understanding planning and development
TRANSCRIPT
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STRUCTURAL CONSTRAINTS FORECONOMIC DEVELOPMENT IN INDIA AS
ENVISAGED IN 1950S
Presented by :
Manav Saurav
Nishant Maloo
Roshan Shivan
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WHATWEWILLCOVERINTHIS SESSION
General state of Indian Economy in 1950s.
Structural Constraint for economic development inIndia.
Steps Taken to deal with them.
General state of Indian Economy post LPG
Our Conclusion.
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METHODOLOGY ADOPTED
Review of Literary works:
Paper 1: Growth Performance of the Indian Economy, 1950-89: Problems of the Employment andPoverty
by Dr. Y.K. Alagh
Paper 1: Indian Economic Growth: Constraints and Prospects
by Ranjit K. Sau
Planning and development
by Dr. Sukhamoy Chakarvarty
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STATE OF INDIAN ECONOMYIN1950S
GDP 3.6
Saving-Investment Gap/GDP -1.2
Contribution to GDP
Agriculture 59.0
Industries 13.0
Services 28.0
Poverty more than half the population
Literacy 12.2
Employment Growth Around 2%
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STRUCTURAL CONSTRAINTASSTATEDIN
PROF. Y K ALAGHPAPER.
Structural Constraints
*India inherited fragmented and distorted economyfrom the colonial rule.
* Lack of infrastructure and low efficiency.
* Human resource development neglected.
* Low rate of saving and investment.
*Weakness in sectoral linkages.
* The regional imbalance.
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STRUCTURAL CONSTRAINTASSTATEDIN
RANJIT K. SAUPAPER.
Semi-feudalism
Base of the home market for Indian industry was
narrow.
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STRUCTURAL CONSTRAINTASSTATEDBY
SUKHMOY CHAKARBORTY
Deficiency of Material Capital
Limitations on the speed of capital accumulation.
Agriculture subject to diminishing return.
Inequality in Indian society.
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BROADCATEGORIZATIONOF STRUCTURAL
CONSTRAINT
Economic Constraint
Saving -Investment gap
Productivity and Efficiency in different sectors of the
economy.
Social Constraint
Poverty
Unemployment
Illiteracy
Skill
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DEALINGWITHTHE STRUCTURAL
CONSTRAINT
1st to 3rd Plan
Aimed at overcoming economic constraint.
Trickle down theory for development.
4rth Plan to 7th Plan Aimed at overcoming Social constraint.
8th Plan onwards
Era of LPG reforms aimed at removing the structuralconstraint of Indian Economy. But these were aimed atremoval of economic constraint.
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GENERALSTATE OF INDIAN ECONOMY POST
LPG ERA
GDP 8.7
Saving-Investment Gap/GDP -0.3
Contribution to GDP
Agriculture 18Industries 29
Services 53
Poverty 37.2(2004-05)
Literacy 74%(2011 census)
Employment Growth Around 2%
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CONCLUSION
Structural Constraint for economic development are
mainly socio-economic in nature and inter-related.
Thus need for multi pronged approach. This require
resources. Developing nations have resource
constraints.
Resource Optimization is the solution and this can
be achieved through Planning.
Planning is therefore the initial instrument to deal
with structural constraint.
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THANK YOU
Questions