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Unit 2: Structure of Indian Economy
Self Assessment Notes
Fill in the blanks:
1. …………………… measures the total value of the goods and services (output) produced by
an economy over a period of time.
2. India’s progress in …………………… cannot be termed as satisfactory.
3. …………………… some countries are wealthy, some countries are not wealthy and some
countries are in-between.
4. In order to keep the momentum of the …………………… of the Indian economy,
investment should be concentrated to those sectors which are strongly integrated with the
rest of the economy and have a larger multiplier effect on growth and development.
5. The first attempt to calculate National Income of India was made by …………………… in
1867-68.
2.2 Human Resource and Economic Development
In this section, you will learn about the human resource and economic development. The human
resources play dynamic function in the development of a country. Human resources development
is the process of raising the skills, the knowledge, and the capacities of all the people in a society.
In economic terms, it could be explained as the accumulation of human capital and its efficient
investment in the development of an economy. In political terms, human resources development
makes ready people for adult participation in political processes, especially as citizens in a
democracy. From the social as well as cultural perspectives, the development of human resources
assists people to direct fuller and richer lives, less tied by tradition. In brief, the processes of
human resources development open the door to modernization.
Notes The human development approach is one that calls for a simultaneous treatment of
economic and social aspects of development.
2.2.1 Roles of Human Resources
You must note that human resources are available in two functions, viz. (A) as factor services, as
well as (B) as units of consumption.
Human Resources as Factor Services
It is essential to consider that human resources, as factor services, offer labour and
entrepreneurship. More people depict more resources.
As such, population growth does add to economic growth, and not irrelevantly. Few of the vital
points to be considered from this perspective are as follows:
(a) Minimum Scales: Few infrastructures are only profitable with minimum density levels.
Industrial output in several regions is subject to sturdy economy-of-scale effects. Where
division of labour as well as scale economies are restricted by small populations, a raise in
the number of people can have a positive scale influence that increases productivity as
well as investment.
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