Bhasha Vyakran

⇒ Economic inequality comprises all disparities in the distribution of economic assets and income.  ⇒ The term typically refers to inequality among individuals, group within society and among countries.  ⇒ There are some indices which are used for measurement of income inequality like Gini Index, Robin Hood Index, Hoover Index and Theil Index.  ⇒ Gini's Index introduces by Italian statistian Corrado Gini (1912) is the most commonly used inequality metrics.  ⇒ A Lorenz Curve is drawn and area between this curve and hypothetical line of absolute equality is taken as Gini Index in percentage form.  ⇒ According to HDR (Human Development Report) 2011, inequality in India for the period 2000-2011 in terms of the income Gini Coefficient was 36.8.  ⇒ India’s Gini Index was more favourable than those of comparable countries like South Africa (57.8), Brazil (53.9), Thailand (53.6), Turkey (39.7), China (41.5), Sri Lanka (40.31), Malaysia (46.2), Vietnam (37.6), even ...

Poverty is a social phenomenon in which a section of the society is unable to even fulfil its basic necessities of life.  ⇒ Poverty is normally defined with respect to poverty line. Poverty line is a cut-off point on the line of distribution which divides the poor and non-poor.  ⇒ Y.K.Alagh Committee in 1978 defined the poverty line as the mid-point of the monthly per capita expenditure class having a daily calories intake of 2400 per person in rural areas and 2100 in urban areas.  ⇒ In 1993, Prof. Lakdawala proposed introduction of state specific price changes in the adjustment of poverty lines. Thus state specific poverty lines were obtained.  ⇒ The 61st Round of NSSO provides poverty estimates based on Uniform Recall Period(URP) and Mixed Recall Period(MRP).  ⇒ The URP consumption data uses a 30day reference period for all items of consumption.  ⇒ The MRP consumption data uses a 365 day reference period for five infrequently purchased non-food items name...

⇒ United Nations Development Programme (UNDP) has developed a composite index HDI for quantitative measure of human development.  ⇒ The concept of HDI is given by Mahbub-Ul-Haq of Pakistan and Amartya Sen of India.  ⇒ It includes (i) longevity of life, (ii) knowledge base and (iii) decent material standard of living.  ⇒ According to HDR 2011, the HDI for India was 0.547 in 2011 with an overall ranking of 134 out of 187 countries.  ⇒ Norway and Australia are at top two positions in HDI ranking 2011.  ⇒ Life Expectancy at birth in India was 65.4 years in 2011 as against 81.9 years in Australia and 81.1 years in Norway.  ⇒ In terms of Gender Inequalities Index (GII) India with a value of 0.617 ranks 129 out of a total of 187 countries as per HDR 2011.

⇒Unemployment in India is a very crucial problem.  ⇒ It is structural in nature. It is also cyclical.  ⇒ A person working 8 hours a day for 273 days of the year is regarded as employed on a standard person year basis.  ⇒ Due to conceptual and statistical difficulties the estimates of unemployment and underemployment both in rural and urban areas are neither accurate not reliable.  ⇒ Dantewala Committee was appointed in 1969 for estimation of unemployed.  ⇒ UPSS Concept-Dr. Montek Singh Ahluwalia (2001)  ⇒ Current Daily Status (CDS) Concept- Dr. S.P.Gupta (2002)  ⇒ Labour force grows at faster rate than employment rate  ⇒ The Eleventh Five Year Plan (2007-2012) aimed at generation of 58 million work opportunities.  ⇒ According to NSSO data, during 2004-2005 and 2009-2010, the overall labour force expanded by only 11.7 million.  ⇒ As per result unemployment in absolute terms came down by 6.3 million.  ⇒ In 2009-2010, unemployment is l...

⇒ According to provisional data of 2011 census, the Indian population is 121Crore.  ⇒ India accounts for 2.4% of the world surface area and sustains about 17.2% of the World population.  ⇒ India is following the demographic transition pattern of all developing countries from initial levels of high birth rate – high death rate phase to the intermediate phase of high birth rate – low death rate with high population growth before reaching low birth rate- low death rate phase.  ⇒ There are various theories on population e.g. Malthusian Theory of Population Growth, Marxian Theory of Population Growth, Demographic Transition Theory etc.  ⇒ Malthus Thomas Robert gave the Malthusian Theory in 1798. His general view was that population tends to increase faster than means of subsistence. The fast increase in population absorbs all economic gains unless controlled by preventive and positive checks.  ⇒ Marx advocated that population is based on as a reaction to the capitali...

