NITISH SHUKUL LALIT JHA NIKITA JOSE GUNEET GILL ANKIT SHARMA LAVLESH UPADHYAY

Economic Growth
Economic growth is an increase in the total output of the economy. It occurs when a society acquires new resources or when it learns to produce more by using existing resources. It is conventionally measured as the percent rate of increase in gross domestic product.

Economic Growth Vs Economic Development

The economic growth is primarily the study of how

countries can advance their economies. The economic development is the study of the economic aspects of the development process in lowincome countries.

FACTORS of ECONOMIC GROWTH

Economic growth depends on the nature of

the factors of production and how well they are used.

Factors of Economic Growth include:

o o o o

natural resources human capital capital goods entrepreneurship

FACTORS of ECONOMIC GROWTH

Natural resources are the raw materials of a country has, that make life and production of goods possible.
Natural resources affect economic development. Nations rich in natural resources will use them to produce revenue.

FACTORS of ECONOMIC GROWTH

Human capital refers to investments in the welfare and training of workers.
An increase in human capital enables an economy to produce more of everything that uses human capital.

Providing health care, family benefits, and more training and education are all investments in human capital.

FACTORS of ECONOMIC GROWTH

The more skills and education workers have, the better they are able to work with mistakes and to learn new jobs as technology changes.
More developed nations often invest more in human capital than less-developed nations.

FACTORS of ECONOMIC GROWTH

Capital goods are goods used to produce things. The ability to invest in capital goods influences a countrys economic growth.
An increase in capital goods enables an economy to produce more of everything that uses these capital goods.

FACTORS of ECONOMIC GROWTH

For example, an increase in capital goods can result in more factories, office buildings, tractors, or high-tech medical equipment .
Producing more goods for sale in a quicker and more efficient way leads to economic growth and greater profit.

FACTORS of ECONOMIC GROWTH

Entrepreneurs are creative, original thinkers who are willing to take risks to create new businesses and products. Entrepreneurs think of new ways to combine natural, human, and capital resources to produce goods and services that they expect to sell for a price high enough to cover production costs.

FACTORS of ECONOMIC GROWTH

Entrepreneurs risk their money to produce new goods and services in the hope of making a profit. If a new product or service does not become popular, the entrepreneur may not make a profit. This is the risk he or she takes.
Economic growth depends on entrepreneurs willing to take chances and introduce new ideas.

BENEFITS of ECONOMIC GROWTH

Economic growth raises a countrys overall standard of living.
This provide people with goods and services with

enjoyable leisure time.

Economic growth creates jobs and economic security for more people.

BENEFITS of ECONOMIC GROWTH

Economic growth enlarges the tax base or the income and properties that may be taxed. A larger tax base lets government supply more public services and invest more infustructure development.

ECONOMIC GROWTH OF INDIA

GDP Growth of INDIA

Causes of Economic Slowdown

High Inflation.
Slow Reform Movement Stalling Growth

Prospects. Earnings Slowdown Impacted by higher Operating costs. Current Account Deficit Signs of Growing Concern. Industrial Growth A bit too volatile to Digest.

Causes of Economic Slowdown

Rising Interest Rates Renders Working

Conditions Costly. Fiscal Deficit The Unbudgeted woes. FII Selling Moving back to the West. Global woes India still not decoupled yet.

Steps to revive slowing economy

Reform Push
Rise cap in FDI in retail Tax Reform

Financial Sector Reform

Banking Reform Agricultural Reform

Labour Sector Reform

ECONOMIC DEVELOPMENT

ECONOMIC DEVELOPMENT
Economic development generally refers to the sustained, concerted actions of policymakers and communities that promote the standard of living and economic health of a specific area. Such actions can involve multiple areas including development of human capital, critical infrastructure, regional competitiveness, environmental sustainability, social inclusion, health, safety, literacy, and other initiatives.

The Indicators of Economic Development

Measure of Economic Welfare (MEW) Genuine Progress Indicator (GPI) Human Development Index (HDI) Gender-related Development Index (GDI) Human Poverty Index

The dimensions and indicators of the HDI

HDI has three dimensions, measured by one or two

indicators each: Leading a long and healthy life

Life expectancy at birth

Education Adult literacy rate Gross primary, secondary and tertiary enrolment A decent standard of living GDP per capita (PPP US$)

Goalposts for calculating the HDI

Indicator
Life expectancy Adult literacy

Minimum value
25 years 0%

Maximum value
85 years 100%

Gross enrolment
GDP per capita

0%
100 (PPP US$)

100%
40,000 (PPP US$)

GENDER RELATED DEVELOPMENT INDEX(GDI)

Same components as the HDI After calculating dimension index for each sex they

are combined in a way to penalize gender equality (equally distributed index)

The GDI is calculated by taking the unweighted average of the three equally distributed indices

HDI INDEX of INDIA

Reasons Of Low HDI

In a nation of 1.2 billion, only 62 per cent are literate. About 420 million poor live in only eight states. 250 million people do not have access to basic medical

care. Around 350 million do not have access to safe drinking water. 53 per cent children are undernourished. 52 per cent of our primary schools have only one teacher for every two classes.

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