Development: Meaning and

Concept of Development
Development means “improvement in country’s economic and
social conditions”. More specially, it refers to improvements in
way of managing an area’s natural and human resources. In
order to create wealth and improve people’s lives . Dudley Seers
while elaborating on the meaning of development suggests that
while there can be value judgements on what is development
and what is not, it should be a universally acceptable aim of
development to make for conditions that lead to a realisation of
the potentials of human personality.
several conditions that can make for achievement of this
aim:
i. The capacity to obtain physical necessities, particularly
food;
ii. A job (not necessarily paid employment) but including
studying, working on a family farm or keeping house
iii. Equality, which should be considered an objective in its
own right;
iv. Participation in government;
v. Belonging to a nation that is truly independent, both
economically and politically; and
vi. Adequate educational levels (especially literacy
Meaning of underdevelopment
 
The term underdevelopment refers to that state of an economy
where levels of living of masses are extremely low due to very low
levels of per capita income resulting from low levels of productivity
and high growth rates of population. Underdeveloped countries are
now known as ‘developing countries’ signifying that such nations are
capable of and are indeed making serious efforts to overcome their
problems of poverty and low income.
U.N. Classification
According to the United Nations definition, an underdeveloped
country is one which has a real per capita income that is lower in
relation to the real per capita income of the USA, Canada,
Australia and Western Europe. Emphasis here is on the low
income level relative to the advanced countries and lack of any
perceptible success in making substantial improvements in quality
of life of the masses. In simple words, underdeveloped country is
just another name by which a poor backward country is known.
Basic Characteristics of the Indian Economy as Developing Economy
India is a low income developing economy. There is no doubt that one-fourth of its population lives in
pathetic condition. It is important to understand the basic characteristics of the Indian economy, considering
it as one of the poor but developing economics of the world.
1.      Low per capita income.
The level of income as measured by per capita real GNP is very low in underdeveloped countries. The per
capita income of India in 2005 was $ 720 except for few countries; the per capita income of the Indian
people is the lowest in the world. During 1990-2005, Indian economy has grown at a faster rate than the
developed economics. Even then the difference in per capita income between India and the developed
economy is quite large.
Low income results in lower living standards, poor diet, malnutrition,
inadequate housing and virtual absence of health facilities leading to
high incidence of disease, high infant mortality, poor health, widespread
illiteracy, and low expectancy of life. In brief, quality of life is extremely
poor in less developed countries as compared to the developed nations.
2.      Low level of living
Since about three-fourth of world population lives in underdeveloped
countries which have less than one-fifth share in world income, it is
obvious that a vast majority of people in these countries must be living
under conditions of poverty, malnutrition, disease, squalor, illiteracy, etc.
even basic necessities of subsistence such as minimum food, clothing
and shelter are not easily accessible to the poor masses. In 1999 the
average calorie intake of food is only 2,496 as compared to over 3,400
calories per day in most developed countries. Nearly, 28 percent of the
population of India lives below the poverty line in 2004-2005.
3.      High rate of population growth            
Low productivity combined with high growth rates of population is
largely responsible for low income and poor living standards. High
growth rate of population means more people to be fed, clothed
and provided other necessary goods year after year. In India rate of
growth of population which was about 1.31 per cent per annum
during 1941-50 has risen to 1.93 per cent during 1991-2001. The
annual average rate of growth of population during 2000-05 has
further decline to 1.5 per cent. The chief cause of this change is due
to declined in birth rate from 49 per thousand during 1911-20 to
24.8 per thousand in 2005
4.      High levels of unemployment
Unemployment levels are high in the underdeveloped countries. Due to lack of capital
and low level of development in various economic sectors. Thus, countries have not
been able to make fuller use of their labour force. On the other hand, rapidly increasing
population leads to a sharp rise in labour force, and low level of economic activity fails
to absorb this addition to labour supply. In India labour is an abundant factor which is
difficult to provide gainful employment to the entire working population.
5 Predominance of agriculture in the economy
Since majority of people (around 80 per cent of total population) live in rural areas and
work in agriculture, this is the biggest source of employment and biggest contributor to
national income. In India, in 2004 about 58 per cent of the working population was
engaged in agriculture and its contribution to national income was 21 per cent. It
means that two-thirds to more than four-fifths of the population earn their livelihood
from agriculture but in Latin American countries from two-thirds to three- fourth of
population depends on the agriculture. This can be explain better in figures which are
as follows .The reason of predominance of agriculture in the developing countries is
that the low income people spend a larger part of their income on food and other
agriculture products which are the most basic necessities.
Not much income is left for spending on non-agricultural
goods. From the point of view of occupational pattern, the
Indian economy is primary producing because agriculture
contributes 21 percent of national income while 58 per cent
of the labour force is engaged in agriculture.
6.      Low rate of capital formation
Another one of the basic characteristic of the Indian economy is the existence of capital deficiency. Capital
deficiency is an important characteristic of underdeveloped economy. Capital formation or investment is low in
India, low capital formation leads low productivity which leads to low incomes and the low income leads to low
saving, and then low saving leads to low rate of capital formation. Thus it forms the vicious circle of poverty.
7.      Mal distribution of wealth/Assets
RBI survey of assets of rural and urban households for the period July 1991 to June 1992 brings out the existence
of sharp inequalities in asset distribution. In rural areas 27 per cent of households owing less than Rs. 20,000
worth of assets accounted for 2.4 per cent of total assets. This implies that nearly 51 per cent of the bottom
households owned just 10 per cent of total assets. As against it, 9.6 per cent of the total assets worth Rs. 2.5 lakhs
and above accounted for nearly 49 per cent of total assets    
Human Development: Meaning, Objectives and Components
The term ‘human development’ may be defined as an
expansion of human capabilities, a widening of choices, ‘an
enhancement of freedom, and a fulfilment of human rights. At
the beginning, the notion of human development
incorporates the need for income expansion. However,
income growth should consider expansion of human
capabilities. Hence development cannot be equated solely to
income expansion. Income is not the sum-total of human life.
As income growth is essential, so are health, education,
physical environment, and freedom. Human development
should embrace human rights, socio-eco-politico freedoms.
Based on the notion of human development. Human
Development Index (HDI) is constructed.
It serves as a more humane measure of
development than a strictly .income-based
benchmark of per capita GNP. The first UNDP
Human Development Report published in 1990
stated that: “The basic objective of development is
to create an enabling environ­ment for people to
enjoy long, healthy and creative lives.” It also
defined human development as “a process of
enlarging people’s choices”, “and strengthen
human capabilities” in a way which enables them
to lead longer, healthier and fuller lives .
From this broad definition of human deve­lopment, one
gets an idea of three critical issues involved in human
development interpretation. These are: to lead a long and
healthy life, to be educated, and to enjoy a decent
standard of living. Barring these three crucial parameters
of human development as a process enlarging people’s
choices, there are additional choices that include political
freedoms, other guaranteed human rights, and various
ingredients of self-respect. One may conclude
unhesistantly that the absence of these essential choices
debars or blocks many other opportunities that people
should have in widening their choices. Human
development is thus a process of widening people’s choices
as well as raising the level of well-being achieved.
Components of Human Development:
These are:
 
