
Computation of HDI for India for 1999
Suppose we are given the following data for India for the year 1999:
Life Expectancy at Birth
Adult Literacy Ratio
Combined Enrolment Ratio
Per Capita Income
62.9 years
56.5 per cent
56.0 per cent
PPP $ 2,248
Let us first combine Adult Literacy Ratio (ALR) and Combined Enrolment Ratio
(CER) into Education Attainment (EA). Giving two-thirds as weight to ALR and onethird as weight to CER, we find
EA = (2/3)*56.5 per cent + (1/3)*56.0 per cent = 56.13 per cent
Now let us find out logarithm of per capita income to make it reflect standard of
living (SL)
SL = log (PPP $ 2,284) = 3.352
Let us now invoke the formula for component index (CI), which is
CL =
Let us use actual values from the above and the maximum and minimum
values from Table 2.2 and obtain
LEI =
EAI =
SLI =
62.9 25.0
85.0 25.0
56.13 0.0
100.0 0.0
3.252 2.0
4.602 2.0
37.9
60.0
= 0.632
= 0.561
=
1.352
2.602
= 0.520
Using the simple arithmetic average the three component indices, it is easy to
compute HDI. Putting these figures, we find
HDI = (1/3)(LEI + EAI + SLI) = (1/3) (0.632 + 0.561 + 0.520) = 0.571.
183
APPENDICES
CHAPTER 3
Estimation of Macroeconomic Aggregates in India
Macro-economic aggregates have been prepared in India on a regular basis only after
Independence. First sets of estimates of national income were prepared by the National
Income Committee consisting of P.C. Mahalanobis, D.R. Gadgil, and V.K.R.V. Rao.
This series started with year 1948-49 and continued until 1967 when it was replaced
by another series with the base year 1960-61. This series was replaced in 1977 by
still another series with the base year 1970-71. In 1988, another series with the base
year 1980-81 was started, which was replaced in 1999 by the latest one with the year
1993-94. Since 1948-49 was the very first full financial year for the independent
country, one could see a justification in choosing it as the base year. What is the
justification for choosing 1993-94 instead of 1990-91 as the base year for the latest
series? The year 1993-94 was chosen as the base year, partly because the years of
1990-91 and 1992-93 were not considered normal and partly, because the massive
data from the NSS was available from its round conducted in 1993-94.
Central Statistical Organisation took over the work of preparing estimates from
the National Income Committee, which submitted its final report in 1954. With
every round of revision in base, the CSO went on adding to its list of aggregates. It
now prepares many other national accounts for the country, including national
income.
Methods of Computation of Growth Rate
There are three ways to calculate the rate of growth for any given period. One, pick
up the initial (I) and final figures (F) and use compound interest formula for rate of
interest r and time-periods t, which is F = P (1+r)t. Substituting the values for F, P
and t, one can find out r which we call rate of growth per period. Usually our period
is a year. Often this figure r is multiplied by 100, and growth rate is expressed in
terms of per cent per annum. In this method, we ignore the performance in the
intervening years. In case, final or initial years that are picked up are out of line,
growth rate will not be representative of the period. This rate is known CAGR,
compound annual growth rate. Two, the pair-wise year-to-year growth rates are
computed and the sum of these rates is averaged by the number of rates. It is
known as AAGR (average annual growth rate). This method uses all figures but the
method is an amalgamation of geometric and arithmetic approaches as growth rate
is basically a geometric idea whereas averaging is arithmetic. Three, through
regression method (statistical method) using semi-log function we can estimate a
representative r for the period as a whole. All methods are used. Many scholars do
not sufficiently warn the reader about the method they have employed. One should
therefore try to find out the method actually used in case one wants to make valid
comparison.
You may notice Table 3.2 and 3.4 that CAGR gives too low a figure for the
seventies; CAGR is not even one-third of AAGR in case of Table 3.4.
