Semester VI INDIAN ECONOMY Course Code: BBA601 L-4, T-0, P-0, C-4 Objective: The basic objective of this

course is to provide fundamental knowledge about Indian economy. Unit-wise Course Contents: 1. Introduction to Indian Economy: Meaning of Economy, Economic Growth and Development, Characteristic of Indian Economy, Factor affecting Economic Development. Resources in India (Natural & Infrastructural). (8 Hours) 2. Population & Employment Control Policy in India: Human Resource Development, Population Policy in India, Poverty & Unemployment in India, Programmes & Policy. (8 Hours) 3. Economic Policy And Industrial Sector: Economic planning-Objectives, Characterstics, Need & Importance, Current Five Year Plan, Planning Commission, Private Sector, Public Sector & Joint Sector, Cooperative Sector. (8 Hours) 4. Indian Agricultural Sector: Problems and prospects of Indian Agriculture, Development during Plan Period, Land Reforms-Need & Scope , Position, Problems and prospects of large scale industries (Iron & Steel, Sugar, Cotton), Green Revolution. (8 Hours) 5. Financial Institution In India: Role of commercial bank and Financial Institutions, Small Scale Industry, Role of small Industries in Indian Economy, SSI Policy. (8 Hours) Text Book: 1. Dutt Ruddar Sundaram, Indian Economy, S. Chand & Company Ltd. Reference Books: 1. Puri & Mishra, Indian Economy, Himalaya Publishing House. 2. Khan M.Y., Indian Financial System, Tata McGraw-Hill. * Latest editions of all the suggested books are recommended.

Indian Economy

Meaning of Economic Development Economic development is a process whereby an economy's real national income as well as per capita income increases over a long period of time. Here, the process implies the impact of certain forces which operate over a long period and embody changes in dynamic elements. It contains changes in resource supplies, in the rate of capital formation, in demographic composition, in technology, skills and efficiency, in institutional and organizational set-up. It also implies respective changes in the structure of demand for goods, in the level and pattern of income distribution, in size and composition of population, in consumption habits and living standards, and in the pattern of social relationships and religious dogmas, ideas and institutions. In short, economic development is a process consisting of a long chain of inter-related changes in fundamental factors of supply and in the structure of demand, leading to a rise in the net national product of a country in the long run. Definitions of Economic Development

1- Prof. Meier and Baldwin According to Prof. Meier and Baldwin; "Economic development is a process whereby an economy's real national income increases over a long period of time". This definition explains three ingredients of economic development. a) process, b) real national income, c) long period. The discussion of these three factors would help in understanding the concept of economic development. 2- Benard Okun and Richard W. Richardson According to Benard Okun and Richard W, Richardson, "Economic development may be defined as a sustained secular improvement in well being, which may be considered to be reflected in an increasing flow of goods and services". "Economic development is a continuous process which has to be extended over a long period of time so as to break the vicious circle of poverty and lead a country to a stage of self-sustaining growth or to self-generating economy".

Thus, we can conclude that economic development is a process rather than the result of it which results in a rise in real national income, and the net national product must have a sustained increase i.e., it must be over a long period of time.

Characteristics of an Developed Economy A developed economy is the characterised by increase in capital resources, improvement in efficiency of labour, better organisation of production in all spheres, development of means of transport and communication, growth of banks and other financial institutions, urbanisation and a rise in the level of living, improvement in the standards of education and expectation of life, greater leisure and more recreation facilities and the widening of the mental horizon of the people, and so on. In short, economic development must break the poverty barrier or the vicious circle and bring into being a self-generating economy so that economic growth becomes self-sustained. The main characteristics of developed countries are as follows. 1. Significance of Industrial Sector. 2. High Rate of Capital Formation. 3. Use of High Production Techniques and Skills. 4. Low Growth of Population. These are discussed in below. 1. Significance of Industrial Sector Most of the developed countries in the world have given much importance of the development of industrial sector. They have large capacities to utilise all resources of production, to maximise national income and to provide employment for the jobless people. As we are quite aware that these countries receive the major portion of their national income from the non-agriculture sectors which include industry, trade, transport, and communication. For instance, England generally receives nearly 50% of her national income from industrial sector, 21% from transport and commerce, 4% from agriculture and 25% from other sectors. The same case is

with the U.S.A., Japan and other West European countries. But in India and other developing countries agriculture contributes, say, 35 to 40 percent, to their national income.

2. High Rate of Capital Formation Developed countries are generally very rich, as they maintain a high level of savings and investment, with the result that they have huge amount of capital stocks. The rate of investment constitutes 20 to 25 percent of the total national income. The rate of capital formation in these countries is also very high. Besides this, well-developed capital market, high level of savings, broader business prospects and capable entrepreneurship have led to a high growth of capital formation in these economies.

3. Use of High Production Techniques and Skills High production techniques and skills have become an essential part of economic development process in the developed countries. The new techniques have been used for the exploitation of the physical human resources. These countries have, therefore, been giving priority to the scientific research, so as to improve and evolve the new and technique of production. Consequently, these countries find themselves able to produce goods and services of a better equality comparatively at the lesser cost. It is because of the use of high production techniques and latest skills, that the countries like Japan, Germany and Israel could have developed their economies very rapidly, though they have limited natural resources.

4. Low Growth of Population The developed countries, like the U.S.A., the U.K. and other Western European countries have low growth of population because they have low level of birth rate followed by low level of death rate. Good health conditions,

high degree of education and high level of consumption of the people have led to maintain low growth of population followed by low level of birth and death rates. The life expectancy in these countries is also very high. The high rate of capital formation on the one hand and low growth of population have resulted in high level of per capita income and prosperity in these countries. Consequently, the people in these countries enjoy a higher standard of living and work together unitedly for more rapid economic and industrial development of the nations.

