Assignment
Prepared by : Sushil Sharma
2009MB08
Gross Domestic Product (GDP): GDP is the sum of money value of all final goods and services
produced within the domestic territories of a country during an accounting year.
Gross Domestic Product at factor cost = GDP at Market Prices –Indirect Taxes+ Subsidies.
Per Capita Income
The average income of the people of a country in a particular year is called per capita income. In
simple words it is income per head of a country for a year.
National Income
Per Capita Income =
Total Population
Data categories & units 2004- 2005- 2006- 2007- 2008- 2009-
components 2005 2006 2007 2008 2009 2010
1 GDP and related Rs 3239224 3706473 4283979 4947857 5574449 6164178
QE AE
indicators Crore
GDP ( current
market prices)
Growth rate % 14.4 15.6 15.5 12.7 10.6
GDP( factor cost Rs 2967599 3249130 3564627 3893457 4154973 4453064
QE AE
2004-05 Prices) Crore
Growth rate % 9.5 9.7 9.2 6.7 7.2
Saving rate % of 32.2 33.1 34.4 36.4 32.5 N.A.
GDP
Capital formation % of 32.7 34.3 35.5 37.7 34.9 N.A.
(rate) GDP
Per capita Net Rs 24095 27183 31080 35430 40411 43749
National income
( Factor cost at
current prices)
AE- GDP figure for 2009-2010 are advance estimate (source: Economic Survey 2009-10)
QE- Quick estimate
Himachal Pardesh
Himachal Pradesh has emerged as leading state for development in the country and also leading
ahead in hill area development. Agriculture and horticulture revolution , ideal destination for
investment in power and tourism. The competence and value system with civilization heritage,
trade liberalization and other measures to increase the competitive environment in the economy
in flinching commitment toward improvement in infrastructure has lead to robust performance in
the economy of the Pradesh.
Years GDP at factor cost at constant GDP at Current Price
(1999-2000):
2007 Rs. 24800 Crore Rs. 32221 Crore
2008 Rs. 26646 Crore Rs. 36924 Crore
(source: http://himachal.gov.in)
Economic growth in the state is predominantly governed by agriculture and its allied activities.
Hydro power is emerging as a powerful mechanism for speedier economic growth of the state.
High priority has also been accorded to tourism industry, which has also emerged as a major
sector in the development of economy of the state.
Below Poverty Line Family
Measurement
Criteria are different for rural and urban areas. In its tenth five-year plan, the degree of deprivation
is measured with the help of parameters with scores given from 0-4, with 13 parameters. Families
with 17 marks or less (formerly 15 marks or less) out of a maximum 52 marks have been
classified as BPL. In its tenth five-year plan (2002-2007) survey, BPL for rural areas was based
on the degree of deprivation in respect of 13 parameters, with scores from 0-4: landholding, type
of house, clothing, food security, sanitation, consumer durables, literacy status, labour force,
means of livelihood, status of children, type of indebtedness, reasons for migrations, etc.
The Planning Commission fixed an upper limit of 3.26 lakh for rural BPL families on the basis of
simple survey. Accordingly families having less than 15 marks out of maximum 52 marks have
been classified as BPL and their number works out to 3.18 lakh. The survey was carried out in
2002 and thereafter but could not be finalised due to a stay issued by the Supreme Court of India.
The stay was vacated in February 2006 and this survey was finalised and adopted in September
2006. This survey formed the basis for benefits under government of India schemes. The state
governments are free to adopt any criteria/survey for state-level schemes.
In its tenth five-year plan BPL for urban areas was based on degree of deprivation in respect of
seven parameters: roof, floor, water, sanitation, education level, type of employment, and status of
children in a house. A total of 1.25 lakh upper families were identified as BPL in urban area in
2004. It has been implemented since then.
The UP state has emerged as a clear first, reporting the highest number of families living below
the poverty line (BPL) in the country. While the current BPL numbers in the state are pegged at
5.60 crore.
Interestingly, according to a report released by the state, over 60% of these BPL families belong
to the Scheduled Castes, Scheduled Tribes and Other Backward Castes.
Year Amount Rank
2007 25% #9
2008 25% #25
(Percentage of people lying below poverty line)
National estimates of the percentage of the population lying below the poverty line are based on
surveys of sub-groups, with the results weighted by the number of people in each group.
Definitions of poverty vary considerably among nations. For example, rich nations generally
employ more generous standards of poverty than poor nations. ( source: CIA world factbook)
Distribution of Income
Year Amount (Gini index) Rank
2004 36.8 #11
(source: www.nationmaster.com)
Gini index measures the extent to which the distribution of income (or, in some cases,
consumption expenditure) among individuals or households within an economy deviates from a
perfectly equal distribution. Gini index of 0 represents perfect equality, while an index of 100
implies perfect inequality.