Gross Domestic Product since 1950-51 at Constant Prices
Gross domestic product, one can see from the following Table A, failed to rise only in 195758, 1965-66, 1972-73 and 1979-80 though there were a few years when growth
184
Year
GDP
GDP
Year
GDP
Year
GDP
Year
GDP
692871
701863
737792
781345
838031
899563
970083
rates were very close to one per cent per annum, which was lower than the rate of
growth of population.
We can see for the Table B that per capita income declined in as many as
twelve years out of the fifty years while GDP had declined only in four. It simply
means that, in eight other years, the rate of growth of GDP was lower than the rate
of growth of population (accepted by us). While the rate of growth of population has
started declining in the eighties and nineties, the rate of growth of economic activity
is on rise.
TABLE B
Per Capita Income at Constant Prices of 1993-94 from 1950 - 51 to 1999-2000 (Rs.)
Year
PCI
Year
PCI
Year
PCI
Year
PCI
Year
PCI
1950-51
3687
1960-61
4429
1970-71
5002
1980-81
5352
1990-91
7321
1951-52
3714
1961-62
4449
1971-72
4914
1981-82
5555
1991-92
7212
1952-53
3747
1962-63
4425
1972-73
4763
1982-83
5548
1992-93
7433
1953-54
3909
1963-64
4546
1973-74
4880
1983-84
5854
1993-94
7698
1954-55
3994
1964-65
4781
1974-75
4830
1984-85
5956
1994-95
8088
1955-56
4020
1965-66
4459
1975-76
5167
1985-86
6082
1995-96
8498
1956-57
4159
1966-67
4392
1976-77
5103
1986-87
6189
1996-97
9036
1957-58
4007
1967-68
4653
1977-78
5375
1987-88
6260
1997-98
9288
1958-59
4222
1968-69
4657
1978-79
5551
1988-89
6777
1998-99
9733
1959-60
4216
1969-70
4865
1979-80
5092
1989-90
7087
1999-00
10204
185
APPENDICES
CHAPTER 6
Three Plans submitted to GOI before Independence
A Plan of Economic Development for India, known as Bombay Plan was prepared by
eight leading industrialists of the country, which accepted the role of the State
within the framework of capitalistic framework.
Peoples Plan for Economic Development of India, known as Peoples Plan prepared
by B. N. Banerjee, G. D. Parekh, and V. M. Tarkunde but released by M. N. Roy,
General Secretary of the Indian Federation of Labour, recommended creation of
State capitalism.
The Gandhian Plan of Economic Development for India, known as Gandhian
Plan by Shriman Narayan Agarwal, which recommended building up of a selfreliant rural economy.
The Bombay Plan proposed a doubling of per capita income over fifteen years,
excluding preparatory time taking 3 to 5 years, amounting to trebling of national
income at the given rate of population rise, which would necessitate twice of
agriculture production, five times industrial production, creation of industries for
production of power and capital goods but confining production of essential
consumption goods with small scale and cottage industries. All this needed Rs
10,000 crore over 15 years, which was found feasible. The Peoples Plan, on the
other hand, proposed an outlay of Rs 15,000 crore, found feasible, over
10 years leading four times increase in agriculture and six times increase in
industry. Gandhian Plan proposed doubling of per capita income in ten years
through rejuvenation of village economy though accepting basic structure as it
existed then.
Plan
Investment
(Rs.Cr)
Years
Agriculture
Industry
Per Capita
Income
Bombay Plan
10,000
15
Twice
Five Times
Three times
Peoples Plan
15,000
10
Four times
Six Times
3,500
10
Gandhian Plan
186
(a)
(b)
(c)
that the citizens, men and women equally have the right to an adequate means
of livelihood;
that the ownership and control of the material resources of the community are
so distributed as best to subserve the common good; and
that the operation of the economic system does not result in the concentration
of wealth and means of production to the common detriment.
