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IGNOU BECC 111 Solved Assignment 2022-23
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Submission Date :
- 31st March 2033 (if enrolled in the July 2033 Session)
- 30th Sept, 2033 (if enrolled in the January 2033 session).
Answer the following Descriptive Category questions in about 500 words each. Each question carries 20 marks. Word limit does not apply in case of numerical questions in Assignment One.
Answer the following Middle Category questions in about 250 words each. Each question carries 10 marks. Word limit does not apply in case of numerical questions in Assignment Two.
Answer the following Short Category questions in about 100 words each. Each question carries 6 marks in Assignment Three.
Answer all the questions.
1. Discuss the trends in the ‘sectoral growth/changes’ in India over the period 1951-2019.
i. Rising trend of National Income and per Capita Income:
Economic growth of any country is measured by the increase in national and per capita output.
During the plan period, national income of the country has certainly gone up. In 1950- 51, net national product at factor cost or national income (at 1999-2000 prices) stood at Rs. 2,06,493 crore. It rose to Rs. 27,60,325 crore in 2007-08 (at 1999- 2000 prices).
This means that between 1950-51 and 2007-08 national income grew at the compound rate of 4.7 percent per annum.
Compared to the pre-independence figure, this is really remarkable. However, the performance of the Indian economy in this direction in the 1980s, 1990s was certainly praiseworthy since it recorded a growth rate of more than 6 p.c. p.a. GDP growth rate in the 2000s is unprecedented.
It rose from 5.8 p.c. in 2001-02 to 9.2 p.c. in 2006-07. If the present trend continues, the country will be able to achieve a double digit growth rate within one or two years.
However, the better measure of economic development is the per capita income. Per capita NNP rose to Rs 24,256 in 2007- 08 (at 1999-2000 prices) as against Rs 6,122 of 1950-51 at 1999-2000 prices. This means that during this period, compound annual growth rate of net per capita income rose by 2.5 p.c. p.a.
Historically, it exhibits a better growth rate. Yet, it is inadequate compared to the needs of the country. The only encouraging aspect is that it shows a rising trend.
ii. Increase in Agricultural and Industrial Output:
Over the plan period, Indian economy experienced a higher growth rate in agriculture as well as in industry. Pre-plan period recorded an agricultural growth rate of 0.3 p.c. while the plan period showed a growth rate of 2.66 p.a. Performance of the industrial sector is certainly a better one.
During the plan period, 1950-2007, the overall achievement in this sector is more than 4.8 p.c. Trend growth of India’s exports shows Indian agricultural and industry on the move.
2. Qualitative Changes or Structural Changes:
During the plan period, not only economic growth picked up, but also economic development i.e., ‘growth plus change’ occurred in India. This amounts to saying that the Indian economy witnessed structural changes.
By economic structure we mean interrelationship among the different productive sectors i.e., agriculture and allied activities (known as the primary sector), manufacturing and industries (called the secondary sector), and trade and services (or the tertiary sector).
At a low level of economic development, one finds predominance of the primary sector. The predominance of any sector can be viewed from the sectoral composition of national income and occupational structure. When, in an economy, primary sector is considered as the predominant one then it means that the contribution of this sector towards national income is the largest.
Not only this, the bulk of the population derives their livelihood from this sector.
On the other hand, in the sectoral composition of national income as well as in the occupational pattern, the importance of the secondary and tertiary sectors gets reduced. As economic development proceeds, the interrelationships among these sectors undergo a change.
As economic development takes place, the primary sector (from the standpoint of sectoral composition of national income and occupational pattern) loses its importance and secondary as well as tertiary sectors gain in importance. Thus, structural changes indicate economic development. This is what Colin Clark hypothesized.
We will see whether structural changes have taken place in India during the Plan Period:
i. Sectoral Composition of National Income:
In 1950-51, the contribution of the primary sector towards India’s gross domestic product or GDP was nearly 55.9 p.c., while it was 14.9 p.c. for the secondary sector-Since then there has been a steady decline in the share of the primary sector in GDP and it declined to 19.4 p.c. in 2007-08.
On the other hand, over the plan period, as the industrial sector expanded, its contribution to GDP has been on the rise and it rose to 25 p.c. in 2007-08.
Along with the growth of the secondary sector, the services sector also registered a higher growth rate. In 2007-08, its contribution was 55.7 p.c. Thus, it is clear that as economic development took place during the last five decades of planning, the primary sector lost its pre-eminence, as against 29.2 p.c. in 1950. This, of course, is a sign of economic development.
