yashwant eco

8/12/2019 Yashwant Eco

1/16

CHANAKYA NATIONAL LAW UNIVERSITY,

PATNA

DEVELOPING ECONOMIES AND THE PROBLEM

OF PRODUCTION FOR SELF-CONSUMPTION

Subject- Economics-I

Faculty- Mrs. Shivani Mohan Yashwant Singh

3rd

semester

Roll -839


2/16

ACKNOWLEDGEMENT

It is my greatest pleasure to be able to present this project of Property Law. I found it very

interesting to work on this project. I would like to thank my economics teacher,

Mrs. Shivani Mohan, for providing me with such an interesting project topic and for his

constant support and guidance.

I would also like to thank my librarian for helping me in gathering data for the project. Last, but

not the least, I would heartily thank my family and friends for their unwavering support without

which this work would not have been possible. I would also like to thank my friend Shagun for

helping me throughout this project.

I hope that the readers will appreciate this project work.


3/16

INDEX

1. INTRODUCTION

2. CHAPTER 1- DEVELOPING ECONOMIES

3. CHAPTER 2- PROBLEM OF SELF- CONSUMPTION

4.CHAPTER3- CHINA AS A DEVELOPING ECONOMY

5. CHAPTER 4- INDIA AS A DEVELOPING ECONOMY

6. CHAPTER 5- CONCLUSION

7.BIBLIOGRAPHY


4/16

INTRODUCTION

A developing economy, also called a less-developed economy is a nation with a low living

standard, underdeveloped industrial base, and low Human Development Index (HDI) relative to

other countries. There is no universal, agreed-upon criterion for what makes a country

developing versus developed and which countries fit these two categories, although there are

general reference points such as a nation's GDP per capita compared to other nations.

Countries with more advanced economies than other developing nations but that have not yet

demonstrated signs of a developed country, are often categorized under the term newly

industrialized countries.

Developing countries are, according to certain authors as Walt Whitman Rostow, countries in

transition from various traditional lifestyles towards the modern lifestyle begun by the Industrial

Revolution in the eighteenth and nineteenth centuries.

Production for useis a phrase referring to the principle of economic organization andproduction taken as a defining criterion for asocialist economy.It is held in contrast

to production for profit(or the profits system). This criterion is used to distinguish socialism

fromcapitalism,and was one of the fundamental defining characteristics of socialism initially

shared byMarxian socialists,evolutionary socialists,anarchistsandChristian socialists.

Production for use refers to an arrangement whereby the production of goods and services is

carried out ex ante (directly) for theirutility(also calledUse-value). The implication is that the

value of economic output would be based on use-value or a direct measure of utility as opposed

toexchange-value;because economic activity would be undertaken to directly satisfy economic

demands and human needs, the productive apparatus would directly serve individual and social

needs. This is contrasted with production for exchange of the produced good or service in ordertoprofit, where production is subjected to the perpetualaccumulation of capital,a condition

where production is only undertaken if it generates profit, implying an expostor indirect means

of satisfying economic demand. The profits system is oriented toward generating a profit to be

reinvested into the economy (and the constant continuation of this process), the result being that

society is structured around the need for a perpetual accumulation of capital.]In

contrast,production for usemeans that the accumulation of capital is not a compulsory driving

force in the economy, and by extension, the core process which society and culture revolves

around. Production for profit, in contrast, is the dominant mode of production in the

modernworld system,equivocates "profitability" and "productivity" and presumes that the

former always equates to the latter. This is also known as selfconsumption.

For many developing countries, exports also serve the purpose of earning foreign currency with

which they can buy essential importsforeign products that they are not able to manufacture,

mine, or grow at home. Developing countries, in other words, sell exports, in part, so that they

can import. Exporting goods and servicescan also further advance developing nations domestic

economies.
http://en.wikipedia.org/wiki/Socialismhttp://en.wikipedia.org/wiki/Socialismhttp://en.wikipedia.org/wiki/Socialismhttp://en.wikipedia.org/wiki/Capitalismhttp://en.wikipedia.org/wiki/Capitalismhttp://en.wikipedia.org/wiki/Capitalismhttp://en.wikipedia.org/wiki/Socialism_(Marxism)http://en.wikipedia.org/wiki/Socialism_(Marxism)http://en.wikipedia.org/wiki/Socialism_(Marxism)http://en.wikipedia.org/wiki/Democratic_socialismhttp://en.wikipedia.org/wiki/Democratic_socialismhttp://en.wikipedia.org/wiki/Democratic_socialismhttp://en.wikipedia.org/wiki/Anarchistshttp://en.wikipedia.org/wiki/Anarchistshttp://en.wikipedia.org/wiki/Anarchistshttp://en.wikipedia.org/wiki/Christian_socialisthttp://en.wikipedia.org/wiki/Christian_socialisthttp://en.wikipedia.org/wiki/Christian_socialisthttp://en.wikipedia.org/wiki/Utilityhttp://en.wikipedia.org/wiki/Utilityhttp://en.wikipedia.org/wiki/Utilityhttp://en.wikipedia.org/wiki/Use-valuehttp://en.wikipedia.org/wiki/Use-valuehttp://en.wikipedia.org/wiki/Use-valuehttp://en.wikipedia.org/wiki/Exchange-valuehttp://en.wikipedia.org/wiki/Exchange-valuehttp://en.wikipedia.org/wiki/Exchange-valuehttp://en.wikipedia.org/wiki/Accumulation_of_capitalhttp://en.wikipedia.org/wiki/Accumulation_of_capitalhttp://en.wikipedia.org/wiki/Accumulation_of_capitalhttp://en.wikipedia.org/wiki/Production_for_use#cite_note-3http://en.wikipedia.org/wiki/Production_for_use#cite_note-3http://en.wikipedia.org/wiki/Production_for_use#cite_note-3http://en.wikipedia.org/wiki/World-systems_theoryhttp://en.wikipedia.org/wiki/World-systems_theoryhttp://en.wikipedia.org/wiki/World-systems_theoryhttp://en.wikipedia.org/wiki/World-systems_theoryhttp://en.wikipedia.org/wiki/Production_for_use#cite_note-3http://en.wikipedia.org/wiki/Accumulation_of_capitalhttp://en.wikipedia.org/wiki/Exchange-valuehttp://en.wikipedia.org/wiki/Use-valuehttp://en.wikipedia.org/wiki/Utilityhttp://en.wikipedia.org/wiki/Christian_socialisthttp://en.wikipedia.org/wiki/Anarchistshttp://en.wikipedia.org/wiki/Democratic_socialismhttp://en.wikipedia.org/wiki/Socialism_(Marxism)http://en.wikipedia.org/wiki/Capitalismhttp://en.wikipedia.org/wiki/Socialism


5/16

CHAPTER 1- DEVELOPING ECONOMIES

There is no established convention for the designation of "developed" and "developing"

countries or areas in theUnited Nationssystem.

The designations "developed" and "developing" are intended for statistical convenience and donot necessarily express a judgment about the stage reached by a particular country or area in the

development process. 1

The UN also notes in common practice,JapaninAsia,Canadaand theUnited Statesinnorthern

America,AustraliaandNew ZealandinOceania,andEurope,are considered "developed"

regions or areas. In international trade statistics, theSouthern African Customs Unionis also

treated as a developed region andIsraelas a developed country; countries emerging from

theformer Yugoslaviaare treated as developing countries; and countries ofeastern Europeand

of theCommonwealth of Independent States(code 172) in Europe are not included under either

developed or developing regions.

On the other hand, according to the classification fromInternational Monetary Fund(IMF)

before April 2004, all countries ofEastern Europe(including Central European countries that

still belongs to the "Eastern Europe Group" in the UN institutions) as well as the formerSoviet

Union(USSR) countries in Central Asia (Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan and

Turkmenistan) andMongolia,were not included under either developed or developing regions,

but rather were referred to as "countries in transition"; however they are now widely regarded (in

the international reports) as "developing countries".

The IMF uses a flexible classification system that considers "(1) per capita income level, (2)

export diversificationso oil exporters that have high per capita GDP would not make the

advanced classification because around 70% of its exports are oil, and (3) degree of integration

into the global financial system.

The World Bank classifies countries into four income groups. These are set each year on July 1.

Economies were divided according to 2011 GNI per capita using the following ranges of income.

Low income countries had GNI per capita of US$1,026 or less. Lower middle income countries had GNI per capita between US$1,026 and

US$4,036.

Upper middle income countries had GNI per capita between US$4,036 andUS$12,476.

High income countries had GNI above US$12,476.