Economic Development and Economic Growth Normally in economic textbooks, growth and development are used synonymously, and this usage is widely acceptable. However, in particular, the two terms have been distinguished by different economists as follows;

1. To some economists, economic development refers to the process of expansion of backward economies, while economic growth relates to that of advanced economies.

2. Schumpeter, however, uses the term "economic development" as a spontaneous and discontinuous change in the stationary state which disturbs the equilibrium state previously existing. And the term "economic growth" is used to denote a steady and gradual change in the long run which comes through a general increase in the rate of saving and population in a dynamic economy.

3. Prof. Kindleberger has given the differences between growth and development as; "Growth may well imply not only more output and also more inputs and more efficiency, i.e., an increase in output per unit of input. Development goes beyond these to imply changes in the structure of outputs and in the allocation of inputs by sectors. By analogy with human beings to stress growth involves focusing on height and weight, while to emphasize development, draws attention to the change in functional capacity in physical coordination. For example, growth without development-more and more steel in the Soviet Union or more and more coffee in Brazil-

leads nowhere. It is virtually impossible to contemplate development without growth because change in function requires a change in size. Until an economy can produce a margin above its food, through growth, it will be unable to allocate a portion of its resources to other types of activity".

4. To some, economic development is the outcome of conscious and deliberate efforts involved in planning. Economic growth, on the other hand, signifies the progress of an economy under the stimulus of certain favourable circumstances, e.g., the progress achieved by the United Kingdom during the Industrial Revolution.

5. In his simple words, A. Maddison says, "The raising of income levels is generally called economic growth in rich countries and in poor ones it is called economic development". Mrs. Hicks has also expressed almost the same views and said that economic development refers to the problems of underdeveloped countries and economic growth to those of advanced countries she points out that the problems of underdeveloped countries are concerned with development of unused resources, even though their uses are well-known; while those of advanced countries are related to growth, most of their resources being already known and developed to a considerable extent.

6. According to Prof. Mehta, however, the term "growth" has quantitative significance. Growth suggests an increase in the quantity or volume of something. An increase in a country's population, national income; per capita income, consumption, saving, investment, foreign trade etc. over a period, all imply growth. In economics, however, growth strictly means an increase in real income, gross and per capita. On the other hand, development is a process of expansion, fulfilling the desire to have an increase in national income. From the above will be clear, the distinction and interface of growth anddevelopment.

Factors Affecting Economic Growth and development The process of economic growth is a highly complex phenomenon and is influenced by numerous and varied factors such as political, social and cultural factors. As such economic analysis can provide only a partial explanation of this process. To repeat here the remark of Prof. Ragnar Nurkse in this connection, "Economic development has much to do with human endowments, social attitudes, political conditions and historical accidents. Capital is a necessary but not a sufficient condition of progress". The supply of natural resources, the growth of scientific and technological knowledge-all these too have a strong bearing on the process of economic growth. We shall briefly notice some of these factors one by one. A. Economic Factors The following are the important factors which determine the economic growth of an economy. 1. Natural Resources The principal factor affecting the development of an economy is the natural resources. Among the natural resources, we generally include the land area and the quality of the soil, forest wealth, good river system, minerals and oil resources, good and bracing climate, etc. For economic growth, the existence of natural resources in abundance is essential. A country deficient in natural resources may not be in a position to develop rapidly. In fact natural resources are a necessary condition for economic growth but not a sufficient one. Japan and India are the two contradictory examples. As pointed out by Lewis, "other things being equal man can make better use of rich resources than they can of poor". In less developed countries, natural resources are unutilised, under utilised or mis utilised. This is one of the reasons of their backwardness. There is little reason to expect natural resource development if people are indifferent to the products or service which such resources can contribute. This is due to economic backwardness and lack of technological factors. According to Professor

Lewis, "A country which is considered to be poor in resources may be considered very rich in resources some later time, not merely because unknown resources are discovered, but equally because new methods are discovered for the known resources". Japan is one such country which is deficient in natural resources but it is one of the advanced countries of the world because it has been able to discover new use for limited resources. 2. Capital Formation Among several economic factors, capital formation is another important factor for development of an economy. Capital may be defined as the stock of physical reproducible factors of production. Capital accumulation and capital formation, both of these terms carry the same meaning which may be understood simply by the stock of capital. As we know, capital formation is cumulative and self-feeding and includes three interrelated stages; a) the existence of real savings and rise in them; b) the existence of credit and financial institutions to mobilise savings and to divert them in desired channels; and c) to use these savings for investment in capital goods. Low prospensity to save in underdeveloped countries is due to low per capita income of the people, which may not be raised merely by voluntary savings. Hence, the rate of per capita savings can be increased by emphasising forced savings which will reduce consumption and thereby release savings for capital formation. Forced savings can be possible through the implementation of a proper fiscal policy. In this regard, taxation, deficit financing and public borrowing are better instruments in the hands of the State to collect savings and accumulate capital. Nurkse's suggestion to use unemployed or underemployed rural youths in construction works has importance for capital formation in backward economies. In addition to it, the external resources like foreign loans and grants, and larger exports can also help these economies in capital formation. The capital formation possesses special significance, as it is key to economic growth, particularly in backward economies. It increases sectoral productivity in the economy on the one hand and enhances ultimately national

output by raising effective demand, on the other. According to Kuznets' estimates, during modern economic growth the gross capital formation and net capital formation was gradually between 11.13 to 20 percent and 6 to 12.14 percent in developed countries. According to Lewis, the rate in underdeveloped countries was 5 percent or less which should be raised to the level of 12 to 15 percent. 3. Technological Progress The technological changes are most essential in the process of economic growth. Adam Smith, the father of political economy, pointed out the great importance of technological progress in economic development. Ricardo visualised the development of capitalist economies as a race between technological progress and growth of population. The great importance of technological progress in capitalist development was recognised by Karl Marx too. There is no doubt that technological progress is a very important factor in determining the rate of economic growth. In fact, even capital accumulation is not possible without technical progress. A country may be adding to its means of transportation and communications, its power resources and its factories. According to modern technique, it is called widening of capital. The use of improved techniques in production and technological progress bring about a significant increase in per capita income. Technological progress has something to do with the research into the use of new and better methods of production or the improvement of the old methods. Sometimes technical progress results in the availability of natural resources. But generally technological progress

4. Human Resources A good quality of population is very important in determining the rate of economic progress. Instead of a large population a small but high quality of human race in a country is better for development. Thus, for economic growth, investment in human capital in the form of educational and medical and such other social schemes is very much desirable.

