Development Experience of India | Chapter 8 Notes

Development Experience of India

After 1947, India has adopted a mixed economy. In order to achieve fast economic growth, a planned development economy was introduced.

Economic Development Experience after Independence

Both public and private sectors were allotted to carry business activities. Public sector was allotted to develop coal, mining, steel, power, roads etc. Private sector was allotted to establish industries.

Public sector was given responsibility to eliminate poverty, unemployment etc.

Public sector contributed to the industrialisation of the economy to achieve a considerable degree of self-sufficiency

New trade reform has been introduced that accelerates the economic growth of India.

India has adopted several poverty alleviation programmes – This program helped in increasing per capita income, rise in the nutrition level of poors and fall in the percentage of absolute poor in some states.

India adopted various measures for the development of rural areas that are lagging behind for the overall development of village economy.

Development Strategies of India, China and Pakistan

India, China, Pakistan have many similarities in their development strategies which are as follows

India, Pakistan and China have started towards their developmental path at the same time. 

India and Pakistan became independent nations in 1947. China was established in 1949.

India announced its Five Year Plan in 1951-56, Pakistan in 1956, China in 1953.

India and Pakistan adopted similar strategies such as creating a large public sector and raising public expenditure on social development.

Economic reforms started in India in 1991, China in 1978 and in Pakistan in 1988.

Comparative Study – India, Pakistan and China:

Demographic Indicators:

  • The population of Pakistan was small in comparison to China and India.
  • Though China is the largest nation geographically among the three, its density is the lowest.
  • Population growth is highest in Pakistan and low in China as the one child norm which was introduced in China. But this measure led to a decline in the sex ratio
  • The Fertility rate is low in China and very high in Pakistan.
  • Urbanisation is high in both China and Pakistan then India which has 28 percent of its people living in Urban areas.

Gross Domestic Product (GDP) and Sectors :

  • China has the second largest GDP (PPP) of 10.1trillion(approx) whereas  India′s GDP and Pakistan GDP are 4.2 trillion.
  • China’s average growth rate is about 9.5% while India’s 5.8% and Pakistan’s average growth rate is 4.1% respectively.
  • In China, in the year 2011. with 37 percent of its workforce engaged in agriculture, In India about 56% and in Pakistan it is about 45%.
  • In china, manufacturing contributes the highest to GDP at 47 percent whereas in India and Pakistan, it is the service sector which contributes more 
  • China has followed the classical development pattern of gradual shift from agriculture to manufacturing and then to services, India and Pakistan’s direct shift from agriculture to service sector.

Human Development Indicators:

  • In most areas of human development, China has performed better than India and Pakistan, in health sectors such as mortality rates, access to sanitation, literacy, life expectancy, malnourishment etc.
  • Pakistan is ahead of India in reducing the proportion of people below the poverty line 
  • India is ahead of Pakistan in the education sector and providing health services.
  • India and Pakistan are ahead of China in providing improved water sources.

Success and Failure of Strategies

The development strategies brought structural reforms in China, India and Pakistan. 

Success of Structural Reforms in China

  • Strong infrastructure in the areas of education and health and land reforms.
  • Decentralised planning and the existence of small enterprises.
  • More equitable distribution of foodgrains.
  • Extension of basic health services in rural areas.

? Failures of Structural Reforms in China

  • Slow pace of growth and lack of modernization in the economy under the Maoist rule.
  • Maoist vision of economic development based on decentralisation, self sufficiency and shunning of foreign technology had failed.

China has an Edge Over India

  • The Chinese reform process began during the 80s, when India was in the mid-stream of a slow growth process.
  • Rural poverty in China declined by 85% during the period 1978 to 1989. Whereas In India, it declined only by 50% during this period. 
  • Global exposure of the economy has been wider in China than in India. China’s export has recorded exponential growth, while India continues to be only a marginal player in the international markets.

? Common Success of Structural Reforms in India and Pakistan

  • Both India and Pakistan have succeeded in more than doubling their per capita incomes in spite of a high growth rate of population.
  • The level of poverty is lower in Pakistan then India.
  • Both the countries have achieved self-sufficiency in the production of food.
  • Both the countries have succeeded in developing their service and industry sectors at a fast rate.
  • The use of modern technology has improved in both countries.

? Common Failures of Structural Reforms in India and Pakistan

  • Poverty and unemployment are still areas of major concerns in both the countries.

Areas Where Pakistan has an Edge Over India

Pakistan has achieved better results then India in:

  • Migration of workforce from agriculture to industry,
  • Migration of people from rural to urban areas.
  • Access to improved water sources.
  • Reduction in below poverty line population.