i. Equality,
 
ii. Sustainability,
 
iii. Productivity, and
 
iv. Empowerment.
 
 

Equality: 
If development is viewed in terms of enhancing people’s basic capabilities, people must enjoy equitable access to opportunities. Such may be called equality-
related capabilities. To ensure equality-related capabilities or access to opportunities what is essential is that the societal institutional structure needs to be more
favourable or progressive.
Sustainability:
Another important facet of human development is that development should ‘keep going’, should ‘last long’. The concept of sustainable development focuses on
the need to maintain the long term protective capacity of the biosphere. This then suggests that growth cannot go on indefinitely; there are, of course, ‘limits to
growth.’ Here we assume that environment is an essential factor of production. In 1987, the Bruntland Commission Report (named after the then Prime Minister
Go Harlem Bruntland of Norway) defined sustainable development as ‘… development that meets the needs of the present without compromising the ability of
future generations to meet their basic needs.’ This means that the term sustainability focuses on the desired balance between future economic growth and
environ-mental quality. To attain the goal of sustainable development, what is of great impor­tance is the attainment of the goal of both intra- generation and
inter-generation equality.
Productivity:
Another component of human development is productivity which requires investment in people. This is commonly called
investment in human capital. Investment in human capital—in addition to physical capital—can add more productivity.
Empowerment:
The empowerment of people—particularly women—is another com­ponent of human development. In other words, genuine
human development requires empower­ment in all aspects of life. Empowerment implies a political democracy in which people
themselves make the decisions about their lives. Under it, people enjoy greater political and civil liberties and remain free from
excessive controls and regu­lations. Empowerment refers to decentralisation of power so that the benefits of governance are
reaped by all peoples.
India population 2019
During 2019 India population is projected to
increased by 17,248,911 people and reach
1,387,297,452 in the beginning of 2020.
Population of India
S.No. State NamePopulation in 2011 Estimated population in 2022
1. Andaman & Nicobar Islands 380,581 399,001
2. Andhra Pradesh 84,580,777 91,702,478
3. Arunachal Pradesh 1,383,727 1,711,947
4.Assam 31,205,576 35,998,752
5. Bihar 104,099,452 128,500,364
6. Chandigarh 1,055,450 1,158,040
7. Chhattisgarh 25,545,198
32,199,722
8. Dadra and Nagar Haveli 343,709 453,008
9. Daman and Diu 243,247 320,989
10. Delhi 16,787,941 19,301,096
11. Goa 1,458,545 1,521,992
12. Gujarat 60,439,692 70,400,153
13. Haryana 25,351,462 28,900,667
14. Himachal Pradesh 6,864,602 7,503,010

