Bb0029/Bba 6th Sem/ Smu
Q1. How can India be regarded as a developing economy?
India can be regarded as a developing economy based on the following salient features
Rise in Net National Product: India's net national product which was Rs 1.32.367 crore in 1950-51 rose to Rs. 10,44,915 crores in 2000-01.Thus over the five year period, the trend rate of growth of national income was around 4.2 per cent per annum. During the last two decades the rate of growth in national income has registered a significant increase. In this period the NNP rose at the rate of 5.4 per cent per annum as against 3.4 per cent per annum during the first three decades of economic planning. The fact remains that the national income has been rising at a rate which is higher than the rate of population growth and this has permitted some accumulation capitol and also a little improvement in per capita consumption.
Rise in Per Capita Income: As compared to the growth of net national product, a rise in per capita income is considered to be a better index growth. In 1950-51 India's per capita income at 1993-94 Rs. 3,687. Since then in a period of five decades it rose to 10254 in-2000-01. The Planning Commission had hoped that the country’s per capita income would be doubled in 20 years time. But twenty years from 1950-51, there was only 35.7 per cent increase in capita income. Thus the per capita income has been showing upward trend despite inadequate and erratic economic growth.
Structural Changes: Apart from the growth in quantitative terms, there have been significant changes in India's economic structure since 1947. These structural changes indicate that the process of development which began in the early 1950s is still continuing. However the speed of change is slow and in certain areas one cannot say confidently whether change has really occurred.
Agricultural Transformation: Considering the developments in agriculture we can say that India is a developing economy. Agriculture has transformed from
India can be regarded as a developing economy based on the following salient features
Rise in Net National Product: India's net national product which was Rs 1.32.367 crore in 1950-51 rose to Rs. 10,44,915 crores in 2000-01.Thus over the five year period, the trend rate of growth of national income was around 4.2 per cent per annum. During the last two decades the rate of growth in national income has registered a significant increase. In this period the NNP rose at the rate of 5.4 per cent per annum as against 3.4 per cent per annum during the first three decades of economic planning. The fact remains that the national income has been rising at a rate which is higher than the rate of population growth and this has permitted some accumulation capitol and also a little improvement in per capita consumption.
Rise in Per Capita Income: As compared to the growth of net national product, a rise in per capita income is considered to be a better index growth. In 1950-51 India's per capita income at 1993-94 Rs. 3,687. Since then in a period of five decades it rose to 10254 in-2000-01. The Planning Commission had hoped that the country’s per capita income would be doubled in 20 years time. But twenty years from 1950-51, there was only 35.7 per cent increase in capita income. Thus the per capita income has been showing upward trend despite inadequate and erratic economic growth.
Structural Changes: Apart from the growth in quantitative terms, there have been significant changes in India's economic structure since 1947. These structural changes indicate that the process of development which began in the early 1950s is still continuing. However the speed of change is slow and in certain areas one cannot say confidently whether change has really occurred.
Agricultural Transformation: Considering the developments in agriculture we can say that India is a developing economy. Agriculture has transformed from