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Economy of India


                                   

   

Indian Economy is Twelfth largest in the world and fourth largest by purchasing power parity. In the 21st century, India is an emerging economic power having vast human and natural resources.

Economic Growth: Economic growth has been defined as "an increase in real terms of the output of goods and services that is sustained over a long period of time, measured in terms of value added". Economic growth is a dynamic concept and refers to continuous increase in output.

Factors in Economic Growth: The four factors contributing to growth are

  1. human resources (labour supply, education, discipline, motivation)
  2. national resources (land, minerals, fuels, environmental quality)
  3. capital formation (machines, factories, roads)
  4. technology (science, engineering, management, entrepreneurship)

Growth and Development
While the term economic growth referees to increases over time in a country's real output of goods and services i.e. product per capita, the term economic development, in contrast, is more comprehensive. It implies progressive changes in the socio-economic structure. Economic growth and development frequently used interchangeably in economic literatures actually are not identical technically.
Difference Between Economic Growth and Economic Development
Economic Growth Economic Development
  1. It indicates quantitative improvement in the economic progress of a country
  2. It shows growth in natural income and per capita income over time
  3. A country may grow but it may not develop
  1. It indicates qualitative improvement in the economic progress of a country
  2. It shows not only a sustained increase in national and per capita income but also qualitative changes which leads to higher standard of living.
  3. Economic development includes the notion of economic growth.
Economic Growth = Size of output (A Quantitative aspect)
Economic Development = Size of output + Welfare (A Qualitative aspect)

Gross National Happiness (GNH) : The concept of gross national happiness has been introduced by king of Bhutan, Jigme Singya Wang Chuck, a tiny kingdom on the northern borders of India. The GNH aims to ensure that prosperity is shared across protecting the environment and maintaining a responsive the word happiness, more like what the signers of the Declaration of Independence had in mind when they included the "pursuit of happiness" as an inalienable right equal to liberty and life itself. The index is designed to challenge the well-established indices of countries development. HDI and GDP which are seen as not taking sustainability into account.

GNH Ranking
Ranking Country HPI
1 Vanuatu 68.21
2 Colombia 67.24
3 Costa Rica 66.00
4 Dominica 64.55
5 Panama 63.54
6 Cuba 61.86
7 Honduras 61.75
8 Guatemala 61.69
9 El Salvador 61.66
10 St. Vincent of the Grenading 61.37
90 India 42.46
India is the 90th happiest country in the world, behind Bhutan(13), China(31), Sri Lanka(13) and Bangladesh(41). It is ahead of Pakistan(112) and Russia(172).
Seven of the top 10 happiest countries are from western democracies, while countries in Asia, known for their strong cultural values, family ties and collective identities surprisingly scored low-China(31), Japan(95) and Thailand(32)

Millennium Development Goals to be Achieved by 2015
  1. Achieve universal primary education
  2. Reduce child mortality
  3. Improve maternal health
  4. Combat HIV/AIDS, Malaria and other diseases
  5. Ensure environmental sustainability
  6. Develop a global patnership for development
  7. Eliminate gender disparities in primary and secondary education, preferably by 2005, and in all levels of education by 2015
  8. Halve the proportion of the people suffering from Hunger


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