Indian Economy-Chapter I-Structure of the Indian Economy

7/28/2019 Indian Economy-Chapter I-Structure of the Indian Economy

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Indian EconomyChapter I

Structure of the Indian Economy A detailed study of Indian Economy is of great importance to students for its three objectives 1.For

analyzing what causes poverty, 2.To devise a workable solution to remove poverty and 3.Laying down theright policies for rapid and planned Economic development.Concepts of Economic development

Meier and Baldwin define economic development as ‘a process where by an economy’s realnational income increased over a long period of time’.

Benjamin Higgins defines economic development as ‘a discernible rise in total and per capitaincome in a country, widely diffused throughout occupational and income groups, and continuing longenough to become cumulative’.

From these definitions we can understand that economic development refers to1. a process leading to some positive results in the society,2. a process that brings some change in the economy,3. it results in increases in real national income and not merely money income, and4. the increase in real national income must be sustained for a prolonged period, and temporary

increase in national income should not be considered.Stages in Economic developmentMany Economists have contributed to the concept of economic development

1.1. UNDERDEVELOPMENT AND GROWTH – FEATURES, CAUSESUN Experts have defined an underdeveloped country as one in which ‘per capita real income is low

when compared with the per capita real incomes of the USA, Canada, Australia, and Western Europe’.Based on Economic development countries are classified into (i) Developed countries, and (ii)

Underdeveloped or backward countries. Now a days instead of saying under developed country we call thethird world countries as developing nations. The characteristics of underdevelopment are

1. poverty2. low per capita income3. inadequate capital resources4. low capital formation5. lack of skill6. lack of technology

According to Eugene Staley, underdevelopment is viewed in terms of the following dimensional aspects 1.Incidence of poverty, ignorance and diseases, 2. misdistribution of national income; (iii)Political andadministrative incompetence combined with social disorganization.Criterions of under development

1. ratio of population to land in the country2. Ratio of industrial out put to total output3. Low ratio or capital to per head of population4. low per capita income

Characteristics of under developmentHarvey Leibenstein has classified the characteristics of underdevelopment under four major heads, namely1. Economic, 2. Demographic, 3. Cultural and political, and 4. technological and miscellaneous.

Economic characteristics of under development

General economic characteristics of under development

Agricultural characteristics of under development

1. Over population 1. Subdivision and fragmentation2. Disguised unemployment 2. Little mechanization3. Poor income and no savings 3. Rural indebtedness4. Zero marginal productivity5. Export of raw materials and minerals6. Poor marketing and credit facilities

Demographic characteristics of under development

Cultural and politicalcharacteristics of under

development

Technological characteristics of under development

1. Absence of family planning 1. High illiteracy 1. Poor technological development2. Poor nutrition 2. Low status of women 2. Under utilization of resources3. High fertility rates 3. Prevalence of child labour 3. Poor transport facilities

4. Traditional outlook5. No technical education6. Casteism, parochialism,

regionalism7. No recognition for middle class



Features of Underdevelopment

1. Dependence on agriculture

2. Population pressure

3. Un employment

4. Poor income

5. Poor savings

6. Underutilization of resources

7. Capital deficiency

8. Low level technology

9. Poor exports

10. Poor economic organization

11. Lack of suitable socio economic setup

12. Dualistic economy: The under developed countries present sharp contrast in all walks of life. Thereis the old and new, developed and under developed the educated and the illiterate, the rich andpoor existing side by side. It is both a bullock cart and motor car economy. There are pockets of extra rich and ultra modern people and vast masses steeped in abject poverty. There are efficientmodern industries and the languishing indigenous handicrafts, and soon.