15. Jammu and Kashmir 12,541,302 14,999,397

16. Jharkhand 32,988,134 40,100,376

17. Karnataka 61,095,297 69,599,762

18. Kerala 33,406,061 34,698,876

19. Lakshadweep 64,473 66,001

20. Madhya Pradesh 72,626,809 85,002,417

21. Maharashtra 112,374,333 124,904,071

22. Manipur 2,855,794 3,436,948

23. Meghalaya 2,966,889 3,772,103

24. Mizoram 1,097,206 1,308,967

25. Nagaland 1,978,502 2,073,074

26. Orissa 41,974,218 47,099,270

27. Puducherry 1,247,953 1,646,050

28. Punjab 27,743,338 30,501,026

29. Rajasthan 68,548,437 79,502,477

30. Sikkim 610,577 658,019

Tamil Nadu 72,147,030 83,697,770

32. Telangana 35,193,978 38,157,311

33. Tripura 3,673,917 4,184,959

34. Uttar Pradesh 199,812,341 231,502,578

35. Uttarakhand 10,086,292 11,700,099

36. West Bengal 91,276,115 100,896,6

Top 10 states ranking in literacy rate of India in 2019
1. The literacy rate of Kerala
As per the 2011 Population census Literacy rate was in 2011- 93.91%
Kerala has achieved India’s high literacy rate.
2. The literacy rate of Lakshadweep
Literacy rate in Lakshadweep has seen an upward trend and is
91.85% as per 2011 population census.
Male literacy stands at 95.56% & female literacy is at 87.95%.
3. The literacy rate of Mizoram
The literacy rate was in 2011- 91.33%
Mizoram Literacy Rate 2011. Literacy rate in Mizoram has seen an
upward trend and is 91.33% According to the 2011 population
census. Male literacy stands at 93.35% & female literacy is at 89.27%
4. Literacy rate Tripura
The literacy rate was in 2011- 87.75%, As per the available records.
According to the latest figures.
5. Literacy rate Goa
The literacy rate was in 2011- 87.40%
As per 2011 population census. Male literacy is
92.65% & female literacy is 84.66%.
6.Literacy rate Daman & Diu
The literacy rate was in 2011- 87.07%
According to the 2011 population census. Male
literacy is at 91.54% & female literacy is at 79.55%.
7. Literacy rate Puducherry
The literacy rate was in 2011- 86.55%
In Pondicherry male literacy is 82%, and female
literacy is 71%.
8. Literacy rate Chandigarh
The literacy rate was in 2011- 86.43%
According to the 2011 population census. male literacy stands
at 89.99% or female literacy is at 81.19%
9. Literacy rate Delhi
The literacy rate was in 2011- 86.34%
Literacy rate in Delhi has seen an upward trend and is 86.21%
as per 2011 population census.
Male literacy stands at 90.94% & female literacy is at 80.76%.
10. The literacy rate of Andaman and Nicobar islands
The literacy rate was in 2011- 86.27%
The male literacy rate was in Andaman and Nicobar Islands is
90.27% & Female literacy rate was in Andaman and Nicobar
Islands is 82.43%. Total literates are 294,281 people.
 Literacy Rate In India