Having regard to these rights and in furtherance of these principles as well as
of the declared objective of the Government to promote a rapid rise in the
standard of living of the people by efficient exploitation of the resources of the
country, increasing production, and offering opportunities to all employment in
the service of the community,
Period
Perspective Plan
1951-1956
1956-1961
1961-1966
1966-1969
1969-1974
1974-1979
1979-1980
1980-1985
1985-1990
2 Annual Plans
Eighth Five Year Plan
Ninth Five Year Plan
Tenth Five Year Plan
1990-1992
1992-1997
1997-2002
2002-2007
1992-2007 (15)
1997-2012 (15)
2002-2012 (10)
1966-1971
1978-1983
Remarks
1951-1981 (30)
1956-1976 (20)
1961-1976 (15)
Fourth Plan withdrawn
1968-1981 (12)
1974-1986 (12)
1978-1988 (10)
1985-2000 (15)
Perspective extended to 15
Perspective extended to 15
APPENDICES
5.
6.
7.
determine the nature of the machinery which will be necessary for securing
the successful implementation of each stage of the Plan in all its aspects;
appraise from time to time the progress achieved in the execution of each
stage of the Plan and recommend the adjustments of policy and measures that
such appraisal may show to be necessary; and
make such interim or ancillary recommendations as appear to it to be
appropriate either for facilitating the discharge of the duties assigned to it; or,
on a consideration of the prevailing economic conditions, current policies,
measures and develoment programmes; or on an examination of such specific
problems as may be referred to it for advice by Central or State Govenments.
(Emphasis has been added by the Author)
Maximum Production
Full employment and
Removal of economic inequalities.
Second Plan
Third Plan
Equal opportunities
Distribution of economic powers
Reduction in disparities in income
Fourth Plan
Fifth Plan
Removal of poverty
Attainment of Self Reliance
Growth Rate of 5.5 per cent per annum
187
188
Seventh Plan
Eighth Plan
APPENDICES
Provision of safe drinking water and primary health care facilities, elimination of
scavenging
Growth and diversification of agriculture to achieve self-sufficiency in food and to
generate surpluses for exports
Strengthening infrastructure to support growth process on a sustained basis
Ninth Plan
Tenth Plan
189
190
CHAPTER 7
Industrial Policy
We may recall, that in the tumultuous days of partition, there was a lot of confusion.
But there was a clear need for a statement particularly about the direction in which
industrial sphere is likely to move. The Government responded with a resolution on
Industrial Policy in April 1948. Reserving arms/ammunitions, atomic energy, railway
transport were to be exclusively in control of the Government of India and new
ventures in coal, iron and steel, aircraft, ship-building, apparatuses for telephone,
telegraphs and wireless, were to be in exclusively in State sector. It means existing
units in these areas were left in the hands of private sector; no nationalisation of
these units was proposed. All other industries, basic and heavy (mining, metallurgy,
cement), capital goods (machinery, transport, electrical), chemical (fertilisers, other
heavy chemicals), and consumer goods industries (textiles, food-processing) were
left for private sector, including cooperative units.
The Industrial Policy Resolution adopted in April 1956 spread the phalanx of
the State by reserving 17 industries for exclusive monopoly, listing 12 industries
for progressive State ownership, by putting restrictions on private sector in all
other industries with regard to scale, volume, technology, and foreign capital. It
was adopted in the back-drop of resolution adopted by the Parliament for establishing
a socialistic pattern of society in India. The Constitution itself, while guaranteeing
fundamental rights, had enunciated directive principles of state policy. Expanding
public sector, strengthening cooperative sector and protecting cottage and smallscale industry were three major planks. Partly the reason for expansion of public
sector was inability of private sector to come to the fore and partly private sector
could not be trusted to run public utility services in the interest of the consumer.
However, linkages between the two sectors were mooted. Differential taxation,
provision of subsidies and restriction on volume were to be invoked, small sector
had to compete with large sector. It was emphasised that the decentralised sector
would promote employment, mobilisation of resources, equitable distribution and
would check haphazard growth of urbanisation. The policy emphasised on regulated
inflow of foreign capital (announced in April 1949).
