Indian Economy Revision eNotes

Nature of Indian Economy (reasons for underdevelopment)
Indian economy is an underdeveloped economy because almost all important features of an underdeveloped economy arc still present in Indian economy. Some of these features are discussed below:

  1. Low Income:
    In India GNP (Gross National Product) per capita was $1,180 in 2009 at current prices, roughly one third of the population is below the poverty line. On world scale, income inequalities between the developed and underdeveloped countries arc very large.

According to the World Hank estimates, in 2009 the average GNP per capita of the high income economies was $38,139 whereas it was $503 in low income underdeveloped countries.

  1. Predominance of Agriculture:
    In India agriculture and allied sectors contribute nearly 14.2 percent of Gross Domestic Product (GDP) according to the 2010-11 estimates released by the Central Statistics Office (CSO).
    Moreover, in India agriculture provides employment to around .50 per cent of the workforce.

The share of income in agriculture is however, considerably less than the share of employment in agriculture which clearly reflects the relatively low productivity per labour unit in the agricultural sector.

  1. Rapid Population Growth Rate and High Dependency Ratio:
    High population growth rate is also an indicator of underdevelopment. India’s population growth rate was 1.93% per annum and 21.34 % per decade during 1991-2001, which is still very high as compared to developed economies. Dependency ratio refers to ratio of dependent population (non-working) to total population. In India dependency ratio is around 60% which is very high. This is because of high birth rate and social circumstances.
  2. Mass Poverty:
    According to United Nations Development Programme’s (IJNDP) Global Human Development index 2011. India is ranked 134th among 187 countries. The report says 53 per cent of Indians suffer from multidimensional poverty. The Planning Commission released the second India Human Development Report (HDR) 2011.

The report claims that poverty, unemployment and child labour are declining. According to this report the absolute number of the poor (27 per cent) stood at 302 million as compared to 320 million in 1973. Poverty is widespread in the underdeveloped countries, liven though major progress has been registered over the past 25 years, the absolute number of poor has in fact increased.

  1. Unemployment and Underemployment:
    Unemployment is a phenomenon of all economies whether developed or underdeveloped. But nature and degree of unemployment is different in developed and underdeveloped economies.

In developed economics most of the unemployment is cyclical which arises because of fluctuations in business cycles. In underdeveloped economies like India, chronic unemployment is found which results from the structural defects in the economy.

Moreover, underemployment is widespread in underdeveloped countries. Underemployment is a condition in which a person is getting work but not according to his/her capacity and qualifications.

The 64th round (2007-2008) of NSSO survey on employment- unemployment indicates a creation of 4 million work opportunities between 2004-05 and 2007- 08. The Eleventh Five Year Plan aims at generating 58 million work opportunities in twenty- one high growth sector.

  1. Inequality:
    Inequality in distribution of income and wealth is found in every country but this is wider in underdeveloped economies. In India bottom 40% of rural population possess only 5% of rural assets while 8% top households possess 46% of total rural assets. This disparity is more intensive in urban areas.
  2. Scarcity of Capital:
    Capital is considered as the most important factor in the development of an economy. In underdeveloped economies like India, capital availability per person is very low which results in low productivity and low per capita income. Low per capita income again results in low savings, low investment and low capital formation.

Thus Underdeveloped Countries (UDCs) are caught in the grip of vicious circle of poverty. Lack of capital does not allow an economy to introduce the latest technologies. Thus, economy becomes technologically backward and internationally in competitive.

The CSO’s Quick Estimates for 2009-10 placed gross domestic savings at 33.7 per cent of the GDP at current market prices. With private-sector savings more or less static, ii was the savings of the public sector that went up from a revised level of 0.5 per cent in 2008-09 to 2.1 per cent in 2009-10. In the investment sphere the ratio of gross investment came down to around 36.5 per cent in 2009-10 from 38 per cent in 2007-08.

