EEP Assignment 2

Growth vs Development

By:

Sai Bhavithran  9087

 Growth VS Development

Some Basics learnt:

Growth of India is mainly measured by the Increase in GDP. To put it short, growth is
measured in monetary terms. GDP stands for gross domestic product. It is defined as the
market value of all final goods and services produced within a country in a given period

Development in India includes the following factors:

I. Human Development Index: HDI is usually calculated based on:

Literacy level

Life span of individuals

GDP
II. Gender Development Index: This is the same as HDI except for the fact that the
three above parameters are calculated gender wise.
III. Human Poverty Index: is the calculation based on taking into account the people
of the lower strata.
IV. Gender Empowerment Index: focuses on women empowerment (i.e. ) number of
women entering politics, administration and other managerial positions

Analysis – a brief:

Some facts that signify the growth rate in India:

 The Indian economy is led by the liberalization policies which has been a strong
foundation in increasing the demand as well as trade volume. The liberalization
of policies has led many foreign companies to open up venues in India.
 This has increased the FDI which accounts to a portion of the country's GDP.
 GDP contribution split:

Agriculture: 16.1%

Industry: 28.6%

Services: 55.3% (2010 est.)
 Agriculture is one of the contributors to Indian economy and this has led to
about 66% of the employment in the rural areas.
 Services have been playing a key role to India's monetary income; especially with
more of outsourcing works that India is taking up.
 The offshoring of various global companies setting up units in India has
increased the employment opportunities for the Indians.
Development: of the Indian's/Indian Economy is briefed as below:

 The growth in industries in India has led to need of for education. This has aimed
at increasing the literacy rates of the individuals.
 We can notice that Women have been impowered a lot interms of employment
challenges.
 Literacy:

Male: 73.4%

Female: 47.8% (2001 census)
 Life Expectancy

Male: 65.77 years

Female: 67.95 years (2011 est.)
 More the growth in the industries the more is the development in terms of
human life as it takes into account their survival, living income/earnings, etc.
 Life Expectancy has been increasing drastically. Thus, HDI has been increasing
year on year starting from 1980 to 2010 (i.e.) 0.32 to 0.519.

Therefore,

Growth = Industries led

Development = Sectoral + Human Factors led