According to the Industrial Policy Statements made in 1991, licensing was to
be abolished for all projects except for a short list of industries related to: (i) security
and strategic concerns, (ii) social reasons, (iii) hazardous chemicals and overriding
environmental reasons, and (iv) items for elitists consumption. Even substantial
expansion would not need any permission. But industries reserved for small sector
would continue to be reserved for them and if such units intended to enter the
restricted list of industries, there would be no need for license. Imports of capital
goods would get automatic clearance in case foreign exchange availability is ensured
through foreign equity participation. Broad-banding (diversification) would be
permitted to existing units without encumbrances.
Public sector has to work in essential infrastructure goods and services and in
manufacturing of products where strategic considerations dominate such as defence
equipments, in exploration and exploitation of oil and mineral resources, and in
technology development and building of manufacturing capabilities in areas which
are crucial in the long-term development of the economy and where private sector
investment is inadequate.
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APPENDICES
CHAPTER 8
Power of Continuous Exponential Growth
Human population has not been ever rising with the slightest of rate of growth.
This is clear from the following.
A population of one crore in the beginning of the era, rising at the rate of 1
percent per annum would have become about 44,00,00,000 crore. Even half a per
cent growth per annum would have multiplied the population by a factor of 21,000
in a span of 2,000 years.
Human history is much older. It simply means that population(s) rose and
declined; civilisations arose and vanished. The same has been the case in India.
Importance of Infant Mortality Reduction
Observe in your family, families of your relations, families of your friends in your
neighbourhood about the death of children in infancy. Talk with parents and uncles
about their brothers and sisters who died in infancy. Also talk with your grandparents
about death of their brothers, sisters, and children. You will discover a general
pattern that in each successive generation the number of children who died in
infancy has been reducing. Try to find out the number of children women of your
grandmothers generation and women of your parents generation gave birth.
Compare with the number of brothers and sisters you and friends have. You will
discover that each successive generation has been having fewer children.
Which way lies the causality? Reduction in infant mortality encourages at least
parents of next generation to beget fewer children.
CHAPTER 9
Contribution of Amartya Sen
Suppose the poverty line is 50 units. Suppose there are two societies, with ten persons
each. Suppose in one society, there are five persons, each with 20 units and five
persons with more than 50 units; in the other, there are five persons, each with 45
units and five persons more than 50 units. You will say, if you were asked, that each
society has 50 per cent population below poverty line. Some people will call it incidence.
But, you will perhaps not reconcile as you will find that poor people in one society face
much more penury as they are far away from the poverty line than in the other. The
average distance from the poverty line, in the first case, is 30 units and in the other,
it is just 5 units. So, you may suggest that this distance, call it average poverty gap,
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should be taken into consideration in any good measure of poverty. This absolute gap
may be divided by the poverty line to yield the intensity of poverty.
Suppose further, that there are two societies, each with 5 persons out of 10 below
poverty line and each with the same poverty gap of 30 units. In one case, all five poor
have the same 20 units and in the other the distribution is 10, 10, 20, 30, 30. Shall
we still say that poverty situation is the same in both the societies? No, perhaps you
will say that we should take into account the level of inequality among the poor.
Thus, we come to the conclusion that we should consider (i) incidence which
means what proportion of population is below the poverty line, (ii) intensity which
means how much below the poor are from the poverty line, and (iii) inequality among
the peer group of the poor. If you can meaningfully combine the three dimensions,
you will be an Amartya Sen and could win a Nobel Prize! Not a bad idea!
CHAPTER 11
Electric Power: Generation, Transmission and Distribution
Electricity is generated in one of the plants whether they are thermal, hydro or
nuclear or one based on non-conventional energy sources.
If amount generated is large, it is not locally consumed. It is transmitted on
high voltage through transmission lines from generating plants to power stations
or substation. You might have seen big iron-fabricated high towers connected
through heavy wires. This is transmission network.
