Growth vs development ( by Karan & Group)

Group presentation by section 1 EEIP

1. Growth vs Development : Indian Perspective Group Members: Sreenath S Imran Ahmed Pritam Moirangthem Karan Rohokale

2. What Is Growth & Development: Growth and development are often used together in a sentence, whether it is talking about a person, a business or even the economy. Growth is usually used in reference to size or physical development. Development overall is a more general and envelop term than growth Development includes growth, but also includes other aspects of improvement or development. The main difference between them is that growth is usually quantitative, whereas development is usually qualitative

3. What Is Economic Growth & Development: Both are indicators of the health of the economy Economic growth refers to a capacity of a produce goods and services, compared from one period of time to another. Simply put, it compares how many goods and services does an economy produces or is estimated to produce. Economic development, on the other hand, . It refers to the process by which a nation improves the economic, political, and social well-being of its people. It is a policy intervention endeavor which seeks to ensure that all economic, political, and social endeavors are working to improve the quality of life for their citizens.

4. Indicators Of Growth GDP: The Gross Domestic Product (GDP) in India was worth 2263.52 billion US dollars in 2016. GDP per Capita: The country ranks 141st in per capita GDP (nominal) with $1723 and 123rd in per capita GDP (PPP) with $6,616 as of 2016. GNP: The country's Gross National Income (GNI) at 2011-12 prices was estimated at Rs 120.35 lakh crore during 2016-17. Per Capita Income: GNI per capita, PPP (current international $) in India was reported at 6490 in 2016, according to the World Bank collection of development indicators, compiled from officially recognized sources.

5. India: GDP:

6. INDIA: GDP PER CAPITA:

7. INDIA: GNP

8. INDIA :GNP PER CAPITA

9. Development Indicators: Human Development Index: India is ranked 131 of 189 countries listed in the United Nations Development Program’s latest Human Development Report 2016. Life Expectancy : According to the latest WHO data published in 2015 life expectancy in India is: Male 66.9, female 69.9 and total life expectancy is 68.3 (Rank 126) Literacy Rate: Indian Population Census 2011 reveals that literacy rate of India has increased from 65% to 74 percent in 2011

10.   Life expectancy Expected years Mean years of GNI per capita HDI value   at birth of schooling schooling (2011 PPP$)     1990 57.9 7.6 3.0 1,751 0.428 1995 60.4 8.2 3.5 2,035 0.460 2000 62.6 8.3 4.4 2,495 0.494 2005 64.5 9.7 4.8 3,191 0.536 2010 66.5 10.8 5.4 4,358 0.580 2011 66.9 11.3 5.3 4,594 0.590 2012 67.3 11.5 5.6 4,776 0.599 2013 67.6 11.6 5.8 5,027 0.607 2014 68.0 11.6 6.1 5,329 0.615 2015 68.3 11.7 6.3 5,663 0.624

11. INDIA: Growth vs Development Debate: The 2014 Loksabha polls brought this debate into focus through the Sen-Bhagwati dialogue on this issue. Economic growth doesn’t automatically trickledown to the bottom; it tends to remain concentrated in top few hands. Likewise, targeting human development indicators will not automatically prop up economic growth. Both should be seen side by side in the right perspective.

12. Sen-Bhagwati Debate: Sen advocates economic policies that are more development oriented, with provisions for social welfare schemes and investment in the public sector. Sen prioritizes the development of human capabilities through quality education and health programs that would enhance labor productivity. Bhagwati believes the prime focus ought to be on increasing the GDP growth rate and in turn reducing the headcount ratio of poverty.

13. However……. “A fundamental question that comes to mind is whether a reduction in poverty comes about solely through economic growth. In 1993-94, India achieved a growth rate of 3.8% and observed a staggering 37% of its population below the poverty line. Two decades later, in 2013-14, the GDP growth rate increased to 4.9% but the poverty level, settled at 26%, has not declined nearly as commensurately.”

14. INDIA : TODAY

15. Economic growth of around 7½% makes India the fastest-growing G20 economy. The acceleration of structural reforms, the move towards a rule-based policy framework and low commodity prices have provided a strong growth impetus Investment is still held back by the relatively high corporate income tax rates, a slow land acquisition process, regulations which remain stringent in some areas, weak corporate balance sheets, high non-performing loans which weigh on banks’ lending, and infrastructure bottlenecks. Quality job creation has been low, held back by complex labor laws.

16. Strong growth has raised incomes and reduced poverty but inequalities remain: Licenses for oil, gas fields and coal mines have been auctioned under clear rules FDI Greater reliance on e-government The implementation of GST. 140 million people have been taken out of poverty in less than 10 years L arge welfare programs including price-support for food, energy and fertilizers. However, many Indians still lack access to core public services, such as electricity and sanitation. Public spending on health care, at slightly more than 1% of GDP. Female labour force participation remains low. A ll children have access to primary education, the quality is uneven.

17. India is growing fast, but private investment is weak: Fastest growing G-20 economy. The return to a normal monsoon in 2016, is supporting a recovery in agricultural income and rural consumption. Despite sustained public investment, total investment declined in real terms in the first half of 2016. The banking system has been weakened by poorly performing public banks, which suffer from high non-performing loans. 19 .5 % SLR :This reduces government funding costs, but distorts financial markets and limits lending to the private sector. I nfrastructure bottlenecks (e.g. frequent power outages) long land acquisition process, have held back investment, in particular in the manufacturing sector. S ubstantially deregulated foreign direct investment.

18. Promoting stronger and more inclusive growth: Making growth more inclusive also requires enabling the poor and providing equal opportunities for all. More and faster public investment: Road project awards have increased steadily since 2014 The Dedicated Freight Corridors the Eastern DFC (1840 route km) and Western DFC (1502 route km) The case of electricity: power for all: Provide electricity supply for all by 2019. Ujwal DISCOM Assurance Yojana ( UDAY) Easing land acquisition would underpin a pick-up in investment projects, especially in manufacturing: Deregulating foreign direct investment: The Make in India initiative launched in 2014. Promoting the ease of doing business and firm dynamism: Insolvency and Bankruptcy Code, 2016

19. References: OECD Economic surveys India- February 2017 The pattern and causes of Economic growth in India by Kaushik Basu and annemie Maertens (Oxford review of economic Policy – Feb 2017) Essay by Deeparghya Mukherjee IIM-B Economic Growth vs Development: Stirring up the Sen-Bhagwati debate ( http://edtimes.in/2014/07/economic-growth-vs-development-stirring-sen-bhagwati-debate/ ) https://socialissuesindia.wordpress.com/