The total estimated global wealth in financial assets with High Net Worth Individuals (HNI) at the
end of December 2009 was US $ 39 trillion. (Source : world wealth report 2010, page 5)
The top 10% of India’s population enjoys 31.1% of the country’s income.The amount of overall
wealth in India has been calculated on the basis of the sum of all investment assets. Only the
investment with individual have been consider and does not include Government and Institutional
holding. The total wealth in India held by individual is estimated to be Rs. 73 lac crores. The
detail break up is as follows.
Asset Amount ( in Rs Crore) Percentage
Direct Equity 22,73,043 31.1%
Fixed Deposits & Bonds 22,16,307 30.3%
Insurance 10,46,145 14.3%
Savings Bank Deposits 6,75,134 9.2%
Small Savings 5,19,162 7.1%
Provident Fund 2,81,559 3.9%
Mutual Funds 2,77,953 3.8%
Alternative Assets 18,575 0.3
Total 73,07,878 100%
(source: Karvy private wealth research)
Economic Divide in India
The magnitude of rural poverty is larger as compared to urban poverty in India. The basic
explanation for sectoral poverty differentiates in India is the misallocation of resources and urban-
biased strategy of development. Investment allocation in Indian planning is not strictly based on
the consideration of equity and economic efficiency. The rural sector gets the smaller share of
investible resources, and therefore rural income, output and employment fall short of the optimum
level, and rural poverty intensifies.
Economists frequently cite economic growth as the surest way out of poverty for the developing
world. In this context, China is an often mentioned example, where double digit growth has
brought over 300 million people out of extreme poverty over the past few decades. But closely
tied to growth is the question of equality – of growing the pie, as opposed to distributing it.
The UN Human Development Report 2006 estimated the Gini Index – an indicator of income
inequality – for India to be 32.5 in 2000. This compares favourably with much of the world,
including the USA and OECD countries (Sweden: 25; Norway: 25.8; USA: 40.8; China: 44.7;
Brazil: 58 – low numbers are better).
India’s income distribution is relatively equal. But inequality is rising – fast.
(Source: http://indianeconomy.org)
Value system of India youth in leading professional institute and their feeling
toward the society & personal career.
Education is a methodical effort towards learning basic facts about humanity. And the core idea
behind value education is to cultivate essential values in the students so that the civilization that
teaches us to manage complexities can be sustained and further developed. It begins at home and
it is continued in schools. Everyone accepts certain things in his/her life through various mediums
like society or government.
Value education is important to help everyone in improving the value system that he/she holds
and put them to use. Once, everyone has understood their values in life they can examine and
control the various choices they make in their life. One has to frequently uphold the various types
of values in his life such as cultural values, universal values, personal values and social values.
Thus, value education is always essential to shape one's life and to give him an opportunity of
performing himself on the global stage. The need for value education among the parents,
children, teachers etc, is constantly increasing as we continue to witness increasing violent
activities, behavioural disorder, lack of unity in the society etc.
The students of IIT-G have been involved in various efforts like zero illiteracy zone campaign,
distribution of used clothes, blood donation camps, visit to orphanages in Guwahati city,
popularisation of Gandhian philosophy, e-governance etc.
An education institute is a place for nurturing the future of a society. Being one of the prominent
institutes of the nation, Indian Institute of Technology-Guwahati (IIT-G) has been working
towards this goal in several ways to contribute towards the social development of the nation in
general and of the region in particular.
Charity begins at home; for MBA students at IIM Indore, it begins at the Library basement. The
social sensitivity cell of IIM Indore, ‘Pragat-I’ is distributing more than 1,500 text books left by
the Post Graduate Program (PGP) students to needy students in management institutes in Indore
who cannot afford to buy them.
IIM Lucknow's e-cell Abhiyan, in association with National Social Entrepreneurship Forum has
launched samRiddhi, a social entrepreneurship initiative. The event witnessed the presence of
prominent personalities from the field of journalism, social entrepreneurship and the corporate
sector. samRiddhi is a vision to be provider of resources and knowledge to the field of social
entrepreneurship in the country.
SamRiddhi has a clear set of objectives like increasing awareness of social entrepreneurship in the
student community, especially the IITs and IIMs, initiate industry interaction in the social
entrepreneurial space so that students can get encouraged to take up internship and prospective
employment in various ventures.
INCA or Initiative for Community Action is an initiative of the students of the Indian Institute of
Management Calcutta focused on social work and community action. Modelled on the Initiative
on Social Enterprise (ISE) at ,Harvard Business School, INCA's activities are primarily in the
form of free management consulting service to voluntary organizations, NGOs and others doing
useful social work.