  1. Low Level of human Development:
    Human Development Index (IIDI) constructed by United Nations Development Programme (UNDP) has become an important indicator of development. IIDI is a composite index of three important parameters of development- education health and income. Every year, in Human Development Report (HDR) value of IIDI is calculated for each country and then they are ranked and classified into three categories high, medium and low human development countries.

According to the UNDP Global Human Development Index (IIDI) 2011. India is ranked 134th among 187 countries.

  1. Balance of Payments (BoP):
    BoP is the systematic record of all economic transactions like trade of goods, trade of services, unilateral transfers, foreign investment, etc. between a country and rest of the world. BoP of a country is also an indicator of development or underdevelopment of the country.

BoP of UDCs like India shows that these countries export primary (agricultural) products and raw materials and import final products and technologies from developed countries.

They invite foreign capital to fill their investment deficiency. India’s BoP is generally unfavourable i.e., it faces deficit. To fill this deficit it has to borrow from other countries and international organisations like IMF, World Bank, ADB, etc. In lieu of loans, these organisations interfere in important policy matters and impose their terms and conditions.

India’s planning for development (5-year plans)
From 1947 to 2017, the Indian economy was premised on the concept of planning. This was carried through the Five-Year Plans, developed, executed, and monitored by the Planning Commission (1951-2014) and the NITI Aayog (2015-2017). With the prime minister as the ex- officio chairman, the commission has a nominated deputy chairman, who holds the rank of a cabinet minister. Montek Singh Ahluwalia is the last deputy chairman of the commission (resigned on 26 May 2014).

First Plan (1951-1956)
The first Indian Prime Minister, Jawaharlal Nehru, presented the First Five-Year Plan to
the Parliament of India and needed urgent attention. The First Five-year Plan was launched in 1951 which mainly focused in development of the primary sector. The First Five-Year Plan was based on the Harrod–Domar model with few modifications.

The total planned budget of Rs.2069 crore (2378 crore later) was allocated to seven broad areas: irrigation and energy (27.2%), agriculture and community development
(17.4%), transport and communications (24%), industry (8.4%), social services (16.6%), rehabilitation of landless farmers (4.1%), and for other sectors
and services (2.5%). The most important feature of this phase was active role of state in all economic sectors. Such a role was justified at that time because immediately after independence, India was facing basic problems—deficiency of capital and low capacity to save.

Second Plan (1956-1961)
The Second Plan focused on the development of the public sector and “rapid Industrialization”. The plan followed the Mahalanobis model, an economic development model developed by the Indian statistician Prasanta Chandra Mahalanobis in 1953. The plan attempted to determine the optimal allocation of investment between productive sectors in order to maximise long-run economic growth. It used the prevalent state-of-the-art techniques of operations research and optimization as well as the novel applications of statistical models developed at the Indian Statistical Institute. The plan assumed a closed economy in which the main trading activity would be centred on importing capital goods.

Third Plan (1961-1966)
The Third Five-year Plan stressed agriculture and improvement in the production of wheat, but the brief Sino-Indian War of 1962 exposed weaknesses in the economy and shifted the focus towards the defence industry and the Indian Army. In 1965–1966, India fought a War with Pakistan. There was also a severe drought in 1965. The war led to inflation and the priority was shifted to price stabilisation. The construction of dams continued.
Many cement and fertilizer plants were also built. Punjab began producing an abundance of wheat.

Plan Holidays (1966-1969)
Due to miserable failure of the Third Plan the government was forced to declare “plan holidays” (from 1966–67, 1967–68, and 1968–69). Three annual plans were drawn during this intervening period. During 1966–67 there was again the problem of drought. Equal priority was given to agriculture, its allied activities, and industrial sector. The government of India declared “Devaluation of Rupee” to increase the exports of the country. The main reasons for plan holidays were the war, lack of resources and increase in inflation.