13. Mass poverty

14. Low standard of living1.2. STRATEGIES OF DEVELOPMENT

The strategies for development are classified under two heads namely 1.economic factors and2.noneconomic factors.Economic factors

1. Natural resources2. transport and communication facilities3. rate of capital formation4. Capital - output ratio ( requirements of capital for a definite output in units)Rate of growth of national Income = Investment Ratio

Capital - output ratio5. Technological Progress6. marketable surplus of agriculture7. Economic system

Non-Economic factors1. Social factors (Culture, value system, tradition, customs, religion, caste etc)2. Human factors (efficiency, education and skill)

3. Political and administrative factors (enlightened electorates, educated responsible politicians, wealpolitical structure, inefficient administration, intelligent government)4. Climatic factors (countries near equator have less economic development)5. technical know how and general education6. less Corruption7. Desire to develop

Obstacles to Economic DevelopmentObstacles to Economic Development

Broadly speaking, the features of an under developed economy create obstacles in the way of economic development, and hamper economic progress. These features emerge out of economic, social,political, religious and institutional factors. It would be wrong to conclude that only economic factors areresponsible for poverty or economic backwardness of a country. Non-economic factors are equallyresponsible for the under development of an economy. The factorsdiscouraging economic development may be classified into economic and noneconomic factors which are asunder.Now we discuss these factors in detail.

A. Economic FactorsThe important economic factors which obstacles to economic development are:1. Vicious Circles of Poverty Most important feature of underdeveloped countries is their dependence on vicious circles of poverty whichmay be considered as the highest bottleneck in the process of their economic development. Poverty is notonly distressing but it is also demoralising. A poor man is one who is regarded as a disgrace to the societyand a cause of humiliation to himself, and who is unable to have proper food and a suitable house. Neither he helps himself, nor he is able to serve others. He is burden on society. A poor man always finds himself having been caught in a vicious circle of poverty. Since he lacks the means to prosper, he remains poor.What is true to an individual, is also true to the country as a whole. Since an underdeveloped economy lacksthe proper and modern means of economic development, its economic development becomes an uphill task.



Since its rate of investment and growth potential is so little, it has to remain poor. We find circular relationships, known as the "vicious circles of poverty" which reveal the low level of economicdevelopment in Less Developed Countries (LDCs). Prof. Nurkse defines the concept of "Vicious Circles of Poverty" in these words: "It implies a circular constellation of forces tending to act and react upon oneanother in such a way, as to keep a poor country in a state of poverty.... A country is poor because it ispoor." The vicious circles operate in an underdeveloped economy on the supply as well as on the demandside. On the supply side deficiency of capital and low volume of savings, create vicious circles whereas low

purchasing power creates vicious circle on the demand side. Now we discuss how does vicious circle of poverty operate on the supply side? Poverty is responsible for the low level of income which in turn leads tolow volume of savings. It results in deficiency of capital and low productivity. Low productivity is the cause of low level of income. The circle starts with poverty and ends with the low level of income and in this way thevicious circle is complete. Diagrammatic representation of the circle is given below.

Just as vicious circle of poverty operates on the supply side, similarly it also operates on thedemand side. Again, poverty or low income is the starting point. Low level of income results in lowpurchasing power and low level of demand. It limits the extent of market, which in turn leads to lowinvestment resulting in low capital formation and low productivity, which is the cause of poverty and lowincome. In this way the circle completes its round and continues rotating along the fixed path. Ragnar Nurkse has explained the operation of vicious circles in the words. "The inducement to invest may be lowbecause of the small purchasing power of the people, which is due to their small real income which again isdue to low productivity. The low level of productivityis however, the result of the small amount of capital usedin production, which in turn may be caused, at least partly, by small inducement to invest".2. Deficiency of capital: The low level of capital formation in an under developed country is due both to theweakness of the inducement to invest and to the low propensity and capacity to save. In such an economy,the low level of per capita income limits the size of the market demand for manufactured output, whichweakness the inducement to invest . The low level of investment also arises as a result of the lack of

dynamic entrepreneurship, which was regarded by Schumpeter as the focal point in the process of economic development.3. Market imperfections According to Meier and Baldwin, it refers to immobility of factors, price rigidity,ignotance of market conditions, rigid social structure and lack of specialization. According to Meier andBaldwin, the existence of market imperfections prevents optimum allocation and utilization of naturalresources, and the result is underdevelopment, and this, in turn, leads to poverty. The development of natural resources depends upon the character of human resources. But due to lack of skill and low level of knowledge, natural resources remain unutilized, underutilised and misused4. International forces exposure of underdeveloped economies to world trade results in destabilizingfactors such unfavorable BOP5. Difficulties in adopting western technologies6. Low agricultural productivity 7. Lack of entrepreneurs8. Administrative incompetence and corruptionB. non-Economic Factors

