Economic Growth & Dev (PDF)

8/11/2019 Economic Growth & Dev (PDF)

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By:

Dr.Anamica Chopra


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It is an increase in a countrys real level of nationaloutput which can be caused by an increase in the

quality of resources (by education, etc) Increase in the quantity of resources &

improvements in technology.

Increase in the value of goods & services produced

by every sector of an economy. The goal of economic growth is to increase the

production and consumption of goods & services.

Economic Growth:


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1) GDP Gross Domestic Product

The value of output produced within a country during a time period

2) GNP Gross National ProductThe value of output produced within a country plus net propertyincome from abroad

3) GDP/GNP per head/per capitaTakes account of the size of the population

4) Real GDP/GNP

Accounts for differences in price levels in different countries

Indicators of Economic Growth


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The Gross Domestic Product (GDP) in India was worth 1858.70billion US dollars in 2013. The GDP value of India represents 3.03percent of the world economy. GDP in India averaged 517.27 USDBillion from 1970 until 2013, reaching an all time high of 1876.80

USD Billion in 2013 and a record low of 63.50 USD Billion in 1970.


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The Gross Domestic Product per capita in India was last recorded at 3277.01 USdollars in 2012, when adjusted by purchasing power parity (PPP). The GDP perCapita, in India, when adjusted by Purchasing Power Parity is equivalent to 15percent of the world's average. GDP per capita PPP in India averaged 1698.33USD from 1980 until 2012, reaching an all time high of 3340.60 USD in 2013 anda record low of 880.78 USD in 1980.


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Economic Development is an increase in livingstandards, improvement in self-esteem needs,&

freedom from oppression as well as a greater choice.

According toMichael Todaro,

Developmentmust, therefore, be conceived as a

multi-dimensional process involving major changes insocial structure, popular attitudes and institutions aswell as acceleration of economic growth, reduction ofinequality and eradication of absolute poverty

Economic Development


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Three core values of Development:

Sustenance: Fulfillment of basic needs.

Self-Esteem: Feeling of worth, independence& self-respect.

Freedom from Servitude: Freedom from

evils of want & ignorance. Freedom ofexpression, political participation, equality ofopportunity, rule of law, etc.


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Physical Quality of Life Index (PQLI)

Human Development Index (HDI)

Indicators of Economic Development

h l Q l f f d


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Physical Quality of Life Index(PQLI)


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Human Development Index (HDI)


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Desired Outcomes for Developmentin Developing Countries

Characteristics Desired Outcomes

Low standard of living Increase in per capita income. Greater

equality of income.

High levels of

unemployment

Increased employment an self-

employment.

Low levels ofproductivity

Increased knowledge and improved skill(through education and training). Greatermotivation to work.


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Desired Outcomes for Developmentin Developing Countries

Characteristics Desired Outcomes

High birth rates Planned families. Improved health care.

Dependence on theprimary sector

Improved agricultural production. Growing thesecondary and tertiary industries. Connectingglobally.

Deficient infrastructure Improved elements of physical and otherinfrastructure.Reduce the cost of doing business.


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Diff B E i


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Dimensions Economic

GrowthEconomic

Development

Effect Brings quantitative changes inthe economy

Brings qualitative &quantitative changes in the

economy

Relevance It is more relevant metric forprogress of developedcountries. But itswidely used

in all countries becausegrowth is a necessarycondition for development.

It is more relevant tomeasure progress &quality of life in developing

nations

Scope Growth is concerned withincrease in economysoutput

Development is concernedwith structural changes in

the economy

Difference Between EconomicGrowth & Economic Development

Economic Growth & Dev (PDF)

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