The World Bank classifies all low- and middle-income countries as developing but notes, "The

use of the term is convenient; it is not intended to imply that

1http://www.theguardian.com
http://en.wikipedia.org/wiki/United_Nationshttp://en.wikipedia.org/wiki/United_Nationshttp://en.wikipedia.org/wiki/United_Nationshttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Asiahttp://en.wikipedia.org/wiki/Asiahttp://en.wikipedia.org/wiki/Asiahttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Northern_Americahttp://en.wikipedia.org/wiki/Northern_Americahttp://en.wikipedia.org/wiki/Northern_Americahttp://en.wikipedia.org/wiki/Northern_Americahttp://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/New_Zealandhttp://en.wikipedia.org/wiki/New_Zealandhttp://en.wikipedia.org/wiki/New_Zealandhttp://en.wikipedia.org/wiki/Oceaniahttp://en.wikipedia.org/wiki/Oceaniahttp://en.wikipedia.org/wiki/Oceaniahttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/Southern_African_Customs_Unionhttp://en.wikipedia.org/wiki/Southern_African_Customs_Unionhttp://en.wikipedia.org/wiki/Southern_African_Customs_Unionhttp://en.wikipedia.org/wiki/Israelhttp://en.wikipedia.org/wiki/Israelhttp://en.wikipedia.org/wiki/Israelhttp://en.wikipedia.org/wiki/Former_Yugoslaviahttp://en.wikipedia.org/wiki/Former_Yugoslaviahttp://en.wikipedia.org/wiki/Former_Yugoslaviahttp://en.wikipedia.org/wiki/Eastern_Europehttp://en.wikipedia.org/wiki/Eastern_Europehttp://en.wikipedia.org/wiki/Eastern_Europehttp://en.wikipedia.org/wiki/Commonwealth_of_Independent_Stateshttp://en.wikipedia.org/wiki/Commonwealth_of_Independent_Stateshttp://en.wikipedia.org/wiki/Commonwealth_of_Independent_Stateshttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/Eastern_Europehttp://en.wikipedia.org/wiki/Eastern_Europehttp://en.wikipedia.org/wiki/Eastern_Europehttp://en.wikipedia.org/wiki/Soviet_Unionhttp://en.wikipedia.org/wiki/Soviet_Unionhttp://en.wikipedia.org/wiki/Soviet_Unionhttp://en.wikipedia.org/wiki/Soviet_Unionhttp://en.wikipedia.org/wiki/Mongoliahttp://en.wikipedia.org/wiki/Mongoliahttp://en.wikipedia.org/wiki/Mongoliahttp://www.theguardian.com/http://www.theguardian.com/http://www.theguardian.com/http://www.theguardian.com/http://en.wikipedia.org/wiki/Mongoliahttp://en.wikipedia.org/wiki/Soviet_Unionhttp://en.wikipedia.org/wiki/Soviet_Unionhttp://en.wikipedia.org/wiki/Eastern_Europehttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/Commonwealth_of_Independent_Stateshttp://en.wikipedia.org/wiki/Eastern_Europehttp://en.wikipedia.org/wiki/Former_Yugoslaviahttp://en.wikipedia.org/wiki/Israelhttp://en.wikipedia.org/wiki/Southern_African_Customs_Unionhttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/Oceaniahttp://en.wikipedia.org/wiki/New_Zealandhttp://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/Northern_Americahttp://en.wikipedia.org/wiki/Northern_Americahttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Asiahttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/United_Nations


6/16

economies in the group are experiencing similar development or that other economies have

reached a preferred or final stage of development. Classification by income does not necessarily

reflect development status.

The development of a country is measured with statistical indexes such as incomeper capita(per

person) (gross domestic product),life expectancy,the rate of literacy (ignoring reading

addiction), et cetera. The UN has developed theHuman Development Index(HDI), a compound

indicator of the above statistics, to gauge the level of human development for countries where

data is available.

Developing countries are, in general, countries that have not achieved a significant degree of

industrialization relative to their populations, and have, in most cases, a medium to lowstandard

of living.There is a strong correlation between low income and high population growth.

The terms utilized when discussing developing countries refer to the intent and to the constructs

of those who utilize these terms. Other terms sometimes used are less developed countries

(LDCs), least economically developed countries (LEDCs), "underdeveloped nations" orThird

Worldnations, and "non-industrialized nations". Conversely,developed countries,mosteconomically developed countries(MEDCs),First Worldnations and "industrialized nations" are

the opposite end of the spectrum.

To moderate theeuphemisticaspect of the word developing,international organizationshave

started to use the termless economically developed country(LEDCs) for the poorest nations

which can, in no sense, be regarded as developing. That is, LEDCs are the poorestsubsetof

LDCs. This may moderate against a belief that the standard of living across the entire developing

world is the same.2

The concept of the developing nation is found, under one term or another, in numerous

theoretical systems having diverse orientationsfor example, theories

ofdecolonization,liberation theology,Marxism,anti-imperialism,andpolitical economy.

Another important indicator is the sectoral changes that have occurred since the stage of

development of the country. On an average, countries with a 50% contribution from the

Secondary sector ofManufacturinghave grown substantially. Similarly countries with a tertiary

Sector stronghold also see greater rate ofEconomic Development.

Although the economies of developing countries are typically not as productive as the economiesof industrial countries, developing countries nonetheless produce some goods and servicesinamounts they are unable to use or consume at home. This is called a production surplus.

For example, some developing countries produce vast quantities of agricultural products, likecocoa in Cote dIvoire and coffee in Latin America, which their own populations are not largeenough to consume. Other developing countries produce quantities of industrially valuableminerals, like oil or iron ore, that their own economies are too small or not yet industrializedenough to use.3

2http://www.huffingtonpost.ca

3https://blog.oup.com
http://en.wikipedia.org/wiki/Per_capitahttp://en.wikipedia.org/wiki/Per_capitahttp://en.wikipedia.org/wiki/Per_capitahttp://en.wikipedia.org/wiki/Gross_domestic_producthttp://en.wikipedia.org/wiki/Gross_domestic_producthttp://en.wikipedia.org/wiki/Gross_domestic_producthttp://en.wikipedia.org/wiki/Life_expectancyhttp://en.wikipedia.org/wiki/Life_expectancyhttp://en.wikipedia.org/wiki/Life_expectancyhttp://en.wikipedia.org/wiki/Human_Development_Indexhttp://en.wikipedia.org/wiki/Human_Development_Indexhttp://en.wikipedia.org/wiki/Human_Development_Indexhttp://en.wikipedia.org/wiki/Standard_of_livinghttp://en.wikipedia.org/wiki/Standard_of_livinghttp://en.wikipedia.org/wiki/Standard_of_livinghttp://en.wikipedia.org/wiki/Standard_of_livinghttp://en.wikipedia.org/wiki/Third_Worldhttp://en.wikipedia.org/wiki/Third_Worldhttp://en.wikipedia.org/wiki/Third_Worldhttp://en.wikipedia.org/wiki/Third_Worldhttp://en.wikipedia.org/wiki/Developed_countrieshttp://en.wikipedia.org/wiki/Developed_countrieshttp://en.wikipedia.org/wiki/Developed_countrieshttp://en.wikipedia.org/wiki/Most_economically_developed_countrieshttp://en.wikipedia.org/wiki/Most_economically_developed_countrieshttp://en.wikipedia.org/wiki/Most_economically_developed_countrieshttp://en.wikipedia.org/wiki/Most_economically_developed_countrieshttp://en.wikipedia.org/wiki/First_Worldhttp://en.wikipedia.org/wiki/First_Worldhttp://en.wikipedia.org/wiki/First_Worldhttp://en.wikipedia.org/wiki/Euphemistichttp://en.wikipedia.org/wiki/Euphemistichttp://en.wikipedia.org/wiki/Euphemistichttp://en.wikipedia.org/wiki/International_organizationhttp://en.wikipedia.org/wiki/International_organizationhttp://en.wikipedia.org/wiki/International_organizationhttp://en.wikipedia.org/wiki/Least_Developed_Countryhttp://en.wikipedia.org/wiki/Least_Developed_Countryhttp://en.wikipedia.org/wiki/Least_Developed_Countryhttp://en.wikipedia.org/wiki/Subsethttp://en.wikipedia.org/wiki/Subsethttp://en.wikipedia.org/wiki/Subsethttp://en.wikipedia.org/wiki/Decolonizationhttp://en.wikipedia.org/wiki/Decolonizationhttp://en.wikipedia.org/wiki/Decolonizationhttp://en.wikipedia.org/wiki/Liberation_theologyhttp://en.wikipedia.org/wiki/Liberation_theologyhttp://en.wikipedia.org/wiki/Liberation_theologyhttp://en.wikipedia.org/wiki/Marxismhttp://en.wikipedia.org/wiki/Marxismhttp://en.wikipedia.org/wiki/Marxismhttp://en.wikipedia.org/wiki/Anti-imperialismhttp://en.wikipedia.org/wiki/Anti-imperialismhttp://en.wikipedia.org/wiki/Anti-imperialismhttp://en.wikipedia.org/wiki/Political_economyhttp://en.wikipedia.org/wiki/Political_economyhttp://en.wikipedia.org/wiki/Political_economyhttp://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/Economic_Developmenthttp://en.wikipedia.org/wiki/Economic_Developmenthttp://en.wikipedia.org/wiki/Economic_Developmenthttp://www.huffingtonpost.ca/http://www.huffingtonpost.ca/http://www.huffingtonpost.ca/http://www.huffingtonpost.ca/http://en.wikipedia.org/wiki/Economic_Developmenthttp://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/Political_economyhttp://en.wikipedia.org/wiki/Anti-imperialismhttp://en.wikipedia.org/wiki/Marxismhttp://en.wikipedia.org/wiki/Liberation_theologyhttp://en.wikipedia.org/wiki/Decolonizationhttp://en.wikipedia.org/wiki/Subsethttp://en.wikipedia.org/wiki/Least_Developed_Countryhttp://en.wikipedia.org/wiki/International_organizationhttp://en.wikipedia.org/wiki/Euphemistichttp://en.wikipedia.org/wiki/First_Worldhttp://en.wikipedia.org/wiki/Most_economically_developed_countrieshttp://en.wikipedia.org/wiki/Most_economically_developed_countrieshttp://en.wikipedia.org/wiki/Developed_countrieshttp://en.wikipedia.org/wiki/Third_Worldhttp://en.wikipedia.org/wiki/Third_Worldhttp://en.wikipedia.org/wiki/Standard_of_livinghttp://en.wikipedia.org/wiki/Standard_of_livinghttp://en.wikipedia.org/wiki/Human_Development_Indexhttp://en.wikipedia.org/wiki/Life_expectancyhttp://en.wikipedia.org/wiki/Gross_domestic_producthttp://en.wikipedia.org/wiki/Per_capita


7/16

CHAPTER 2- PROBLEM OF SELF-CONSUMPTION

Consumption is the process by which goods and services are, at last, put to final use by people.

