After 62 years of Indian independence the economy has achieved several qualities for which it can

be considered as a developing nation.

(i) Increase in Net National Product:

According to the CSO (Central Statistical Organization), Indias net national product at factor cost
(NNP at FC), i.e. national income was only Rs 1, 32,367 crores in 1950-51 increased to Rs 12,66,005
crores in 2003-04. During the last two decades the national income has increased significantly to 5.8
% per year compared to 3.4% in first three decades. NN. estimates of first two years of 10 th Fiver
year plan are available. In these two years NNP rose at the rate of 6.5% per year although the
growth rate was not adequate still it reflects some sign of improvement in terms of NNP at FC.

(ii) Increase in Per Capita (Per Head) Income:

Increase in per capita net national product at factor cost (per capita income) is considered to be far
better index of economic growth. For this reason the planners of Indian economy want to progress
the economic growth in terms of per head income.

According to 1993-94 prices, Indians per capita income in 1950-51 was Rs, 3,687.1. In 2003-04,
within the five decades the per capita income rose to Rs 11,798.7, Although the Planning
Commission expected that the per capita income of India would be doubled in twenty years.

However this is an over-optimistic view without any basis. Over twelve years since 1992, the per
capita income increased at a rate of 4.2% per year. In the first two years of 10th Five Year Plan per
capita NNP at FC increased at the rate of 4.7 per year. However, the overall performance throughout
the planning period was not adequate due to long past colonial exploitation.

(iii) Rise in Capital Formation:

According to Simon Kuznets, Capital formation is necessary condition for economic productivity and
growth. Rise in capital formation leads to increase in the growth of primary, secondary and tertiary
sectors. During the planning period the gross domestic capital formation had increased from 8.7% in
1950- 51 to 26.3% in 2003-04.

(iv) Industrial Growth:

In India there are no such uniformity during the plan periods as far as industrial growth is concerned.
Indian industries during the Third Five Year Plan observed a decent growth of about 8%), but
thereafter industrial stagnancy took place. In 1976-77, the growth was abnormally high, but it
decreased steadily during 1979 80. Again, it rose up during 80s, According to Economic Survey, the
average] annual industrial growth rate in India which was 5.6% in First Fiver Year Plan had increased
to 8.6% during The Tenth Fiver Year Plan.

(v) Agricultural Progress:

The impact of new agricultural policy, i.e., green revolution, had increased our FoodGrain production
substantially from 81.0 million tonnes in the Third Plan (annual average) to 212.0 million tonnes in
2003-14. Wheat production increased from 11.1 million tonnes in 2003-04. The average annual
production of rice rose from 35.1 million tonnes in Third Five Year Plan to 87.0 million tonnes in
2003 04.

(vi) Rise of Social Over Head Capital:

Social overhead capital includes transportation, irrigation, energy production, education, medical
facilities etc. During the overall planning period these sectors had increased considerably.

(a) The railways route length increased by more than 9000 kms and the operation fleet has
practically doubled.

(b) Indias road network is now one of the largest in the world. The total road length comprising
national highways, state highways and other roads was 24.8 lakh kms in 2001-02. Shipping and civil
aviation have also improved equally.

(c) India is still facing an energy crisis, but over the past five decades there has been a massive
increase in installed electricity generating capacity. In 2003-04, the installed electricity generating
capacity was 1, 21,400 MW against 2,300 MW in 1951. Likewise irrigation facilities in the country
have been increased raising irrigated area from 2.26 crore hectares in 1950-51 to 8.47 crore hectares
in 1999-2000.

(d) During the planning period the number of educational institutions have increased two times,
whereas the number of teachers and students increased more than four times. Medical facilities
have also increased during this period along with the number of doctors and number of nurses. The
bed population is currently 0.93 bed per 1000 population as against 0.33 bed per 1000 population in
1950-51.