Indian Economy: Growth and Transformation Notes Class 10 Geography Chapter 7 Kerala Syllabus Questions and Answers

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SCERT Class 10 Social Science Geography Chapter 7 Indian Economy: Growth and Transformation Notes Question Answer Kerala Syllabus

Class 10 Geography Chapter 7 Notes Kerala Syllabus Indian Economy: Growth and Transformation

Question 1.
How does economic growth benefit the economy?
Answer:
Economic growth means the country is producing more goods and services than before. This helps the economy because more jobs are created, people earn better incomes, and the government gets more money to provide facilities like schools, hospitals, and roads. As a result, people enjoy a higher standard of living and the overall life of the country improves.

Question 2.
Observe and analyse the graph below to see India’s economic growth rate published by the Ministry of Statistics and Programme Implementation (MOSPI) from 2012 – 13 to 2023 – 24.

a. Which year achieved the highest growth rate in GDP?
b. In which year did the lowest economic growth rate occur?
c. Has there been any period of negative growth (ie., below zero)? If so, why?
Answer:
a. 2021 – 22
b. 2020 – 2021
c. Yes, in 2020 – 2021 GDP growth was -5.8

Question 3.
Analyse the factors influencing economic growth during this period (based on the question above).
Answer:
From 2012 – 13 to 2016 – 17, India’s economy grew steadily because of good government policies, low oil prices, and strong growth in services and agriculture. But between 2017 – 18 and 2019 – 20, growth slowed down due to demonetisation, the introduction of GST, problems in banks, and weaker global demand. In 2020 – 21, the COVID-19 pandemic and lockdowns caused the economy to shrink for the first time in years. Growth bounced back strongly in 2021 – 22 as businesses reopened, exports rose, and government support increased. In the recent years 2022 – 23 and 2023 – 24, growth remained positive but slightly slower because of high inflation, rising oil prices due to the Russia-Ukraine war, and higher interest rates. Overall, India’s growth was shaped by government reforms, global events, agriculture, and the pandemic.

Question 4.
The per capita income of countries with different levels of development, Afghanistan, India, China and the USA, over different periods are given below.

Prepare an analysis report comparing India’s Per Capita Income with Afghanistan, China and the USA for each period.
Answer:
In 1991, India’s per capita income was 364 USD, slightly higher than China (318 USD) and Afghanistan (317 USD), but far below the USA (26,741 USD). By 2001, India’s income rose to 442 USD, while China had already started growing faster at 949 USD. Afghanistan, after years of conflict, had fallen behind with 169 USD, while the USA continued its strong growth at 35,892 USD. In 2011, India’s income grew significantly to 1,569 USD, but China had surged much ahead to 5,425 USD due to rapid industrialization. Afghanistan’s recovery brought it up to 606 USD, though it still lagged behind. The USA’s per capita income reached 48,303 USD, maintaining its high-income status. By 2021, India’s income had increased to 2,116 USD, indicating steady growth, but remained significantly lower than China (12,554 USD) and far below the USA (69,287 USD). Afghanistan remained very low at 369 USD, mainly due to political instability and weak economic conditions.

Question 5.
The central and state governments provide benefits like food items and medical facilities at low prices to the poor and vulnerable sections of the society. Prepare a note discussing such schemes and their objectives.
Answer:

Schemes	Objectives
Public Distribution System (PDS)	Ensure food security for the poor and prevent hunger and malnutrition.
Mid-Day Meal Scheme	Improve child nutrition, encourage school attendance, and reduce dropout rates.
Ayushman Bharat- Pradhan Mantri Jan Arogya Yojana (PMJAY)	Provide affordable healthcare and reduce the financial burden of medical expenses.
National Food Security Act	Guarantee food as a legal right and ensure no one goes hungry.
Mahatma Gandhi National Rural Employment Guarantee Act	Provide livelihood security and reduce poverty in rural areas.

Question 6.
Analyse the table and identify the period when India was in low human development and medium human development. Find out the areas in which India needs to improve if it were to achieve high human development and very high human development based on the HDI value.

Year	HDI Value
1990	0.446
1995	0.469
2000	0.497
2005	0.547
2010	0.590
2015	0.633
2020	0.652
2023	0.685

Answer:
India’s HDI Status from the Table:

• 1990 (0.446) – 2000 (0.497): Low Human Development
• 2005 (0.547): Still at the edge of Low Human Development
• 2010 (0.590) – 2023 (0.685): MediumHuman Development

So:

• 1990 – 2005: India was in low human development with HDI < 0.550.
• 2010 – 2023: India moved to medium human development, showing better progress in education, health, and economy.
• The shift from low to medium HDI indicates overall social and economic development, but India still needs to cross 0.700+ to reach high human development.

