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Prepared by
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Kannur – Thalassery South
9846663196
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The common goalForofmore
the economies
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The common goal of the economies always is to
achieve public welfare by creating a better
material/ physical environment through economic
activities.
Along with economic growth, development is
equally important to achieve this goal.
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What can be the objectives of individuals,
institutions and government engaging in
economic activities ?
Increase in infrastructure
Better employment opportunities
Increased income and purchasing power
Higher quality of life
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What are the aim of all economies?
All economies aim to provide better living
conditions through different economic activities
which bring about quantitative and qualitative
changes in the economic system.
Quantitative change refers to economic growth
and qualitative change refers to economic
development.
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What is gross domestic product
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Gross domestic product is the monetary value of
all goods and services produced within the
domestic territory of a country in a year.
Goods and services are produced as a result of
activities in the agricultural, industrial, and
service sectors of an economy.
When the production of goods and services
increases, national income increases and the
economy grows.
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Economic growth
Economic growth is the increase in a country's
Gross Domestic Product compared to the previous
year.
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How does economic growth benefit the economy?
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Economic growth is the increase in a country's
Gross Domestic Product compared to the previous
year.
When economic growth occurs, a country's
capacity to meet the needs of its people increases
through changes in production, employment, and
income.
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What is Economic growth rate
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The economic growth rate is the rate of increase
in Gross Domestic Product (GDP) in the current
year compared to the previous year.
The growth rate is measured in percentage.
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Who published India's economic growth rate?
India's economic growth rate published by the
Ministry of Statistics and Programme
Implementation (MOSPI)
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India's economic growth rate published by the Ministry
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of Statistics and Programme Implementation (MOSPI)
from 2012-13 to 2023-24.
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Which year achieved the highest growth rate in
GDP?
2021-22
In which year did the lowest economic growth
rate occur?
2020-21
Has there been any period of negative growth (ie.,
below zero)? If so, why?
Yes , 2020-21 caused by the COVID-19 pandemic.
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The GDP decreases.
The production of goods and services need
not necessarily increase steadily every year.
There may be fluctuations in the increase.
From 2016-17 to 2019-20, the rate of growth
of GDP falls and continues to be positive.
The GDP still is increasing.
However from 2019-20 to 2020-21 the rate
of growth of GDP falls and becomes negative.
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Analyze the factors influencing economic growth
during this period.
Demographic dividend (a large, young
population),
Human capital development (education and skills),
Physical capital (infrastructure and investment),
Technological advancements,
Natural resources, and
Government policies.
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Navas. P GVHSS Chirakkara (Thalassery)
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The World Development Report published by the
World Bank classifies economies into four
categories based on per capita income.
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The per capita income ofForcountries with different
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levels of development, Afghanistan, India, China
and the USA, over different periods.
In 1991, India’s per capita income was slightly
higher than both Afghanistan and China but
extremely low compared to the USA.
The USA’s income was nearly 73 times higher
than India’s, reflecting the vast economic gap
between developed and developing nations at that
time.
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As an indicator of economic growth, per capita
income has certain shortcomings: What are they?
It is only an average income.
Information about the distribution and inequality
of wealth is not reflected in the income index.
Since per capita income is calculated on the basis
of national income, the limitations of calculating
national income also affect per capita income.
Factors that enhance the quality of life are not
included in the scope of the PCI index.
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As an indicator of economic growth, per capita
income has certain shortcomings: What are they?
It is only an average income.
Information about the distribution and inequality
of wealth is not reflected in the income index.
Since per capita income is calculated on the basis
of national income, the limitations of calculating
national income also affect per capita income.
Factors that enhance the quality of life are not
included in the scope of the PCI index.
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Economic development
Economic development is the process of
improving the standard of living and economic
well-being of people through growth in income,
education, and infrastructure.
Problems of poverty, unemployment, and
economic inequality are not considered or
included while calculating economic growth.
Factors that make a difference in the quality of
life and well-being of the people also be
considered.
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To improve the quality of life,
Foreconomic growth
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accompanied by better living conditions. Find out what
such conditions are.