According to Peter Drucker : "The most important requirement of rapid industrial growth is people. People ready to welcome the challenge of economic change and opportunities in it. People, above all, who are dedicated to the economic development of their country, and to high standards of honesty, competency, knowledge and performance. What are needed beyond all else are leadership and example, and that, only the right kind of people can provide". Prof. Drucker stressing the significance of human capital says further : "Capital without people is sterile, but people can move mountains without capital. Development, therefore, requires rapid growth of human talents and opportunities to employ them".

5. Population Growth Labour supply comes from population growth. But the population growth should be normal. A galloping rise in population retards economic progress. Population growth is desirable only in a under-populated country. It is, however, unwarranted in an overpopulated country like India. In fact, a high population growth at the rate of 2.5 percent per annum is very much detrimental to the economic growth of our country.

6. Social Overheads Another important determinant of economic growth is the provision of social overheads like schools, colleges, technical institutions, medical colleges, hospitals and public health facilities. Such facilities make the working population healthy, efficient and responsible. Such people can well take their country economically forward.

7. Organisation In the process of growth, organisation is very important. It is organization that emphasises maximum use of the means of production in production. Orginisation is complementary to capital and labour and helps production to

reach the maximum level. In the modern economic system, the entrepreneur performs the duty of an organiser and bears all risks and uncertainties. Hence, entrepreneurship is an indispensable part in the process of economic growth. For instance, the Industrial Revolution in England succeeded because of the entrepreneurship.

8. Transformation of Traditional Agricultural Society The transformation of traditional agricultural society into a modern industrial society, i.e., structural changes lead to enhancement of employment opportunities, higher labour productivity and the stock of capital, exploitation of the newly developed resources and improved technology. Mostly, LDCs have a very large primary sector and very small secondary and tertiary sectors. In such economies the structural changes involve the transfer of population from the primary sector to the secondary and then to tertiary sectors. Agriculture being the main occupation of the 70-80 percent population in the LDCs passes through several structural changes. The number of dependents on agriculture sector progressively reduce with the expansion of industrial or nonagricultural sector. Similarly, the proportion of contribution of agriculture in the real national income also reduces gradually. But net output in agriculture sector progressively increases in absolute terms, as it is accompanied by a strong productivity movement, relating to the implementation of several programmes like land reforms, expansion of banks, improved agricultural techniques and other farm implements, availability of better marketing facilities, means of power and irrigation, and so on.

B. Non-Economic Factors Both of the economic or noneconomic factors do play an important role in the process of economic growth. In this regard, socio-economic, cultural, psychological and political factors are also equally significant as are economic factors in economic development of the LDCs Cairncross rightly observes : "Development is not just a matter of having plenty of money, nor is it purely an economic phenomenon. It embraces all aspects of social behaviour; the

establishment of law and order; scrupulousness in business dealings, including dealings with the revenue authorities; relationships between the family, literacy, familiarity with mechanical gadgets and so on". We discuss here some of the essential noneconomic factors which determine the economic growth of an economy. 1. Political Factors Political stability and strong administration are essential and helpful in modern economic growth. It is because of political stability and strong administration that the countries like the U.K. the U.S.A., Germany, France and Japan have reached the level of highest economic growth in the world. But in most of the poor countries there is political instability and weak administration which have largely influenced their economic development programmes. It is, therefore, essential for their faster economic development to have a strong, efficient and incorrupt administration. In conclusion, we can say that a clean, just and strong administration can put an economy on the way to rapid economic development. Lewis rightly comments that "no country has made progress without positive stimulus from intelligent governments".

2. Social and Psychological Factors Modern economic growth process has been largely influenced by social and psychological factors. Social factors include social attitudes, social values and social institutions which change with the expansion of education and transformation of culture from one society to the other. The Industrial Revolution of England and other Western European countries in the 18th century was largely influenced by the spirit of adventure and the expansion of education which led to new discoveries and inventions and consequently to the rise of the new entrepreneurs. Social attitudes, values and institutions changed. Joint family system was replaced by the new single family system which further led to the rapid economic development in these countries. But the society in LDCs has been badly enveloped and guided by traditional customs, outdated ideology, values, and obsolete attitudes which have not been conducive to their economic development. Thus, there is need to

change or modify these social and psychological factors for the rapid economic development in these countries. But it is not an easy task, and moreover, any rapid change may bring discontentment and resistance in the society, with the result that it may adversely affect the economic growth in the economies. Only the selective social and psychological changes can lead to economic growth in LDCs. According to the UN Report on Economic Development of Underdeveloped Countries, it is hence impossible to speed up economic growth in these economies without painful adjustments. It, thus, advises to adopt an evolutionary change in social and cultural factors rather than revolutionary ones. Myrdal in his book Asian Drama also advocates the adoption of "modernisation values" or "modernisation ideals" for the rapid economic development of underdeveloped countries.