The important non economic factors which obstacles to economic development are:1. Socio cultural obstacles such as Rigid stratification of society, traditional beliefs, pattern of living,concepts of social dignity, loyalties to castes, regional identification etc.2. Undeveloped human resources3. Political instability 4. Religious factorsThe structure of India’s present day economy is not just of current making; it has its roots steeped in

history, particularly in the period when India was under British rule which lasted for almost two centuriesbefore India finally won its independence on 15 August 1947.ECONOMIC DEVELOPMENT PRE-BRITISH PERIOD



Indian economy, during the pre-British period, was considered to be backward, isolated and self-sustaining villages on the one hand and on the other hand, there are number of towns which were the seatsof administration and handicrafts. The economic condition of farmers was very painful.

India had an independent economy before the advent of the British rule. Though agriculture wasthe main source of livelihood for most people, yet, the country’s economy was characterised by variouskinds of manufacturing activities. India was particularly well known for its handicraft industries in the fieldsof cotton and silk textiles, metal and precious stone works etc. These products enjoyed a worldwide

market based on the reputation of the fine quality of material used and the high standards of craftsmanshipseen in all imports from India.ECONOMIC DEVELOPMENT BRITISH PERIOD

The system of colonialism had its origin mostly from British imperialism. Thus the word colonialismrefers to a system of economic, political and social relation between two such countries i.e., the ruler countryand its colony. The British colonial rule caused the following serious impacts on the traditional IndiaEconomy:-

1. Destruction of Indian handicraft.2. New land system.3. Commercialization of agriculture.4. Development of railway network.5. Occurrence of famines.6. Transforming trade pattern.

The economic policies pursued by the colonial government in India were concerned more with the protectionand promotion of the economic interests of their home country than with the development of the Indian

economy. Such policies brought about a fundamental change in the structure of the Indian economy —transforming the country into a net supplier of raw materials and consumer of finished industrialproducts from Britain. Obviously, the colonial government never made any sincere attempt to estimateIndia’s national and per capita income.SALIENT FEATURES OF INDIAN ECONOMY ON THE EVE OF INDEPENDENCEThe British rule was a long story of the systematic exploitation by an imperialistic government of a peoplewhom they had enslaved by their policy of divide and rule. The benefits of British rule were only incidental, if any. Their main motive was to promote their selfish interests at the cost of India. Thus in 1947 we inherited acrippled economy with extreme poverty and stagnant agriculture, lopsided industrial sector. The policies of British rule brought about a fundamental change in the structure of Indian economy-transforming the countryinto a supplier of raw material and consumer of finished industrial products from Britain.

AGRICULTURAL SECTOR 1) Weak Productive Accumulation- At the time of independence, the means of production were

defective, there was insufficient use of fertilizers, seeds, irrigation, etc., machines were less &defective, etc. All these led to weak productive accumulation.

2) Commercialization of Agriculture- Commercialization of agriculture means production of cropsfor sale in the market rather than for self consumption. During the British rule, farmers were givenhigher price for producing cash crops (like cotton and jute), so that such crops could be used asraw material for British industries.

3) Adverse effects of Partition- India’s agricultural production received a further set back due to thecountry’s partition at the time of independence. Almost, the whole of jute producing area becamepart of East Pakistan (now Bangladesh). India’s jute goods industry, which had enjoyed a worldmonopoly so far, suffered heavily for lack of raw material.

4) Defective Land Tenure System- the British Government of India set up a land revenue systemalso known as Zamindari system establishing a triangular relationship among government, theowner of the soil and the tiller of the soil. According to this system, Zamindars were permanentowners of the soil; they have to pay a fixed sum to government as land revenue and were free tocharge any amount as revenue from the tillers of the soil.

