India as a Developing Nation

7/31/2019 India as a Developing Nation

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Trends in national income occupational

distributionPerformance of an economy can be judged with thetrend of national income of the country, particularly the changes in gross or net national product andsectoral distribution of gross or net national product.In India the national income trend are prepared by the central statistical organization ( cso)


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According to this new series, the net national productof India at 1999-2000 prices was Rs 2,04,924 crore in1950-51 since then it has grown at a moderate rate of 4.6% per annum in the period of economic planningand stood at Rs27,67,682 crore in 2007-2008. as per2009-10 survey, NNP is Rs 4632304 crore.


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Per capita growthThe growth rates in per capita income andconsumption, which are gross measures of welfare ingeneral have declined in the last two years. This is areflection of the slowdown in the overall GDP growth. While the growth in per capita income measured interms of GDP at constant prices, has declined from ahigh 8.1% in 2007-08 to 3.7% in 2008-09 and then

recovered to 5.3% in 2009-10.


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Per capita income and

consumption at 2004-05 pricesIncome ( Rs ) % growth Consumptio

n ( Rs)% growth

2004-05 29,745 17,620

2005-06 32,012 7.6 18,909 7.32006-07 34,533 7.9 20,168 6.72007-08 37328 8.1 21,841 8.32008-09 38,695 3.7 23,012 5.42009-10 40,745 5.3 23,626 2.7


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Rise in Per capita national incomeIndias per capita net national product at current prices was Rs255 in 1950-51. it rose to Rs742 in 1970-71. it roseto 5,440 in 1990-91 and to Rs 33,299 in 2007-08. it is Rs43,749 in 2009-10


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Structural changesShare of ( primary sector) to GDPThe importance of agriculture and allied activities in

the Indian Economy has declined during the period of economic planning.

% share in GDP1950-51 55.1

1970-71 19.72007-08 17.82008-09 15.7


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Structural change of secondary

sectorThe output in the secondary sector comprisingindustries, mining, construction, electricity etcaccounted for 13.6%of the GDP in 1950-51( 1999-2000prices)

1966-67 20.7%

2007-08 24.7%2009-10 28.5%


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Structural change in tertiary sector%

1950-51 29.9 (1999-2000)2007-08 55.6 ( 1999-2000)

2009-10 56.9 (1999-200)


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These structural changes indicate that the process of development which began in the early 1950s is stillcontinuing. Thus there is definitely a significantchange in the sectoral distribution if gross domesticproduct.


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Slowly changing occupational

distribution % of the work force1951 72.71991 67.42001 57.32009 52.1 ( 2004-05)


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Growth of basic capital goods

industriesUnder the second plan (1956-66) , a high priority wasaccorded to capital goods industries, as theirdevelopment was considered a pre-requisite to overallgrowth of the economy. Beginning from 1956 thisstrategy was there for two and half decades period andconsequently a large number of basic industries whichproduce capital equipment and useful raw materialshave


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Set up making the countrys industrial structurepretty strong.

Among the large number of industries developedduring the planning period on a big scale, iron andsteel, heavy chemicals, nitrogenous, fertilizers, heavy engineering, machine tools, locomotives, heavy electricity equipment and petroleum products are of strategic importance.


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Expansion in social overhead

capitalIt broadly includes transport facilities, irrigationsystem, energy production units, educational systemand health facilities.The transport system in India over the past six decadeshas increased both in terms of capacity andmodernization.Road and railways have also progressed.

Shipping and civil aviation has been equally impressive.Educational institutions though not sufficient but stillthey have grown 4 times.


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Progress in the banking and

financial sectorSince independence significant progressive changeshave taken place in the banking and financialstructure of India. In this period organization of money and capital markets has improved, specializedindustrial financing institutions have been set up,banking services have increased and modern bankshave reached small towns and villages.


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India- a mixed economyThe Indian economy is a mixed economy. It hasacquired this form with the growth of a large publicsector since independence.Nationalization of banks and growth of public sectorIndia has a mixed economy with a dominant privatesector.

Under Indian constitution private ownership of meansof production has been allowed.


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Private

Cotton textiles, jute,sugar, cement, vegetableoil, leather, IT, roadtransport , Agriculture,

and many other

PublicRailways

defense


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Economic planningEconomic planning is an integral part of Indianeconomy since independence.

In India the economic planning has been introducedin a basically economic framework. The Indian planslay down targets even for sectors over which the statehas little control.

The Indian experience is that mixed economy framework is a feasible proposition for a developingcountry as it allows for a modest rate of growth.

India as a Developing Nation

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