Economy and Development: Nature of Indian State, Development Planning model, New Economic Policy, Growth and Human Development.

 Economy and Development: 

Economy and Development: 

Nature of Indian State, 

Development Planning model, 

New Economic Policy, 

Growth and Human Development.

Economic development

Economic development is defined as an increase in a country's wealth and standard of living. It is usually measured by an increase in the gross domestic product (GDP) or other measure of aggregate income.

Stages of Economic Growth 

Rostow's Stages of Economic Growth include the following five stages: Traditional Society; Preconditions for Take-Off; Take-Off; Drive to Maturity; and Age of High Mass Consumption. Rostow's model is one of the most significant historical models of economic growth.

Using these ideas, Rostow penned his classic "Stages of Economic Growth" in 1960, which presented five steps through which all countries must pass to become developed: 1) traditional society,

 2) preconditions to take-off,

 3) take-off, 

4) drive to maturity and 

5) age of high mass consumption.

Importance

In order for any community to survive, its citizens must have employment opportunities, and its government must be able to generate revenue to provide services. Economic development, if done effectively, works to retain and grow jobs and investment within a community.

What is the nature of state?

The state of nature, in moral and political philosophy, religion, social contract theories and international law, is the hypothetical life of people before societies came into existence.

What kind of state of India?

States and Union Territories
India, a union of states, is a Sovereign, Secular, Democratic Republic with a Parliamentary system of Government. The President is the constitutional head of Executive of the Union. In the states, the Governor, as the representative of the President, is the head of Executive.


Most of the states acceded to India
, On Monday, i.e. June 2, 2014, the country got its newest, 29th state, in Telangana. Kalvakuntla Chandrasekhara Rao has taken oath as the first chief minister of the state, separated from Andhra Pradesh.

The state of nature, 
for Rousseau, is a morally neutral and peaceful condition in which (mainly) solitary individuals act according to their basic urges (for instance, hunger) as well as their natural desire for self-preservation.

 State, Economic Growth, and Development in India

Developmental ideas were debated within the state.
 Substantial economic policy change would require building upon a historical path of gradual changes in ideas and policies, punctuated by economic crises.
 This paper demonstrates how this dynamic is critical for explaining the politics of the green revolution and consequent self-sufficiency in food grains, as well as for understanding the India’s globalization beyond 1991.
 It is a story of getting to higher rates of economic growth in a gradual and circuitous way after building a policy consensus among diverse stakeholders. 
Economic crises aided the arrival of a new consensus.
India’s growth rates began looking more like China’s after 2003. 
 India’s growth. Between 1956 and 1974, India’s GDP grew between 3 and 4 percent per annum, when it was a closed and highly regulated economy.
 The twists and turns in India’s economic development policy since the time of independence in 1947, which gradually resulted in the high growth trajectory. 
It will deliberate on the reasons why sectors like telecommunications and stock markets became efficient, while others like the power sector lagged behind. 
What are the socioeconomic and political reasons for low levels of literacy in India, the decline of Indian agriculture, the persistence of poverty, and the rise of inequality in India.

Challenges for Development India’s

 robust growth needed to involve more people.
Its agriculture sector has been in decline since the mid-1990s. Its trade union laws increase the propensity of Indian industry to remain capital intensive, resulting in unemployment and increased employment in the unorganized sector.
Manufacturing industry still faces major regulatory bottlenecks.
 Last but not least, human development in areas such as primary education and health leave a lot to be desired.
 The result is that even though there has been a decline in the number of people below the poverty line, a strategy of inclusive growth would have achieved poverty alleviation more rapidly.


The challenge for India’s growth and development is to get a larger proportion of the Indian people into its middle class, which is well served by markets and competition. This enterprise demands an active role of the Indian state and will demand support from its society.

Development Planning model

Development planning is defined deliberate government attempt to implement, monitor, supervise as well as co-ordinate economic decisions made on economic issues of a nation. It is also known as economic planning of a nation.

Growth model 

The Harrod–Domar model is a Keynesian model of economic growth. It is used in development economics to explain an economy's growth rate in terms of the level of saving and of capital. ... Warranted growth rate is the rate of growth at which the economy does not expand indefinitely or go into recession.


Development planing process.
A development plan defines the policy framework and land use proposals that will be used to guide development decisions within a specified area. ... The Department may also alter, repeal or replace such a plan. Development plans may be in the form of area plans, local plans or subject plans.

Types of development planing.

There are three major types of planning, which include operational, tactical and strategic planning. A fourth type of planning, known as contingency planning, is an alternative course of action, which can be implemented if and when an original plan fails to produce the anticipated result.

Function of development planing

In general, the purpose of development plan is to establish a policy framework within which more detailed plans (such as local area plans or plans for architectural conservation areas) can be drawn up for specific parts of the planning authority's area. Development plan also provides guidance to a range of other.

New Economic Policy.

 New Economic Policy refers to economic liberalisation or relaxation in the import tariffs, deregulation of markets or opening the markets for private and foreign players, and reduction of taxes to expand the economic wings of the country.

 architect of India's economic reforms

Narasimha Rao

Narasimha Rao: The real architect of India's economic reforms

Includes

These measures included the return of most agriculture, retail trade, and small-scale light industry to private ownership and management while the state retained control of heavy industry, transport, banking, and foreign trade. ... 

The small businessmen and managers who flourished in this period became known as NEP men.

purpose

The New Economic Policy comprises the set of policy measures introduced since July 1991. 

The objective of NEP is to improve the efficiency of the system in total and creating a more competitive environment in the economy as a means to improving the productivity and efficiency of the system in particular.

The New Industrial Policy established in 1991 sought substantially to deregulate industry so as to promote growth of a more efficient and competitive industrial economy. 

The central elements of industrial policy reforms were as follows: Industrial licensing was abolished for all projects except in 18 industries.

In 1991, Singh as Finance Minister, freed India from the Licence Raj, source of slow economic growth and corruption in the Indian economy for decades. He liberalised the Indian economy, allowing it to speed up development dramatically.

Growth and Human Development.

Human development is defined as the process of enlarging people's freedoms and opportunities and improving their well-being. ... The human development concept was developed by economist Mahbub ul Haq.

Perhaps most importantly, studying human development makes it easier to spot possible signs of trouble. From problems with cognitive, ​social, or emotional development in early childhood to struggles later in life, being able to identify potential problems is important.

Three aspect of human development

Learning Outcomes

• Describe human development and its three domains: physical, cognitive, and psychosocial development.
• Explain key human development issues about the nature of change: continuous/discontinuous, one course/multiple courses, and nature/nurture.
• Describe the basic periods of human development.