INDUSTRIAL SECTOR 1) Deindustrialization of Indian Industries- The primary motive of deindustrialization by British

Government was to exploit world famous Indian handicrafts industry by opting for discriminatory tariff policy with a two-fold motive of :

a) To get raw material from India at cheap rate for the British industriesb) To create market for British machine made cheap goods.

2) Lack of Capital Goods Industries- The growth of capital goods industries in India was unbalancedand lopsided, as Britishers did not want to develop those industries which could compete with BritishIndustry and they wanted Indians to be dependent on Britain for the supply of capital goods and heavyequipments.



3) Limited Role of Public Sector -The limited area of operation of the public sector was also a significantreason for drawback of the industrial sector. The Public sector remained confined only to the railways,power generation, communications, ports and some other departmental undertakings.

4) Low contribution to Gross Domestic Product (GDP) - The growth rate of the new industrial sector and its contribution to the GDP remained very small.

FOREIGN TRADE 1) Net Exporter of Raw Material and Importer of Finished Goods- India became an exporter of

primary products such as raw silk, cotton, wool, sugar, indigo, jute, etc. and an importer of finishedconsumer goods like cotton, silk and woolen clothes and capital goods like light machineryproduced in the factories of Britain.

2) Monopoly Control of the British Rule- Opening of Suez Canal in 1869 served as direct route for the ships operating between India and Britain. More than half of India’s foreign trade was withBritain.

DEMOGRAPHIC CONDITIONS 1) High Birth Rate and Death Rate- Birth rate refers to number of children born per thousand in a

year. Death rate refers to number of people dying per thousand persons in a year. At the time of independence both BR and DR were very high at 48/1000 and 40/1000 respectively. Such highrates indicate backwardness of a country and led to massive poverty prevailing all over the country.

2) Poor Health Facilities and Low Literacy Rate - Only 17% of population was literate in the year 1941.There was only one doctor per 6000 of population. There was only one medical institution per 24000 of urban population and one for 50000 of rural population. Both are the indicators of lowstandard of living and backwardness.

3) Massive Poverty- Lack of purchasing power, widespread famines, (the great Bengal famine),stagnation in food grains production and growing population led to a state of abject poverty. Lifeexpectancy was 32 years in 1950-51. The per capita NI was Rs. 255 per person per annum, in1950.

4) Occupational Structure- In India at the time of independence majority of labor force was engagedin primary sector a clear indicator of underdevelopment. During the colonial period, theoccupational structure of India, i.e., distribution of working persons across different industries andsectors, showed little sign of change. The agricultural sector accounted for the largest share of workforce, which usually remained at a high of 70-75 per cent while the manufacturing and theservices sectors accounted for only 10 and 15-20 per cent respectively. Another striking aspectwas the growing regional variation. Parts of the then Madras Presidency (comprising areas of thepresent-day states of Tamil Nadu, Andhra Pradesh, Kerala and Karnataka), Maharashtra and WestBengal witnessed a decline in the dependence of the workforce on the agricultural sector with acommensurate increase in the manufacturing and the services sectors. However, there had beenan increase in the share of workforce in agriculture during the same time in states such as Orissa,

Rajasthan and Punjab. This is shown below:Sector occupations

Primary Agriculture, forestry, animal hubandary, fishing, poultry, farming, mining, and quarryingSecondary Manufacturing industries, small scale and cottage industriesTertiary Trade and transport, communication, banking, insurance



Factors determining the occupational structure1. geographical factors-the natural resources available in an geographical area would decide the

occupation2. Development of productive forces-availability of technology3. Division of labour and specialization- this creates new occupations4. Level of per capita income- countries having low percapita income would have high percent of its

population employed in primary sector.

INFRASTRUCTURE Under the colonial regime, basic infrastructure such as railways, ports, water transport, posts andtelegraphs did develop. However, the real motive behind this development was not to provide basicamenities to the people but to subserve various colonial interests.

1. Roads: Roads constructed in India prior to the advent of the British rulewere not fit for modern transport. The colonial administration also could not accomplish much onthis front due to a paucity of funds. The roads that were built primarily served the purposes of mobilising the army within India and drawing out raw materials from the countryside to thenearest railway station or the port to send these to far away England or other lucrativeforeign destinations. There always remained an acute shortage of all weather roads to reach outto the rural areas during the rainy season. Naturally, therefore, people mostly living in these areassuffered grievously during natural calamities and famines.