Areas where India has an Edge Over Pakistan

  • In the area of skilled manpower and research and development institutions. India is better placed than Pakistan. 
  • Indian scientists excel in the areas of defence technology, space research, electronics, genetics, telecommunications, etc. 
  • The number of Ph.Ds produced by India in science and engineering every year is higher than Pakistan. 
  • Issues of health facilities are better addressed in India.

Economic Growth Issues 

Low per capita income

India’s per capita income is the primary Economic issue. In comparison to China India’s has very less PCI is much lower.

Inequality distribution: 

Apart from the low per-capita income, India also has a problem of unequal distribution of income which leads to the problem of poverty which is a big obstacle in the economic progress of the country.

Unequal distribution of occupation 

Large population in India are engaged in agriculture which contributed merely 17 percent to the national income implying a low productivity per person in the sector. The expansion of industries failed to attract enough manpower either.

Heavy population 

Another factor is large population. Administration needs to take care of the basic needs of food, clothing, shelter, medicine, schooling, etc. Hence, there is an increased economic burden on the country.

Unemployment and under-employment

The huge unemployed working population is another aspect. It is difficult to provide gainful employment to the entire population.

Further the deficiency of capital led to the inadequate growth of the secondary and tertiary occupations. 

The problem of the educated-unemployed has added more problem.

Slow rate of Capital Formation

India always had a deficiency of capital. 

To improve the standard of living India need to increase the rate of gross capital formation.

Inequality in wealth distribution

In India, merely 1 percent of the population is holding 58 percent of the total Indian wealth. This inequal distribution of wealth is one of the major economic issues in India.

Poor Quality of Human Capital

The knowledge and training of the population is a form of capital which is low in India. The expenditure on education, skill-training, research, and improvement in health are a part of human capital.

Low level of technology

Lack of human capital and the absence of skilled labor are major hurdles in spreading technology in the economy.

Lack of access to basic amenities

According to the Census of India, nearly 7 percent of India’s population lives in rural and slum areas. 46.6 percent of households have access to drinking water within their premises. 

46.9 percent of households have toilet facilities within the household premises.

This leads to the low efficiency of Indian workers.

Demographic characteristics

India had a population density of 382 per square kilometer as compared to 41 per square kilometer in other part of world. 60% of them are working and rest are dependents. This adds to economic issue.

Under-utilisation of natural resources

India is rich in natural resources like water, minerals, and power resources. Due to lack of technologies, and a shortage of capital, these resources are largely under-utilized. This contributes to the economic issues in India.

Lack of infrastructure

The lack of infrastructural facilities affecting the Indian economy. These include transportation, communication, electricity generation, banking and credit facilities, health and educational institutions, etc. 

Population Issues 

Development-Experience-of-India-population-issue

There are 4 major issues 

? Rapid Population Growth

Despite many attempts to check population growth, the birth rate is still high in India. Family planning is not followed sincerely on a large scale, especially in rural areas. This large population puts great pressure on the available medical, educational and other social amenities

? Disproportionate Gender Composition

Imbalance in sex ratio creates huge problem. Sex ratio in India is 1000:940 (male/female).

Number of females is less due to high female infant mortality and female foeticide.

? Poor Standard of Living and Malnutrition 

Due to overpopulation there is a great shortage of nourishment, low living standard, housing conditions, inade­quate medical facilities, and lack of financial resources.

? Unemployment

Unwanted population growth increases the unemployed youths of employable age. Such youths become a burden on society.

Human Development Indicators 

The Human Development Index (HDI) is a single index measuring access to knowledge, a decent standard of living, and long and healthy life. It is practiced to measure how development has improved human life.

Indicators of Human Development

? Human development index rank

India has been ranked 131 out of 189

? Life expectancy

It is the age by which a particular person is expected to live.

Life expectancy at birth in India: Males: 67.34 years , Females: 69.64 years

? Infant mortality rate

Total number of infants dying below the age of 1 year out of 1000 babies.

In India it is 40.5 infants.

? Maternal mortality rate

Total number of dying mothers out of 1000 mothers while giving birth to babies.

In India it is 167 deaths.

? Adult literacy ratio

Number of people of both sexes aging more than 18 years having the ability to read and write.

? Percentage of the population below poverty line

Below the poverty line is categorized to calories consumed by each person per day, which is 2400 in rural areas and 2100 in urban areas.


MCQ & Syllabus Notes

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Frequently Asked Questions

Q1. What are main population issues in India?

Answer: There are 4 major issues 
– Rapid Population Growth
– Disproportionate Gender Composition
– Poor Standard of Living and Malnutrition
– Unemployment

Q2. What was the Economic Development Strategy after Independence?

Answer: Both public and private sectors were allotted to carry business activities. Public sector was allotted to develop coal, mining, steel, power, roads etc. Private sector was allotted to establish industries.

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