economic growth and development.pptx

7/28/2019 Economic Growth And Development.pptx

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NITISH SHUKUL

LALIT JHA

NIKITA JOSEGUNEET GILL

ANKIT SHARMA

LAVLESH UPADHYAY


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Economic Growth Economic growth is an increase in the total

output of the economy. It occurs when a society

acquires new resources or when it learns toproduce more by using existing resources. It isconventionally measured as the percent rate ofincrease in gross domestic product.


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Economic Growth Vs Economic

Development

The economic growth is primarily the study of how

countries can advance their economies. The economic development is the study of the

economic aspects of the development process in low-income countries.


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FACTORS of ECONOMIC GROWTHEconomic growth depends on the nature of

the factors of production and how wellthey are used.

Factors of Economic Growth include:o natural resourceso human capitalo capital goodso entrepreneurship


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FACTORS of ECONOMIC GROWTH Natural resources are the raw materials of a

country has, that make life and production of

goods possible.

Natural resources affect economic development.

Nations rich in natural resourceswill use themto produce revenue.


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FACTORS of ECONOMIC GROWTH Human capital refers to investments in the

welfare and training of workers.

An increase in human capital enablesaneconomy to produce more of everything that useshuman capital.

Providing health care, family benefits, and moretraining and education are all investments inhuman capital.


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FACTORS of ECONOMIC GROWTH The more skills and education workers have, the

better they are able to work with mistakes and to

learn new jobs as technology changes.

More developed nations often invest more inhuman capital than less-developed nations.


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FACTORS of ECONOMIC GROWTH Capital goods are goods used to produce things.

The ability to invest in capital goods influences a

countrys economic growth.

An increase in capital goods enables an economyto produce more of everything that uses these

capital goods.


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FACTORS of ECONOMIC GROWTH For example, an increase in capital goods can

result in more factories, office buildings, tractors,

or high-tech medical equipment .

Producing more goods for sale in a quicker andmore efficient way leads to economic growth and

greater profit.


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FACTORS of ECONOMIC GROWTH Entrepreneurs are creative, original thinkers who

are willing to take risks to create new businesses

and products. Entrepreneurs think of new ways to combine

natural, human, and capital resources to producegoods and services that they expect to sell for aprice high enough to cover production costs.


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FACTORS of ECONOMIC GROWTH Entrepreneurs risk their money to produce new

goods and services in the hope of making a profit.

If a new product or service does not becomepopular, the entrepreneur may not make a profit.This is the risk he or she takes.

Economic growth depends on entrepreneurswilling to take chances and introduce new ideas.


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BENEFITS of ECONOMIC GROWTH Economic growth raises a countrys overall

standard of living.

This provide people with goods and services withenjoyable leisure time.

Economic growth creates jobs and economicsecurity for more people.


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BENEFITS of ECONOMIC GROWTH Economic growth enlarges the tax base or the

income and properties that may be taxed.

A larger tax base lets government supply morepublic services and invest more infustructuredevelopment.


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ECONOMIC GROWTH OF INDIA


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GDP Growth of INDIA


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Causes of Economic Slowdown High Inflation.

Slow Reform Movement Stalling Growth

Prospects. Earnings Slowdown Impacted by higher

Operating costs.

Current Account Deficit Signs of Growing

Concern. Industrial Growth A bit too volatile to Digest.


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Causes of Economic Slowdown Rising Interest Rates Renders Working

Conditions Costly.

Fiscal Deficit

The Unbudgeted woes. FII Selling Moving back to the West.

Global woes India still not decoupled yet.


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Steps to revive slowing economyReform Push

Rise cap in FDI in retail

Tax Reform Financial Sector Reform

Banking Reform

Agricultural Reform

Labour Sector Reform


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ECONOMIC DEVELOPMENT


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ECONOMIC DEVELOPMENTEconomic development generally refers to thesustained, concerted actions ofpolicymakers and communities that promotethe standard of living and economic health of aspecific area. Such actions can involve multiple areasincluding development of human capital, criticalinfrastructure, regional competitiveness,

environmental sustainability, socialinclusion, health, safety, literacy, and other initiatives.


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The Indicators of

Economic Development

Measure of Economic Welfare (MEW)

Genuine Progress Indicator (GPI)

Human Development Index (HDI) Gender-related Development Index (GDI)

Human Poverty Index


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The dimensions and indicators of

the HDI HDI has three dimensions, measured by one or two

indicators each:

Leading a long and healthy life Life expectancy at birth

Education Adult literacy rate

Gross primary, secondary and tertiary enrolment

A decent standard of living GDP per capita (PPP US$)


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Goalposts for calculating the HDI

Indicator Minimumvalue

Maximum

value

Life expectancy 25 years 85 years

Adult literacy 0% 100%

Gross enrolment 0% 100%

GDP per capita 100 (PPP US$) 40,000 (PPP US$)


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GENDER RELATED DEVELOPMENT

INDEX(GDI)

Same components as the HDI

After calculating dimension index for each sex

theyare combined in a way to penalize gender equality

(equally distributed index)

The GDI is calculated by taking the unweightedaverage of the three equally distributed indices


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HDI INDEX of INDIA


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Reasons Of Low HDI In a nation of 1.2 billion, only 62 per cent are literate.About 420 million poor live in only eight states.

250 million people do not have access to basic medicalcare.

Around 350 million do not have access to safedrinking water.

53 per cent children are undernourished.

52 per cent of our primary schools have only oneteacher for every two classes.


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THANK YOU

economic growth and development.pptx

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