2) Railways: The British introduced the railways in India in 1850 and it is considered as one of their most important contributions. The railways affected the structure of the Indian economy in twoimportant ways. On the one hand it enabled people to undertake long distance travel and thereby

break geographical and cultural barriers while, on the other hand, it fostered commercialisation of Indian agriculture which adversely affected the comparative self-sufficiency of the villageeconomies in India.

3) Export trade: The volume of India’s export trade undoubtedly expanded but its benefits rarelyaccrued to the Indian people. The social benefits, which the Indian people gained owing to theintroduction of the railways, were thus outweighed by the country’s huge economic loss.

4) Inland waterways and sea lanes: Along with the development of roads and railways, the colonialdispensation also took measures for developing the inland trade and sea lanes. However, thesemeasures were far from satisfactory. The inland waterways, at times, also proved uneconomical asin the case of the Coast Canal on the Orissa coast. Though the canal was built at a huge cost tothe government exchequer, yet, it failed to compete with the railways, which soon traversed theregion running parallel to the canal, and had to be ultimately abandoned.

5) Electric telegraph: The introduction of the expensive system of electric telegraph in India,similarly, served the purpose of maintaining law and order.

6) Postal services: The postal services, on the other hand, despite serving a useful public purpose,

remained all through inadequate.INDIAN ECONOMY AFTER INDEPENDENCE

India became independent on August 15, 1947. Under its visionary leader, Nehru, it adopted asystem of parliamentary democracy that remains intact today. An understanding of the economy beforeindependence is necessary to know and appreciate the level of development achieved in post independenceperiod. In 1951 India formally initiated its development program via launch of the first five year plan. In 1950sto 1970s India turned progressively inward, embarked on a major expansion of public sector and subjectedthe private sector to strict controls and licenses. The result was an annual average growth in per capita GDPof just a little above 1% per annum. The absolute number of poor in the country rose. The Economic andBOP crisis compelled the government to announce the dynamic program of New Economic Policy of privatization, liberalization and globalization.Since the economic liberalization of 1991, India's GDP has beengrowing at a higher rate.

Year Growth (real) (%)2000 5.5

2001 6.0

2002 4.3

2003 8.3

2004 6.2

2005 8.42006 9.2

2007 9.0

2008 7.4

2009 7.4

2010 10.1

2011 6.8

2012 6.5



NATURAL RESOURCESThe term natural resources mean the gifts of nature that include land water resources, minerals,

forests, marine resources etc. It doesn’t mean that the countries that have fewer natural resources are noteconomically forward but natural resources constitute a key factor in the economic development of acountry. If the natural resources are exploited properly the country would prosper. Natural resources fall intotwo classes namely, Renewable and exhaustible. Land, Water, fisheries, and forests are renewable whilemineral deposits are exhaustible. so they must be conserved.

The total cultivable area in India is 1,269,219 km² (56.78% of total land area), which is decreasingdue to constant pressure from an ever-growing population and increased urbanization. India has a totalwater surface area of 360 ,400 km² and receives an average annual rainfall of 1,100 mm. Irrigation accountsfor 92% of the water utilisation, and comprised 380 km² in 1974, and is expected to rise to 1,050 km² by2025, with the balance accounted for by industrial and domestic consumers. India's inland water resourcescomprising rivers, canals, ponds and lakes and marine resources comprising the east and west coasts of theIndian ocean and other gulfs and bays provide employment to nearly 6 million people in the fisheries sector.In 2008, India had the world's third largest fishing industry. India's major mineral resources include Coal(fourth-largest reserves in the world), Iron ore, Manganese, Mica, Bauxite, Titanium ore, Chromite, Naturalgas, Diamonds, Petroleum, Limestone and Thorium (world's largest along Tamil Nadus shores). India's oilreserves, found in Bombay High off the coast of Maharashtra, Gujarat, Rajasthan and in eastern Assammeet 25% of the country's demand. Rising energy demand concomitant with economic growth has created aperpetual state of energy crunch in India. India is poor in oil resources and is currently heavily dependent oncoal and foreign oil imports for its energy needs. Though India is rich in Thorium, but not in Uranium, which itmight get access to in light of the nuclear deal with US. India is rich in certain energy resources which

promise significant future potential - clean / renewable energy resources like solar, wind, biofuels (jatropha,sugarcane). India produces 4 Fuel minerals, 11 metallic, 52 Non-metallic and 22 minor minerals, totally 89minerals.Metallic minerals available from India are

