CLASS 10 · NCERT ECONOMICS

Chapter 1
Development
Detailed Topic-wise Study Notes

TOPICS COVERED

1. What is Development?

2. Different Goals & Developmental Goals

3. Income and Other Goals

4. National Development

5. How to Compare Countries or States

6. Income and Other Criteria

7. Public Facilities

8. Human Development Index (HDI)

9. Sustainability of Development

10. Quick Recap & Key Terms

01What is Development?
CORE CONCEPT

DEFINITION

Development means an improvement in the quality of life and living standards, including
better education, higher incomes, greater freedom, and overall well-being of people. It is not
just about economic growth but also includes social and human progress.

Development is a broad concept. Different people have different ideas about what development
means to them. It depends on their life situation, needs, and aspirations.

◆ Development refers to progress, improvement, and positive change in people's lives.

◆ It is not limited to income alone — it includes freedom, security, dignity, and opportunities.

◆ The idea of development involves both economic and non-economic factors.

◆ People's development goals are often conflicting — what is development for one person may
be harmful to another.
 NCERT EXAMPLE

A landless rural labourer wants more days of work and better wages. A prosperous farmer wants
higher support prices and cheap labour. Their development goals are different and even conflicting.

02Different Goals & Developmental Goals

⭐ IMPORTANT FOR EXAM

Different people have different developmental goals depending on their needs, desires, and social
position.

PERSON / GROUP DEVELOPMENTAL GOAL

Landless rural labourer More days of work, fair wages, no exploitation

Prosperous farmer Higher MSP (Minimum Support Price), cheap labour

Urban unemployed youth Employment opportunities, skill development

Industrialist Good infrastructure, cheap electricity, less regulation

Girl from rich family Freedom, safety, equal opportunities as boys

Girl from poor family Education, job, escape from poverty

KEY POINT

Goals of development differ from person to person, and can often be conflicting. What seems
development for one may be a step backward for another. This means there is no single definition of
development for everyone.

Mixed Goals: Besides income, people also desire:

◆ Equal treatment and respect in society

◆ Freedom and security

◆ Good health and education

◆ Clean environment

03Income and Other Goals

CONCEPT
While income is the most important developmental goal (as it allows people to meet most of their
needs), it is not the only goal.
DEFINITION

Material Goals include things like income, wages, and physical comforts. Non-material
Goals include freedom, safety, dignity, equality, and a clean environment.

◆ Money (income) is necessary but cannot buy everything — e.g., a pollution-free environment,
social respect, or freedom from fear.

◆ People look for a mix of material and non-material goals.

◆ A higher income alone does not guarantee a better quality of life.

NCERT EXAMPLE

Consider two places — one with higher income but polluted air, and another with lower income but
clean air and safe water. Many people may prefer the latter because quality of life depends on more
than just income.

REMEMBER

People seek a "mix of goals". Adequate income + security of life + respect + equal treatment =
Development. This is why development cannot be measured by income alone.

04National Development
⭐ IMPORTANT FOR EXAM

National development means the development of the country as a whole. But since different people
have different and often conflicting goals, choosing a single path for national development is
complex.

◆ Any definition of national development must have the notion of equality and justice for all.

◆ Development of one section of society should not come at the cost of harm to others.

◆ We need to think about what is good for all, not just for a particular group.

IMPORTANT QUESTION

"Can the same path of development be good for all sections of society?" — The NCERT textbook
raises this question. The answer is that development goals differ across groups, so national
development must balance and include all sections equitably.

INDIVIDUAL DEVELOPMENT NATIONAL DEVELOPMENT

Focused on personal income, health, Focused on overall economic growth, equality, justice for
 Focused on personal income, health, Focused on overall economic growth, equality, justice for
education all citizens

Varies from person to person Should benefit every section of society

Can be conflicting with others' goals Needs to balance conflicting interests fairly

05How to Compare Countries or States

⭐ IMPORTANT FOR EXAM

To measure development, we need to compare countries or states. The most common method is
comparison using per capita income (average income).
DEFINITION

Per Capita Income (Average Income) = Total National Income ÷ Total Population

Per Capita Income = Total Income of Country / Total Population

◆ The World Bank uses per capita income to classify countries as rich or poor.

◆ Countries with per capita income of US$12,736 per annum or more (at 2017 prices) are
called rich/developed countries.

◆ Countries with per capita income of US$1,085 per annum or less are called low-income
countries.

◆ India falls in the category of lower-middle-income countries.

⚠ LIMITATION OF PER CAPITA INCOME

Per capita income only shows the average income. It does not tell us about distribution of income
or inequality. A country may have a high average but severe inequality — meaning the rich are very
rich and the poor are very poor.

NCERT EXAMPLE

Consider two countries — Country A has 5 people with incomes ₹5, 5, 5, 5, and 10. Country B has 5
people with incomes ₹1, 1, 1, 1, and 20. Both have the same average (₹6), but Country B has
greater inequality. Average income hides this inequality.

06Income and Other Criteria

CONCEPT
Since per capita income alone is not enough to measure development, other criteria are also used:

CRITERION WHAT IT MEASURES

Per Capita Income Average economic standard of living

Literacy Rate Level of education in the population

Life Expectancy at Birth Health and quality of life (average years a person is expected to
live)

Infant Mortality Rate (IMR) Number of children dying before age 1 per 1000 live births —
lower is better

Net Attendance Ratio Percentage of children attending school in age group 14–15

Access to Clean Water & Basic living conditions

Sanitation

KEY INSIGHT

A country may have high per capita income but low life expectancy or poor literacy, showing that
income alone doesn't define development. Conversely, Kerala (in India) has lower per capita
income than Punjab but much better health and education indicators.