Consumption is at the end of the line of economic activities that starts with an evaluation of

available resources and proceeds through production of goods and services and distribution of

goods and services (or the means to acquire them) among people and groups. At last, the goods

and services themselves come to be used. The effect of this consumption, including depletion of

resources and generation of waste as well as enhancement of human survival and flourishing,

determines the resource base for the next round of economic activity. 4

Over the past decade, the global economy has been changing in ways that have promptedindividual countries, whether developed or developing, to change their economic priorities andpolicies.With the global economy slowing down after the financial crisis of 2008, it has also becomeobvious that economies overly dependent on exports to support growth need to reconsider their

strategies.Developing countries and economies in transition need to move towards more balanced growthand to give a greater role to domestic demand in order to push their economic growth, rather thansimply adopting export-oriented strategies.The United Nations Conference on Trade and Developments (UNCTAD) Trade andDevelopment Report 2013, entitled Adjusting to the Changing Dynamics of the World

Economy and released last week, reflects such newpriorities.The report cautions that a prolonged period of slow growth in developed countries will meancontinued sluggish growth in their imports, something that should urge policy-makers elsewhereto reconsider development strategies overly dependent on exports.Instead, the report says, development strategies should place a greater emphasis on encouraginglocal demand by pushing up wages.In order to encourage domestic demand, this requires increasing the purchasing power of low

and middle-income families who spend larger shares of their incomes on consumption, saidMahmoud Al-Khafif, an UNCTAD representative, in a press conference launching the report lastweek in Cairo.This in turn would require setting a minimum wage and enacting progressive tax policies in abid to integrate such income groups into the production process, he added.The report argues that prior to the financial crisis in 2008, buoyant consumer demand in somedeveloped countries enabled the rapid growth of manufactured exports from industrialising anddeveloping countries, which in turn provided opportunities for primary commodity exports fromother developing countries.5

The rapid recovery of Asian economies after the crisis, in particular China and India, and therelatively fast recovery of commodity prices have helped developing countries maintain theirgrowth momentum. However, many developing countries continue to face considerabledownside risks and the danger of a negative external shock cannot be completely ruled out, giventhe volatility of commodity prices, the continuous crisis in Europe or their exposure to

4http://www.bbc.co.uk

5http://www.finfacts.ie
http://www.bbc.co.uk/http://www.bbc.co.uk/http://www.bbc.co.uk/http://www.finfacts.ie/http://www.finfacts.ie/http://www.finfacts.ie/http://www.finfacts.ie/http://www.bbc.co.uk/


8/16

significant short-term capital flows, which tend to exert an upward pressure on their currenciesand damage their export industries. In other words, even though growth in several developingcountries has come to rely more on domestic forces rather than on exports, it remains vulnerable.Thus developing countries should aim at maintaining stable macroeconomic conditionsdomestically and containing external disruptions.

The report argues that prior to the financial crisis in 2008, buoyant consumer demand in somedeveloped countries enabled the rapid growth of manufactured exports from industrialising anddeveloping countries, which in turn provided opportunities for primary commodity exports fromother developing countries.This boom seemed to vindicate the idea of developing and transitional economies adopting anexport-oriented growth model. However, such a model is no longer viable in the current contextof slow growth in the developed economies, the report warns.To address the prospect of a prolonged period of considerably slower export growth, policy-makers need to give greater weight to domestic demand, it says.

Economic policies should aim at encouraging the domestic investment of profits and atinfluencing the behaviour of the banking system so that it more consistently allocates credit toproductive economic activities that will lead to job creation, sustained economic growth, and lessvulnerability to global economic shifts.6

In order to achieve a healthy economy, better regulation of the financial system is needed, thereport says, adding that this requires aiming at both monetary and financial stability and atorienting the financial sector towards serving the real economy through restructuring thefinancial system, especially banking. The developing countries should focus on selfconsumption too.

6http://www.smh.com.au
http://www.smh.com.au/http://www.smh.com.au/http://www.smh.com.au/http://www.smh.com.au/


9/16

CHAPTER 3-CHINA AS A DEVELOPING ECONOMY

Thesocialist market economyofChinais theworld's second largest economybynominal

GDPand bypurchasing power parityafter theUnited States.It is the world'sfastest-growing

major economy,withgrowth rates averaging 10%over the past 30 years. China is also the

largestexporterand second largestimporterof goods in the world. China is the largest

manufacturing economy in the world,]outpacing its world rival in this category, theservice-

driven economyof the United States of America.

On aper capita incomebasis, China ranked87th by nominal GDPand92nd by GDP (PPP)in

2012, according to theInternational Monetary Fund(IMF). Theprovincesin the coastalregions

of Chinatend to be moreindustrialized,while regions in the hinterland are lessdeveloped.As

China's economic importance has grown, so has attention to the structure and health of the

economy.Xi JinpingsChinese Dreamis described as achieving the Two 100s: the material

goal of China becoming a moderately well-off society by about 2020, the 100th anniversary of

theChinese Communist Party,and the modernization goal of China becoming afully developed

nationby 2049, the 100th anniversary of the founding of the Peoples Republic.7

As the Chinese economy is internationalized, so does the standardized economic forecast

officially launched in China byPurchasing Managers Indexin 2005. Most economic growth of

China is created fromSpecial Economic Zones of the People's Republic of China.

Since 1949 the government, under socialist political and economic system, has been responsible

for planning and managing the national economy.[56]In the early 1950s, the foreign trade system

wasmonopolizedby the state. Nearly all the domestic enterprises werestate-ownedand the

government had set the prices for key commodities, controlled the level and general distribution

ofinvestment funds,determined output targets for major enterprises and branches,

allocatedenergy resources,set wage levels and employment targets, operated the wholesale andretail networks, and steered thefinancial policyand banking system. In the countryside from the

mid-1950s, the government established cropping patterns, set the level of prices, and fixed output

targets for all major crops.

Since 1978 when economic reforms were instituted, the government's role in the economy has

lessened by a great degree. Industrial output by state enterprises slowly declined, although a few

strategic industries, such as the aerospace industry have today remained predominantly state-

owned. While the role of the government in managing the economy has been reduced and the

role of bothprivate enterpriseand market forces increased, the government maintains a major

role in the urban economy. With its policies on such issues as agricultural procurement the

government also retains a major influence on rural sector performance. TheState Constitution of1982specified that the state is to guide the country'seconomic developmentby making broad

decisions on economic priorities and policies, and that theState Council,which exercises

executive control, was to direct its subordinate bodies in preparing and implementing the

nationaleconomic planand thestate budget.A major portion of the government system

(bureaucracy) is devoted to managing the economy in atop-downchain of commandwith all but