3. Education It is now fairly recognised that education is the main vehicle of development. Greater progress has been achieved in those countries, where education is wide spread. J.K. Garlbraith in his book "Economic Development" has rightly stressed the role of education as an engine of economic growth. 4. Urbanisation Another noneconomic factor promoting development is the process of urbanisation. In poor agrarian economies, the structural change must begin with the change in the size of population in rural and urban sectors. 5. Religious Factors Religion plays a great role in economic growth. It may give rise to a peculiar sense of self-satisfaction. For example, the Hindu religion encourages faith in fate and prevents people from working hard. They are educated to remain satisfied with their lot and to hate risk and enterprise. Then our religion gives a higher place to spirit than matter. In short economic growth is the result of concerted efforts of both economic and non economic factors. However, the mere presence of one or more or all of these factors may not ensure that the economy will be in a

position to generate forces that bring about a fast economic growth. Some further factors may also be required that may work as a catalyst for growth.

Natural Resources :Introduction to Natural Resources and Conflict For most of us, conflict over natural resources is not a part of everyday life. We wake up in the morning and turn on the faucets to brush our teeth, shower, and drink a glass of water. We drive to and from work, school, and other activities, stopping every so often to fill up the tank with gas. We use energy to heat our homes, to cook food, to light our streets. Processed timber is used to form our desks, pencils, and paper. We sometimes buy diamond jewelry as a token of love or status. But in many areas around the world, access to natural resources cannot be taken for granted. According to the United Nations, many women walk several hours a day just to find water; and more than two million people, most of them children, die from diseases associated with water stresses each year. Some experts are predicting that the worlds supply of oil will run out in the not too distant future. And almost half of our old growth forests have been destroyed.

Types of Natural Resources:Types of Natural Resources The World Bank defines natural resources as materials that occur in nature and are essential or useful to humans, such as water, air, land, forests, fish and wildlife, topsoil, and minerals.3 These resources can be classified as renewable or nonrenewable. In most cases, renewable resources such as cropland, forests, and water can be replenished over time by natural processes andif not overusedare indefinitely sustainable. Nonrenewable resources such as diamonds, minerals, and oil are found in finite quantities, and their value increases as supplies dwindle. A nations access to natural resources often determines its wealth and status in the world economic system.

Below are some categories of natural resources. Agriculture, though strongly linked to natural resources, is generally not thought of as a natural resource as it depends largely on cultivation. However, economies that are heavily dependent on agriculture certainly depend heavily on other natural resources such as water and land. This list is one of many ways to categorize natural resources. Because the concept of natural resources is broad, the categorizations and definitions of natural resources can vary among disciplines. Other examples of categorization are: strategic raw materials, sources of energy, shared water resources, and food; and biological resources, energy resources, food resources, land resources, mineral resources, soil resources, and water resources.

Drinkable Water Water is a necessity of life, and we use it for drinking, washing, agriculture, and industry. The United Nations World Water Assessment Programme estimates that every individual needs 2050 liters (21quarts) of clean water every day.4 Since water covers nearly three fourths of the globe, we tend to think of it as an abundant resource, but in fact drinkable water can be very scarce. Drought affects almost every continent and appears to be growing worse. The National Center for Atmospheric Research has found that the percentage of the earths land area stricken by serious drought has more than doubled since the 1970s.5 In addition, water becomes scarce through pollution or restricted access. According to the United Nations, 1.1 billion people live without clean drinking water, and 3,900 children die every day from water-borne diseases. As the global population continues to risesome predict a 4050 percent increase within the next 50 years water stress (when the demand for good quality water exceeds the supply) will become even more of a problem in the future.

Bodies of Water

Bodies of water such as oceans, seas, lakes, and rivers can also be linked to conflict due to their roles in transportation, development, and culture. A populations dependence on sources of income within bodies of water, such as fisheries and offshore oil fields, can lead to conflict. In addition, neither fish nor water follow country borders, and both must often be shared among countries. Disputes over fishing led to the cod wars between Britain and Iceland in the 1950s and 1970s (no one was injured but shots were fired and several ships were rammed), while natural resources lie at the heart of the contested claims in the South China Sea. More than 260 river basins, for example, are shared by two or more countries mostly without adequate legal arrangements.9 In fact, however, most conflicts over water are resolved peacefully, perhaps because water is so important. There are more than 3,800 declarations or conventions on water.

Land Because of population growth and environmental degradation, land that can be used for personal, industrial, or agricultural purposes is becoming increasingly scarce. Of course, possession of land means access to many other resources, such as minerals, timber, and animals, and land therefore often holds a high economic value. In addition, communities often have strong emotional and symbolic attachments to land and the resources on it. It is easy to see why competition for control of valuable land, including issues of government authority and regulation, can cause or sustain conflict. Traditionally, most wars have been fought over control of land (along with other issues); for example, Ecuador and Peru have fought several wars over their disputed border. More recently, violent conflict over land has occurred in China, East Timor, Kosovo, Rwanda, and Tajikistan, to name only a few examples.

Timber Timber functions primarily as a source of income. As is the case with water, timber is an increasingly scarce resource. Although forests cover 30 percent of the worlds land area, 46 percent of the old growth forests have already been destroyed.11 Population growth and industrialization are destroying rainforests and