Areas India Needs to Improve for Higher HDI:
HDI is based on three dimensions:

• Health (Life Expectancy at Birth) ’! Improve healthcare access, nutrition, sanitation, and reduce child/matemal mortality.
• Education (Mean Years & Expected Years of Schooling) → Improve literacy rate, reduce school dropouts, enhance higher education and skill development.
• Standard of Living (GNI per Capita) → Create

Question 7.
Identify the countries ranked 1 to 5 in the highest human development index from the 2023 – 24 UNDP HDI report and analyses the progress of these countries in areas such as education and health.
Answer:
The countries ranked 1 to 5 in the 2023 – 24 UNDP Human Development Report are Switzerland, Norway, Iceland, Hong Kong (SAR), and Denmark, respectively. These countries generally lead in education and health, demonstrating high life expectancy and robust educational systems with high average and expected years of schooling. Their strong performance reflects significant public investment in universal healthcare, access to quality education, and robust economies that support these social services.

Question 8.
Find out from the UNDP’s HDI report for the current year of the countries ranked one to five in the highest human development and analyse the progress of these countries in areas such as education and health.
Answer:
Iceland ranks first with an HDI Value of 0.972, followed by Norway 0.970, Switzerland 0.970, Denmark 0.962, Germany 0.959 and Sweden 0.959.

Health: High-HDI countries, such as the top five, have long life expectancies, reflecting robust healthcare systems and public health policies that have resulted in better health outcomes for their populations.

Education: These nations also excel in education! They feature high numbers of years in schooling for adults and high expected years of schooling for children. This indicates a strong and accessible educational infrastructure, leading to a well- educated populace.

Overall Trend: While progress in education and health continues in these top countries, the global human development progress has slowed considerably, especially after the COVID-19 pandemic. The 2025 report highlights that high-HDI , countries are still advancing, but the widening gap suggests that many lower-ranked nations are struggling to reach their potential and may face decades of delayed progress.

Question 9.
Observe the graph indicating the SDG Index scores of Indian states and Union Territories for the years
2018 – 19 and 2023 – 24.


a. List the 5 top states and 5 at the bottom in the SDGI rankings for 2023 – 24.
Answer:
Top 5 States (2023 – 24):
Kerala – 79, Uttarakhand 79, Goa – 77, Himachal Pradesh – 77, Punjab – 76

Bottom 5 States (2023 – 24):
Bihar – 57, Jharkhand – 62, Nagaland – 63, Meghalaya – 63, Assam – 65

b. Find out which states have scores ranked 0 – 49, 50 – 64, 65 – 99 and 100 in the 2018 – 19 rankings.
Answer:
0 – 49 (Low performers:
Bihar (48), Assam (49), Meghalaya (31), Nagaland (32), Odisha (51 is just above 49, so not included)

50 – 64 (Medium performers):
Jharkhand (50), Uttar Pradesh (42), Arunachal Pradesh (53), Rajasthan (59), Chhattisgarh (56), Madhya Pradesh (52), Haryana (59), Maharashtra (61), Telangana (61), Gujarat (64), Andhra Pradesh (58), Karnataka (64), Punjab (60), Uttarakhand (60)

65 – 99 (High performers):
Kerala (69), Goa (64, borderline but included in mid-range, so not high), Himachal Pradesh (69), Sikkim (68), West Bengal (55, not included here), Mizoram (59, actually <65, so not included)

100 achievers): None
c. Which state is at the top of the rankings in 2018 – 19?
Answer:
Kerala (69) was the highest-ranked state in 2018 – 19.

d. Which states are at the top of the rankings in 2023 – 24?
Answer:
Kerala (79) and Uttarakhand (79) jointly top the list in 2023 – 24.

Question 10.
Find out the reasons why Kerala is ranked high on the SDG India Index as compared to other states in India.
Answer:
Kerala ranks high on the SDG India Index because:

• It has the highest literacy rate and a strong school education.
• Good healthcare system with high life expectancy and low infant mortality.
• Better gender equality and social development.
• Strong performance in poverty reduction, sanitation, and access to clean water.
• Effective welfare schemes and governance that reach most people.

Question 11.
Collect more information and prepare an edition on the history that led to planning in India.
Answer:
Before Independence:

• 1938 – National Planning Committee: Subhas Chandra Bose and Jawaharlal Nehru planned India’s economy.
• Bombay Plan (1944): Industrialists wanted more industries and higher incomes.
• Gandhian & Sarvodaya PlAnswer: Focused on villages, small industries, and self-reliance.
• People’s Plan: Suggested socialist ideas with state-owned industries.