Educational facilities
Healthcare services
Nutrient availability
Transportation facilities
Housing and Infrastructure
Environment and Sustainability
Social Equality and Justice
Employment and Livelihood
Good Governance and Safety
Cultural and Recreational Well-being
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The central and stateFor governments provide
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benefits like food items and medical facilities at
low prices to the poor and vulnerable sections of
the society. What are they?
1. Public Distribution System (PDS)
2. Pradhan Mantri Garib Kalyan Anna Yojana
(PMGKAY)
3. Ayushman Bharat – Pradhan Mantri Jan
Arogya Yojana (PM-JAY)
4. Antyodaya Anna Yojana (AAY)
5. National Food Security Act (NFSA), 2013
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State Government Schemes
Amma Canteen (Tamil Nadu) – Low-cost meals
for the poor.
Annapurna Scheme (Kerala, Odisha, etc.)
Free rice for elderly poor persons.
Arogyasri (Telangana, Andhra Pradesh)
Free medical treatment for low-income families.
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What are the various development indices are used
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to measure and evaluate economic development.
Human Development Index (HDI)
Physical Quality of Life Index (PQLI)
Sustainable Development Goals Index (SDGI)
Development indicators also change in accordance
with the recent changes in development.
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Human Development Index (HDI)
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This is an index developed by the United Nations
based on human development to measure
economic development.
The Human Development Index is calculated
based on three factors:
Life expectancy
Literacy and gross school enrollment rate
Per capita income
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➔
The Human Development Index is prepared
by calculating the value of each of these
separately and finding their average.
➔
Their value will be between zero and one.
➔
Based on the value of this index, the
countries of the world are divided into four
groups.
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➔
Low human development (below 0.550)
➔
Medium human development (0.550 – 0.699)
➔
High human development (0.700 – 0.799)
➔
Very high human development (above 0.800)
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➔
Since 1990, the United Nations Development
Programme has been preparing the HDI
Report, classifying the world's countries on
the basis of development based on the HDI
value.
➔
According to the 2023 report, India is
ranked 130th out of 193 countries.
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➔
Which is the period when India was in low
human development and medium human
development.
➔
Low human development – 1990 - 2005
➔
Medium human development – 2010 – 2023
➔
India’s transition from low to medium
human development reflects progress in
education, health, and income levels.
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1. Education and Skill Development
2. Health and Nutrition
3. Income and Employment
4. Gender Equality
5. Environmental Sustainability
6. Good Governance and Social Inclusion
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Top 5 Countries by HDI (2023 data) According to
the latest UNDP HDI table:
1. Iceland – HDI ~ 0.972.
2. Norway – HDI ~ 0.970.
3. Switzerland – HDI ~ 0.970 (0.967)
4. Denmark – HDI ~ 0.962
5. Germany – HDI ~ 0.959
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Physical Quality of Life Index (PQLI)
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➔
The economic development of a country
should be such that the standard of living of
the people increases and the basic needs are
met.
➔
Based on this, this is the development index
developed by a renowned economist, Morris
David Morris, in 1979.
➔
The Physical Quality of Life Index is
prepared based on three indices.
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What are the three indices of Physical Quality of
Life Index is prepared Morris David Morris, in
1979
➔
Basic Literacy Index (BLI)
➔
Infant Mortality Index (IMI)
➔
Life Expectancy Index (LEI)
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Basic Literacy Index (BLI): Basic literacy is the
percentage of the population that can read and
write.
➔
Infant Mortality Index (IMI): Infant mortality
rate refers to the number of deaths of infants
under the age of one per 1,000 live births.
➔
Life Expectancy Index (LEI): Life expectancy is
calculated based on the average number of years a
person lives.
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How to calculate the Physical Quality of Life
Index (PQLI)
➔
The Physical Quality of Life Index (PQLI) is the
average of these three indicators.
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The drawback/demerit of the Physical Quality of
Life Index (PQLI) ?
➔
The drawback of the Physical Quality of Life
Index (PQLI) is that it does not consider the
respondent's annual income while preparing the
physical quality life index.
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Sustainable Development Goals Index (SDGI)
➔
Sustainable Development Goals that were adapted
by the United Nations in 2015.
➔
The Sustainable Development Goals Index assesses
the efforts taken by countries to achieve the
sustainable development goals.