causing environmental degradation. As a commodity that is easily accessible, easy to transport, versatile, lucrative, and necessary for reconstruction and development, timber can play an important role in all stages of peace and conflict. Examples of conflict over timber can be found in Burma, Cambodia, the Democratic Republic of Congo, and Liberia. On the other hand, there are also examples of benefit sharing plans in Indonesia and community forest management enterprises in Latin America.12 Oil and Gas The two primary sources of fuel are oil (petroleum)a flammable liquid that can be refined into gasolineand natural gas, a combustible gas used for fuel and lighting. Fuel scarcity, or at least access to fuel, is one of the greatest concerns for developing and developed countries, given their dependence on energy sources. With a greater global rate of industrialization, many countries have invested in and paid particular attention to alternative types of energy such as nuclear, electrical, wind, and solar energy. Still, the U.S. Department of Energy estimates that by 2020, two thirds of the worlds known petroleum reserves will be consumed.Many mainstream media sources and other organizations warn that easily accessible oil, especially in Saudi Arabia, is rapidly disappearing and that the world will soon face the end of the oil era.14 Moreover, many of the worlds largest petroleum reserves are located in areas suffering from political instability or conflict, such as Iran, Iraq, Nigeria, Venezuela, and Sudan. Thus the value and demand for fuel, especially petroleum, allows conflicts in these areas to have an impact on the global economy. On the other hand, the developed worlds increasing demand for oil, and its search for supply security, can exacerbate existing conflicts. As with rivers, oil fields and pipelines frequently cross borders, which often contributes to tensions but also puts a premium on cross-border cooperation. After East Timor separated from Indonesia in 2002, for example, it renegotiated the agreement Indonesia had made with Australia over oil and gas rights in disputed areas of the Timor Sea. And several nations are involved in ongoing negotiations with various parties to build pipelines in the Caspian Sea region, including Azerbaijan, Georgia, Kazakhstan, and Russia. There are a number of new approaches to facilitate the best use of oil revenues, such as those supported by the International Monetary Fund (IMF), which seeks to improve governance in resource-rich countries such as Nigeria, Azerbaijan, and Gabon and reduce the potential for fighting over access to revenues.15

Even with international encouragement, however, it has been enormously difficult for the Iraqis to negotiate equitable arrangements for sharing oil and gas revenues among the regions after the fall of Saddam Hussein. Minerals Minerals are naturally occurring substances obtained usually from the ground. According to the United States Agency for International Development (USAID), valuable minerals become conflict minerals when their control, exploitation, trade, taxation or protection contributes to, or benefits from, armed The Role of Natural Resources in Society Natural resources are an integral part of society, as sources of income, industry, and identity. Developing countries tend to be more dependent on natural resources as their primary source of income, and many individuals depend on these resources for their livelihoods. It is estimated that half of the worlds population remains directly tied to local natural resources; many rural communities depend upon agriculture, fisheries, minerals, and timber as their main sources of income. A developing countrys ability to modernize economically is often dependent on access to natural resources. Water is essential for both successful agriculture and manufacturing; for example, the lack of clean water for the labor force can drastically inhibit a countrys economic growth. Some natural resources play a central role in the well-being of the local community and some are used for trade purposes. Natural resources, both renewable and nonrenewable, that are controlled by the state (which is the case in most developing countries) are used as exports by the government to attain profit an power. Developed countries have established an industrial infrastructure that relies heavily on imports of natural resources, and mineral-rich countries are positioned to supply that demand. Many of these resources have great value in the global market, which allows the developing countries in possession of the resources to be active participants in the international economic system.

Infrastructure resources in India

Infrastructure is basic physical and organizational structures needed for the operation of a society or enterprise or the services and facilities necessary for an economy to function. It can be generally defined as the set of interconnected structural elements that provide framework supporting an entire structure of development. It is an important term for judging a country or region's development.

The term typically refers to the technical structures that support a society, such as roads, bridges, water supply, sewers, electrical grids, telecommunications, and so forth, and can be defined as "the physical components of interrelated systems providing commodities and services essential to enable, sustain, or enhance societal living conditions."

infrastructure facilitates the production of goods and services, and also the distribution of finished products to markets, as well as basic social services such as schools and hospitals; for example, roads enable the transport of raw materials to a factory. In military parlance, the term refers to the buildings and permanent installations necessary for the support, redeployment, and operation of military forces.

The Commission recommended inclusion of following in infrastructure in the first stage: Railway tracks, , stations Roads, bridges, runways and other airport facilities T&D of electricity Telephone lines, telecommunications network Pipelines for water, crude oil, slurry, waterways, port facilities Canal networks for irrigation, sanitation or sewerage.

Nature of Infrastructure:As per the RBI, a credit facility is treated as infrastructure lending to a borrower company which is engaged in developing, operating and maintaining, or developing, operating and maintaining any infrastructure facility that is a project in any of the following sectors, or any infrastructure facility of a similar nature; i) a road, including toll road, a bridge or a rail system; ii) a highway project including other activities being an integral part of the highway project; iii) a port, airport, inland waterway or inland port; iv) a water supply project, irrigation project, water treatment system, sanitation and sewerage system or solid waste management system; v) Telecommunication services whether basic or cellular, including radio paging, domestic satellite service (i.e. a satellite owned and operated by an Indian company for providing telecommunication service), network of trunking, broadband network and internet services; vi) an industrial park or special economic zone; vii) generation or generation and distribution of power; viii) transmission or distribution of power by laying a network of new transmission or distribution lines; ix) construction relating to projects involving agro-processing and supply of inputs to agriculture; x) construction for preservation and storage of processed agro-products, perishable goods such as fruits, vegetables and flowers including testing facilities for quality; xi) construction of educational institutions and hospitals; xii) any other infrastructure facility of similar nature.

Unit-II Human Resource Development (HRD) Human Resource Development (HRD) is the framework for helping employees develops their personal and organizational skills, knowledge, and abilities. Human Resource Development includes such opportunities as employee training, employee career development ,performance management and development ,coaching, mentoring, succession planning, key employee identification, tuition assistance ,and organization development. The focus of all aspects of Human Resource Development is on developing the most superior workforce so that the organization and individual employees can accomplish their work goals in service to customers .Human Resource Development can be formal such as in classroom training, a college course, or an organizational planned change effort. Or, Human Resource Development can be informal as in employee coaching by a manager. Healthy organizations believe in Human Resource Development and cover all of these bases.

Scope of Human Resource Development HRD 1. Training and Development: HRD involves training and developing the employees and managers. It improves their qualities, qualifications and skills. It makes them more efficient in their present jobs. It also prepares them for future higher jobs.

2. Organisational Development (OD): HRD also involves Organizational Development. OD tries to maintain good relations throughout the organization. It also solves problems of absenteeism, internal conflicts, low productivity and resistance to change.