After Independence:

• 1950 – Planning Commission: Set up by Prime Minister Nehru to plan India’s growth using Five – Year Plans.
• Five-Year Plans:
• 1st Plan: Agriculture & irrigation
• 2nd Plan: Industries
• Later PlAnswer:Poverty, employment, education, and balanced growth

2015 – NITI Aayog:

• Planning Commission replaced by NITI Aayog.
• Works with states to plan development in a cooperative way.

Question 12.
Identify the projects implemented in India, their duration, key objectives and economic growth rate and list them.
Answer:

Plan	Duration	Key Objectives	Economic Growth Rate
1st	1951 – 1956	Agriculture, irrigation, power	3.6%
2nd	1956 – 1961	Heavy industries development	4.27%
3rd	1961 – 1966	Self-sufficiency in food, industrial growth	2.84%
4th	1969 – 1974	Poverty reduction, employment, industrial growth	3.3%
5th	1974 – 1979	Poverty eradication, rural development, agriculture	4.8%
6th	1980 – 1985	Growth with social justice	5.6%
7th	1985 – 1990	Modernization, reduce poverty	5.0%
8th	1992 – 1997	Economic reforms, liberalization, growth	6.0%
9th	1997 – 2002	Employment generation, poverty reduction	5.4%
10th	2002 – 2007	Faster and more inclusive growth	7.0%
11th	2007 – 2012	Inclusive & sustainable growth, education, health	8.0%
12th	2012 – 2017	Faster, sustainable & inclusive growth	7.5%

Question 13.
Organise an open forum On the role of the Planning Commission and NITI Aayog in India’s economic growth.
Answer:
(Hints)
Open Forum Topic: “Role of the Planning Commission and NITI Aayog in India’s Economic Growth” Introduction:

• The Planning Commission (1950 – 2014) prepared Five-Year Plans to guide India’s economic development.
• It focused on agriculture, industries, poverty reduction, and employment.

Discussion Points:

• How the Planning Commission helped India grow after independence.
• Achievements of Five-Year Plans in improving economy, education, and health.
• Limitations of the Planning Commission – rigid plans, less cooperation with states.
• NITI Aayog (2015-present) – replaced Planning Commission.
• Role of NITI Aayog in cooperative federalism, policy-making, innovation, and sustainable growth.
• How NITI Aayog supports states and long-term development strategies.

Question 14.
Prepare a profile album featuring the inventions of various industrial revolutions and the changes they brought about in the field of production.
Answer:
(Hints: collect more images of the 4^th and 5^th industrial revolution as the follows)

Question 15.
Examine the Global Knowledge Index Report published by UNDP in various years. Find out the characteristics of the countries that have reached the top 5 positions and write down their special features.
Answer:
The Global Knowledge Index: Top Performers (2025):

• Switzerland
• Sweden
• United States of America

The Global Knowledge Index: Top performers (2024)

• Sweden
• Finland
• Switzerland, with European nations and the United States dominating the top rankings.

The top 5 countries in the Global Knowledge Index (like Switzerland, Finland, Sweden, USA, Netherlands, etc.) share some common features:

• Strong education systems with high-quality schools and universities.
• Heavy investment in research and innovation with high R&D spending.
• Advanced digital and ICT infrastructure with wide access.
• Good governance and stable policies that support knowledge growth
• High income and human development levels to fund education and research.
• Strong links between government, industry, and universities for knowledge sharing.

Question 16.
Find out how economic activities in the Knowledge Economy lead to economic growth.
Answer:

1. Skill development
2. Human resource utilization
3. Job creation
4. Innovation & technology use
5. Higher productivity & income

Question 17.
Organise a seminar on technology and the Knowledge Economy.
Answer:
(Hints)
Objective: To explore how technology drives growth, innovation, and skills in the knowledge economy.
Program Flow:

1. Introduction: Importance of technology in economic growth.
2. Keynote: Role of AI, ICT, Big Data, and Innovation.
3. Sessions
   • Industry 4.0: Automation, IoT, Robotics.
   • EduTech & HealthTech: Online learning, telemedicine, digital platforms.
   • Green Tech: Renewable energy, EVs, sustainability.
4. Panel Discussion: Future skills & digital literacy.
5. Q&A: Interaction with participants. ‘
6. Conclusion: Key takeaways & vote of thanks.