From power station or sub-station, it is distributed to the end-user or consumerindustry, agriculture, commercial establishments, households, and railways. City
poles and city wiring constitutes the distribution network in the city. Similar would
be the case in rural areas, with difference of scale, etc.
In order to match aggregate supply with aggregate demand, mechanisms of
grids are being developed.
This description is not accurate picture of the total network. Its purpose is to
provide a background of the issue and to appreciate the problem.
Rural Urban Disparities in Literacy
Rural-Urban Break-up of Male And Female Literacy Rates (in percentage)
Year
1951
Rural
Urban
Total
1961
Rural
Urban
Total
1971
Rural
Urban
Total
Note :
Male
Female
Person
19.02
45.60
27.10
04.87
22.33
08.86
12.10
34.59
18.33
34.30
66.00
40.40
10.10
40.50
15.35
22.50
54.40
28.30
48.60
69.80
45.96
15.50
48.80
21.97
27.90
60.20
34.45
Year
1981
Rural
Urban
Total
1991
Rural
Urban
Total
2001
Rural
Urban
Total
Male
Female
Person
49.60
76.70
56.38
21.70
56.30
29.76
36.00
67.20
43.57
57.90
81.10
64.13
30.60
64.00
39.29
44.70
73.10
52.21
71.40
86.70
75.85
46.70
73.20
54.16
59.40
80.30
65.38
For 1951, 1961 and 1971, population group refers to age group 5+ while for
1981, 1991 and 2001, it refers to 7+.
Source : Census of India Series 1 India, Provisional Population Totals, Paper 1 of 2001.
GLOSSARY
Accounting Period It is usually a year. But besides the calendar year, we have
a fiscal year or a financial year, academic year, agriculture year, etc. Calendar year
obviously runs from 1 January to 31 December. In our country, the fiscal year runs
from 1 April of a calendar year to 31 March of the next calendar year while academic
year runs from 1 July of a calendar year to 30 June of the next calendar year.
Agriculture year is the same as the academic year. While calendar year is presented
as 2001, fiscal and academic years are written as 2000-01. Our macro-economic
aggregates refer to fiscal year while enrolments in schools refer to academic year.
However, many businessmen use diwali to diwali as their business year.
Age-specific Fertility Number of births given by women in a particular age
group in any given year divided by the number of women in that age group, when
multiplied by 1000, is called age specific fertility of that age group in that particular
year.
Basic Literacy Rate Percentage of literates among persons above 15 to the total
size of population above 15 in a society is known as basic literacy rate. It is called
basic because the minimum requirement of being literate is that the person should
be able to read and write in any language. It is the same as adult literacy rate in our
country.
Birth Rate and Death Rate Birth is live parturition of a human baby from
mothers womb. Stillbirths, miscarriages and abortions are not counted as (live)
births. Birth rate is defined as number of live births per thousand of population in
a given year. By convention birth of twins is counted as one birth. Death is final
departure of a human being. Death rate is defined as number of deaths per thousand
of population in a given year. Though twins are born together, they die apart. While
their births are counted as one, their deaths are counted as two.
Civic and Political Rights Political rights relate to a citizens rights of playing a
part in determining as to who governs their public affairs and how they are governed.
Civic rights concern the rights of the individual vis-a-vis the State.
Cohort A group of people, who have a synchronous/simultaneous start by a
significant event, is known as cohort. It is similar to a generation except that, in the
case of a generation, the interval of happening of a particular event is not precise.
In this case, an interval is fixed. Normally, it is a year. People born in a particular
year, say 2001, constitute birth cohort of that year. There can be a marriage cohort
or a recruitment cohort too. How the attrition in the group takes place is the basic
interest in the analysis, using the concept of cohort.