S.No. State / UT Literacy Rate

1 Andaman & Nicobar Islands 86.63%

2 Andhra Pradesh 67.02%

3 Arunachal Pradesh 65.38%

4 Assam 72.19%

5 Bihar 61.80%

6 Chandigarh 86.05%

7 Chhattisgarh 70.28%

8 Dadra and Nagar Haveli 76.24%

9 Daman and Diu 87.10%

10 Delhi 86.21%

11 Goa 88.70%

12 Gujarat 78.03%

13 Haryana 75.55%

14 Himachal Pradesh 82.80%

15 Jammu and Kashmir 67.16%

16 Jharkhand 66.41%

17 Karnataka 75.36%

18 Kerala 94.00%

19 Lakshadweep 91.85%

20 Madhya Pradesh 69.32%

21 Maharashtra 82.34%

22 Manipur 76.94%

23 Meghalaya 74.43%

24 Mizoram 91.33%

25 Nagaland 79.55%

26 Orissa 72.87%

27 Puducherry 85.85%

28 Punjab 75.84%

29 Rajasthan 66.11%

30 Sikkim 81.42%

31 Tamil Nadu 80.09%

32 Telangana 66.54%

33 Tripura 87.22%

34 Uttar Pradesh 67.68%

35 Uttarakhand 78.82%

36 West Bengal 76.26%

Total 74.04%
Literacy Rate In India
S.No. State / UT Literacy Rate
1 Andaman & Nicobar Islands 86.63%
2 Andhra Pradesh 67.02%
3 Arunachal Pradesh 65.38%
4 Assam 72.19%
5 Bihar 61.80%
6 Chandigarh 86.05%
7 Chhattisgarh 70.28%
8 Dadra and Nagar Haveli 76.24%
9 Daman and Diu 87.10%
10 Delhi 86.21%
11 Goa 88.70%
12 Gujarat 78.03%
13 Haryana 75.55%
14 Himachal Pradesh 82.80%
15 Jammu and Kashmir 67.16%
16 Jharkhand 66.41%
17 Karnataka 75.36%
18 Kerala 94.00%
19 Lakshadweep 91.85%
20 Madhya Pradesh 69.32%
21 Maharashtra 82.34%
22 Manipur 76.94%
23 Meghalaya 74.43%
24 Mizoram 91.33%
25 Nagaland 79.55%
26 Orissa 72.87%
27 Puducherry 85.85%
28 Punjab 75.84%
29 Rajasthan66.11%
30 Sikkim 81.42%
31 Tamil Nadu 80.09%
32 Telangana 66.54%
33 Tripura 87.22%
34 Uttar Pradesh 67.68%
35 Uttarakhand 78.82%
36 West Bengal 76.26%
Total74.04%
Developed Countries Vs Developing Countries
 BASIS FOR COMPARISON DEVELOPED COUNTRIES DEVELOPING COUNTRIES

Meaning A country having an effective rate Developing Country is a country

of industrialization and individual which has a slow rate of
income is known as Developed industrialization and low per capita
Country. income.

Unemployment and Poverty Low High

Rates Infant mortality rate, death rate High infant mortality rate, death
and birth rate is low while the life rate and birth rate, along with low
expectancy rate is high. life expectancy rate.

Living conditions Good Moderate

Generates more revenue from Industrial sector Service sector

Growth High industrial growth. They rely on the developed

countries for their growth.