Std 10 Geography Chapter 7 Notes Kerala Syllabus – Extended Activities

Question 1.
Find out the development level of India and its neighbouring countries Pakistan, Bhutan and Sri Lanka based on per capita income for 2023-24 using the source, https://data.worldbank.org.
Answer:
Based on the World Bank data for the year 2023, here is an overview of the per capita income levels of India and its neighboring countries-Pakistan, Bhutan, and Sri Lanka expressed in current US dollars:
GDP Per Capita (Current US$) – 2023

Country	GDP per capita (US$)
India	2,696.7
Pakistan	1,484.7
Bhutan	3,839.4
Sri Lanka	4,515.6

Source: World Bank Open Data

Development Level Analysis

• Sri Lanka has the highest per capita income among the four countries, indicating a relatively higher standard of living and economic development.
• Bhutan follows with a per capita income higher than India’s, suggesting a moderately higher development level.
• India stands at a middle-income level, with a per capita income of approximately $2,696.7. Pakistan has the lowest per capita income among these countries, indicating a lower development level.

Question 2.
Collect and list more information about other economic development indices such as the Global Hunger Index, Gender Inequality Index, Human Happiness Index, and Multi-Dimensional Poverty Index with the help of https://www.unsdsn.org, https://www.globalhungerindex.org, https://www.undp.org.

Answer:

Index/Indicator	Year of introduction	Indices/criteria used	Determining agency/ institution
Global Hunger Index (GHI)	2006	The level of hunger among people, including children’s health.	IFPRI and partner organisations
Gender Inequality Index (GII)	2010	Differences between men and women in health, education, and jobs.	UNDP
Human Happiness Index	2012	How happy people are based on money, health, friends, freedom, generosity.	SDSN
Multidimensional Poverty Index (MPI)	2010	How many people lack basic needs like school, health, electricity, clean water.	UNDP and Oxford Poverty Initiative

Indian Economy: Growth and Transformation Class 10 Notes Pdf

• All economies aim to provide better living conditions through different economic activities which bring about quantitative and qualitative changes in the economic system.
• Quantitative change refers to economic growth and qualitative change refers to economic development.
• Economic growth is the increase in a country’s Gross Domestic Product compared to the previous year.
• A country achieves economic development when the benefits of the increase in production and income are shared by everyone in the country.
• Economic planning is the preparation made to achieve the main economic goals of a society by utilising available resources.
• M Visvesvaraya is considered as the Father of Indian economic planning.
• The main objectives of planning are Growth, Modernisation, Self-reliance and Equity.
• Liberalization is a policy change that gives a country’s economy more freedom by relaxing restrictions imposed on various sectors to promote economic growth and development.
• Privatization is the process of reducing the role of the public sector and providing more opportunities for
  the private sector.
• Liberalization and privatization are economic policies. Globalization is a consequence of these policies.
• Globalization is the integration of a country’s economy with the global economy.
• Inventions, mechanisation, the spread of technology, modernisation, etc., played an important role in accelerating economic growth.
• Knowledge Economy is an economic system that thrives by incorporating innovative ideas in the production, distribution, and use of knowledge and information.
• Knowledge is the key element in a knowledge economy. New ideas, research, and inventions are important here.
• Kerala Startup Mission, K-DISC, Digital University etc. are working to provide technical and innovative knowledge in Kerala for the growth of a knowledge-based economy.

INTRODUCTION

This chapter, “Indian Economy: Growth and Transformation”, explains how India’s economy has changed over time. It begins with the difference between economic growth (an increase in income and production) and economic development (an improvement in people’s living standards). To measure this progress, different development indices are used, like HDI and PQLI etc. The chapter also discusses economic planning in India, the shift from the Planning Commission to NITI Aayog, and the importance of the 1991 economic reforms that opened India’s economy to the world. It highlights the driving forces of growth such as investment, technology, trade, and human resources. A special focus is given to the knowledge economy, where information, education, and technology drive progress, and the example of Kerala moving towards a knowledge society shows how social development and knowledge can transform a state’s economy.

Economic growth

• All economies aim to provide better living conditions through different economic activities which bring about quantitative and qualitative changes in the economic system.
• Quantitative change refers to economic growth and qualitative change refers to economic development.
• Economic growth is the increase in a country’s Gross Domestic Product compared to the previous year.
• The economic growth rate is the rate of increase in GDP in the current year compared to the previous year. The growth rate is measured in percentage.
• Personal income is the total income earned by an individual from various sources over a given period of time.

Economic development

• A country achieves economic development when everyone shares the benefits of the increase in production and income in the country.
• It happens when there is the improvement in the standard of living of the people along with economic growth.
• Economic development is the process of improving the standard of living and economic well-being of people through growth in income, education, and infrastructure.