Combined Enrolment Ratio Enrolment ratio, for any given level of education, is
obtained by dividing size of enrolment by size of population of corresponding
(assumed) age group. For example, enrolment ratio for primary level of education in
India, is obtained by dividing size of enrolment in primary classes by size of
population of age group 6 -11. Enrolment ratios for primary, secondary and tertiary
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GLOSSARY
173
174
added, the measure of volume of all goods and services has, perforce, to be in value
terms. We add up contribution of all activity of production, whether of goods or of
services. While measuring contribution of a particular activity, we should subtract
the value of inputs from the value of inputs, so that there is no duplication for parts
of many goods and services enter as inputs into production of other activities.
Prices in different periods for many goods and services are different. In order to
measure the real change in total volume of all activities between two different periods,
care should be exercised to use GDP at constant prices. [Suppose, all that an
economy produces could be measured in kilograms (apples, wheat, eggs and pearls)
should we add them up? If not, think why not?].
Gross Enrolment Ratio The ratio of number of students enrolled in a particular
level of education, say primary level, to the size of population of children of relevant
age group, say age group 6-11, is called gross enrolment ratio. The ratio is often
expressed in terms of percentage. However, we know that many students enrolled
in the primary section (Classes I-V) do not strictly come from the age group of 6-11.
There are children below age 6 and also above age 11. Gross enrolment ratio may,
therefore, turn out to be more than 100 per cent. Indeed in the case some states, it
turned out to be as high as 150! If we exclude overage and underage children from
the numerator, then the enrolment ratio should be called net enrolment ratio.
Human Capital Formation As against physical capital, which is a machine, a
building, a road, when human beings are made more productive through education
and training and through better health and nutrition facilities, capital is formed in
human form. It is believed that its contribution to productivity is enormous.
Infant Mortality Rate Death before age one is called infant mortality. Infant
mortality rate is the number of infant deaths in a particular year per 1000 live
births during that year. Live births exclude stillbirths, miscarriages and induced
abortion. In cases where infant deaths widely fluctuate from year to year,
demographers take notice of the fact that infant death that occur in a particular
year also include death of infants born in the preceding year and babies born this
year may die next year as infants.
In-migration and Out-migration A movement to a place with no immediate
intention to return is called in-migration and a movement from a place with no
immediate intention to return is called out-migration. When such a movement takes
place between two countries, for the country receiving it is immigration and for
country deporting it is emigration.
Intellectual Property Rights Laws governing patents, copyrights, trade secrets,
electronic media and other commodities, comprised primarily of information. These
laws generally provide the original creator the right to control and be compensated
for reproduction of the work.
Laissez-faire A French phrase expressing leave us alone. It denotes the view
that Government should interfere as little as possible in economic activity and
leave decisions to the market. The role of Government, according to this view, should
be limited to maintenance of law and order, national defence, provision of certain
public goods like public health and sanitation, which private business would not
undertake.
GLOSSARY
175
176
resource cost, it is cheaper for the society too. If two plants try to meet the demand,
with the same technology, for the same market, the resource cost will increase as
they will not be exploiting the economies of scale. However, such firms need
regulation, or else they would reap huge profits.
Non-renewable Resources Resources that cannot be easily renewed. They
have finite, even if large, stock. The stocks of fossil fuels (such as oil and coal)
and mineral resources (such as iron, lead, aluminium, uranium) are the same
today as they were millions of years ago. To convert CO2 and H2O back into fossil
fuel will take as much energy as we got from it.
Normalisation It is a modern term used for division by such factor as makes
the numerator comparable. Sometimes, the numerator is also modified by
subtracting something from it or subtracting it from something. See resemblance
with normalisation and standardisation of a variable, which is considered normally
distributed.
NRI Non-resident Indian. An Indian who does not normally live and work in
India but lives and works in some other country. He holds Indian citizenship and
Indian passport.
Occupational Classification of Employment As against where you are employed,
which defines your industrial status, how you are employed defines your occupational
status. Occupational classification is in terms of professional workers,
administrative/managerial workers, clerks/stenographers, sales workers, service
workers, farmers, fishermen, drivers, labourers, etc.
Organised Sector All the public sector enterprises and those private enterprises
registered legislation like Factories Act, companies Act and cooperatives Act are
included in organised sector. Maintenance of accounts is the main criterion for the
inclusion of enterprises in this sector.