Total Fertility Rate: It measures the number of children born to a woman up to the end of reproductive period.  Birth Rate- Number of live births per year per 1000 of the population.  Death Rate- Number of deaths per year per 1000 of the population.  Infant Mortality Rate (IMR)- Number of deaths of children below one year of age per 1000 of the live births.  Maternal Mortality Rate (MMR)- Number of maternal deaths of per 100000 births.  Life Expectancy- the average age at which people die.  Natural Increase- Excess of births over deaths per 1000 of population. This does not include increase in population due to immigration.  National Population Policy was adopted in 2000 with the objective to address the unmet needs for contraception, healthcare, infrastructure and health personnel and to provide integrated service for basic reproductive and child health care.

⇒ Address the unmet needs for basic reproductive and child health services, supplies and infrastructure.  ⇒ Make school education up to 14 years free and compulsory.  ⇒ Reduce IMR to below 30.  ⇒ Reduce MMR to below 1000.  ⇒ Achieve universal immunization of children.  ⇒ Achieve 80% of institutional deliveries.  ⇒ Achieve 100% registration of births, deaths, marriage and pregnancies.  ⇒ Contain the spread of AIDS.  ⇒ Prevent and control communicable diseases.  ⇒ Promote vigorously small family norm.  India: Selected Health Indication  Parameters Current Level  1) CBR (Crude Birth Rate) 23.5  2) CDR (Crude Death Rate) 7.5  3) TFR (Total Fertility Rate) 2.9  4) MMR (Maternal Mortality Rate) 301  5) IMR (Infant Mortality Rate) 57  6) Life Expectancy   Male 62.3   Female 63.9

 • Gross National Product (GNP)- GNP is the total value of output (goods and services) produced and income received in a year by domestic residents of a country. It includes profits earned form capital invested abroad.  • Gross Domestic Product (GDP)– GDP is total value of output (goods and services) produced by the factors of production located within the country’s boundary in a year.  GDP=GNP- Net Income earned from abroad  • Net National Product (NNP)– NNP is calculated by making some adjusted with regard to depreciation in GNP i.e.  NNP = GNP- Depreciation  • Net Domestic Product (NDP)– NDP is also arrived from GDP by making some adjustment with regard to depreciation.  NDP = GDP- Depreciation  • Per Capita Income (PCI)–Per Capita Income is an indicator to show living standards of people in a country. If real PCI increases, it is considered to be an improvement in the overall living standard of people. It is calculated by dividing the GDP by t...

Economic Growth : It refers to increase in the country’s capacity to produce the output of the goods and services within the country. A good indicator of economic growth is steady increase in the Gross Domestic Product (GDP).   Economic Development: Economic development is a broaden term than economic growth. It deals with the overall development of economy. Economic development implies a sustained increase in real per capita income of a country over a period of time.  There are three types of economic system existing in the world:  ⇒ Market economy  ⇒ Socialist economy  ⇒ Mixed economy   Market Economy: A market economy is based on the division of labour in which prices of goods and services are determined in a free price system set by supply and demand.   Socialist Economy: It is an economic system based on the state ownership of capital and here role of market is severely limited. In socialist economy goods and se...

National income has been defined in a number of ways. It is defined as the total money value of all final goods and services produced in a financial year, in India’s case it is from 1 April to 31 March. National Income is used- 👉To measure the size of economy and level of country’s economic performance. 👉To trace trend or speed of economic growth in relation to previous year(s) as well as to other countries.  To know the structure and composition of the national income.  To make international comparison of people’s living standards.  Important Methods of calculating the National Income  1. Gross Domestic Product (GDP)  GDP is total market value of country’s output. It is the market value of all final goods and services produced within a financial year by factors of production located within a country, irrespective of ownership.  GDP can be estimated at both factor cost and market price.  Factor cost is price of commodity f...