Fourth Plan (1969-1974)
At this time Indira Gandhi was the prime minister. The Indira Gandhi
government nationalised 14 major Indian banks and the Green Revolution in India advanced agriculture. In addition, the situation in East Pakistan (now Bangladesh) was becoming dire as the Indo-Pakistan War of 1971 and Bangladesh Liberation War took funds earmarked for industrial development. India also performed the Smiling Buddha underground nuclear
test (Pokhran-1) in Rajasthan on May 18, 1974, partially in response to the United States deployment of the Seventh Fleet in the Bay of Bengal. The fleet had been deployed to warn India against attacking West Pakistan and extending the war.

Fifth Plan (1974-1978)
The Fifth Five-Year Plan laid stress on employment, poverty alleviation (Garibi Hatao), and justice. The plan also focused on self-reliance in agricultural production and defence. In
1978 the newly elected Morarji Desai government rejected the plan. The Electricity Supply Act was amended in 1975, which enabled the central government to enter into power generation and transmission.
The Indian national highway system was introduced and many roads were widened to accommodate the increasing traffic. Tourism also expanded. The twenty-point programme was launched in 1975. It was followed from 1974 to 1979.

Rolling Plan (1978-1980)
The Janata Party government rejected the Fifth Five-Year Plan and introduced a new Sixth Five- Year Plan (1978–1980). This plan was again rejected by the Indian National
Congress government in 1980 and a new Sixth Plan was made. The Rolling Plan consisted of three kinds of plans that were proposed. The First Plan was for the present year which comprised the annual budget and the Second was a plan for a fixed number of years, which may be 3, 4 or 5 years. The Second Plan kept changing as per the requirements of the Indian economy. The Third Plan was a perspective plan for long terms i.e. for 10, 15 or 20 years.

Sixth Plan (1980-1985)
The Sixth Five-Year Plan marked the beginning of economic liberalisation. Price controls were eliminated and ration shops were closed. This led to an increase in food prices and an increase in the cost of living. This was the end of Nehruvian socialism. The National Bank for Agriculture and Rural Development was established for development of rural areas on 12 July 1982 by recommendation of the Shivaraman Committee. Family planning was also expanded in order to prevent overpopulation. In contrast to China’s strict and binding one-child policy, Indian policy did not rely on the threat of force.More prosperous areas of India adopted family planning more rapidly than less prosperous areas, which continued to have a high birth rate

Seventh Plan (1985-1990)
The Seventh Five-Year Plan was led by the Congress Party with Rajiv Gandhi as the prime minister. The plan laid stress on improving the productivity level of industries by upgrading of technology.
The main objectives of the Seventh Five-Year Plan were to establish growth in areas of increasing economic productivity, production of food grains, and generating employment through “Social Justice”.

Annual Plans (1990-1992)
The Eighth Plan could not take off in 1990 due to the fast changing economic situation at the centre and the years 1990–91 and 1991–92 were treated as Annual Plans. The Eighth Plan was finally formulated for the period 1992–1997.

Eighth Plan (1992-1997)
1989–91 was a period of economic instability in India and hence no Five-Year Plan was implemented. Between 1990 and 1992, there were only Annual Plans. In 1991, India faced a crisis in foreign exchange (forex) reserves, left with reserves of only about US$1 billion. Thus, under pressure, the country took the risk of reforming the socialist economy. P.V. Narasimha Rao was the ninth prime minister of the Republic of India and head of Congress Party, and led one of the most important administrations in India’s modern history, overseeing a major economic transformation and several incidents affecting national security. At that time
Dr. Manmohan Singh (later prime minister of India) launched India’s free market reforms that brought the nearly bankrupt nation back from the edge. It was the beginning
of liberalization, privatization and globalization (LPG) in India.

