Income and Development Goals:

- People have different developmental goals, and what constitutes development can vary from
one individual to another.
- For some, development may be primarily focused on increasing income and acquiring material
possessions, as these factors directly impact their quality of life.
- However, it's important to recognize that development is not solely about income; it also
encompasses non-material aspects such as equal treatment, freedom, security, and respect for
others.

National Development Goals:

- Different individuals within a country may have divergent and sometimes conflicting notions of
what constitutes the development of their nation.
- National development goals can encompass a wide range of economic, social, and political
objectives that vary depending on the perspectives and priorities of different groups within the
country.

Comparing Different Countries or States:

- To compare the development of different countries or regions, income is often considered a
crucial indicator.
- Per capita income, which is the average income of a country's population, is commonly used
for such comparisons.
- Per capita income is calculated by dividing the total income of a country by its total population.

Income Categories for Countries:

- In World Development Reports, countries are classified into different income categories based
on their per capita income.
- Rich countries are those with a per capita income of US$ 12,056 per annum and above (as of
2017).
- Low-income countries, such as India, have a per capita income of US$ 955 or less.

Importance of Public Facilities:

- Besides income, public facilities are significant attributes when assessing the development of a
nation or region.
- Public facilities refer to services provided by the government to its citizens, including
infrastructure, sanitation, public transport, healthcare, water supply, and more.
- The availability and quality of public facilities have a direct impact on people's well-being and
quality of life.

Sustainability of Development:
- Sustainable development is defined as a form of development that meets the needs of the
present without compromising the ability of future generations to meet their own needs.
- There are growing concerns among scientists that current patterns and levels of development
are not sustainable. Some examples of unsustainable practices include overusing groundwater
and depleting natural resources.
Sectors of the Indian Economy

Sectors of Economic Activities:

- Primary Sector: Involves the extraction and collection of natural resources, such as farming,
forestry, hunting, fishing, and mining.

- Secondary Sector: Also known as the industrial sector, it covers activities where natural
products are transformed into other forms through manufacturing processes, e.g., textile
production and sugar refining.

- Tertiary Sector: Known as the service sector, it includes activities that support the
development of the primary and secondary sectors, such as education, healthcare, and
software companies.

Comparing the 3 Sectors:

- GDP, or the value of final goods and services produced, is the sum of production in the three
sectors.

- In 2013-14, the tertiary sector became India's largest producing sector, surpassing the primary
sector.

- Factors contributing to the growth of the tertiary sector include the importance of basic
services, development in agriculture and industry, rising incomes, and advancements in
information and communication technology.

Employment in Different Sectors:

- More than half of India's workforce is employed in the primary sector, mainly in agriculture.

- The secondary and tertiary sectors together employ less than half of the workforce but
contribute significantly to GDP.

Creating More Employment:

- To generate employment, industries and services can be promoted in semi-rural areas.

- Potential avenues include tourism, regional craft industries, and IT services.

- Schemes like MGNREGA guarantee rural employment in India.

Division of Sectors as Organized and Unorganized:

- Organized Sector: Workers have fixed, regular employment terms and enjoy job security,
benefits like paid leave and pensions, and follow government regulations.

- Unorganized Sector: Characterized by small, scattered units, often not registered with the
government, offering low-paid and irregular jobs without benefits or job security.

Protecting Workers in the Unorganized Sector:

- The government can set minimum wage rates, provide cheap loans, offer basic services, and
enact laws for overtime, paid leave, and sickness leave.

Sectors in Terms of Ownership: Public and Private Sectors:

- Public Sector: Government-owned assets and services with a focus on public welfare rather
than profit.

- Private Sector: Ownership and services are in the hands of private individuals or companies,
with a profit motive.

Responsibilities of Government:

- The government raises revenue through taxes and other means to fund public services.

- Government responsibilities include infrastructure development, supporting the private sector,

food distribution, education, healthcare, safe drinking water, housing for the poor, and
addressing regional disparities.

Money and Credit

Money as a Medium of Exchange:

- Money serves as an intermediary in exchanges and is known as a medium of exchange.

- Holding money allows individuals to easily trade it for goods or services they need.

Modern Forms of Money:

- Early forms of money in India included grains and cattle.

- Later, metallic coins like gold, silver, and copper were used.

- Today, modern forms of money include currency (paper notes and coins) issued by the
Reserve Bank of India and bank deposits.
Currency:

- The Reserve Bank of India issues currency notes on behalf of the central government.

- Only the central government is authorized to issue currency.

- The rupee is widely accepted as a medium of exchange in India.

Deposits in Banks:

- People can hold money as deposits in banks, where it can earn interest.

- Deposits can be withdrawn on demand, known as demand deposits.

- Payments can be made through checks instead of cash.

Loan Activities of Banks:

- Banks hold a small portion of deposits as cash (around 15%) to meet withdrawal demands.

- They use most deposits to provide loans to borrowers, charging higher interest rates than what
they offer depositors.

Two Different Credit Situations:

- Credit (loan) involves lending money, goods, or services in exchange for a promise of future
payment.

- Credit can either enhance earnings, as in Salim's case for working capital, or lead to debt-trap,
as in Swapna's case due to crop failure.

Terms of Credit:

- Loan agreements specify interest rates, collateral (security), and repayment terms.

- Collateral is an asset used as a guarantee until the loan is repaid.

Formal Sector Credit in India:

- Formal sector loans come from banks and cooperatives, supervised by the Reserve Bank of
India.

- Information on lending activities must be submitted to the RBI by banks.

Informal Sector Credit:

- Informal sector loans come from sources like moneylenders, traders, employers, relatives, and
friends.

- No organization supervises the credit activities of informal lenders.

Formal and Informal Credit:

- Formal sector meets only about half of rural credit needs, and the rest comes from informal
sources.

- Expanding formal credit and ensuring its accessibility to all, especially the poor, is essential.

Self Help Groups for the Poor:

- Poor households rely on informal credit due to limited access to formal credit.

- Self Help Groups (SHGs) are small groups of poor people promoting savings and lending
among members.

Advantages of Self Help Groups (SHGs):

- SHGs help overcome collateral requirements for loans.

- Members can access timely and reasonably priced loans for various purposes.

- SHGs serve as building blocks for organizing rural poor.

- They empower women financially.

- Regular meetings address social issues like health, nutrition, and domestic violence.