Economic development Indices
Human development index (HDI)

• This is an index developed by the United Nations based on human development to measure economic development.
• The Human Development Index is calculated based on three factors: Life expectancy, Literacy and gross school enrollment rate, Per capita income
• The Human Development Index is prepared by calculating the value of each of these separately and finding their average. Their value will be between zero and one.

Physical quality of life index (PQLI)

• The economic development of a country should be such that the standard of living of the people increases and the basic needs are met. Based on this, this is the development index developed by a renowned economist, Morris David Morris, in 1979.
• The PhysicalQuality of Life Index is prepared based on three indices: Basic literacy index, Infant Mortality Index, Life Expectancy Index.

Sustainable development goal index

• Sustainable Development Goals that were adopted by the United Nations in 2015.
• The Sustainable Development Goals Index assesses the efforts taken by countries to achieve the Sustainable Development Goals.
• In India, the Sustainable Development Goals Index is prepared by the NITI Aayog.

Economic planning and NITI Aayog

• Economic planning is the preparation made to achieve the main economic goals of a society by utilising available resources.
• We adopted a Mixed Economy to build the economy in India, which was fragmented during British rule.
• M Visvesvaraya is considered as the Father of Indian economic planning.
• The main objectives of planning are Growth, Modernisation, Self-reliance and Equity.
• NITI Aayog came into existence on 1 January 2015, replacing the Planning Commission of India. It aims at transforming India through economic growth, social welfare, and infrastructure development.

Economic reforms 1991

• The general feature of economic reforms are commonly referred to as LPG. The basis of this reform is the shift from LPQ to LPG (Liberalisation, Privatisation, Globalisation).
• Liberalization is a policy change that gives a country’s economy more freedom by relaxing restrictions imposed on various sectors to promote economic growth and development.
• Privatization is the process of reducing the role of the public sector and providing more opportunities for the private sector.
• Liberalization and privatization are economic policies. Globalization is a consequence of these policies.
• Globalization is the integration of a country’s economy with the global economy.

Driving forces of economic growth

• Inventions, mechanisation, the spread of technology, modernisation, etc., played an important role in accelerating economic growth.
• Industrial revolution, which was triggered by the invention of the steam engine, passed through many stages. Today, the world is on the edge of a fifth industrial revolution.

Knowledge Economy

• Knowledge Economy is an economic system that thrives by incorporating innovative ideas in the production, distribution, and use of knowledge and information.
• Knowledge is the key element in a knowledge economy. New ideas, research, and inventions are important here.
• The basis of this economy is human resources capable of effectively using knowledge and technology. Therefore, research, innovation, and skill development need to be accelerated.
• Continuous efforts to develop new products and services (innovation) are a characteristic of the Knowledge Economy.

Kerala Towards a Knowledge Society

• Kerala Startup Mission, K-DISC, Digital University etc. are working to provide technical and innovative knowledge in Kerala for the growth of a knowledge-based economy.
• Digital University of Kerala was established in 2020 with the aim of transforming Kerala into a global digital education hub.
• K-DISC is a committee formed in 2018 with the aim of transforming Kerala into a knowledge economy and a hub of innovation.
• Kerala Startup Mission (KSUM) is a model agency launched in 2006 to promote the startup scene in
  Kerala, transform innovative ideas into enterprises and make the state a leading hub.

ECONOMIC GROWTH

• All economies aim to provide better living conditions through different economic activities which bring about quantitative and qualitative changes in the economic system.
• Quantitative change refers to economic growth and qualitative change refers to economic development.
• Economic growth is the increase in a country’s Gross Domestic Product compared to the previous year.
• Gross domestic product is the monetary value of all goods and services produced within the domestic territory of a country in a year.

Objectives of Economic activities

• • Increase in infrastructure
  • Better employment opportunities
  • Increased income and purchasing power
  • Higher quality of life
• When the production of goods and services increases, national income increases and the economy grows.
• When economic growth occurs, a country’s capacity to meet the needs of its people increases through changes in production, employment, and income. Economic growth rate is used to measure economic growth.

Economic growth rate: The economic growth rate is the rate of increase in GDP in the current year compared to the previous year. The growth rate is measured in percentage.
Economic growth rate = \(\frac{\text { Current year’s GDP- Previous year’s GDP }}{\text { Previous year’s GDP }}\) × 100

PERCAPITAINCOME

• Per capita income is an important indicator used to measure and evaluate economic growth.
• PCI is calculated by considering the national income and population.
  PCI = \(\frac{\text { National Income }}{\text { Population }}\)
• The World Development Report published by the World Bank classifies economies into four categories based on per capita income.

