Title unit-1 notes 1.pdf ✅

5 affected all the countries. By the end of the year 2008-09, India was rapidly returning to the buoyant years preceding 2008. The economy recovered to grow at 8.0 per cent during 2009-10, and further 8.6 per cent during 2010-11, with projections of 9.0 per cent during 2011-12. The Prime Minister’s Economic Advisory Council (PMEAC) lowered the economic growth projection for the year 2011-12 to 8.2 per cent from 9 per cent. Per Capita Income is considered a better index of economic growth. In 1950-51 India’s Per Capita Income at 1999-2000 prices was Rs. 5,708. Since then it rose to Rs. 19,331 in 2004-05 and in 2009-10 it stood at Rs. 33,731. There has been more than fourfold increase in real Per Capita Income during the planning period. Growth in Per Capita Income was much less than growth in National Income because of high population growth rate. The Planning Commission expects that country’s Per Capita Income would be doubled in the next 20 years. 1.1.1 Trends In Nation Income : The Central Statistical Organization (CSO) has changed the base year of calculate of national income at constant prices from 1993-94 to 1999-2000. The base year is revised to 2004-05 prices. The trends in national income, in terms of GDP at factor cost, are shown in Table 1.1 the national income of the country (GDP at factor cost)at current prices increase from Rs. 9,719 crore in 1950- 51 to Rs. 71,57,412 crores in 2010-11,thatis,by736times increase in national income at current prices is largely on account of rise in prices. Table 1.1 Gross Domestic Product at Factor Cost Year At Current Prices At Constant Prices 1950-51 9,719 2,24,786 1990-91 5,15,032 10,83,572 2010-11 71,57,412 48,85,954 Source: Economic Survey 2011-12, The national income at constant prices shows the real increase in national income, the increase in the production of goods and services. The GDP at factor cost at prices increased from Rs. 2,24,786 crore in 1950-51 to Rs. 48,85,954 crore in 2010-11, only by 22 times during the period 1950-51 to 2010-11.
6 1.1.2 Trends In Per Capita Income : Per capita income is one of the important indicators of the 'Human Development Besides other things, it shows an increase in the standard of living. Traditionally the of per capita income has been regarded as a summary indicator of the economic well of the country. The trends in per capita income are shown in Table 1.2. The per capita at constant prices increased only by 6.3 times during the period 1950-51 to 2010-11.and Rs. 5,708 in 1950-51 to Rs. 35,993 in 2010-11. The rise in per capita income has been very slow as compared to rise in real income. Poor growth rates coupled with rapid increase in population are the main for such dismal performance. Table 1.2 : Per Capita NNP at Constant Prices Year Rs 1950-51 5,708 1990-91 1l,535 2010-11 35,993 Source: Economic Survey 2011-12 1.2 CHANGES IN THE GROWTH OF NATIONAL INCOME AND PER CAPITA INCOME The annual average growth rate of national income (GNP at factor cost) at constant prices during the Fiver Year Plans is shown in Table 1.4. It may be noticed that after the Fourth Plan the growth rate of national income has improved steadily. During the Fifth Plan the national income has grown at 4.9 percent and thereafter the growth rates have surpassed the much sought after 5 percent. The annual average growth rate of national income during the Eighth Plan was 6.6 percent. However it was only 5.7 percent during the Ninth Plan. The growth sharply rose to 7.6 percent during the Tenth Plan and 7.9 percent during the Eleventh Plan Services contributed