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➔
The Sustainable Development Goals index is a
comprehensive development index.
➔
In India, the Sustainable Development Goals Index
is prepared by the NITI Aayog in collaboration
with the United Nations to measure the
development progress of states and union
territories..
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The SDGI score is calculated by averaging the
values of each of the Sustainable Development
Goals, which are calculated between zero and 100.
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List the 5 top states in the SDGI rankings for 2023-
24.
5 top states
1. Kerala79
2. Uttarakhand79
3. Goa77
4. Himachal Pradesh 77
5. Punjab 79
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Which state is at the top of the rankings in 2018-
19?
Kerala
Which states are at the top of the rankings in 2023
– 24?
Kerala
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Find out the reasons why Kerala is ranked high on
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the SDG India Index as compared to other states in
India.
Consistently strong scores across core social SDGs
(health, education, no-hunger)
Excellent education outcomes (high literacy,
near- universal enrolment, low dropout)
Strong public health performance and wide access
to care -Effective poverty-reduction and social-
welfare programs (including women’s
empowerment)
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●
Decentralised governance & active local bodies
Good basic infrastructure and access to services
(water, sanitation, electrification)
●
High human development baseline & policy focus
on social sectors
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What was the strategy we adopted to achieve
economic growth and development in independent
India.
-Planning
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Which economic system we adopted to build the
economy in India, which was fragmented during
the British rule?
Mixed Economy
India had formulated plans that outlined how the
country's resources should be utilized on the basis
of some common goals.
Economic planning is the preparation made to
achieve the main economic goals of a society by
utilizing available resources.
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Who is considered as the Father of Indian economic
planning.
M Visvesvaraya
Lifespan: 1861–1962
He prepared a detailed plan for the economic
development of India in 1934, known as the
“Visvesvaraya Plan.”
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The structure of the Indian Planning Commission
Chairman - Prime Minister
Vice Chairman
Nominated Members from the Central Cabinet
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Fact about the Indian Planning Commission
The Planning Commission was established in
1950.
The planning process was implemented in India
in 1951 through the Five-Year Plans.
At the national level, the Planning Commission,
established in 1950, continued up to 2014.
Now, these activities are being led-by the NITI
Aayog.
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ഇന്ത്യൻ
പഞ്ചവത്സര
പദ്ധതിയുടെ
ശില്പി
Who is the architect of the Five-Year Plan in India
-PC Mahalanobis
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NITI Aayog (National Institution for Transforming
India)
NITI Aayog came into existence on 1 January
2015, replacing the Planning Commission of
India.
It aims at transforming India through economic
growth, social welfare, and infrastructure
development.
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The main objectivesForofmore
NITI Aayog
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To create a vision for India's development
priorities and plans
To promote sustainable development and inclusive
growth
To promote economic growth through
innovation, entrepreneurship, and job creation
To collaborate with international organizations and
countries to leverage global diversity and resources
To develop and implement strategic and long-term
policies and programs
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Which are the important factors that led India to
the Economic Reforms of 1991.
The economic crisis in India caused by a high fiscal
deficit and a decline in foreign exchange reserves
Inefficiency of the public sector
Changes in the world market.
Arguments in favour of the free market
The economic crisis caused by the 1990 gulf war
Economic growth in East Asian countries through
industrialization and liberalization
The conditions imposed by the World Bank and IMF.
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Main Goal of Reforms of 1991
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To liberalize the Indian economy and open it to
the world economy
To deregulate the private sector
To reduce the government regulation in various
sectors
To remove the trade restrictions with foreign
countries.
*Hence the general features of these economic reforms
are commonly referred to as LPG.
*The basis of this reform is the shift from LPQ to LPG
(Liberalization, Privatization, Globalization).
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Liberalization
Liberalization is a policy change that gives a
country's economy more freedom by relaxing
restrictions imposed on various sectors to promote
economic growth and development.
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What are the main areas where liberalization has
been implemented
Industrial sector reforms
Financial sector reforms
Tax reforms
Foreign exchange reforms
Foreign trade sector reforms
PrivatizationForFeatures
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Privatization is the process of reducing the role of
the public sector and providing more
opportunities for the private sector.