Per capita income is used to compare the economic growth of different countries over the same period and to understand the economic growth of a country over different periods. PCI shows the average income of the people. But personal income is the actual income of a person. The per capita income of a country can be higher or lower than personal income. Hence difference between PCI and PI always exists.

Personal Income (PI) Personal income is the total income earned by an individual from various sources over a given period of time.

Shortcomings of Percapita Income:

• It is only an average income.
• Information about the distribution and inequality of wealth is not reflected in the income index.
• Since per capita income is calculated on the basis of national income, the limitations of calculating national income also affect per capita income.
• Factors that enhance the quality of life are not included in the scope of the PCI index.

When the production of goods and services in an economy increases, GDP and PCI increase. But personal income does not increase for everyone equally. This leads to socio-economic inequalities. Benefits of economic growth reach the maximum number of people through economic development.

ECONOMIC DEVELOPMENT

• A country achieves economic development when the benefits of the increase in production and income are shared by everyone in the country.

It happens when there is the improvement in the standard of living of the people along with economic growth.

Economic development is the process of improving the standard of living and economic well-being of people through growth in income, education, and infrastructure. Todaro & Smith

• Economic development is not only about economic and social change happening at the same time but is also related to the welfare of the people. The government implements many welfare activities to make it happen.

To improve the quality of life, economic growth must be accompanied by better living conditions. Such conditions include;

• Educational facilities
• Transportation facilities
• Clean drinking water
• Social security and safety
• Nutrient availability
• Healthcare services
• Employment opportunities

ECONOMIC DEVELOPMENT INDICES
HUMAN DEVELOPMENT INDEX (HDI)

• This is an index developed by the United Nations based on human development to measure economic development.
• The Human Development Index is calculated based on three factors:
  • Life expectancy
  • Literacy and gross school enrollment rate
  • Per capita income

The Human Development Index is prepared by calculating the value of each of these separately and finding their average. Their value will be between zero and one. Based on the value of this index, the countries of the world are divided into four groups. According to the 2023 report, India is ranked 130th out of 193 countries.

PHYSICAL QUALITY OF LIFE INDEX (PQLI)

• The economic development of a country should be such that the standard of living of the people increases and the basic needs are met. Based on this, this is the’ development index developed by a renowned economist, Morris David Morris, in 1979.
• The Physical Quality of Life Index is prepared based on three indices:
  • Basic Literacy Index (BLI): Basic literacy is the percentage of the population that can read and write.
  • Infant Mortality Index (IMI): It refers to the number of deaths of infants under the age of one per 1,000 live births.
  • Life Expectancy Index (LEI): It is calculated based on the average number of years a person lives.
  • The Physical Quality of Life Index (PQLI) is the average of these three indicators.
    PQLI = \(\frac{L E I+I M I+B L I}{3}\)

The drawback of this index is that it does not consider the respondent’s annual income while preparing the physical quality life index.

SUSTAINABLE DEVELEOPMENT GOAL INDEX

• Sustainable Development Goals that were adapted by the United Nations in 2015.
• The Sustainable Development Goals Index assesses the efforts taken by countries to achieve the sustainable development goals.
• In India, the Sustainable Development Goals Index is prepared by the NITI Aayog in collaboration with the United Nations to measure the development progress of states and union territories.
• The SDG India index, launched in 2018, assesses India’s performance across all 17 sustainable development goals across economic, social, and environmental sectors.

• The SDGI score is calculated by averaging the values of each of the Sustainable Development Goals, which are calculated between zero and 100.

Score	Category
0 – 49	Aspirant
50 – 64	Performer
65 – 99	Front Runner
100	Achiever

KERALA MODEL OF DEVELOPMENT

Kerala has made great strides in the areas of education, health and social justice. High literacy rates, low infant mortality rates and improved life expectancy are its key features. Kerala was able to achieve this feat through land reforms, universal public health and education systems, public distribution systems, social security schemes and public participation.

NAVA KERALA MISSION

The Nava Kerala Mission is an action plan launched in 2016 with a holistic development vision for Kerala. It includes four main missions: Aardram Mission in the health sector, Life Mission to ensure adequate housing, Vidhyakiranam to improve the education sector, and Haritha Keralam Mission to improve water conservation, waste management, and organic farming. The main objective of the mission is to improve the lives of the people by solving fundamental problems in these four areas.

In addition to strengthening the activities of the existing four missions, Nava Kerala Mission has also included the Rebuild Kerala Initiative, and is being implemented from 2021. The objective of Nava Kerala Mission – 2 is to lead Kerala towards economic and social progress by embracing the benefits of development and embracing all sections of the people, while facing new challenges and second-generation problems.