One can make a better analysis of structural changes if the entire period is divided in the following sub-periods, as shown in Table 12.3:
The GDP growth rate between 1950-51 and 1979-80 came to be known as ‘Hindu rate of Growth’ of 3.5 p.c. p.a. But this long-term trend has been broken and in 2006-07 GDP growth rate went past 9 p.c. p.a. along with the rising growth trend of especially service sector and then industry sector. But primary sector’s performance is rather unsatisfactory in the current year.
2. Explain the policy implication for India in the context of conflict in ‘inequality or poverty’.
- The United Nations describes inequality as “the state of not being equal, especially in status, rights and opportunities”.
- Inequality can be broadly classified in to:
- Economic inequality: Economic inequality is the unequal distribution of income and opportunity between individuals or different groups in society.
- Social inequality: It occurs when resources in a given society are distributed unevenly based on norms of a society that creates specific patterns along lines of socially defined categories e.g. religion, kinship, prestige, race, caste, ethnicity, gender etc. have different access to resources of power, prestige and wealth depending on the norms of a society.
- Both these categories are deeply intertwined and inequality of one type affects the inequality in another e.g. Social Inequality due to gender have large impact on income of women. In patriarchal societies large gender wage gap tends to exist.
Dimensions of Inequality in India
- In India, following are distinctive forms of social inequality:
- The Global Gender Gap Report, 2018, ranks India at 142 among 149 countries.
- Four parameters for measuring gender inequality are economic participation and opportunity, health and survival, educational attainment and political empowerment.
- Gender wage gap is highest in India according International Labor Organization women are paid 34% less than men.
- Women comprise over 42 per cent of the agricultural labour force in the country, yet they own less than 2 percent of its farm land according to the India Human Development Survey (IHDS).
- Caste is significant factor for determining access to resources like education, income, health valued by individuals.
- India’s upper caste households earned nearly 47% more than the national average annual household income, the top 10% within these castes owned 60% of the wealth within the group in 2012, as per the World Inequality Database.
- Religious identities are significant for an individual’s ability to mobilize resources.
- Religious identities can cause prejudices which may lead to economic exclusion and other forms of discrimination which can impact jobs and livelihood opportunities.
- While minorities such as Christians, Parsis and Jains have a larger share of income/consumption than their population share, Muslim and Buddhist populations have significantly lower access to economic resources.
- Tribal communities in India have been identified as ethnic group on the basis of their unique culture, language, dialect, geographical location, customs etc.
- The National Family Health Survey 2015-16 (NFHS-4) showed that 45.9% of ST population were in the lowest wealth bracket as compared to 26.6% of SC population, 18.3% of OBCs, 9.7% of other castes.
- The 2019 report by Oxfam, titled “Public good or Private Wealth?” showed that India’s top 10% holds 77.4% of the total national wealth, while the top 1% holds 51.53% of the wealth.
- The bottom 60% population holds only 4.8% of the national wealth.
- 13.6 crore Indians, who make up the poorest 10% of the country, have continued to remain in debt for the past 15 years.
- The Gini coefficient of wealth in India in 2017 is at 0.83, which puts India among the countries with highest inequality countries.
Consequences of Inequalities
- Inequalities tend to produce social conflict among the social groups e.g. caste groups like Jaats, Maratha, Patels are demanding reservations but this demand is opposed by caste groups already claiming the benefits of reservations, such clash of interest due to perceived inequality tend to produce violent conflicts between opposing caste groups.
- Inequalities among ethnic groups have led to various ethnic movements demanding separate states or autonomous regions or even outright secession from India. North East has been rocked by numerous such ethnic movement e.g. by Nagas for greater Nagalim etc.
- Religious inequality tends to generate feeling of exclusion among religious minority groups. This reduces their participation in mainstream, in India religious minorities have large population their economic exclusion compromises the GDP growth of nation as whole.
- Poor development indicators like IMR, MMR, low per capita income, lower education and learning outcomes at schools, high rate of population growth can be traced to existing socio-economic inequalities.
High economic inequality is detrimental to public healthcare and education. Upper and Middle classes do not have vested interest in well functioning public healthcare and education as they have means to access private healthcare and education.
3) Analyse the growth in the National Income of India over the different plan periods.
4) Explain the trends in ‘demographic transition’ in India.
5) Outline the measures initiated to combat poverty in India during the post-2010 years.
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6) Differentiate between the following.
(a) Absolute Poverty and Relative Poverty.
(b) Horizontal Inequality and Vertical Inequality.
(c) Physical and Social Infrastructure.
7) Write short notes on the following.
(b) Objectives of PLFS.
(c) Key Features of NEP 2020.
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