Ninth Plan (1997-2002)
The Ninth Five-Year Plan came after 50 years of Indian Independence. Atal Bihari Vajpayee was the prime minister of India during the Ninth Plan. The Ninth Plan tried primarily to use the latent and unexplored economic potential of the country to promote economic and social growth. It offered strong support to the social spheres of the country in an effort to achieve the complete elimination of poverty. The satisfactory implementation of the Eighth Five-Year Plan also ensured the states’ ability to proceed on the path of faster development. The Ninth Five-Year Plan also saw joint efforts from the public and the private sectors in ensuring economic development of the country

Tenth Plan (2002-2007)
The main objectives of the Tenth Five-Year Plan:

•Attain 8% GDP growth per year.
•Reduction of poverty rate by 5% by 2007.
•Providing gainful and high-quality employment at least to the addition to the labour force.
•Reduction in gender gaps in literacy and wage rates by at least 50% by 2007.
•20-point program was introduced.
•Target growth: 8.1% – growth achieved: 7.7%.
•The Tenth Plan was expected to follow a regional approach rather than sectoral approach to bring down regional inequalities.
•Expenditure of ₹43,825 crore (US$6.1 billion) for tenth five years.
Out of total plan outlay, ₹921,291 crore (US$130 billion) (57.9%) was for central government and ₹691,009 crore (US$97 billion) (42.1%) was for states and union territories.

Eleventh Plan (2007-2012)

•It was in the period of Manmohan Singh as a prime minister.
•It aimed to increase the enrolment in higher education of 18–23 years of age group by 2011– 12.
•It focused on distant education, convergence of formal, non-formal, distant and IT education institutions.
•Rapid and inclusive growth (poverty reduction).
•Emphasis on social sector and delivery of service therein.
•Empowerment through education and skill development.
•Reduction of gender inequality.
•Environmental sustainability.
•To increase the growth rate in agriculture, industry and services to 4%, 10% and 9% respectively.
•Reduce total fertility rate to 2.1.
•Provide clean drinking water for all by 2009.
•Increase agriculture growth to 4%.

Twelfth Plan (2012-2017)

The Twelfth Five-Year Plan of the Government of India has been decided to achieve a growth rate of 8.2% but the National Development Council (NDC) on 27 December 2012 approved a growth rate of 8% for the Twelfth Plan.
With the deteriorating global situation, the Deputy Chairman of the Planning Commission Montek Singh Ahluwalia has said that achieving an average growth rate of 9 percent in the next five years is not possible. The Final growth target has been set at 8% by the endorsement of the plan at the National Development Council meeting held in New Delhi.


The NITI Aayog was formed on January1, 2015. The Government, in January 2015, replaced Planning Commission with NITI Aayog (National Institution for Transforming India). In Sanskrit, the word “NITI” means morality, behaviour, guidance, etc. But, in the present context, it means policy and the NITI stands for“National Institution for Transforming India”. It is the country’s premier policy-making institution that is expected to bolster the economic growth of the country. It aims to construct a strong state that will help to create a dynamic and strong nation. This helps India to emerge as a major economy in the world. The NITI Aayog’s creation has two hubs called “Team India Hub”and “Knowledge and Innovation Hub”-

Team India: It leads to the participation of Indian states with the central government.

The Knowledge and Innovation Hub: it builds the institution’s think tank capabilities.

NITI Aayog is additionally creating itself as a State of the Art Resource Centre, with the essential resources, knowledge, and skills that will empower it to act with speed, advance research and innovation, bestow crucial policy vision to the government, and manage unforeseen issues. The reason for setting up the NITI Aayog is that people had expectations for growth and development in the administration through their participation. This required institutional changes in administration and active strategy shifts that could seed and foster substantial scale change.


To achieve Sustainable Development Goals and to enhance cooperative federalism by fostering the involvement of State Governments of India in the economic policy-making process using a bottom-up approach.


