Page 68 - DECO502_INDIAN_ECONOMIC_POLICY_ENGLISH

Indian Economic Policy

Notes • According to the 2001 census, India is the second largest country in the world with the total
population of 102.7 crore constituting about 16% of the total population of the world.
• Since 1951, the upward trend in population growth rate was maintained which got reversed
during the decades 1981-2001.
• Different States of India have different number of inhabitants with a large gap. For instance,
Uttar Pradesh has a population as large as 16.60 crore while Sikkim has barely 5.40 lakh people.
• The difference between the birth rate and the death rate measures the growth rate of population.
The change in population caused by net migration as a proportion of total population of the
country is almost insignificant and, therefore, can be easily ignored. The birth and death rates
in India have followed the general trends indicated in the theory of demographic transition.
• The density of population in the country is 324 (Census 2001). It is calculated as a ratio of the
number of persons per sq. km. of land area. It may be noted that a country like Myanmar with a
density of population of only 75 has a per capita income of only $200 as against $530 in India.
However, Japan with a density of 349 has a per capita income of $34,510. In this way, the
density of population helps to determine the magnitude of the burden that land is being called
upon to carry and to determine the future potentials of growth in the country.
• The social health of an economy is strongly indicated by its sex ratio. Sex ratio tells a lot about
the state of gender relations. In India, we find a higher ratio of males in the population and a
rising tendency towards masculinity.
• India has a large population and is densely populated. Moreover, since the 1950s, the growth
rate of population has been consistently high. It is due to persistence of high fertility and declining
mortality. The population problem in India needs a policy which aims at a rapid reduction in
the birth rate of the country. Government has established a National Commission on Population,
headed by the Prime Minister, to monitor the new policy measures.
6.4 Key-Words

1. Discrimination : Recognition and understanding of the difference between one thing
and another.
2. Economic Development : Economic development is the increase in the standard of living in a
nation's population with sustained growth from a simple.
6.5 Review Questions

1. Examine the basic demographic Features of India. Also examine their relevance for India economic
policy for development.
2. From the perspective of economic policy for growth, examine the nature of different indicators of
economic development.
3. Discuss the demographic features of Development.
4. How will you measure the birth rate and death rate? Illustrate by examples.
5. Discuss the reasons for the decline in sex ratio.
Answers: Self-Assessment
1. (i)(b) (ii)(a) (iii)(b) (iv)(c)
6.6 Further Readings

1. Indian Economy; Gaurav Datt and Aswani Mahajan; S. Chand and Company
LTD. Ram Nagar, New Delhi-110055
2. The Indian Economy; S.K. Ray; Prentic, Hall of India Private Limited
New Delhi - 110001

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