3. Career Development: HRD also involves career planning and development of employees. Ithelps the employees to plan and develop their careers. It informs them about future promotions and how to get these promotions. So HRD helps the employee to grow and develop in the organisation.

4. Performance Appraisal : HRD conducts Performance Appraisal, Potential Appraisal, etc. It informs the employees about their strengths and weaknesses. It also advises them about how t o increase their strengths and how to remove their weaknesses.

5. Multidisciplinary: HRD is multidisciplinary. That is, it uses many different subjects. It uses education, management, psychology, communication, and economics. HRD uses all these subjects for training and developing the employees.

6. Key Element for solving problems: Now-a-days an organisation faces many different problems. These problems are caused due to the economic, technological and social changes. These problems can be solved only by knowledge, skill and creative efforts. This knowledge , skill, etc. is achieved from HRD. Therefore, HRD is a key element for solving problems in the organisation. 7. Continuous in Nature: HRD is not a onetime affair. It is a continuous process. Development of human resources never stops. This is because continuous changes happen in the organization and environment.

8. Integrated use of sub-systems: HRD system involves the integrated use of sub-systems suchas performance appraisal, potential appraisal, career planning, training, etc.

9. Placement: HRD places the right man in the right job. Placement is based on performance appraisal, potential appraisal, training, etc. Proper placement gives satisfaction to the employee, and it increases the efficiency.

10. Promotions and Transfer: HRD also gives promotions and transfers to the employees based on performance appraisals, etc. 11. Motivation by Rewards : HRD also motivates the employees by giving them rewards for performing and behaving better, suggesting new ideas, etc. Financial and non-financial rewards are given.

The Ministry of Human Resource Development (HRD or MHRD) (Hindi: ) an Indian government ministry, responsible for the development of human resources. The ministry is divided into

two departments: the Department of School Education and Literacy, which deals with primary and secondary education, adult education and literacy, and the Department of Higher Education, which deals with university education, technical education, scholarship etc. The erstwhile Ministry of Education now functions under these two departments, as of September 26, 1985.[1]

The Ministry of Human Resources Development is headed by a minister of cabinet rank as a member of the Council of Ministers. The current minister of Human Resource Development is Pallam Raju. The minister is assisted by a minister of state, Shashi Tharoor and Jitin Prasada, Minister of State for Human Resource Development.

POPULATION Introduction India has the second largest population in the world, with 1.21 billion people comprising 623.7 million males and 586.5 million females, according to the provisional 2011 Census report. In the last ten years, 181 million people were added and, since 1947, the population of India has more than tripled. Interestingly, the addition of 181 million people to the population during 2001-11 is slightly lower than the total population of Brazil, the fifth most populous country in the world. Significantly, the growth is slower compared to the previous decade. India accounts for 17.5 percent of the world population. However, during 2001-2011, the growth in population has registered the sharpest decline since Independencea decrease of 3.9 percentage points from 21.54 to 17.64 percent.

Population, State-wise Among the States and Union Territories, Uttar Pradesh is the most populous state with 200 million people and Lakshadweep the least populated at 64,429. The growth rates of the six most populous states have declined during 2001-11 compared to 1991-2001:

 Uttar Pradesh (25.85 percent to 20.09 percent) Maharashtra (22.73 percent to 15.99 percent) Bihar (28.62 percent to 25.07 percent) West Bengal (17.77 percent to 13.93 percent) Andhra Pradesh (14.59 percent to 11.10 percent) Madhya Pradesh (24.26 percent to 20.30 percent)

Population of Indian States Compared to a Few Countries in the World (in million) State Population Country Population Uttar Pradesh 200 Maharashtra 112 Bihar 104 West Bengal 91 Andhra Pradesh 85 Madhya Pradesh 73 Tamil Nadu 72 Rajasthan 69 Karnataka 61 Gujarat 60 Brazil 194 Japan 128 Mexico 107 Philippines 92 Germany 82 Turkey 75 Iran 73 Thailand 68 United Kingdom 62 Italy 60

During 2001-11, as many as 25 States/UTs with a share of about 85 percent of the countrys population registered an annual growth rate of less than 2 percent, while 15 States/UTs have grown by less than 1.5 percent per annum. The number of such States/UTs was only 4 during the previous decade, the report said. India has more than 50 percent of its population below the age of 25 and more than 65 percent below the age of 35. Density of Population

The highest density of population is in Delhis North-East district (37,346 per sq km) while the lowest is in Dibang Valley in Arunachal Pradesh (just one per sq km). The Census indicated a continuing preference for male children over female children. The latest child sex ratio in is 914 females against 1,000 males, the lowest ratio since Independence.

Literacy Rate According to the data, literates constitute 74 percent of the total population of above the age of seven. The literacy rate has gone up from 64.83 percent in 2001 to 74.04 percent in 2011, showing an increase of 9.21 percent.

Current Population of India in 2012 Total Male Population in India Total Female Population in India Sex Ratio Age structure 0 to 25 years

1,220,200,000 (1.22 billion) 628,800,000 (628.8 million) 591,400,000 (591.4 million) 940 females per 1,000 males

50% of India's current population

Currently, there are about 51 births in India in a minute. India's Population in 2011 India's Population in 2001 Population of India in 1947 1.21 billion 1.02 billion 350 million

Current Population of India - India, with 1,220,200,000 (1.22 billion) people is the second most populous country in the world, while China is on the top with over 1,350,044,605 (1.35 billion) people. The figures show that India represents almost 17.31% of the world's population, which means one out of six people on this planet live in India. Although, the crown of the world's most populous country is on China's head for decades, India is all set to take the numero uno position by 2030. With the population growth rate at 1.58%, India is predicted to have more than 1.53 billion people by the end of 2030.