Standard of living High Low

Distribution of Income Equal Unequal

Factors of Production Effectively utilized Ineffectiv

Market size

India’s GDP is estimated to have increased 6.6 per cent in 2017-18

and is expected to grow 7.3 per cent in 2018-19. During the first half
of 2018-19, GDP (at constant 2011-12 prices) grew by 7.6 per cent.
India has retained its position as the third largest startup base in
the world with over 4,750 technology startups, with about 1,400
new start-ups being founded in 2016, according to a report by
NASSCOM.
India's labour force is expected to touch 160-170 million by 2020,
based on rate of population growth, increased labour force
participation, and higher education enrolment, among other
factors, according to a study by ASSOCHAM and Thought Arbitrage
Research Institute.
India's foreign exchange reserves were US$ 393.29 billion in the
week up to December 21, 2018, according to data from the RBI.
Recent Developments
With the improvement in the economic scenario,
there have been various investments in various sectors of
the economy. The M&A activity in India increased 53.3 per
cent to US$ 77.6 billion in 2017 while private equity (PE)
deals reached US$ 24.4 billion. Some of the important
recent developments in Indian economy are as follows:
1 Exports from India increased 15.48 per cent year-on-
year to US$ 351.99 billion in April-November 2018.
2 Income tax collection in the country reached Rs 2.50 lakh
crore (US$ 35.88 billion) between April-November 2018.
3 Companies in India have raised around US$ 5.52 billion
through Initial Public Offers (IPO) in 2018 (up to November).
4 India's Foreign Direct Investment (FDI) equity inflows reached US$ 389.60 billion between April 2000 and
June 2018, with maximum contribution from services, computer software and hardware,
telecommunications, construction, trading and automobiles.

5 India's Index of Industrial Production (IIP) rose 5.6 per cent year-on-year in April-October 2018.
6 Consumer Price Index (CPI) inflation rose moderated to 2.33 per cent in November 2018 from 3.38 per
cent in October 2018.

7 Around 10.8 million jobs were created in India in 2017.

8 India has improved its ranking in the World Bank's Doing Business Report by 23 spots over its 2017 ranking
and is ranked 77 among 190 countries in 2019 edition of the report.
Economic Development vs. Economic
Growth
 BASIS FOR COMPARISON ECONOMIC GROWTH ECONOMIC DEVELOPMENT

Meaning Economic Growth is Economic Development

the positive change in involves rise in the level
the real output of the of production in an
country in a particular economy along with the
span of time. advancement of
technology,
improvement in living
standards and so on.

Concept Narrow Broad

Scope Increase in the Improvement in life

indicators like GDP, per expectancy rate, infant
capita income etc. mortality rate, literacy
rate and poverty rates.
 Economic Growth Economic Development

Term Short term process Long term process

Applicable to Developed Economies Developing Economies

How it can be Upward movement in Upward movement in real

measured? national income. national income.

Which kind of changes Quantitative changes Qualitative and

are expected? quantitative changes

Type of process Automatic Manual

When it arises? In a certain period of time. Continuous process.

Economic Survey 2022: The sex ratio at birth has also increased from
919 in 2015-16 to 929 in 2019-21
New Delhi: According to the recently released Economic Survey,
India has more females as compared to males. The number of
females per 1,000 males has increased from 991 in 2015-16 to 1,020
in 2019-21. The sex ratio at birth has also increased from 919 in
2015-16 to 929 in 2019-21.
 Sex Ratio by States & UTs
As per National Family Health Survey 2019-21 (NFHS-
5) India Sex ratio in 2022 is 1020 females per 1000
males*. In states Kerala with 1145 has highest sex ratio 
& Haryana with 926 has lowest. Lets have look at sex
ratio by states and union Territories.
# States/UTs Total Urban Rural
1 Andhra 1045 1024 1055
UT1 Andman & Nicobar 963 1023 929
2 Arunachal Pradesh 997 989 998
3 Assam 1012 982 1017
4 Bihar 1090 982 1111
UT2 Chandigarh 917 918 868
5 Chhattisgarh 1015 1016 1014
UT3 D&D 827 775 875
UT4 Delhi (NCT) 913 914 859
6 Goa 1027 982 1092

7 Gujarat 965 929 991

8 Haryana 926 911 933

9 HP 1040 936 1057

UT5 J&K 968 961 944

10 Jharkhand 1050 989 1070

11 Karnataka 1034 1034 1035

12 kerala 1121 1138 1105

UT6 Ladakh 1125 994 966

UT7 Lakshadweep 1187 1193 1166

13 Madhya Pradesh 970 953 976

14 Maharashtra 966 954 977

15 Manipur 1066 1077 1060

16 Meghalaya 1039 1118 1020

17 Mizoram 1018 1043 988

18 Nagaland 1007 980 1020

19 Odisha 1063 1010 1074

UT8 Puducherry 1112 1086 1172

20 Punjab 938 918 950

21 Rajasthan 1099 968 1022

22 Sikkim 990 1033 964

23 Tamil Nadu 1088 1062 1113

24 Telangana 1049 1015 1070

25 Tripura 1011 1024 1029

26 Uttar Pradesh 1017 961 1036

27 Uttarakhand 1016 943 1052

28 West Bengal 1049 1016 1065

  India 1020 985 1037