7http://news.xinhuanet.com
http://en.wikipedia.org/wiki/Socialist_market_economyhttp://en.wikipedia.org/wiki/Socialist_market_economyhttp://en.wikipedia.org/wiki/Socialist_market_economyhttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)http://en.wikipedia.org/wiki/Economy_of_the_United_Stateshttp://en.wikipedia.org/wiki/Economy_of_the_United_Stateshttp://en.wikipedia.org/wiki/List_of_countries_by_real_GDP_growth_rate_(latest_year)http://en.wikipedia.org/wiki/List_of_countries_by_real_GDP_growth_rate_(latest_year)http://en.wikipedia.org/wiki/List_of_countries_by_real_GDP_growth_rate_(latest_year)http://en.wikipedia.org/wiki/List_of_countries_by_real_GDP_growth_rate_(latest_year)http://en.wikipedia.org/wiki/Historical_GDP_of_the_People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/Historical_GDP_of_the_People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/Historical_GDP_of_the_People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/Exporthttp://en.wikipedia.org/wiki/Exporthttp://en.wikipedia.org/wiki/Exporthttp://en.wikipedia.org/wiki/Importhttp://en.wikipedia.org/wiki/Importhttp://en.wikipedia.org/wiki/Importhttp://en.wikipedia.org/wiki/Economy_of_China#cite_note-17http://en.wikipedia.org/wiki/Economy_of_China#cite_note-17http://en.wikipedia.org/wiki/Economy_of_UShttp://en.wikipedia.org/wiki/Economy_of_UShttp://en.wikipedia.org/wiki/Economy_of_UShttp://en.wikipedia.org/wiki/Economy_of_UShttp://en.wikipedia.org/wiki/Per_capita_incomehttp://en.wikipedia.org/wiki/Per_capita_incomehttp://en.wikipedia.org/wiki/Per_capita_incomehttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)_per_capitahttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)_per_capitahttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)_per_capitahttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)_per_capitahttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)_per_capitahttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)_per_capitahttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/Provinces_of_Chinahttp://en.wikipedia.org/wiki/Provinces_of_Chinahttp://en.wikipedia.org/wiki/Provinces_of_Chinahttp://en.wikipedia.org/wiki/Regions_of_Chinahttp://en.wikipedia.org/wiki/Regions_of_Chinahttp://en.wikipedia.org/wiki/Regions_of_Chinahttp://en.wikipedia.org/wiki/Regions_of_Chinahttp://en.wikipedia.org/wiki/Industrializedhttp://en.wikipedia.org/wiki/Industrializedhttp://en.wikipedia.org/wiki/Industrializedhttp://en.wikipedia.org/wiki/Economic_developmenthttp://en.wikipedia.org/wiki/Economic_developmenthttp://en.wikipedia.org/wiki/Economic_developmenthttp://en.wikipedia.org/wiki/Xi_Jinpinghttp://en.wikipedia.org/wiki/Xi_Jinpinghttp://en.wikipedia.org/wiki/Chinese_Dreamhttp://en.wikipedia.org/wiki/Chinese_Dreamhttp://en.wikipedia.org/wiki/Chinese_Dreamhttp://en.wikipedia.org/wiki/Communist_Party_of_Chinahttp://en.wikipedia.org/wiki/Communist_Party_of_Chinahttp://en.wikipedia.org/wiki/Communist_Party_of_Chinahttp://en.wikipedia.org/wiki/Developed_nationhttp://en.wikipedia.org/wiki/Developed_nationhttp://en.wikipedia.org/wiki/Developed_nationhttp://en.wikipedia.org/wiki/Purchasing_Managers_Indexhttp://en.wikipedia.org/wiki/Purchasing_Managers_Indexhttp://en.wikipedia.org/wiki/Purchasing_Managers_Indexhttp://en.wikipedia.org/wiki/Special_Economic_Zones_of_the_People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/Special_Economic_Zones_of_the_People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/Special_Economic_Zones_of_the_People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/Economy_of_China#cite_note-56http://en.wikipedia.org/wiki/Economy_of_China#cite_note-56http://en.wikipedia.org/wiki/Economy_of_China#cite_note-56http://en.wikipedia.org/wiki/Monopolyhttp://en.wikipedia.org/wiki/Monopolyhttp://en.wikipedia.org/wiki/Monopolyhttp://en.wikipedia.org/wiki/State-ownedhttp://en.wikipedia.org/wiki/State-ownedhttp://en.wikipedia.org/wiki/State-ownedhttp://en.wikipedia.org/wiki/Investment_fundhttp://en.wikipedia.org/wiki/Investment_fundhttp://en.wikipedia.org/wiki/Investment_fundhttp://en.wikipedia.org/wiki/Energy_resourceshttp://en.wikipedia.org/wiki/Energy_resourceshttp://en.wikipedia.org/wiki/Energy_resourceshttp://en.wikipedia.org/wiki/Financial_policyhttp://en.wikipedia.org/wiki/Financial_policyhttp://en.wikipedia.org/wiki/Private_enterprisehttp://en.wikipedia.org/wiki/Private_enterprisehttp://en.wikipedia.org/wiki/Private_enterprisehttp://en.wikipedia.org/wiki/Constitution_of_the_People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/Constitution_of_the_People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/Constitution_of_the_People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/Constitution_of_the_People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/Economic_developmenthttp://en.wikipedia.org/wiki/Economic_developmenthttp://en.wikipedia.org/wiki/Economic_developmenthttp://en.wikipedia.org/wiki/State_Council_of_the_People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/State_Council_of_the_People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/State_Council_of_the_People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/Economic_planninghttp://en.wikipedia.org/wiki/Economic_planninghttp://en.wikipedia.org/wiki/Economic_planninghttp://en.wikipedia.org/wiki/State_budgethttp://en.wikipedia.org/wiki/State_budgethttp://en.wikipedia.org/wiki/State_budgethttp://en.wikipedia.org/wiki/Top-downhttp://en.wikipedia.org/wiki/Top-downhttp://en.wikipedia.org/wiki/Chain_of_commandhttp://en.wikipedia.org/wiki/Chain_of_commandhttp://en.wikipedia.org/wiki/Chain_of_commandhttp://news.xinhuanet.com/http://news.xinhuanet.com/http://news.xinhuanet.com/http://news.xinhuanet.com/http://en.wikipedia.org/wiki/Chain_of_commandhttp://en.wikipedia.org/wiki/Top-downhttp://en.wikipedia.org/wiki/State_budgethttp://en.wikipedia.org/wiki/Economic_planninghttp://en.wikipedia.org/wiki/State_Council_of_the_People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/Economic_developmenthttp://en.wikipedia.org/wiki/Constitution_of_the_People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/Constitution_of_the_People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/Private_enterprisehttp://en.wikipedia.org/wiki/Financial_policyhttp://en.wikipedia.org/wiki/Energy_resourceshttp://en.wikipedia.org/wiki/Investment_fundhttp://en.wikipedia.org/wiki/State-ownedhttp://en.wikipedia.org/wiki/Monopolyhttp://en.wikipedia.org/wiki/Economy_of_China#cite_note-56http://en.wikipedia.org/wiki/Special_Economic_Zones_of_the_People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/Purchasing_Managers_Indexhttp://en.wikipedia.org/wiki/Developed_nationhttp://en.wikipedia.org/wiki/Developed_nationhttp://en.wikipedia.org/wiki/Communist_Party_of_Chinahttp://en.wikipedia.org/wiki/Chinese_Dreamhttp://en.wikipedia.org/wiki/Xi_Jinpinghttp://en.wikipedia.org/wiki/Economic_developmenthttp://en.wikipedia.org/wiki/Industrializedhttp://en.wikipedia.org/wiki/Regions_of_Chinahttp://en.wikipedia.org/wiki/Regions_of_Chinahttp://en.wikipedia.org/wiki/Provinces_of_Chinahttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)_per_capitahttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)_per_capitahttp://en.wikipedia.org/wiki/Per_capita_incomehttp://en.wikipedia.org/wiki/Economy_of_UShttp://en.wikipedia.org/wiki/Economy_of_UShttp://en.wikipedia.org/wiki/Economy_of_China#cite_note-17http://en.wikipedia.org/wiki/Importhttp://en.wikipedia.org/wiki/Exporthttp://en.wikipedia.org/wiki/Historical_GDP_of_the_People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/List_of_countries_by_real_GDP_growth_rate_(latest_year)http://en.wikipedia.org/wiki/List_of_countries_by_real_GDP_growth_rate_(latest_year)http://en.wikipedia.org/wiki/Economy_of_the_United_Stateshttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)http://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Socialist_market_economy


10/16

a few of the more than 100 ministries, commissions, administrations, bureaus, academies, and

corporations under the State Council being concerned with economic matters.

Each significant economic sector is supervised by one or more of these organizations, which

includes thePeople's Bank of China,National Development and Reform Commission,Ministry

of Finance,and the ministries ofagriculture;coal

industry;commerce;communications;education;light industry;metallurgical

industry;petroleum industry;railways;textile industry;andwater resourcesandelectric power.

Several aspects of the economy are administered by specialized departments under the State

Council, including theNational Bureau of Statistics,Civil Aviation Administration of China,and

the tourism bureau. Each of the economic organizations under the State Council directs the units

under its jurisdiction through subordinate offices at the provincial and local levels.

Some popular and traditional exports from China include fireworks and inexpensive electronics.

Other exports include herbal medicines, plastic items like small toys and seaweed. Fish oil is

another traditional export from China.

Production for useis a phrase referring to the principle of economic organization andproduction taken as a defining criterion for asocialist economy.It is held in contrast



shared byMarxian socialists,evolutionary socialists,anarchistsandChristian socialists.

Production for userefers to an arrangement whereby the production of goods and services is

carried out ex ante(directly) for theirutility(also calledUse-value). The implication is that the




needs. This is contrasted with production for exchange of the produced good or service in ordertoprofit, where production is subjected to the perpetualaccumulation of capital,a condition




society is structured around the need for a perpetual accumulation of capital. In



around. Production for profit, in contrast, is the dominant mode of production in the

modernworld system,equivocates "profitability" and "productivity" and presumes that the

former always equates to the latter.