More than 50% of India's current population is below the age of 25 and over 65% below the age of 35. About 72.2% of the population lives in some 638,000 villages and the rest 27.8% in about 5,480 towns and urban agglomerations. The birth rate (child births per 1,000 people per year) is 22.22 births/1,000 population (2009 est.) while death rate (deaths per 1000 individuals per year) is 6.4 deaths/1,000 population. Fertility rate is 2.72 children born/woman (NFHS-3, 2008) and Infant mortality rate is 30.15 deaths/1,000 live births (2009 estimated). India has the largest illiterate population in the world. The literacy rate of India as per 2001 Population Census is 65.38%, with male literacy rate at 75.96% and female at 54.28%. Kerala has the highest literacy rate at 90.86%, Mizoram (88.80%) is on the second position and Lakshadweep (86.66%) is on third.

Every year, India adds more people than any other nation in the world, and in fact the individual population of some of its states is equal to the total population of many countries. For example, Population of Uttar Pradesh (state in India) almost equals to the population of Brazil. It, as per 2001 Population Census of India, has 190 million people and the growth rate is 16.16%. The population of the second most populous state Maharashtra, which has a growth rate of 9.42%, is equal to that of Mexico's population. Bihar, with 8.07%, is the third most populous state in India and its population is more than Germany's. West Bengal with 7.79% growth rate, Andhra Pradesh (7.41%) and Tamil Nadu (6.07%) are at fourth, fifth and sixth positions respectively. The sex ratio of India stands at 933. Kerala with 1058 females per 1000 males is the state with the highest female sex ratio. Pondicherry (1001) is second, while Chhatisgarh (990) and Tamil Nadu (986) are at third and fourth places respectively. Haryana with 861 has the lowest female sex ratio.

Some of the reasons for India's rapidly growing population are poverty, illiteracy, high fertility rate, rapid decline in death rates or mortality rates and immigration from Bangladesh and Nepal. Alarmed by its swelling population, India started taking measures to stem the growth rate quite early. In fact India by launching the

National Family Planning programme in 1952 became the first country in the world to have a population policy. The family planning programme yielded some noticeable results, bringing down significantly the country's fertility rate. In 1965-2009, the contraceptive usage more than tripled and the fertility rate more than halved. The efforts did produce positive results, however, failed to achieve the ultimate goal and the population of India since getting independence from Britain in 1947 increased almost three times. Whereas India has missed almost all its targets to bring the rate of population growth under control, China's 'One Child Policy' in 1978, has brought tremendous results for the latter. The policy claims to have prevented between 250 and 300 million births from 1978 to 2000 and 400 million births from 1979 to 2010.

National Population Policy of India

It was long before procuring our Independence even that several discussion benches saw the onset of population policy. Much before Independence; in the year 1938 only a Sub Committee on population was set up by the National Planning Committee appointed by the Interim Government. The National Planning Committee passed a resolution in 1940 that stated the need for the state to adopt family planning and welfare policies in order to bring about a harmonious order of social economy. The resolution also stressed the need oflimitationofchildren.

April, 1951 recorded further enhancements in this policy formulation as the First Five Year Plan labeled for an overt population policy and adjudged family planning as a pragmatic and essential step towards improvement in health of mothers and children. It was because in the plan, family planning was treated as a part of the health program and received a 100% funding from the centre government. And with each passing year, the amount of these funds has increased. The success of this family planning agenda was so dear to the heart of the government that even a separate department coined as Department of Family Planning was carved out in the Ministry of Health in the year 1966. This was done with an objective to reinforce the population control program. This National Population Policy was further modified and re announced in 1977. In this new policy, what was reinforced was education and health. The latter component of the reformulated policy included the general as well as maternal and child health both. A voluntary family planning was also introduced here on. This also saw the change of the phrase from Family Planning to Family Welfare program that is maintained till date.

DEMOGRAPHIC SCENARIO
1. India is the second most populous country in the world. 2. India has 17 % of worlds population and has less than 3% of earths land area. 3. While the global population has increased 3 times, India has increased its population 5 times during the last century. 4. Indias population is expected to exceed that of China before 2030 to become the most populous country in the world.

INDIAS FACTS
At the beginning on the century, endemic disease, periodic epidemics and families kept the death rate highenough to balance out the high birth rate Between 1911 and 1920, the birth and death rates were virtually equal; about 48 births and 48 deaths per 1000 By the mid 1990s, the estimated birth rate had fallen to 28 per 1000 The estimated death rate had fallen to 10 per 1000 The future configuration of Indias population depends on what happens to the birth rate Even the most optimistic projections do not suggest that the birth rate could drop below 20 per 1000

POPULATION POLICIES
The anti natalist policy was unpopular and ended in 1977 In 1978, the legal age of marriage was raised from 15 to 18 but this was ignored Only 25% of women use contraception In 1952, India was the first country in the world to launch the national programme, emphasising family planning to the extent necessary to reduce birth rate to stable India launched its policy through mass media e.g. radio and TV ads

Poverty
Objectives This working paper discusses the meaning of poverty as a concept. Understanding the concept of poverty prepares us for the subsequent papers, which consider how poverty is, could be, and should be measured. Here, the intent is to delineate what the term is generally taken to mean. There will be compromises when we move from a discussion of meaning to creating a statistical measure that can be used with existing data as a poverty indicator. One may discuss the political/policy question, why measure poverty at all. Is there a value in a societal consensus on a poverty threshold and reliable data on the related trend in the The Meaning of Poverty The human condition(s) which we might classify as being in poverty have a long history with a variety of interpretations; these conditions are influenced by a number of factors including resources, contemporary standards and public perceptions of what is minimally acceptable.