COMPARISON: KERALA VS PUNJAB (NCERT TABLE)

Kerala has a higher literacy rate (94%) and lower IMR (7) than Punjab despite having lower per
capita income. This shows that income alone does not determine human development — social
spending on education and health matters greatly.

07Public Facilities
⭐ IMPORTANT FOR EXAM

DEFINITION

Public Facilities are services provided by the government for the welfare of all citizens —
such as schools, hospitals, roads, clean water, electricity, public transport, and sanitation.
They are not provided by private markets as they are not profitable but are essential for a
good quality of life.

Many important things in life cannot be bought with money alone — they require collective action
and government provision:

◆ Safe drinking water — clean tap water supply requires public infrastructure

◆ Public hospitals — healthcare accessible to all, not just the rich

◆ Public schools — free and quality education for all children

◆ Roads, electricity, sanitation — essential for economic activity and dignity

WHY PUBLIC FACILITIES MATTER

Even if people have more income, they cannot individually provide clean air, safe roads, or disease-
free neighbourhoods. These require collective effort and government action. A country's
development depends heavily on the quality of its public facilities.

EXAMPLE FROM NCERT

Kerala's success in health and education is largely due to its government's investment in public
health facilities and schools — even before incomes rose significantly. This shows the power of
public facilities in driving development.

08Human Development Index (HDI)

⭐ MOST IMPORTANT

DEFINITION

The Human Development Index (HDI) is a composite index developed by the UNDP
(United Nations Development Programme) that measures a country's development based
on three key dimensions: Health, Education, and Standard of Living.

DIMENSION INDICATOR USED

Health / Long and Healthy Life Life Expectancy at Birth

Education / Knowledge Mean Years of Schooling + Expected Years of Schooling

Standard of Living GNI (Gross National Income) per capita (PPP in US$)

◆ HDI ranks countries on a scale of 0 to 1 — the closer to 1, the more developed.

◆ Countries are grouped as: Very High, High, Medium, and Low Human Development.

◆ India ranks in the Medium Human Development category.

◆ HDI was first developed by Mahbub ul Haq and Amartya Sen in 1990.

◆ It is published annually in the Human Development Report by UNDP.

WHY HDI OVER JUST GDP?

GDP or per capita income only measures economic output. HDI additionally captures health (can
people live long, healthy lives?) and education (can people access knowledge and opportunities?).
Together, these give a fuller picture of human well-being.
 COUNTRY COMPARISON (AS PER NCERT)

Sri Lanka has a lower per capita income than some oil-rich nations but ranks higher on HDI due to
better health and education outcomes. This demonstrates that HDI captures development more
holistically than income alone.

09Sustainability of Development
⭐ IMPORTANT FOR EXAM

DEFINITION

Sustainable Development means development that meets the needs of the present
generation without compromising the ability of future generations to meet their own needs.
It balances economic growth with the preservation of natural resources and
environment.

Current development often exploits natural resources at a rate faster than they can replenish. This
creates a crisis for future generations.

◆ Groundwater: If we extract groundwater faster than it is recharged by rain, future generations

will face water scarcity.

◆ Fossil Fuels: Coal and petroleum are non-renewable — once used up, they cannot be replaced.

◆ Forests: Deforestation for development destroys biodiversity and affects climate.

◆ Soil: Overuse of chemical fertilisers degrades soil quality over time.

RENEWABLE VS NON-RENEWABLE RESOURCES

Renewable resources (solar energy, wind, water) can be replenished naturally. Non-renewable
resources (coal, oil, natural gas) are finite and cannot be replaced once used. Sustainable
development means shifting towards renewable sources and using resources wisely.

RENEWABLE RESOURCES NON-RENEWABLE RESOURCES

Solar energy, Wind, Water Coal, Petroleum, Natural Gas

Can be replenished naturally Once used, cannot be replaced

Environmentally sustainable Cause pollution, contribute to climate change

IMPORTANT STATEMENT

"Development must be sustainable" — Economic development that depletes natural resources and
destroys the environment for future generations is NOT true development. The Earth has limited
carrying capacity, and we must respect that.
10Quick Recap & Key Terms
SUMMARY

Chapter Summary

Development means different things to different people — goals vary by situation.

Development goals include both income (material) and non-material goals (freedom, dignity,
security).

National development must balance different and often conflicting goals fairly.

Countries are compared using per capita income, but this has limitations (ignores inequality).

Other indicators like life expectancy, literacy rate, and IMR are also important.

Public facilities (schools, hospitals, clean water) are essential for development.

HDI (Human Development Index) measures development through health, education, and
income.

Sustainable development ensures present needs are met without harming future generations.

KEY TERM MEANING

Development Improvement in quality of life, including economic and human well-being

Per Capita Income Total national income ÷ total population (average income)

HDI Human Development Index — measures health, education, and income

UNDP United Nations Development Programme — publishes HDI annually

Life Expectancy Average number of years a person is expected to live at birth

IMR Infant Mortality Rate — deaths per 1000 live births before age 1

Literacy Rate Percentage of people aged 7+ who can read and write

BMI Body Mass Index — used to assess nutrition levels of a population

Sustainable Development without depleting resources for future generations

Development

Public Facilities Government-provided services essential for well-being (schools,

hospitals, water)
Renewable Resources Resources that can be naturally replenished (solar, wind, water)

Non-Renewable Resources that are finite and cannot be replaced (coal, oil)
Resources

World Bank International organisation that classifies countries by per capita income

Class 10 NCERT Economics · Chapter 1: Development · Detailed Notes