Production for useis a phrase referring to the principle of economic organization and

production taken as a defining criterion for asocialist economy.It is held in contrast

http://en.wikipedia.org/wiki/People%27s_Bank_of_Chinahttp://en.wikipedia.org/wiki/People%27s_Bank_of_Chinahttp://en.wikipedia.org/wiki/People%27s_Bank_of_Chinahttp://en.wikipedia.org/wiki/National_Development_and_Reform_Commissionhttp://en.wikipedia.org/wiki/National_Development_and_Reform_Commissionhttp://en.wikipedia.org/wiki/National_Development_and_Reform_Commissionhttp://en.wikipedia.org/wiki/Ministry_of_Finance_of_the_People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/Ministry_of_Finance_of_the_People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/Ministry_of_Finance_of_the_People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/Ministry_of_Finance_of_the_People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/Agriculturehttp://en.wikipedia.org/wiki/Agriculturehttp://en.wikipedia.org/wiki/Agriculturehttp://en.wikipedia.org/wiki/Coal_industryhttp://en.wikipedia.org/wiki/Coal_industryhttp://en.wikipedia.org/wiki/Coal_industryhttp://en.wikipedia.org/wiki/Coal_industryhttp://en.wikipedia.org/wiki/Commercehttp://en.wikipedia.org/wiki/Commercehttp://en.wikipedia.org/wiki/Commercehttp://en.wikipedia.org/wiki/Telecommunicationhttp://en.wikipedia.org/wiki/Telecommunicationhttp://en.wikipedia.org/wiki/Telecommunicationhttp://en.wikipedia.org/wiki/Educationhttp://en.wikipedia.org/wiki/Educationhttp://en.wikipedia.org/wiki/Educationhttp://en.wikipedia.org/wiki/Light_industryhttp://en.wikipedia.org/wiki/Light_industryhttp://en.wikipedia.org/wiki/Light_industryhttp://en.wikipedia.org/wiki/Metallurgical_industryhttp://en.wikipedia.org/wiki/Metallurgical_industryhttp://en.wikipedia.org/wiki/Metallurgical_industryhttp://en.wikipedia.org/wiki/Metallurgical_industryhttp://en.wikipedia.org/wiki/Petroleum_industryhttp://en.wikipedia.org/wiki/Petroleum_industryhttp://en.wikipedia.org/wiki/Petroleum_industryhttp://en.wikipedia.org/wiki/Railwayshttp://en.wikipedia.org/wiki/Railwayshttp://en.wikipedia.org/wiki/Railwayshttp://en.wikipedia.org/wiki/Textile_industryhttp://en.wikipedia.org/wiki/Textile_industryhttp://en.wikipedia.org/wiki/Textile_industryhttp://en.wikipedia.org/wiki/Water_resourceshttp://en.wikipedia.org/wiki/Water_resourceshttp://en.wikipedia.org/wiki/Water_resourceshttp://en.wikipedia.org/wiki/Electric_powerhttp://en.wikipedia.org/wiki/Electric_powerhttp://en.wikipedia.org/wiki/Electric_powerhttp://en.wikipedia.org/wiki/National_Bureau_of_Statistics_of_Chinahttp://en.wikipedia.org/wiki/National_Bureau_of_Statistics_of_Chinahttp://en.wikipedia.org/wiki/National_Bureau_of_Statistics_of_Chinahttp://en.wikipedia.org/wiki/Civil_Aviation_Administration_of_Chinahttp://en.wikipedia.org/wiki/Civil_Aviation_Administration_of_Chinahttp://en.wikipedia.org/wiki/Civil_Aviation_Administration_of_Chinahttp://en.wikipedia.org/wiki/Socialismhttp://en.wikipedia.org/wiki/Socialismhttp://en.wikipedia.org/wiki/Socialismhttp://en.wikipedia.org/wiki/Capitalismhttp://en.wikipedia.org/wiki/Capitalismhttp://en.wikipedia.org/wiki/Capitalismhttp://en.wikipedia.org/wiki/Socialism_(Marxism)http://en.wikipedia.org/wiki/Socialism_(Marxism)http://en.wikipedia.org/wiki/Socialism_(Marxism)http://en.wikipedia.org/wiki/Democratic_socialismhttp://en.wikipedia.org/wiki/Democratic_socialismhttp://en.wikipedia.org/wiki/Democratic_socialismhttp://en.wikipedia.org/wiki/Anarchistshttp://en.wikipedia.org/wiki/Anarchistshttp://en.wikipedia.org/wiki/Anarchistshttp://en.wikipedia.org/wiki/Christian_socialisthttp://en.wikipedia.org/wiki/Christian_socialisthttp://en.wikipedia.org/wiki/Christian_socialisthttp://en.wikipedia.org/wiki/Utilityhttp://en.wikipedia.org/wiki/Utilityhttp://en.wikipedia.org/wiki/Utilityhttp://en.wikipedia.org/wiki/Use-valuehttp://en.wikipedia.org/wiki/Use-valuehttp://en.wikipedia.org/wiki/Use-valuehttp://en.wikipedia.org/wiki/Exchange-valuehttp://en.wikipedia.org/wiki/Exchange-valuehttp://en.wikipedia.org/wiki/Exchange-valuehttp://en.wikipedia.org/wiki/Accumulation_of_capitalhttp://en.wikipedia.org/wiki/Accumulation_of_capitalhttp://en.wikipedia.org/wiki/Accumulation_of_capitalhttp://en.wikipedia.org/wiki/World-systems_theoryhttp://en.wikipedia.org/wiki/World-systems_theoryhttp://en.wikipedia.org/wiki/World-systems_theoryhttp://en.wikipedia.org/wiki/Socialismhttp://en.wikipedia.org/wiki/Socialismhttp://en.wikipedia.org/wiki/Socialismhttp://en.wikipedia.org/wiki/Socialismhttp://en.wikipedia.org/wiki/World-systems_theoryhttp://en.wikipedia.org/wiki/Accumulation_of_capitalhttp://en.wikipedia.org/wiki/Exchange-valuehttp://en.wikipedia.org/wiki/Use-valuehttp://en.wikipedia.org/wiki/Utilityhttp://en.wikipedia.org/wiki/Christian_socialisthttp://en.wikipedia.org/wiki/Anarchistshttp://en.wikipedia.org/wiki/Democratic_socialismhttp://en.wikipedia.org/wiki/Socialism_(Marxism)http://en.wikipedia.org/wiki/Capitalismhttp://en.wikipedia.org/wiki/Socialismhttp://en.wikipedia.org/wiki/Civil_Aviation_Administration_of_Chinahttp://en.wikipedia.org/wiki/National_Bureau_of_Statistics_of_Chinahttp://en.wikipedia.org/wiki/Electric_powerhttp://en.wikipedia.org/wiki/Water_resourceshttp://en.wikipedia.org/wiki/Textile_industryhttp://en.wikipedia.org/wiki/Railwayshttp://en.wikipedia.org/wiki/Petroleum_industryhttp://en.wikipedia.org/wiki/Metallurgical_industryhttp://en.wikipedia.org/wiki/Metallurgical_industryhttp://en.wikipedia.org/wiki/Light_industryhttp://en.wikipedia.org/wiki/Educationhttp://en.wikipedia.org/wiki/Telecommunicationhttp://en.wikipedia.org/wiki/Commercehttp://en.wikipedia.org/wiki/Coal_industryhttp://en.wikipedia.org/wiki/Coal_industryhttp://en.wikipedia.org/wiki/Agriculturehttp://en.wikipedia.org/wiki/Ministry_of_Finance_of_the_People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/Ministry_of_Finance_of_the_People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/National_Development_and_Reform_Commissionhttp://en.wikipedia.org/wiki/People%27s_Bank_of_China


11/16


shared byMarxian socialists,evolutionary 8socialists,anarchistsandChristian socialists.[1][2]

Production for userefers to an arrangement whereby the production of goods and services is

carried out ex ante(directly) for theirutility(also calledUse-value). The implication is that the




needs. This is contrasted with production for exchange of the produced good or service in order

toprofit, where production is subjected to the perpetualaccumulation of capital,a condition




society is structured around the need for a perpetual accumulation of capital.[3]In



around. Production for profit, in contrast, is the dominant mode of production in themodernworld system,equivocates "profitability" and "productivity" and presumes that the

former always equates to the latter.

China is one of the worlds largest and most volatile customers for agriculture products. Food

consumption levels have grown and will continue to grow as the consumption level increases.

But since the resources are limited, the Chinese economy exports and the self consumption of

products is less due to limited resources. In order to develop its economy, China exports a lot of

products and does not keep it for self consumption.9

Chinas agricultural trade has grown slowly, especially in comparison with its boomingmerchandise trade. The countrys goal of food self-sufficiency has led policymakers to restrain

imports of land-intensive grains, the production of which has a high opportunity cost in land-

scarce China. In accordance with its current level of use of these inputs may be unsustainable

Chinas agricultural trade has grown slowly, especially in comparison with its booming

merchandise trade.The countrys goal of food self-sufficiency has led policymakers to restrain

imports of land-intensive grains, the production of which has a high opportunity cost in land-

scarce China.