The history of comments about poverty is extraordinarily long, including many well-known quotes: The poor will always be with you (Matthew 26:11). The persisting theme is that those living in poverty have a standard of living that is unacceptable because it is unjust. To this day, poverty remains a social problem. Notions of acceptability and standards of living remain contentious, in part because of the implied role of society in ensuring the care and general well-being of all persons. Different persons, of all income groups, have various notions as to what is unacceptable. Adam Smith proposed a conceptual definition of poverty as missing not only the commodities which are indispensably necessary for the support of life, but whatever the custom of the country renders it indecent for creditable people, even of the lowest order, to be without.The more recent writings of Nobel prize -winning Amartya Sen state that poverty is a standard atwhich one cannot achieve adequate participation in communal activities and be free from public shame from failure to satisfy conventions. It is worth noting that these, like almost all concepts of poverty, refer to some sense of what is decent: o Adam Smith indecent for creditable people

Poverty is one of the major problems in India. It is the root cause of many socio-economic problems including population explosion, unemployment, and child labour and rising graph of crimes. Poverty alleviation should be the main target of the nation so as to make it a prosperous and developed country. Thus, poverty elimination is a matter of fundamental importance. Poverty implies a condition in which a person finds him unable to maintain a living standard adequate for his physical and mental efficiency. He even fails to meet his basic requirements. Poverty is in fact a relative concept. It is very difficult to draw a demarcation line between affluence and poverty. According to Adam Smith, Man is rich or poor according to the degree in which he can afford to enjoy the necessaries, th e conveniences and the amusements of human life.

The pathos of Indian story is that 220-230 million of Indian population, which constitutes 22 per cent of the total population, is poor, as per the findings of the National Sample Survey Organisation. This makes India home to the worlds largest proportion of the poor, even if the percentage of the people living below poverty line reduced from 36 per cent in 1993-194 to 22 per cent in 2004-05. The problem of poverty is acute in villages. More than 75 per cent people live in villages. Even prevalence of poverty is not uniform all across India. The poverty level is below 10 per cent in states like Delhi, Goa, Punjab, etc. while it is nearly 50 per cent in socio-economically backward states like Bihar and Orissa. The percentage of poverty fluctuates between 30 to 40 in north-eastern states of Assam, Meghalaya, and in Tamil Nadu and Uttar Pradesh. According to a recent Indian government committee constituted to estimate poverty, nearly 38% of Indias population (380 million) is poor. This report is based on new methodology and the figure is 10% higher than the present poverty estimate of 28.5%. The committee was headed by SD Tendulkar has used a different methodology to reach at the current figure. It has taken into consideration indicators for heath, education, sanitation, nutrition and income as per National Sample Survey Organization survey of 2004-05. This new methodology is a complex scientific basis aimed at addressing the concern raised over the current poverty estimation. Since 1972 poverty has been defined on basis of the money required to buy food worth 2100 calories in urban areas and 2400 calories in rural areas. In June this year a government committee headed by NC Saxena committee estimated 50% Indians were poor as against Planning Commissions 2006 figure of 28.5%. Poverty is one of the main problems which have attracted attention of sociologists and economists. It indicates a condition in which a person fails to maintain a living standard adequate for his physical and mental efficiency. It is a situation people want to escape. It gives rise to a feeling of a discrepancy between what one has and what one should have. The term poverty is a relative concept. It is very difficult to draw a demarcation line between affluence and poverty. According to Adam Smith - Man is rich or poor according to the degree in which he can afford to enjoy the necessaries, the conveniences and the amusements of human life. Even after more than 50 years of Independence India still has the world's largest number of poor people in a single country. Of its nearly 1 billion inhabitants, an estimated 260.3 million are below the poverty line, of which 193.2 million are in the rural areas and 67.1 million are in urban areas. More than 75% of poor people

reside in villages. Poverty level is not uniform across India. The poverty level is below 10% in states like Delhi, Goa, and Punjab etc whereas it is below 50% in Bihar (43) and Orissa (47). It is between 30-40% in Northeastern states of Assam, Tripura, and Mehgalaya and in Southern states of TamilNadu and Uttar Pradesh.

CAUSES OF POVERTY:1. over population India is seventh largest country in the world according to the area but 2nd largest in the population and their is not a big difference of population in first China and second India. due to a very big amount of population we are facing the scarcity of resources and we cannot feed population in a proper way. The demand of goods is always greater then the availability or production in our country.

2. Low production agriculture Agriculture is the very old tradition of our country but now we are not able to produce the amount by which we can fill the stomach of all the Indians properly and the main reason for low production in agricultural field is use of old agricultural technique, no proper capital investment, no proper irrigation facilities etc.

3. Underutilized resources We are even not optimizing the resources which we are having properly our young and innovative youth is seeking jobs but not finding the appropriate packages many proper graduated and hard working people are not getting appropriate jobs so they are migrating to the foreign countries and we are loosing an innovative Indian.

4. Low rate of economic development

The rate of development of our country is low as compared to other nations and we are not growing at a proper rate. Our growth rate is less then the required levels and this developed a gap between level of availability and requirement of goods and hence the result is poverty.

5. Rise in prices of goods The rise in prices of a common man's basic needs had made the life of a common man difficult and this makes very difficult to meet the minimum needs for lower income groups.

6. Unemployment The number of unemployed Indians is continuously increasing and thus creating an army of unemployed Indian youth. The number of job seekers is increasing continuously but the job opportunities are not increasing at the rate at which should they increase and the result of this is poverty in India.

7. Shortage of capital and able entrepreneurship For boosting up the growth of the country these two things are must and the major problem is that we are lacking in these two things and hence the result is inappropriate growth rate of our country.

8. Social factors Today in 21th century also we are socially backward as we were 100 years ago today we use to discuss about the casts, religion etc of each other we don't think about of working together.

9. Corruption Corruption is one of the biggest problem of our country and is one of the biggest reason for poverty in India the corrupted leaders etc had eaten up all the money of our country.

10. Political factors

The development plans in India are made with a favor that the people who are making the particular plans should also get the benefit and profit from the development plans why don't they think that the development plans are made for the people who are underdeveloped not for the one who are living luxurious life.