Question

Explain the Developmental path based on GDP and employment.

Answer 1

1. In the earlier stages of Indian Independence, India remained as closed economy and the interaction with the outside world remained limited.
2. The reason for closed trade was to give importance to domestic industries and reduce the dependence on foreign products and companies.
3. Later in the year 1991, India adopted free trade policy, and liberalised the economy.
4. It has given permission for the foreign companies to enter into the Indian economy.
5. To give employment to the increasing size of work force, a thrust was given to employment generation under the Five year plans.
6. Rural Development was also given special importance.
7. Eradication of poverty became a very important part in context of Rural Development.
8. The private companies and Industries were subject to strict rules and regulations.
9. It was believed that the social welfare of the people could be possible only by the government, therefore it gained importance.
10. India’s Per Capita Income have doubled in 12 years.
11. India falls under Middle Income country category.
12. There is reduction in poverty percentage and the life expectancy at birth is 65 years.
13. 44% of children under 5 are malnourished.
14. The literacy rate for the population of 15 years of age is only 63% compared to 71% of other middle income countries.
15. India has followed a different path of development by moving from the agricultural sector to service sector very quickly. This help India to expect emerging Industrialists in Indian Economy.