8http://www.businessweek.com

9http://www.scmp.com
http://en.wikipedia.org/wiki/Capitalismhttp://en.wikipedia.org/wiki/Capitalismhttp://en.wikipedia.org/wiki/Capitalismhttp://en.wikipedia.org/wiki/Socialism_(Marxism)http://en.wikipedia.org/wiki/Socialism_(Marxism)http://en.wikipedia.org/wiki/Socialism_(Marxism)http://en.wikipedia.org/wiki/Democratic_socialismhttp://en.wikipedia.org/wiki/Democratic_socialismhttp://en.wikipedia.org/wiki/Democratic_socialismhttp://en.wikipedia.org/wiki/Democratic_socialismhttp://en.wikipedia.org/wiki/Democratic_socialismhttp://en.wikipedia.org/wiki/Anarchistshttp://en.wikipedia.org/wiki/Anarchistshttp://en.wikipedia.org/wiki/Anarchistshttp://en.wikipedia.org/wiki/Christian_socialisthttp://en.wikipedia.org/wiki/Christian_socialisthttp://en.wikipedia.org/wiki/Production_for_use#cite_note-1http://en.wikipedia.org/wiki/Production_for_use#cite_note-1http://en.wikipedia.org/wiki/Production_for_use#cite_note-1http://en.wikipedia.org/wiki/Utilityhttp://en.wikipedia.org/wiki/Utilityhttp://en.wikipedia.org/wiki/Utilityhttp://en.wikipedia.org/wiki/Use-valuehttp://en.wikipedia.org/wiki/Use-valuehttp://en.wikipedia.org/wiki/Use-valuehttp://en.wikipedia.org/wiki/Exchange-valuehttp://en.wikipedia.org/wiki/Exchange-valuehttp://en.wikipedia.org/wiki/Exchange-valuehttp://en.wikipedia.org/wiki/Accumulation_of_capitalhttp://en.wikipedia.org/wiki/Accumulation_of_capitalhttp://en.wikipedia.org/wiki/Accumulation_of_capitalhttp://en.wikipedia.org/wiki/Production_for_use#cite_note-3http://en.wikipedia.org/wiki/Production_for_use#cite_note-3http://en.wikipedia.org/wiki/Production_for_use#cite_note-3http://en.wikipedia.org/wiki/World-systems_theoryhttp://en.wikipedia.org/wiki/World-systems_theoryhttp://en.wikipedia.org/wiki/World-systems_theoryhttp://www.businessweek.com/http://www.businessweek.com/http://www.businessweek.com/http://www.scmp.com/http://www.scmp.com/http://www.scmp.com/http://www.scmp.com/http://www.businessweek.com/http://en.wikipedia.org/wiki/World-systems_theoryhttp://en.wikipedia.org/wiki/Production_for_use#cite_note-3http://en.wikipedia.org/wiki/Accumulation_of_capitalhttp://en.wikipedia.org/wiki/Exchange-valuehttp://en.wikipedia.org/wiki/Use-valuehttp://en.wikipedia.org/wiki/Utilityhttp://en.wikipedia.org/wiki/Production_for_use#cite_note-1http://en.wikipedia.org/wiki/Production_for_use#cite_note-1http://en.wikipedia.org/wiki/Christian_socialisthttp://en.wikipedia.org/wiki/Anarchistshttp://en.wikipedia.org/wiki/Democratic_socialismhttp://en.wikipedia.org/wiki/Socialism_(Marxism)http://en.wikipedia.org/wiki/Capitalism


12/16

CHAPTER 4- INDIA AS A DEVELOPING ECONOMY

The economy ofIndiais thetenth-largestin the world bynominal GDPand thethird-

largestbypurchasing power parity(PPP). The country is one of theG-20 major economiesand a

member ofBRICS.On a per-capita-income basis, India ranked141st by nominal GDPand130th

by GDP (PPP)in 2012, according to theIMF.India is the19th-largest exporterand the10th-

largest importerin the world. The economy slowed to around 5.0% for the 201213 fiscal year

compared with 6.2% in the previous fiscal.[15]On August 28, 2013 theIndian rupeehit an all

time low of 68.80 against theUS dollar.In order to control the fall in rupee, the government

introduced capital controls on outward investment by both corporates and individuals. India's

GDP grew by 9.3% in 201011; thus, the growth rate has nearly halved in just three years. GDP

growth rose marginally to 4.8% during the quarter through March 2013, from about 4.7% in the

previous quarter. The government has forecast a growth rate of 6.1%-6.7% for the year 201314,

whilst theRBIexpects the same to be at 5.7%. Besides this, India suffered a very high fiscal

deficit of US$ 88 billion (4.8% of GDP) in the year 201213. The Indian Government aims to

cut the fiscal deficit to US$ 70 billion or 3.7% of GDP by 201314.

The independence-era Indian economy (from 1947 to 1991) was based on amixed10economycombining features of capitalism and socialism, resulting in an inward-

looking,interventionist policiesand import-substituting economy that failed to take advantage of

the post-war expansion of trade. This model contributed to widespread inefficiencies and

corruption, and the failings of this system were due largely to its poor implementation. In 1991,

India adopted liberal and free-market principles and liberalised its economy to international trade

under the guidance of Former Finance minister Manmohan Singh under the Prime Ministry

ofP.V. Narasimha Rao,prime minister from 1991 to 1996, who had eliminatedLicence Raj,a

pre- and post-British era mechanism of strict government controls on setting up new industry.

Following these major economic reforms, and a strong focus on developing nationalinfrastructure such as theGolden Quadrilateralproject by former Prime MinisterAtal Bihari

Vajpayee,the country's economic growth progressed at a rapid pace, with relatively large

increases in per-capita incomes.

Industry accounts for 26% of GDP and employs 22% of the total workforce. India is11th in the

world in terms of nominal factory outputaccording to data compiled through CIA World

Factbook figures. The Indian industrial sector underwent significant changes as a result of the

economic liberalisation in India economic reforms of 1991, which removed import restrictions,

brought in foreign competition, led to the privatisation of certain public sector industries11

liberalised theFDIregime, improved infrastructure and led to an expansion in the production

offast moving consumer goods.Post-liberalisation, the Indian private sector was faced withincreasing domestic as well as foreign competition, including the threat of cheaper Chinese

imports. It has since handled the change by squeezing costs, revamping management, and relying

on cheap labour and new technology. However, this has also reduced employment generation

even by smaller manufacturers who earlier relied on relatively labour-intensive processes.

10http://articles.economictimes.indiatimes.com

11http://www.financialexpress.com
http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)http://en.wikipedia.org/wiki/Gross_domestic_producthttp://en.wikipedia.org/wiki/Gross_domestic_producthttp://en.wikipedia.org/wiki/Gross_domestic_producthttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)http://en.wikipedia.org/wiki/Purchasing_power_parityhttp://en.wikipedia.org/wiki/Purchasing_power_parityhttp://en.wikipedia.org/wiki/Purchasing_power_parityhttp://en.wikipedia.org/wiki/G-20_major_economieshttp://en.wikipedia.org/wiki/G-20_major_economieshttp://en.wikipedia.org/wiki/G-20_major_economieshttp://en.wikipedia.org/wiki/BRICShttp://en.wikipedia.org/wiki/BRICShttp://en.wikipedia.org/wiki/BRICShttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)_per_capitahttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)_per_capitahttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)_per_capitahttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)_per_capitahttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)_per_capitahttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)_per_capitahttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)_per_capitahttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/List_of_countries_by_exportshttp://en.wikipedia.org/wiki/List_of_countries_by_exportshttp://en.wikipedia.org/wiki/List_of_countries_by_exportshttp://en.wikipedia.org/wiki/List_of_countries_by_importshttp://en.wikipedia.org/wiki/List_of_countries_by_importshttp://en.wikipedia.org/wiki/List_of_countries_by_importshttp://en.wikipedia.org/wiki/List_of_countries_by_importshttp://en.wikipedia.org/wiki/Economy_of_India#cite_note-15http://en.wikipedia.org/wiki/Economy_of_India#cite_note-15http://en.wikipedia.org/wiki/Economy_of_India#cite_note-15http://en.wikipedia.org/wiki/Indian_rupeehttp://en.wikipedia.org/wiki/Indian_rupeehttp://en.wikipedia.org/wiki/Indian_rupeehttp://en.wikipedia.org/wiki/US_dollarhttp://en.wikipedia.org/wiki/US_dollarhttp://en.wikipedia.org/wiki/US_dollarhttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Mixed_economyhttp://en.wikipedia.org/wiki/Mixed_economyhttp://en.wikipedia.org/wiki/Mixed_economyhttp://en.wikipedia.org/wiki/Mixed_economyhttp://en.wikipedia.org/wiki/Mixed_economyhttp://en.wikipedia.org/wiki/Economic_interventionismhttp://en.wikipedia.org/wiki/Economic_interventionismhttp://en.wikipedia.org/wiki/Economic_interventionismhttp://en.wikipedia.org/wiki/P.V._Narasimha_Raohttp://en.wikipedia.org/wiki/P.V._Narasimha_Raohttp://en.wikipedia.org/wiki/P.V._Narasimha_Raohttp://en.wikipedia.org/wiki/Licence_Rajhttp://en.wikipedia.org/wiki/Licence_Rajhttp://en.wikipedia.org/wiki/Golden_Quadrilateralhttp://en.wikipedia.org/wiki/Golden_Quadrilateralhttp://en.wikipedia.org/wiki/Golden_Quadrilateralhttp://en.wikipedia.org/wiki/Atal_Bihari_Vajpayeehttp://en.wikipedia.org/wiki/Atal_Bihari_Vajpayeehttp://en.wikipedia.org/wiki/Atal_Bihari_Vajpayeehttp://en.wikipedia.org/wiki/Atal_Bihari_Vajpayeehttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_sector_compositionhttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_sector_compositionhttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_sector_compositionhttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_sector_compositionhttp://en.wikipedia.org/wiki/Foreign_direct_investmenthttp://en.wikipedia.org/wiki/Foreign_direct_investmenthttp://en.wikipedia.org/wiki/Foreign_direct_investmenthttp://en.wikipedia.org/wiki/Fast_moving_consumer_goodshttp://en.wikipedia.org/wiki/Fast_moving_consumer_goodshttp://en.wikipedia.org/wiki/Fast_moving_consumer_goodshttp://articles.economictimes.indiatimes.com/http://articles.economictimes.indiatimes.com/http://articles.economictimes.indiatimes.com/http://www.financialexpress.com/http://www.financialexpress.com/http://www.financialexpress.com/http://www.financialexpress.com/http://articles.economictimes.indiatimes.com/http://en.wikipedia.org/wiki/Fast_moving_consumer_goodshttp://en.wikipedia.org/wiki/Foreign_direct_investmenthttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_sector_compositionhttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_sector_compositionhttp://en.wikipedia.org/wiki/Atal_Bihari_Vajpayeehttp://en.wikipedia.org/wiki/Atal_Bihari_Vajpayeehttp://en.wikipedia.org/wiki/Golden_Quadrilateralhttp://en.wikipedia.org/wiki/Licence_Rajhttp://en.wikipedia.org/wiki/P.V._Narasimha_Raohttp://en.wikipedia.org/wiki/Economic_interventionismhttp://en.wikipedia.org/wiki/Mixed_economyhttp://en.wikipedia.org/wiki/Mixed_economyhttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/US_dollarhttp://en.wikipedia.org/wiki/Indian_rupeehttp://en.wikipedia.org/wiki/Economy_of_India#cite_note-15http://en.wikipedia.org/wiki/List_of_countries_by_importshttp://en.wikipedia.org/wiki/List_of_countries_by_importshttp://en.wikipedia.org/wiki/List_of_countries_by_exportshttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)_per_capitahttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)_per_capitahttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)_per_capitahttp://en.wikipedia.org/wiki/BRICShttp://en.wikipedia.org/wiki/G-20_major_economieshttp://en.wikipedia.org/wiki/Purchasing_power_parityhttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)http://en.wikipedia.org/wiki/Gross_domestic_producthttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)http://en.wikipedia.org/wiki/India


