Growth and Human Development in India – UGC-NTA NET Political Science
Growth and human development are critical components of political processes in India.
Definitions
Growth
Growth refers to the increase in the production of goods and services in an economy over time. It is typically measured by Gross Domestic Product (GDP). A rising GDP indicates a flourishing economy. For instance, India’s GDP grew post-liberalisation in 1991, showcasing rapid economic development.
Human Development
Human development encompasses economic growth but extends beyond it. It focuses on improving the quality of life, well-being, and capabilities of individuals. The Human Development Index (HDI) serves as a key measure, integrating health, education, and standard of living.
Indicators of Growth
Key Indicators
Several indicators help assess economic growth:
- GDP – Total value of all goods and services produced.
- Per Capita Income – GDP divided by the population, indicating average income.
- Employment Rates – Percentage of the labour force that is employed.
- Industrial Output – Production levels in various industrial sectors.
Indicators of Human Development
Key Indicators
Human development is measured using various indices:
- Human Development Index (HDI) – Measures health, education, and standard of living.
- Gender Development Index (GDI) – Assesses gender disparities in HDI.
- Multidimensional Poverty Index (MPI) – Evaluates poverty through various deprivations.
Theories of Economic Growth
Classical Theories
Classical theories emphasise capital accumulation, labour, and land as production factors. Economists like Adam Smith brought into light the importance of these elements in driving growth.
Neoclassical Growth Theory
Neoclassical growth theory focuses on the role of technology and innovation. It suggests that advancements in technology lead to increased productivity and growth.
Endogenous Growth Theory
Endogenous growth theory posits that economic growth stems primarily from internal factors, such as human capital and innovation, rather than external influences.
Human Development Theories
Capability Approach
Proposed by Amartya Sen, the capability approach emphasises individual capabilities and freedoms. It argues that development should enhance people’s abilities to lead fulfilling lives.
Sustainable Development
Sustainable development seeks to balance economic growth with environmental sustainability and social equity. It aims to ensure that growth does not compromise future generations’ ability to thrive.
Policies for Growth and Human Development
Economic Policies
Economic policies include fiscal, monetary, and trade policies aimed at stimulating growth. For example, the introduction of the Goods and Services Tax (GST) in India aimed to simplify taxation and boost economic activity.
Social Policies
Social policies focus on education, healthcare, and welfare programmes. Initiatives like the Mid-Day Meal Scheme improve educational outcomes and nutritional standards among children.
Inclusive Growth
Inclusive growth policies ensure that all sections of society benefit from economic progress. Schemes like the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) aim to reduce inequality by providing job security to rural populations.
Challenges to Growth and Human Development
Inequality
Economic growth can lead to disparities. The benefits of growth may not reach all segments of society, resulting in widening inequality. For instance, urban areas often experience more growth than rural regions.
Unemployment
Growth does not always translate into job creation. Automation and technological advancements can lead to job losses, particularly in traditional sectors.
Environmental Degradation
Rapid economic growth can result in unsustainable practices. Pollution and resource depletion are concerns in India’s quest for growth. The Ganga River pollution is a notable example of environmental challenges.
Health Crises
Health crises, such as the COVID-19 pandemic, can impede both growth and human development. The pandemic brought into light weaknesses in healthcare infrastructure and exacerbated existing inequalities.
Global and National Context
Globalisation
Globalisation influences national growth and development. Increased trade and investment can enhance economic opportunities. However, it can also lead to dependency on global markets.
Sustainable Development Goals (SDGs)
The United Nations’ SDGs aim to address global challenges, including poverty and inequality. India has committed to achieving these goals by 2030, focusing on inclusive and sustainable growth.
India’s Development Experience
India’s development journey includes post-independence growth strategies and economic liberalisation in 1991. Initiatives like Make in India and Digital India aim to boost manufacturing and technological advancement.
Measurement and Assessment
National Accounts
National accounts systems measure economic activity and growth. They provide essential data for policymakers to analyse trends and make informed decisions.
Surveys and Data Collection
Surveys, including census data and household surveys, assess human development indicators. These tools help identify areas needing attention and guide policy formulation.
Case Studies and Examples
India’s HDI Ranking
India’s HDI ranking has improved over the years. However, it still lags behind many countries. Continuous efforts are needed to enhance health, education, and living standards.
State-Level Variations
There are notable differences in growth and human development across state of Indias. For instance, Kerala excels in health and education, while Bihar struggles with basic indicators.
Impact of Policies
Evaluating specific policies helps understand their effects on growth and human development. The Pradhan Mantri Awas Yojana, aimed at providing affordable housing, has improved living standards for many. Thus, growth and human development are intertwined concepts crucial for understanding India’s political and economic landscape. By analysing various indicators, theories, policies, and challenges, one can gain a comprehensive understanding of the complexities involved in encouraging sustainable development in the country.