Disinvestment is the most important of the
privatization processes and is implemented
through the sale of shares.
Disinvestment is the sale of the government's
investment or capital in a public sector enterprise
to the private sector.
This is mainly done in four ways.
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Globalization
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Globalization is the integration of a country's
economy with the global economy.
This will significantly reduce import duties and
encourage foreign investment.
This means the further globalizing of trade,
capital investment, and the transfer of technology
and human resources.
Liberalization and privatization are economic
policies.
Globalization is a consequence of these policies.
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Globalization is not a policy; it is a phenomenon
Amartya Sen
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Merit or good effectFor
ofmore
Globalization
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The globalization made possible the widespread
exchange of goods, services and capital among
countries.
Along with the flow of foreign capital,
multinational companies also promoted research
and innovative ideas in the field of production.
This accelerated the growth of technology.
Driving forces of economic growth
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Inventions, mechanization, spread of technology,
modernization, etc. played an important role in
accelerating economic growth.
Industrial revolution, which was triggered by the
invention of the steam engine, passed through
many stages.
Today, the world is on the edge of a fifth
industrial revolution.
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What are the various industrial revolutions and
their characteristics.
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Write a short note on Knowledge Economy
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Knowledge Economy is an economic system that
thrives by incorporating innovative ideas in the
production, distribution, and use of knowledge
and information.
Knowledge is the key element in a knowledge
economy .
New ideas, research, and inventions are important
here.
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The basis of this economy is human resources
capable of effectively using knowledge and
technology.
Therefore, research, innovation, and skill
development need to be accelerated.
Continuous efforts to develop new products and
services(innovation) are a characteristic of
Knowledge Economy.
Find out how economic activities in the Knowledge
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Economy lead to economic growth.
Skill development
Human resource utilization
Job creation
Innovation and Technological Advancement
Global Competitiveness
Creation of High-Value Industries
Entrepreneurship and Start-up Growth
The new era of Knowledge Economy is bringing
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out changes in Indian economy
Agriculture Sector: Agri Tech
New technologies are transforming agriculture in
India from traditional farming to a more
profitable and efficient (smart) one.
Things like when to water, fertilize, etc. are being
done with the help of sensors and drones.
This has enabled farmers to earn higher incomes
through reduced costs, improved yields, and direct
sales through online platforms.
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What is Industry 4.0? For more Resources visit: BIO-VISION
Sector: Industry
Industry 4.0
Industry 4.0 is a manufacturing method that
uses computers, automation (machines working
on their own) and the Internet to connect
factories and make them more efficient.
This leads to increased industrial production and
also to quality products and less wastage.
This change can create highly diversified jobs
and lead to economic growth.
India aims to lead economic growth through
projects like MAKE IN INDIA.
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Which are the programmes(institutions) working to
provide technical and innovative knowledge in
Kerala for the growth of a knowledge-based
economy.
Kerala Startup Mission,
K-DISC,
Digital University etc. are working to provide
technical and innovative knowledge in Kerala for
the growth of a knowledge-based economy.
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Kerala Development andFor more Innovation Strategy
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Council (K – DISC) - aims and responsibilities
K-DISC is a committee formed in 2018 with the
aim of transforming Kerala into a knowledge
economy and a hub of innovation.
Its main responsibilities are to promote research
in new technologies, products and processes and
to organize skill development programmes.
The Young Innovative Program (YIP) is a project
run by K-DISC to foster innovation among the
youth.
It provides support to transform the innovative
ideas of students into projects.
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The Kerala Knowledge Economy Mission (KKEM)
The Kerala Knowledge Economy Mission
(KKEM) is a project aimed at transforming Kerala
into a knowledge economy and providing
employment to the educated.
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Kerala Startup Mission (KSUM)
Kerala Startup Mission (KSUM) is a model agency
launched in 2006 to promote the startup scene in
Kerala, transform innovative ideas into enterprises
and make the state a leading hub.
It supports startups through innovation hubs,
incubators, funding support, mentorship and
international exchange programmes.
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ALL THE BEST
Thank You
Navaspuliyara, GVHSS Chirakkara
Kannur – Thalassery South
9846663196