ECONOMIC PLANNING AND NITI AAYOG

• Economic planning is the preparation made to achieve the main economic goals of a society by utilising available resources.
• We adopted a Mixed Economy to build the economy in India, which was fragmented during British rule.

Planning is a scientific method for utilizing the diverse resources, human potential and skills of the country in the best and most comprehensive manner. Jawaharlala Nehru

HISTORY OF PLANNING

• Planning activities had started in India even before attaining Independence.
• M Visvesvaraya is considered as the Father of Indian economic planning.

Growth of planning in India.

OBJECTIVES OF PLANNING

• The main objectives of planning are Growth, Modernisation, Self-reliance and Equity.
• The planning process was implemented in India in 1951 through the Five-Year Plans.
• The structure of the Planning Commission is given below:
  • Chairman – Prime Minister
  • Vice Chairman
  • Nominated Members from the Central Cabinet
• At the national level, the Planning Commission, established in 1950, continued up to 2014. Now, these activities are being led by the NITI Aayog.

NITI Aayog came into existence on 1 January 2015, replacing the Planning Commission of India. It aims at transforming India through economic growth, social welfare, and infrastructure development.
Present Structure of NITI Aayog.

NITI AAYOG
NITI Aayog came into existence on 1 January 2015, replacing the Planning Commission of India. It aims at transforming India through economic growth, social welfare, and infrastructure development.

Present Structure of NITI Aayog

• Prime Minister as Chairman.
• Vice Chairman as nominated by the Prime Minister
• All Chief Ministers and Lieutenant Governors of Union Territories as members
• Two part-time members, four non-official members . and a Chief Executive Officer
• Four Central Ministers and non-official members as nominated by the Prime Minister

The main objectives of NITI Aayog

• To create a vision for India’s development priorities and plans
• To promote sustainable development and inclusive growth
• To promote economic growth through innovation, entrepreneurship, and job creation
• To collaborate with international organisations and countries to leverage global diversity and resources
• To develop and implement strategic and long-term policies and programs

ECONOMIC REFORMS OF 1991
The following are the important factors that led India to the Economic Reforms of 1991.

• The economic crisis in India was caused by a high fiscal deficit and a decline in foreign exchange reserves
• Inefficiency of the public sector
• Changes in the world market. Arguments in favour of the free market
• The economic crisis caused by the 1990 Gulf War
• Economic growth in East Asian countries through industrialisation and liberalisation
• The conditions imposed by the World Bank and IMF.

Main Goal of Reforms

• To liberalise the Indian economy and open it to the world economy
• To deregulate the private sector
• To reduce the government regulation in various sectors
• To remove the trade restrictions with foreign countries.

The general features of these economic reforms are commonly referred to as LPG The basis of this reform is the shift from LPQ to LPG (Liberalisation, Privatisation, Globalisation).

LIBERALIZATION
Liberalization is a policy change that gives a country’s economy more freedom by relaxing restrictions imposed on various sectors to promote economic growth and development.

The main areas where liberalisation has been implemented are as follows:

• Industrial sector reforms
• Financial sector reforms
• Tax reforms
• Foreign exchange reforms
• Foreign trade sector reforms

PRIVATIZATION

• Privatization is the process of reducing the role of the public sector and providing more opportunities for the private sector.
• Disinvestment is the most important of the privatisation processes and is implemented through the sale of shares.
• Disinvestment is the sale of the government’s investment or capital in a public sector enterprise to the private sector. This is mainly done in four ways:
  • Wholesale: Entire sale of any public sector
  • Share sale: Sale of a portion of the share capital of a public sector undertaking
  • Capital sale: Selling government capital in a sector where government intervention is not required
  • Strategic sale: Selling a portion of the capital share to a selected partner

GLOBALISATION

• Liberalization and privatization are economic policies. Globalization is a consequence of these policies.
• Globalization is the integration of a country’s economy with the global economy.

This will significantly reduce import duties and encourage foreign investment. This means the further globalizing of trade, capital investment, and the transfer of technology and human resources. Liberalization and privatization are economic policies. Globalization is a consequence of these policies.

Globalization is not a policy; it is a phenomenon. Amartya Sen

Globalization is the result of policies that have made economies more interconnected and integrated. With this, global trade becomes regulated by the World Trade Organization and global production comes to be determined by multinational corporations.

WORLD TRADE ORGANIZATION (WTO)
The main objective of the WTO is to set and enforce the rules of global trade among countries. The WTO provides a forum for trade negotiations and dispute resolution by reducing tariffs and other trade barriers and promoting fair competition. Established in 1995, this international organization is headquartered in Geneva, Switzerland. It has 166 member countries, including India.