•To evolve a shared vision of national development priorities, sectors and strategies with the active involvement of States.
•To foster cooperative federalism through structured support initiatives and mechanisms with the States on a continuous basis, recognizing that strong States make a strong nation.
•To develop mechanisms to formulate credible plans at the village level and aggregate these progressively at higher levels of government.
•To ensure, on areas that are specifically referred to it, that the interests of national security are incorporated in economic strategy and policy.
•To pay special attention to the sections of our society that may be at risk of not benefiting adequately from economic progress.
•To design strategic and long term policy and programme frameworks and initiatives, and monitor their progress and their efficacy. The lessons learnt through monitoring and feedback will be used for making innovative improvements, including necessary mid-course corrections.
•To provide advice and encourage partnerships between key stakeholders and national and international like-minded Think tanks, as well as educational and policy research institutions.
•To create a knowledge, innovation and entrepreneurial support system through a collaborative community of national and international experts, practitioners and other partners.
•To offer a platform for resolution of inter-sectoral and inter departmental issues in order to accelerate the implementation of the development agenda.

Indian Agriculture: Issues and Challenges

Agricultural sector employs more than half of the labour force in developing countries. It is important in terms of employment, production and consumption, can continue to play a critical role in lifting people out of poverty. This sector is important for two reasons: i) poor household tends to spend a large share of their income on food; and ii) three out of four people live in rural areas in developing countries and most of them depend on agriculture for their livelihoods. Evidence suggests that growth in agriculture delivers more poverty reduction than growth in other sectors in low-income economies. Moreover, virtually all economies that managed to reduce poverty significantly went through a period of increased agricultural productivity. This positive effect on poverty also materializes if agricultural productivity is enhanced through integration in global value chains (World Trade Report, 2014:09). Developing countries are faced with various challenges such as reduction in farm size, dwindling water resources, and lack of access to financial institutions, high degrees of market concentration, which seem evident in some segments of agricultural value chains, can also undercut bargaining positions of small producers in developing countries. Agricultural productivity growth is vital for stimulating growth in other parts of the economy. But accelerated growth requires a sharp productivity increase in smallholder farming combined with more effective support to the millions coping as subsistence farmers, many of them in remote areas. Agriculture is therefore of utmost importance to development strategies in the developing world. Growth in agriculture has now to increasingly come from non-price factors. Markets for agricultural commodities have to be made more competitive in the interest of both producers and consumers. Indian agriculture sector has entered a challenging phase and the thrust of government policies needs to be oriented towards enhancing investment in irrigation infrastructure. This in turn has to be supplemented by smarter outreach to introduce better technology. These measures are essential to build a robust farm sector (The Times of India, March 24, 2015).

Challenges of Agriculture and Option Available

Indian agriculture is still heavily rainfall dependent with just 35 per cent of total arable area being irrigated, and distribution of irrigation across states is highly skewed. Focus on micro- irrigation systems like drips and sprinklers would significantly increase water-use efficiency and productivity. The wide gap between gross cropped area and gross irrigated area which has not improved much since the First Five Year Plan period needs to be bridged for increasing productivity, production, and resilience (Economic Survey, b, 2014-15:79). Although India is one of the top countries in agricultural production, the current level of farm mechanization, which varies across states, averages around 40 per cent as against more than 90 per cent in developed countries. Farm mechanization in India has been growing at a rate of less than 5 per cent in the last two decades. The main challenges to farm mechanization are, first, a highly diverse agriculture with different soil and climatic zones, requiring customized farm machinery and equipment and, second, largely small landholdings with limited resources. Credit flow for farm mechanization is less than 3 per cent of the total credit flow to the agriculture sector (Economic Survey, b, 2014-15:81).