• Iron ore - India is the World's third biggestexporter of Iron ore as in 2013.

• Zinc - India is the World's fourth largest Zincreserve as in 2013.

• Manganese ore

• Chromite

• Bauxite - India is the World's fifth largestbauxite reserve as in 2013.

• Copper - India is one of the 20 major Copper producers. In 2008, India produced 7,10,000 tonnesof copper.

• Silver

• Gold

• Lead

• Tin

Non-Metallic minerals available from India are

•

Phosphorite - India was 13th largest producer in 1999.• Barytes

• Dolomite

• Gypsum

• Garnet (abrasive)

• Wollastonite - India is one of the largest reserves. In2010, India produced 1,45,000 tons.

• Vermiculite

• Ochre

• Perlite

• Bentonite

• Asbestos

•

Soapstone / steatite• Kaolin

• Sillimanite

• Silica Sand

• Limestone

• Vanadium

• Diatomite - As on 2010, there was 2.89million tonnes of resource.

• Pyrophyllite

• Fluorite

• Dunite

• Ilmenite

Minor minerals available are

•

Building stone• Brick earth

• Marble - As on 2010, there was 1931 million tonnes of resource, including all grades of marble.

• Quartzite

HUMAN RESOURCES AND ECONOMIC DEVELOPMENTThe theory of demographic transition postulates three sequential stages as typically associated

with economic development.First stage of demographic transitionIn this stage of demographic transition the Death rates high, Agrarian economy, sanitation in

primitive stages, poor diet, absence of effective medical aids, widespread illiteracy, high birth rates, absence



of knowledge about family planning, large family size, and high infancy deaths. In this stage the rate of population growth is not high since the high birth rate is balanced by high death rates.

Second stage of demographic transitionRise in Income levels, improvement in diet, improvement in transport, reduced death rate,

acceleration in population growth, growth in average size of family.Third stage of demographic transitionEconomy changes from agrarian to industrialized one.population moves from rural to urban,

women work outside, low death rate, small family size, and decline in population.Size and growth rate of population in India1891-1921-Stagnant growth1921-1951-Steady Growth1951-1981-rapid high growth1981-2001- High growth with definite signs of slowing down.The demographics of India are inclusive of the second most populous country in the world, with

over 1.21 billion people (2011 census), more than a sixth of the world's population. Already containing17.5% of the world's population, India is projected to be the world's most populous country by 2025,surpassing China, its population reaching 1.6 billion by 2050. Its population growth rate is 1.41%, ranking102 nd in the world in 2010.

Category Global Ranking Notes (Reference)

Area

Population 2nd

Population growth rate 102nd of 212 as of 2010Population density(people per square kilometer of land area)

24th of 212 as of 2010

Male to Female ratio, at birth 12th of 214 as of 2009

Provisional data from the census was released on 31 March 2011(Updated 20 May 2013).Complete results are expected to be released in 2012.

Population Total 121,07,26,932

Males 623,121,843

Females 587,447,730

Literacy Total 74.04%

Males 82.14%

Females 65.46%

Density of population per km2 382

Sex ratio per 1000 males 943 femalesChild Sex ratio (0–6 age group) per 1000 males 919 females

Literacy



Census year Total (%) Male (%) Female (%)



1901 5.35 9.83 0.60

1911 5.92 10.56 1.05

1921 7.16 12.21 1.81

1931 9.50 15.59 2.93

1941 16.10 24.90 7.301951 16.67 24.95 9.45

1961 24.02 34.44 12.95

1971 29.45 39.45 18.69

1981 36.23 46.89 24.82

1991 42.84 52.74 32.17

2001 64.83 75.26 53.67

2011 74.04 82.14 65.46

Population 1,205,073,612 (July 2012 est.)