MULTINATIONAL CORPORATIONS (MNCS)
MNCs are companies that engage in international trade and commerce and operate in multiple countries. These companies, which engage in international production, have a decentralized management structure. They take advantage of local resources, expertise, and markets.

• License – The permit from the government to start a business, develop existing ones, or manufacture new products.
• Permit – The permission to carry goods, transport and perform specific activities.
• Quota – The quantity and limit set by the Government for production, import and distribution.

DRIVING FORCES OF ECONOMIC GROWTH

• Inventions, mechanisation, the spread of technology, modernisation, etc., played an important role in accelerating economic growth.
• The Industrial Revolution, which was triggered by the invention of the steam engine, passed through many stages. Today, the world is on the edge of a fifth industrial revolution.

Various industrial revolutions and their characteristics:

Industrial Revolution	Features
1. Invention of the steam engine:	• Emergence of the factory system • Changes in production and transportation
2. Electricity	• Use of electricity in the place of steam. • Expansion into new areas of production and distribution
3. Electronics & Automation	• Use of robotics and automation in factories
4. The era of advanced technologies	• The beginning of Internet of Things (IoT) sensors and Big Data Analytics, Cloud Computing, Nanotechnology
5. Human-centric approach to digital technologies including AI	• Sustainable productivity growth and expansion of smart factories through technologies like AI, IoT and Robotics.

KNOWLEDGE ECONOMY

• Knowledge Economy is an economic system that thrives by incorporating innovative ideas in the production, distribution, and use of knowledge and information.
• Knowledge is the key element in a knowledge economy. New ideas, research, and inventions are important here.
• The basis of this economy is human resources capable of effectively using knowledge and technology. Therefore, research, innovation, and skill development need to be accelerated.
• Continuous efforts to develop new products and services (innovation) are a characteristic of Knowledge Economy.
• The new era of Knowledge Economy is bringing out changes in Indian economy.

Sector: Agriculture
Agri Tech: New technologies are transforming agriculture in India from traditional farming to a more profitable and efficient (smart) one. Things like when to water, fertilize, etc. are being done with the help of sensors and drones. This has enabled farmers to earn higher incomes through reduced costs, improved yields, and direct sales through online platforms.

Sector: Industry
Industry 4.0: Industry is a manufacturing method that uses computers, automation (machines working on their own) and the Internet to connect factories and make them more efficient. This leads to increased industrial production and also to quality products and less wastage. This change can create highly diversified jobs and lead to economic growth. India aims to lead economic growth through projects like MAKE IN INDIA.

Industrial Revolution
Edu Tech
Health Tech
Green Tech
Animation, Visual Effects, Gaming, Comics, Extended Reality – Sector

Industrial Revolution	Features
Edu Tech	• Innovative ways to utilise technology in education. • Robotics, AI, IoT etc. • Virtual Classrooms • Ai based tutoring
Health Tech	• Telemedicine • Digital health platforms • Ai in diagnostics • Wearable health devices
Green Tech	• Renewable energy • Electric vehicle • Waste management and recycling technologies • Energy-efficient buildings
Animation, Visual Effects, Gaming, Comics, Extended Reality – Sector	• Gaming industry • 3d animation • AR/VR applications

KERALA TOWARDS A KNOWLEDGE SOCIETY
• Kerala Startup Mission, K-DISC, Digital University etc. are working to provide technical and innovative knowledge in Kerala for the growth of a knowledge-based economy.
Kerala University of Digital Science, Innovation and Technology

1. Digital University of Kerala

• Digital University of Kerala was established in 2020 with the aim of transforming Kerala into a global digital education hub.
• The main goal is to develop high-quality human resources in technologies such as artificial intelligence, data science, cyber security, and blockchain.

2. Kerala Development and Innovation Strategy Council (K-DISC)

• K-DISC is a committee formed in 2018 with the aim of transforming Kerala into a knowledge economy and a hub of innovation.
• Its main responsibilities are to promote research in new technologies, products and processes and to organize skill development programmes.
• The Young Innovative Program (YIP) is a project run by K-DISC to foster innovation among the youth. It provides support to transform the innovative ideas of students into projects.
• The Kerala Knowledge Economy Mission (KKEM) is a project aimed at transforming Kerala into a knowledge economy and providing employment to the educated.

3. Kerala Startup Mission (KSUM)

• Kerala Startup Mission (KSUM) is a model agency launched in 2006 to promote the startup scene in Kerala, transform innovative ideas into enterprises and make the state a leading hub.
• It supports startups through innovation hubs, incubators, funding support, mentorship and international exchange programmes.