Economics

PRESENTATION
NAME : KHAN FARHEEN FIROZ

ROLL NO : 717 DIVISION : D
CLASS : TYBCOM
SUBJECT : INDIAN AND GLOBAL ECONOMIC
DEVELOPMENT
SUBJECT TEACHER : Prf.VISHNU DIGHE
ECONOMIC
DEVELOPMENT
 MEANING:
The continuous process that focuses on both quantitative and qualitative

improvement Of the economy is considered as economic development. Generally
speaking economic development measures all the aspects of human life such as
wealth,health,better education,access to good quality housing
DEFINITION:
According to Fritz Machlup
“ Economic development is a process which increases the factor of production
and create change in the technique of production due to which per capita income
continuously increases and the standard of living continuously rises irrespective
of whether population remains constant or increases”
INDICATORS OF ECONOMIC
DEVELOPMENT
GROSS NATIONAL PRODUCT (GNP)
PER CAPITA INCOME (PCI)
PER CAPITA CONSUMPTION (PCC)
PHYSICAL QUALITY OF LIFE INDEX (PQLI)
HUMAN DEVELOPMENT INDEX (HDI)
INDUSTRIAL PROGRESS
CAPITAL FORMATION
GROSS NATIONAL PRODUCT
(GNP)
 GrossNational Product is the market value of all goods
and services produced in One year by labour and
property supplied by the citizens of the country .
GNP= GDP+Net income flow from abroad – Net

factor Income outflow to foriegn countries
PER CAPITA INCOME
 Per Capita Income measures the average income earned by a
person in a given time period.
 High Per Capita Income means high standard of living.
 Sodevelopment countries have more PCI as compared to
developing countries.
PER CAPITA INCOME =Total Income

Total Population
PER CAPITA CONSUMPTION
 Like Per Capita Income ,Per Capita Consumption is also an average measure. An increase
in the level of PPC shows better quality of life and hence higher economic development.
PER CAPITA CONSUMPTION = TOTAL CONSUMPTION

TOTAL POPULATION
INDUSTRIAL PROGRESS
Industrial progress is another important indicator of the level of economic development of a
country. Per Capita income and national output of the country increases when there is
progress in the industry sector .To explain further when more output is produced there is
requirement of more employment of labour ,capital and raw materials. Increased
employment opportunities help in increasing PCI ,PCC and healthcare.
PHYSICAL QUALITY OF LIFE
INDEX
The PQLI which is a composite index was developed by
Morris D Morris .It is a common indicator of economic
development and is computed from infant mortality
rate,life expectancy at birth and literacy rate .A PQLI
is measured on a scale of 1 to 100.A country is
considered to be developed if the PQLI value os above
50 and if is below 50, the nation is considered to be
developing.
HUMAN DEVELOPMENT INDEX (HDI)
The HDI index tracks the level of development achieved by the countries over
time.United National Development Programme (UND)had introduced the HDI Index
in 1990 in order to provide a means of measuring the level of economic development
in three broad areas
a)PER CAPITA INCOME
b)EDUCATION
c) HEALTH
 An Index of 0- 0.490 means low development eg Central African Republics HDI as
per 2020 report is 0.39
 An Index of 0.5 -0.690 means medium development. Eg India’s HDI as per 2020
report is 0.645
 An Index of 0.7 to 0.790 means high development Eg Mexicos HDI is 0.779
 An Index of above 0.8 means very high development .Eg Norway‘s HDI as pe 2020
report is 0.957
CAPITAL FORMATION
CAPITAL FORMATION MEANS INVESTING IN ROADS
,BUILDINGS,TRANSPORT, ELECTRICITY,IRRIGATION,TECHNOLOGY
Etc. GENERALLY HIGHER CAPITAL FORMATION LEADS TO HIGHER
ECONOMIC DEVELOPMENT IN A COUNTRY
THE HUMAN DEVELOPMENT REPORT (HDR) IS A ANNNUAL HDI
INDEX PUBLISHED BY THE UNITED NATIONS DEVELOPMENT
PROGRAMME. ACCORDING TO THE REPORT PUBLISHED BY THE
UNITED NATIONS DEVELOPMENT PROGRAMME (UNDP),INDIAS
RANK IS 131 WITH THE HDI VALUE OF 0.645 AMONG 189 COUNTRIES
IN THE YEAR 2020.NORWAY TOPPED THE POSITION WITH 0.957 HDI
VALUE.

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PRESENTATION

NAME : KHAN FARHEEN FIROZ

The continuous process that focuses on both quantitative and qualitative

GNP= GDP+Net income flow from abroad – Net

PER CAPITA INCOME =Total Income

PER CAPITA CONSUMPTION = TOTAL CONSUMPTION

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