13/16

Exports in India increased to 1764.62 INR Billion in September of 2013 from 1652.02 INR

Billion in August of 2013. Exports in India is reported by the Ministry of Commerce and

Industry, India. India Exports averaged 257.34 INR Billion from 1978 until 2013, reaching an all

time high of 1764.62 INR Billion in September of 2013 and a record low of 3.75 INR Billion in

May of 1978. Indias main exports are engineering goods (19 percent of total exports), gems and

jewelry (15 percent), chemicals (13 percent), agricultural products (9 percent) and textiles (9

percent). India is also one of Asias largest refined product exporters with petroleum accounting

for around 18 percent of total exports. Indias main export partners are United Arab Emirates (12

percent of total exports) and United States (11 percent). Others include: China, Singapore, Hong

Kong and Netherlands. This page contains - India Exports - actual values, historical data,

forecast, chart, statistics, economic calendar and news.12

India's total merchandise trade has increased over three-fold from $252bn in 2006 to $794 in

2012 - both exports and imports have trebled during this period according to theExport-Import

Bank of India(Exim bank). The bank is the premier export finance institution of the country and

was set up for the purpose of financing, facilitating, and promoting foreign trade of India.

India is not able to manufacture a large number of products for its self consumption as the

resources are limited and in order to increase its national income it increases its exports of goods.

Various agricultural products are not used for self consumption because in order to develop its

economy India exports the products rather than consuming it. The problem of consumption for

developing countries has increased in the present era.

12http://www.thehindubusinessline.com
http://www.theguardian.com/news/datablog/2013/feb/22/www.eximbankindia.comhttp://www.theguardian.com/news/datablog/2013/feb/22/www.eximbankindia.comhttp://www.theguardian.com/news/datablog/2013/feb/22/www.eximbankindia.comhttp://www.theguardian.com/news/datablog/2013/feb/22/www.eximbankindia.comhttp://www.thehindubusinessline.com/http://www.thehindubusinessline.com/http://www.thehindubusinessline.com/http://www.thehindubusinessline.com/http://www.theguardian.com/news/datablog/2013/feb/22/www.eximbankindia.comhttp://www.theguardian.com/news/datablog/2013/feb/22/www.eximbankindia.com


14/16

CHAPTER 5-CONCLUSION

The development of a country is measured with statistical indexes such as incomeper capita(per

person) (gross domestic product),life expectancy,the rate of literacy (ignoring reading

addiction), et cetera. The UN has developed theHuman Development Index(HDI), a compound

indicator of the above statistics, to gauge the level of human development for countries wheredata is available.

Developing countries are, in general, countries that have not achieved a significant degree of

industrialization relative to their populations, and have, in most cases, a medium to lowstandard

of living.There is a strong correlation between low income and high population growth.

The terms utilized when discussing developing countries refer to the intent and to the constructs

of those who utilize these terms. Other terms sometimes used are less developed countries

(LDCs), least economically developed countries (LEDCs), "underdeveloped nations" orThird

Worldnations, and "non-industrialized nations". Conversely,developed countries,most

economically developed countries(MEDCs),First Worldnations and "industrialized nations" are

the opposite end of the spectrum.

To moderate theeuphemisticaspect of the word developing,international organizationshave

started to use the termless economically developed country(LEDCs) for the poorest nations

which can, in no sense, be regarded as developing. That is, LEDCs are the poorestsubsetof

LDCs. This may moderate against a belief that the standard of living across the entire developing

world is the same.

China is the world's largest producer and consumer of agricultural productsand some

300 million Chinesefarmworkers are in the industry, mostly laboring on pieces of land about

the size of U.S farms. Virtually allarable landis used for foodcrops.China is the world's largest

producer ofriceand is among the principal sources ofwheat,corn

13

(maize),tobacco,soybeans,potatoes,sorghum,peanuts,tea,millet,barley,oilseed,pork,

andfish.Major non-food crops, including cotton, other fibers, andoilseeds,furnish China with a

small proportion of its foreign trade revenue. Agricultural exports, such as vegetables and fruits,

fish and shellfish, grain and meat products, are exported toHong Kong.Yields are high because

ofintensive cultivation,for example, China's cropland area is only 75% of the U.S. total, but

China still produces about 30% more crops and livestock than the United States,

(notwithstanding the State of California, which outproduces even the most productive Chinese

farmlands by a three to one ratio.) China hopes to further increase agricultural production

through improved plant stocks,fertilizers,and technology.

Indiaranks secondworldwide in farm output. Agriculture and allied sectors like forestry, loggingand fishing accounted for 17% of the GDP in 2012, employed 51% of the total workforce, and

despite a steady decline of its share in the GDP, is still the largest economic sector and a

significant piece of the overall socio-economic development of India.]Crop yield per unit area of

all crops have grown since 1950, due to the special emphasis placed on agriculture in the five-

year plans and steady improvements in irrigation, technology, application of modern agricultural

