Indian Economy - UPSC MCQ

There is no single definition that can define the term economic growth. However, there are various indicators that explain the term.
 

The structural change is the shift from primary sector to secondary and tertiary sectors contribution to the GDP. Change in occupational structure involves falling share of agriculture in the total employment.

Economic development is a wider concept than growth. There are various parameters used to define and measure it.
 

Underdeveloped countries face the problem of deprivation of a large section of the population, low per capita real income etc.
 

Underdeveloped countries lag behind in various factors like availability of resources, technology etc.
 

Other than the above features, there is High incidence of poverty, rapid population growth and technological backwardness too.

COR refers to the number of units of capital required to produce one unit of output. A higher level of it means inefficient use of capital.
 

It is high in capital intensive industries because of more use of capital and time lag between investment and production.
 

The supporters of this theory argue that simultaneous investment in all the sectors will help in faster growth. It is based on the idea that all sectors are interlinked.
 

This strategy says that there will be positive impact on the sectors that are lagging behind and they will also try to catch up with it.
 

India adopted this growth strategy after independence itself. The second five year plan emphasized on the development of heavy industries.
 

The Physical Quality of Life Index is one of the indicators to measure human development. It is calculated by using a simple average.

PQLI has 3 parameters- life expectancy index, infant mortality rate and basic literacy index.

The United Nations Development Programme (UNDP) published the HDR every year since 1990.

The concept developed in the 1990s. It has 3 important parameters- life expectancy, education achievement index and standard of living index.
 

The concept developed in the 1990s. It has 3 important parameters- life expectancy, education achievement index and standard of living index.
 

The MPI concept is developed by the Oxford Human Development Initiative. It has three main dimensions to it.
 

MPI has 3 important dimensions to it- health, education and standard of living. Based on these , there are ten parameters.

While education and health dimensions measure each indicators at equal weightage of 1/6, for standard of living it is 1/18
 

These are the indicators to measure standard of living. Other indicators are drinking water, sanitation etc.