Economics for Class 11 Chapter 1 Development Policies and Experience (1947-90)

Learn CBSE Economics Index Terms for Class 11, Chapter 1 Development Policies and Experience (1947-90)

1. National Income – National income is referred to as the total monetary value of all services and goods that are produced by a nation during a financial year. In other words, it is the sum of all the factor income that is generated during a production year.

National income serves as an indicator of the nation’s economic activity. It can be calculated by three methods such as income method, value-added method, and expenditure method.

2. Per Capita Income – Per capita income, also known as income per person, is the mean income of the people in an economic unit such as a country or city. Per capita income is often used as average income, a measure of the wealth of the population of a nation, particularly in comparison to other nations.

3. Agricultural Productivity – Horticultural efficiency or agricultural productivity is estimated as the proportion of agricultural outputs to inputs. While individual agricultural products are generally estimated by weight, known as harvest yield or crop yield, varying yields make estimating by and large agrarian output laborious. In this manner, farming efficiency or agricultural productivity is normally estimated as the market worth of the final output. This efficiency or productivity can measure up to a wide range of information sources like land or labour. Such correlations are called partial measures of productivity.

Agricultural productivity or horticultural efficiency may likewise be estimated by what is named Total Factor Productivity (TFP). This strategy for computing farming efficiency considers a list of agricultural contributions to an index of results. This proportion of horticultural efficiency was laid out to cure the weaknesses of the partial measures of productivity; strikingly that it is frequently difficult to recognise the variables that make them change. Changes in TFP are typically ascribed to mechanical and technological upgrades.

4. Land Reform – Land reforms mean equitable redistribution of land with the aim of increasing productivity and decreasing poverty. It refers to the redistribution of land from the few who have to the many who are landless or own far too little.

Lord Cornwallis introduced the Permanent Settlement in 1793. Under this system, a class of landlords called Zamindars was created whose responsibility was to pay a fixed rent to the government for the lands they owned. They gave out parcels of land to farmers who became their tenants.

5. Commercialisation of Agriculture – Indian economy is agriculture based, or we can say that India is an agrarian economy. This is evident from the fact that the national income of India consists of 70% of the income generated from agriculture.

The commercialisation of agriculture means moving from growing goods for their consumption to growing for the market. The existence of middlemen prevented the development of the economic condition of the farmers, which caused stagnation in the agriculture sector.

6. Agricultural Sector – The primary sector of the Indian economy is principally founded on the accessibility of natural resources or assets. The products produced by this sector are generally dependent on the accessibility of normal assets or natural resources. Natural assets are likewise needed for the execution of specific processes in this area or sector. Every service in this area is totally subject to the presence of adequate regular or natural assets just to maintain the necessary everyday tasks.

To additionally outline this point, a fitting model is for the agricultural sector. This sector or area of farming requires water for its everyday exercises. Without water, no plant will develop. Additionally, it needs land resources to establish crops, etc. Some different models can be that of fishing, where the anglers or the fishermen are subject to the accessibility of water bodies and amphibian life to support the sector. Be that as it may, agribusiness is the biggest sector of this part.

7. Industrial Sector – In the economy, both the Industry and Trade sectors are parallel to each other. After independence, the leaders of our country had to specifically concentrate on industrial growth for the country’s development. Many economists have explained that ‘Poor nations can only progress if they have a good industrial sector’ because the industrial sector is one of the most essential sectors that influence the Gross Domestic Product (GDP) in India. Industries provide employment that is more durable than agriculture; it encourages modernisation and success. This is the reason why five-year plans are important for industrial development.

8. Gross Domestic Profit – Gross Domestic Product (GDP) is referred to as the total monetary value of all the final goods and services produced within the geographic boundaries of a country during a given period (usually a year).

Gross Domestic Product is one of the most important indicators of the economic status of a country. GDP or Gross Domestic Product is referred to by economists as the size of an economy. High GDP also helps investors in making better investment decisions.

GPD is used by businesses and economists to determine the economic performance of the economy as a whole. A rising GDP is an indicator that the economy is expanding and the people are spending their money, which shows an economy that is growing stronger.

9. Demographic Transition – Demographic transition theory can be used to describe and predict the future population of any area. The theory tells one that the population of any region changes from high births and high deaths to low births and low deaths to achieve a stable population as society progresses from rural agrarian and illiterate to urban industrial and literate society. The population becomes urbanised, literate, and has high technical know-how and deliberately controls the family size, thus achieving a stable population. These changes occur in stages which are collectively known as the demographic cycle.

10. Infant Mortality Rate – The state of reproductive health of a country can be measured using its infant mortality, maternal mortality, and child mortality rates. Infant mortality rate refers to the number of deaths of infants or children below the age of one per one thousand live births.

11. Life Expectancy – Life expectancy is an important determinant of the human development of a country. In fact, the Human Development Index (HDI) considers life expectancy as one of its significant indicators. In general, life expectancy can be defined as the average age till which the people of a country are expected to live.

12. Infrastructure – 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 organisation or 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. Good infrastructure makes the work process easier, resulting in positive and high productivity.

13. Zamindari System – Lord Cornwallis introduced the Zamindari System under his Permanent Settlement Act. The three major components of the Zamindari System were – the British, Zamindar (Landlord), and peasants. The Zamindari System is known as one of the major land revenue systems.

The settlement was made between the British Officials and the Zamindars. The Zamindars were made the owners of the land and were given the right to collect the rent from the peasants. The rent or the total amount collected by the Zamindar was divided into 11 parts where 10/11 of the share belonged to the East India Company, and only 1/11 share was to be kept by the Zamindar.

We hope that the offered Economics Index Terms for Class 11 with respect to Chapter 1: Development Policies and Experience (1947-90) will help you.

Related Links:

COMMERCE Related Links
Great Depression Economics Project Class 11
Operating Profit Formula Limitations Of Financial Analysis
Indifference Curve Management And Entrepreneurship
Functions Of Central Bank Difference Between Planning And Controlling
Types Of Capital Market Operating Ratio Formula