Page 31 - DECO303_INDIAN_ECONOMY_ENGLISH

Indian Economy

Notes 2.8 Summary

National income measures the total value of the goods and services (output) produced by
an economy over a period of time (normally a year).

National income is also a measure of the income flown from production, and/or the sum
total of all spending involved for the production of output.

Human resources development is the process of increasing the knowledge, the skills, and
the capacities of all the people in a society.
The processes of human resources development unlock the door to modernization.

Human resources are available in two roles, namely, as factor services, and as units of
consumption.
Human resources have to play a unique and significant role in the process of economic
growth.
Convenience in operations and connectivity are important for strengthening and sustaining
global trade growth.
Infrastructure development is essential for an economy’s growth and development.
Infrastructure that covers roadways, railways, air network and waterways forms the spine
of the economy.
A perfect situation would be to have sufficient infrastructure capacity so that the many
modes could form a logistics chain for smooth and continuous flow of goods and services.

2.9 Keywords

Economy-of-scale: The reduction in long-run average and marginal costs arising from an increase
in size of an operating unit (a factory or plant, for example).
Entrepreneurship: The capacity and willingness to develop organize and manage a business
venture along with any of its risks in order to make a profit. In economics, entrepreneurship
combined with land, labour, natural resources and capital can produce profit.
Human Capital: Human capital can be defined as the body of knowledge possessed by the
population and the capacity of the population to use the knowledge effectively.
Human Development Index: Human Development Index (HDI) is used as approximation and
indicator of Human Resource Development.
Human Resources Development: It is the part of human resource management that specifically
deals with training and development of the employees.
Income Method: This method approaches national income from the distribution side.
National Income: The income earned by a country’s people, including Labour and capital
investment.
Sustainable Development: The development that meets the needs of the present without
compromising the ability of future generations to meet their own needs is called as Sustainable
Development.

26 LOVELY PROFESSIONAL UNIVERSITY