Age structure

0-14 years: 29.3% (male 187,386,162/female 165,345,284)

15-24 years: 18.2% (male 116,019,042/female 103,660,359)25-54 years: 40.2% (male 249,017,538/female 235,042,251)55-64 years: 6.8% (male 41,035,270/female 40,449,880)65 years and over: 5.6% (male 31,892,823/female 35,225,003) (2012 est.)

Median agetotal: 26.5 yearsmale: 25.9 yearsfemale: 27.2 years (2012 est.)

Population growthrate

1.312% (2012 est.)

Birth rate 20.6 births/1,000 population (2012 est.)

Death rate 7.43 deaths/1,000 population (July 2012 est.)

Net migration rate -0.05 migrant(s)/1,000 population (2012 est.)

Urbanizationurban population: 30% of total population (2010)rate of urbanization: 2.4% annual rate of change (2010-15 est.)

Major cities -population

NEW DELHI (capital) 21.72 million; Mumbai 19.695 million; Kolkata 15.294 million;Chennai 7.416 million; Bangalore 7.079 million (2009)

Sex ratio

at birth: 1.12 male(s)/femaleunder 15 years: 1.13 male(s)/female15-64 years: 1.07 male(s)/female65 years and over: 0.9 male(s)/femaletotal population: 1.08 male(s)/female (2011 est.)

Infant mortality ratetotal: 46.07 deaths/1,000 live birthsmale: 44.71 deaths/1,000 live birthsfemale: 47.59 deaths/1,000 live births (2012 est.)

Life expectancy atbirth

total population: 67.14 yearsmale: 66.08 yearsfemale: 68.33 years (2012 est.)

Total fertility rate 2.58 children born/woman (2012 est.)

HIV/AIDS - adultprevalence rate

0.3% (2009 est.)

HIV/AIDS - peopleliving withHIV/AIDS

2.4 million (2009 est.)

HIV/AIDS - deaths 170,000 (2009 est.)

Sanitation facilityaccess

improved:urban: 54% of populationrural: 21% of population



total: 31% of populationunimproved: urban: 46% of populationrural: 79% of populationtotal: 69% of population

Major infectiousdiseases

degree of risk: highfood or waterborne diseases: bacterial diarrhea, hepatitis A and E, and typhoid fever

vectorborne diseases: chikungunya, dengue fever, Japanese encephalitis, and malaria

animal contact disease: rabieswater contact disease: leptospirosisnote: highly pathogenic H5N1 avian influenza has been identified in this country; itposes a negligible risk with extremely rare cases possible among US citizens who haveclose contact with birds (2009)

Nationalitynoun: Indian(s)adjective: Indian

Ethnic groups Indo-Aryan 72%, Dravidian 25%, Mongoloid and other 3% (2000)

ReligionsHindu 80.5%, Muslim 13.4%, Christian 2.3%, Sikh 1.9%, other 1.8%, unspecified 0.1%(2001 census)

Languages

Hindi 41%, Bengali 8.1%, Telugu 7.2%, Marathi 7%, Tamil 5.9%, Urdu 5%, Gujarati4.5%, Kannada 3.7%, Malayalam 3.2%, Oriya 3.2%, Punjabi 2.8%, Assamese 1.3%,

Maithili 1.2%, other 5.9%note: English enjoys the status of subsidiary official language but is the most importantlanguage for national, political, and commercial communication; Hindi is the most widelyspoken language and primary tongue of 41% of the people; there are 14 other officiallanguages: Bengali, Telugu, Marathi, Tamil, Urdu, Gujarati, Malayalam, Kannada, Oriya,Punjabi, Assamese, Kashmiri, Sindhi, and Sanskrit; Hindustani is a popular variant of Hindi/Urdu spoken widely throughout northern India but is not an official language (2001census)