Reforms in Agriculture

The economic reforms did not include any specific package specifically designed for agriculture. It was viewed that freeing agricultural markets and liberalizing external trade in agricultural commodities would provide incentives leading to enhanced investment and output in that sector, while broader trade liberalization would shift inter-sectoral terms of trade in favour of agriculture (Balakrishnan, 2000). Structural reforms were introduced in India in a big way in 1991. These reforms were followed by India becoming founder member of World Trade Organisation (WTO) in 1994 (Dev, 2009:03). The major food and agricultural policies initiated in India are procurement policy, buffer stocking, public distribution system, public investment and government support to research (Dev, 2009:04). The reforms initiated in respect of agriculture in India are discussed below:

Green Revolution and Cropping Pattern
It is a matter of concern that the recent growth revival has been weak in areas with high land productivity, not only in relatively more irrigated states such as Punjab, Haryana, Uttar Pradesh and West Bengal that had green revolution success, but also in less irrigated states such as Kerala, Himachal Pradesh and Jammu & Kashmir where high productivity reflects a high-value cropping pattern based on horticulture1.These States together contribute about 35 per cent of national agricultural output from 20 per cent of arable land, but none of them have been able to surpass growth rates achieved in the past (XII Five Year Plan 2012-17, Vol.II:05). It will be difficult to maintain high growth rates where productivity has increased close to potential levels (XII Five Year Plan 2012-17, Vol.II:05). There is no unique route for a country to move from an agriculture-based to an urbanized and eventually to a high-income country. However, the routes travelled by China (1981-85 to 1996-2001) and India (1965-70 to 1989-94) from the agriculture- based to the transforming group over the past 20 years were through Green revolution. Rapid agricultural growth in India following technological innovations (Green revolution comprises the diffusion of high yielding varieties, water and fertilisers) and in China following institutional innovations (Green revolution comprises the household responsibility system and market liberalization) was accompanied by major declines in rural poverty (WDR 2008: 06). Green revolution in India refers to improved methods of cultivation, better irrigation techniques, use of scientific rotation of crops, use of high yielding variety seeds (HYV).

Unemployment in India

Unemployment is a common economic malady faced by developed as well as developing countries. But the nature of unemployment prevailing in the under-developed or developing countries sharply differs to that of developed countries of the world. Unemployment in developed countries occurs because of lack of aggregate demand, mostly of Keynesian involuntary and frictional type, and cyclical unemployment but unemployment in developing countries occurs because of structural changes, what is called structural unemployment that arise from high rate of growth population and slow rate of economic growth. besides, it faces disguised, open, and under-employment.

As per Periodic Labour Force Survey estimates, the share of regular wage/salaried employees has increased by 5 percentage points from 18 per cent in 2011-12 to 23 per cent in 2017-18 as per usual status. In absolute terms, there was a significant jump of around 2.62 crore new jobs in this category with 1.21 crore in rural areas and 1.39 crore in urban areas. Total formal employment increased from 8 per cent to 9.98 per cent in 2017-18. In absolute terms, the number of workers with formal employment increased from 3.8 crore in 2011-12 to 4.7 crore in 2017-18.

Government must focus on general education and vocational education. General education improves knowledge of the people while skill training enhances their employability and equip them to tackle requirements of labour market.

Small Scale Industries (SSIs)

This Sector accounts for about 40% of the Country’s Total Exports, 8% of GDP, 40% of
manufacturing output and 80 % of Manufacturing employment.
Various Policy Initiatives undertaken by the Central Govt & State Govts whether by way of Incentives or protection, have helped the sector in acquiring the Status of a Major Contributor in the Growth Process.
The Process of Liberalization & Economic Reforms, since 1991, while creating Tremendous Opportunities for the Growth of Small Scale Industrial Sector, have however thrown up new Challenges for the Sector. This changed Industrial Scenario, has called for building Competitive Strengths, Improving Quality & Productivity, Introducing Technology Up gradation, reducing Wastages & Rejections, Intelligent Use of Resources, Employing Modern Management Techniques etc in order to withstand growing competition & for ensuring sustained growth.