Passenger-kilometre/Tonne-kilometre A person (a tonne of goods) carried for
one kilometre is one passenger-kilometre (tonne-kilometre).
Percent Points The absolute difference between two percentages is known as
per cent points. For example, the absolute difference between 50 per cent and 60
per cent is (60 per cent 50 per cent =) 10 per cent points whereas relative difference
is [{(60 per cent-50 per cent)/50 per cent} 100=]20 per cent.
Per Thousand Points Difference between two levels of rates expressed in terms
of per thousand is to be expressed as per thousand points. It is similar to per cent
points. Since many rates in demography are expressed in terms of per thousand, it
becomes important to remember it.
Perpetual Resources Resources, which will always exist in relatively constant
supply, no matter how and how much they are used. Solar energy is one such
example. Perhaps, geothermal energy or wind energy could be other examples.
Person-day A person working for a day works for a person-day. Two persons
working half-day each will amount to working for a person-day. Multiplying the
number of persons with the number of days they have been working and aggregating
all such multiplication products will yield the total number of person-days worked.
GLOSSARY
Perspective Plan Perspective plan is a long-term plan, which forms the backdrop
of the medium-term plan. While the medium-term plan is usually formulated for
four/five/six years (in our country for five years), the long-term perspective plan is
usually for ten/fifteen/twenty years. Long-term perspective plan thinks in terms
of long-term goals of sustained increase in capacity matching likely demands ten
years later or basic problems of poverty, unemployment or illiteracy, which one
cannot solve in a day, or alternative technological possibilities. Medium-term plans
bother about harnessing present technology, making a dent on poverty, improving
balance of payments, controlling inflation. There are short-term or annual plans,
which take care of immediate needs. Plans help one in moving in the correct direction.
If there is a reason for deviating from the path, one knows that one has to come
back to the long-term path.
Postal Services Postal services can be divided as basic postal services and other
postal services. Basic postal services concern with sale of stamps and stationery,
acceptance of registered and insured articles and parcels, value payable articles
and parcels, money orders and postal orders. Other postal services include speed
post, business post, media post (public and private corporate sectors advertisement
on postal stationery), satellite post, express post, retail post (acceptance of telephone
bills and electricity bills).
Potential Resources Many of the resources we know today were not considered
resources once upon a time. Either we did not have taste for marine food or the
technology was not ripe for using petroleum or natural gas. Economic, cultural and
technological conditions of a society may find use for existing matters or discover
new matters for use. Waste water and earthworms are now considered resources.
Public Utilities Public utilities are business enterprises, often allowed to run as
monopolies supplying essential public services, such as electricity, railways,
communication, gas pipelines, water supply, sewerage, sanitation and irrigation.
They are granted power of eminent domain (licence) to lay down spatial network in
public interest. Whether in public sector or in private sector, they are regulated for
price, quantity and timely supply.
Purchasing Power Parity Exchange Rate In order to get one US $, you need to
give around Rs 50 at the market exchange rate. Let us take an example of simple
packet of bread, which is an essential item. Suppose it is available for Rs 15 in
India and for US $ 3 in the US, then in terms of bread one US $ is equivalent to Rs
5. So would be the case if we hire a residential flat of the same size and standard in
two comparable cities. Most of the essential items are home-made where market
exchange is found to underestimate the value in the so-called underdeveloped
countries. When purchasing power equivalence is applied, GDP of India becomes
four-times and that of China becomes five-times but that of Japans becomes 0.6
times only. At market exchange rates, Japans and Chinas per capita GDPs in
1994 are found to be US $4600 and US $ 520, respectively, but in terms of
purchasing power parity equivalence, they are found to be PPP $ 2800 and PPP $
2475, respectively!
Quota Restriction on quantity of a commodity, which could be imported during
a given period. Though it is adopted by many countries for conserving their scarce
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178
GLOSSARY
179