Literacy

definition: age 15 and over can read and writetotal population: 61%male: 73.4%female: 47.8% (2001 census)

School lifeexpectancy

(primary to tertiaryeducation)

total: 10 yearsmale: 11 years

female: 10 years (2007)

Educationexpenditures

3.1% of GDP (2006)

Maternal mortalityrate

200 deaths/100,000 live births (2010)

Children under theage of 5 yearsunderweight

43.5% (2006)

Healthexpenditures

2.4% of GDP (2009)

Physicians density 0.599 physicians/1,000 population (2005)

Hospital beddensity

0.9 beds/1,000 population (2005)

Sex ratio, India : 1901 – 2001

Census year (females per 1,000 males)Sex ratio

1901 9721911 9641921 9551931 9501941 9451951 9461961 941



1971 9301981 9341991 927

2001 933Some of the important reasons commonly put forward are listed below: Neglect of the girl child resulting in their higher mortality at younger ages High maternal mortality

Sex selective female abortions Female infanticide Change in sex ratio at birth

India's labor force is growing by 2.5% every year, but employment is growing only at 2.3% a year.Official unemployment exceeds 9%. Regulation and other obstacles have discouraged the emergence of formal businesses and jobs. Almost 30% of workers are casual workers who work only when they are ableto get jobs and remain unpaid for the rest of the time. Only 10% of the workforce is in regular employment.India's labor regulations are heavy even by developing country standards and analysts have urged thegovernment to abolish them. From the overall stock of an estimated 458 million workers, 394 million (86%)operate in the unorganized sector (of which 63% are self-employed) mostly as informal workers. There is astrong relationship between the quality of employment and social and poverty characteristics. The relativegrowth of informal employment was more rapid within the organized rather than the unorganized sector. Thisinformalization is also related to the flexibilization of employment in the organized sector that is suggestedby the increasing use of contract labor by employers in order to benefit from more flexible labor practices.Most children never go beyond primary level schooling. Children under 14 constitute 3.6% of the total labor force in the country. Of these children, 9 out of every 10 work in their own rural family settings. Around 85%of them are engaged in traditional agricultural activities. Less than 9% work in manufacturing, services andrepairs. Child labor is a complex problem that is basically rooted in poverty. The Indian government isimplementing the world's largest child labor elimination program, with primary education targeted for ~250 million. Numerous non-governmental and voluntary organizations are also involved. Specialinvestigation cells have been set up in states to enforce existing laws banning employment of children(under 14) in hazardous industries. The allocation of the Government of India for the eradication of childlabor was US$10 million in 1995–96 and US$16 million in 1996–97. The allocation for 2007 isUS$21 million.Environmental degradation

About 1.2 billion people in developing nations lack clean, safe water because most household andindustrial wastes are dumped directly into rivers and lakes without treatment. This contributes to the rapidincrease in waterborne diseases in humans. Out of India's 3119 towns and cities, just 209 have partialtreatment facilities, and only 8 have full wastewater treatment facilities (WHO 1992). 114 cities dump

untreated sewage and partially cremated bodies directly into the Ganges River. Downstream, the untreatedwater is used for drinking, bathing, and washing. This situation is typical of many rivers in India as well asother developing countries. Globally, but especially in developing nations like India where people cook withfuelwood and coal over open fires, about 4 billion humans suffer continuous exposure to smoke. In India,particulate concentrations in houses are reported to range from 8,300 to 15,000 μg/m3, greatly exceedingthe 75 μg/m3 maximum standard for indoor particulate matter in the United States. Changes in ecosystembiological diversity, evolution of parasites, and invasion by exotic species all frequently result in diseaseoutbreaks such as cholera which emerged in 1992 in India. The frequency of AIDS/HIV is increasing. In1996, about 46,000 Indians out of 2.8 million (1.6% of the population) tested were found to be infected withHIV.

1. water pollution2. Air pollution(Suspended particulate matter, High levels of lead)3. Solid and hazardous wastes4. Soil degradation5. Deforestation

6. loss of biodiversity7. Atmospheric changes(green house effect, Ozone depletion)

Indian Economy-Chapter I-Structure of the Indian Economy

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