13http://www.livemint.com
http://en.wikipedia.org/wiki/Per_capitahttp://en.wikipedia.org/wiki/Per_capitahttp://en.wikipedia.org/wiki/Per_capitahttp://en.wikipedia.org/wiki/Gross_domestic_producthttp://en.wikipedia.org/wiki/Gross_domestic_producthttp://en.wikipedia.org/wiki/Gross_domestic_producthttp://en.wikipedia.org/wiki/Life_expectancyhttp://en.wikipedia.org/wiki/Life_expectancyhttp://en.wikipedia.org/wiki/Life_expectancyhttp://en.wikipedia.org/wiki/Human_Development_Indexhttp://en.wikipedia.org/wiki/Human_Development_Indexhttp://en.wikipedia.org/wiki/Human_Development_Indexhttp://en.wikipedia.org/wiki/Standard_of_livinghttp://en.wikipedia.org/wiki/Standard_of_livinghttp://en.wikipedia.org/wiki/Standard_of_livinghttp://en.wikipedia.org/wiki/Standard_of_livinghttp://en.wikipedia.org/wiki/Third_Worldhttp://en.wikipedia.org/wiki/Third_Worldhttp://en.wikipedia.org/wiki/Third_Worldhttp://en.wikipedia.org/wiki/Third_Worldhttp://en.wikipedia.org/wiki/Developed_countrieshttp://en.wikipedia.org/wiki/Developed_countrieshttp://en.wikipedia.org/wiki/Developed_countrieshttp://en.wikipedia.org/wiki/Most_economically_developed_countrieshttp://en.wikipedia.org/wiki/Most_economically_developed_countrieshttp://en.wikipedia.org/wiki/Most_economically_developed_countrieshttp://en.wikipedia.org/wiki/Most_economically_developed_countrieshttp://en.wikipedia.org/wiki/First_Worldhttp://en.wikipedia.org/wiki/First_Worldhttp://en.wikipedia.org/wiki/First_Worldhttp://en.wikipedia.org/wiki/Euphemistichttp://en.wikipedia.org/wiki/Euphemistichttp://en.wikipedia.org/wiki/Euphemistichttp://en.wikipedia.org/wiki/International_organizationhttp://en.wikipedia.org/wiki/International_organizationhttp://en.wikipedia.org/wiki/International_organizationhttp://en.wikipedia.org/wiki/Least_Developed_Countryhttp://en.wikipedia.org/wiki/Least_Developed_Countryhttp://en.wikipedia.org/wiki/Least_Developed_Countryhttp://en.wikipedia.org/wiki/Subsethttp://en.wikipedia.org/wiki/Subsethttp://en.wikipedia.org/wiki/Subsethttp://en.wikipedia.org/wiki/Farmhttp://en.wikipedia.org/wiki/Farmhttp://en.wikipedia.org/wiki/Farmhttp://en.wikipedia.org/wiki/Arable_landhttp://en.wikipedia.org/wiki/Arable_landhttp://en.wikipedia.org/wiki/Arable_landhttp://en.wikipedia.org/wiki/Crophttp://en.wikipedia.org/wiki/Crophttp://en.wikipedia.org/wiki/Crophttp://en.wikipedia.org/wiki/Ricehttp://en.wikipedia.org/wiki/Ricehttp://en.wikipedia.org/wiki/Ricehttp://en.wikipedia.org/wiki/Wheathttp://en.wikipedia.org/wiki/Wheathttp://en.wikipedia.org/wiki/Wheathttp://en.wikipedia.org/wiki/Maizehttp://en.wikipedia.org/wiki/Maizehttp://en.wikipedia.org/wiki/Maizehttp://en.wikipedia.org/wiki/Tobaccohttp://en.wikipedia.org/wiki/Tobaccohttp://en.wikipedia.org/wiki/Tobaccohttp://en.wikipedia.org/wiki/Soybeanshttp://en.wikipedia.org/wiki/Soybeanshttp://en.wikipedia.org/wiki/Soybeanshttp://en.wikipedia.org/wiki/Potatohttp://en.wikipedia.org/wiki/Potatohttp://en.wikipedia.org/wiki/Potatohttp://en.wikipedia.org/wiki/Sorghumhttp://en.wikipedia.org/wiki/Sorghumhttp://en.wikipedia.org/wiki/Sorghumhttp://en.wikipedia.org/wiki/Peanuthttp://en.wikipedia.org/wiki/Peanuthttp://en.wikipedia.org/wiki/Peanuthttp://en.wikipedia.org/wiki/Teahttp://en.wikipedia.org/wiki/Teahttp://en.wikipedia.org/wiki/Teahttp://en.wikipedia.org/wiki/Millethttp://en.wikipedia.org/wiki/Millethttp://en.wikipedia.org/wiki/Millethttp://en.wikipedia.org/wiki/Barleyhttp://en.wikipedia.org/wiki/Barleyhttp://en.wikipedia.org/wiki/Barleyhttp://en.wikipedia.org/wiki/Oilseedhttp://en.wikipedia.org/wiki/Oilseedhttp://en.wikipedia.org/wiki/Oilseedhttp://en.wikipedia.org/wiki/Porkhttp://en.wikipedia.org/wiki/Porkhttp://en.wikipedia.org/wiki/Porkhttp://en.wikipedia.org/wiki/Fishhttp://en.wikipedia.org/wiki/Fishhttp://en.wikipedia.org/wiki/Fishhttp://en.wikipedia.org/wiki/Oilseedhttp://en.wikipedia.org/wiki/Oilseedhttp://en.wikipedia.org/wiki/Oilseedhttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Intensive_cultivationhttp://en.wikipedia.org/wiki/Intensive_cultivationhttp://en.wikipedia.org/wiki/Intensive_cultivationhttp://en.wikipedia.org/wiki/Fertilizerhttp://en.wikipedia.org/wiki/Fertilizerhttp://en.wikipedia.org/wiki/Fertilizerhttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_sector_compositionhttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_sector_compositionhttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_sector_compositionhttp://en.wikipedia.org/wiki/Economy_of_India#cite_note-FOOTNOTEEconomic_Survey2010180-94http://en.wikipedia.org/wiki/Economy_of_India#cite_note-FOOTNOTEEconomic_Survey2010180-94http://en.wikipedia.org/wiki/Economy_of_India#cite_note-FOOTNOTEEconomic_Survey2010180-94http://www.livemint.com/http://www.livemint.com/http://www.livemint.com/http://www.livemint.com/http://en.wikipedia.org/wiki/Economy_of_India#cite_note-FOOTNOTEEconomic_Survey2010180-94http://en.wikipedia.org/wiki/List_of_countries_by_GDP_sector_compositionhttp://en.wikipedia.org/wiki/Fertilizerhttp://en.wikipedia.org/wiki/Intensive_cultivationhttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Oilseedhttp://en.wikipedia.org/wiki/Fishhttp://en.wikipedia.org/wiki/Porkhttp://en.wikipedia.org/wiki/Oilseedhttp://en.wikipedia.org/wiki/Barleyhttp://en.wikipedia.org/wiki/Millethttp://en.wikipedia.org/wiki/Teahttp://en.wikipedia.org/wiki/Peanuthttp://en.wikipedia.org/wiki/Sorghumhttp://en.wikipedia.org/wiki/Potatohttp://en.wikipedia.org/wiki/Soybeanshttp://en.wikipedia.org/wiki/Tobaccohttp://en.wikipedia.org/wiki/Maizehttp://en.wikipedia.org/wiki/Wheathttp://en.wikipedia.org/wiki/Ricehttp://en.wikipedia.org/wiki/Crophttp://en.wikipedia.org/wiki/Arable_landhttp://en.wikipedia.org/wiki/Farmhttp://en.wikipedia.org/wiki/Subsethttp://en.wikipedia.org/wiki/Least_Developed_Countryhttp://en.wikipedia.org/wiki/International_organizationhttp://en.wikipedia.org/wiki/Euphemistichttp://en.wikipedia.org/wiki/First_Worldhttp://en.wikipedia.org/wiki/Most_economically_developed_countrieshttp://en.wikipedia.org/wiki/Most_economically_developed_countrieshttp://en.wikipedia.org/wiki/Developed_countrieshttp://en.wikipedia.org/wiki/Third_Worldhttp://en.wikipedia.org/wiki/Third_Worldhttp://en.wikipedia.org/wiki/Standard_of_livinghttp://en.wikipedia.org/wiki/Standard_of_livinghttp://en.wikipedia.org/wiki/Human_Development_Indexhttp://en.wikipedia.org/wiki/Life_expectancyhttp://en.wikipedia.org/wiki/Gross_domestic_producthttp://en.wikipedia.org/wiki/Per_capita


15/16

practices and provision of agricultural credit and subsidies since the Green Revolution in India.

However, international comparisons reveal the average yield in India is generally 30% to 50% of

the highest average yield in the world. Indian states Uttar Pradesh, Punjab, Haryana, Madhya

Pradesh, Andhra Pradesh, Bihar, West Bengal, Gujarat and Maharashtra are key agricultural

contributing states of India.14

India receives an average annual rainfall of 1,208 millimetres (47.6 in) and a total

annualprecipitation15of 4000 billion cubic metres, with the total utilisable water resources,

including surface andgroundwater,amounting to 1123 billion cubic metres. 546,820 square

kilometres (211,130 sq mi) of the land area, or about 39% of the total cultivated area, is

irrigated. India's inland water resources including rivers, canals, ponds and lakes and marine

resources comprising the east and west coasts of the Indian ocean and other gulfs and bays

provide employment to nearly six million people in the fisheries sector. In 2008, India had the

world's third largest fishing industry.

India is the largest producer in the world of milk, jute andpulses,and also has the world's second

largest cattle population with 175 million animals in 2008. It is the second largest producer of

rice, wheat, sugarcane, cotton andgroundnuts,as well as the second largest fruit and vegetable

producer, accounting for 10.9% and 8.6% of the world fruit and vegetable production

respectively. India is also the second largest producer and the largest consumer of silk in the

world, producing 77,000 million tons in 2005.

14http://profit.ndtv.com/

15http://www.worldsrichestcountries.com
http://en.wikipedia.org/wiki/Precipitation_(meteorology)http://en.wikipedia.org/wiki/Precipitation_(meteorology)http://en.wikipedia.org/wiki/Precipitation_(meteorology)http://en.wikipedia.org/wiki/Groundwaterhttp://en.wikipedia.org/wiki/Groundwaterhttp://en.wikipedia.org/wiki/Pulseshttp://en.wikipedia.org/wiki/Pulseshttp://en.wikipedia.org/wiki/Pulseshttp://en.wikipedia.org/wiki/Peanuthttp://en.wikipedia.org/wiki/Peanuthttp://en.wikipedia.org/wiki/Peanuthttp://profit.ndtv.com/http://profit.ndtv.com/http://profit.ndtv.com/http://www.worldsrichestcountries.com/http://www.worldsrichestcountries.com/http://www.worldsrichestcountries.com/http://www.worldsrichestcountries.com/http://profit.ndtv.com/http://en.wikipedia.org/wiki/Peanuthttp://en.wikipedia.org/wiki/Pulseshttp://en.wikipedia.org/wiki/Groundwaterhttp://en.wikipedia.org/wiki/Precipitation_(meteorology)


16/16

BIBLIOGRAPHY

Books:

1. SurbhiArora, Economics for Law Students, Central Law Publications

Websites:

1. http://link.springer.com2. http://web.mit.edu3. http://www.indiankanoon.org/
http://link.springer.com/http://link.springer.com/http://web.mit.edu/http://web.mit.edu/http://www.indiankanoon.org/http://www.indiankanoon.org/http://www.indiankanoon.org/http://web.mit.edu/http://link.springer.com/

yashwant eco

Documents