The SSI sector covers a wide spectrum of industries categories under:
(a)Small scale industries undertakings
(b)Ancillaries industrial undertakings
(c)Tiny enterprises
(d)Export oriented units
(e)Small scale services enterprises
(f)Artisans, village & cottage industries
(g)Small scale unit where one or more women entrepreneurs have not less than 51% financial holding

According to Shumakharan: “Small Enterprise is Beautiful” because of its
following Important Characteristics :
1)A Small Enterprise is generally a “One Man Show”. Even Small Enterprises which run by a Partnership Firm or a Private Limited
Company, in most cases, the activities are mainly carried out by one of the Partners or Directors. In Practice, the others mainly assist in providing Capital / Funds.
2)Owner himself / herself is also a Manager of the Enterprise. Thus, a Small
Enterprise is managed in a personalized manner. The Owner has First Hand Knowledge of all aspects of the Enterprise & knows what is actually going on in the Business. He takes effective participation in all matters of Business Decision Making.
3)A Small Enterprise has lesser Gestation Period compared to a Large Enterprise. i.e., the period after which the return on Investment starts.
4)Small Enterprises generally carryout their operations so as to cater to the Local & Regional Markets.
5)Small Enterprises use indigenous resources & therefore can be located anywhere subject to the availability of these resources like Raw Materials, Labor, Transport Facilities etc.
6)They are fairly Labor Intensive with comparatively smaller Capital Investment than the Larger Units. That is, for the same Investment, a Small
Enterprise provides more jobs to the people compared to a Large Enterprise.
7)Using Local Resources, Small Units are decentralized & dispersed to Rural Areas & Smaller Towns. Thus, the development of Small Enterprises in Rural Areas & Smaller towns promotes more Balanced Regional Development & thereby prevents influx of job seekers from rural areas & smaller towns to
bigger cities & urbanizing centers.
8)Small Enterprises are more susceptible & highly reactive & receptive to Socio – Economic conditions compared to larger enterprises. They are more
flexible to adapt changes like Diversification to New Products, adopting to New Production Techniques, substituting New Raw Materials, Changes in rganization
Structure, New Market etc.
Infrastructure in the Indian Economy, Energy Sector: Sources, Energy crisis and measures to tackle. Population growth and Population explosion, Population Policy and programmes.


Infrastructure is the support system of industrial and agricultural production, and foreign and domestic businesses. It is the basic organisational and physical structure that is required to run a business smoothly. In an organization or for a country, a basic infrastructure includes communication and transportation, sewage, water, education system, health system, clean drinking water, and monetary system.

A country’s economic and social development is directly dependent on a country’s infrastructure. Many developed countries make a lot of progress because of the enormous growth of economic and social infrastructures. A good infrastructure makes the work process easier, resulting in a positive and high productivity.

Types of Infrastructures

Economic infrastructure: This infrastructure is directly linked with the economic development of a country or an organisation. This includes the basic amenities and services that directly influence and benefit the production process of economic distribution. A few examples of economic infrastructures are power, transportation, irrigation, communication, etc.

Social infrastructure: This type of infrastructure has the basic services that improve individual productivity and achieve social objectives. Social infrastructure contributes indirectly to the country’s economic development. For instance, the education sector does not contribute directly to the economic development of a country. However, it helps indirectly by providing high-quality education to the students, therefore producing doctors, scientists, engineers, and technologists. Few examples of social infrastructure are water supply, sanitation, health, housing, etc.

Infrastructure Development in India

Rural Infrastructure in India

Population Growth

Population growth is one of the major concerns of the present world as the human population is not a static factor. Rather, it is growing at a very alarming rate. In spite of the increasing world population, the resources of the earth remain constant. Thus, the ability to maintain sustainable development is becoming a major challenge to mankind today.

Factors that Influence Population Fluctuation
The fluctuations in the population in a given area are influenced by four major factors, which include the following:

•Natality – It is the number of births in a given period of time in a population
•Mortality – It is defined as the number of deaths that takes place in a population at a given period of time.
•Immigration – It is defined as the number of individuals which come from another population and add to the population in consideration during a period of time.
•Emigration – It is defined as the number of individuals from a population who leave the habitat and go to a different habitat at a given period of time.

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