Economic growth refers to an increase in the real output of goods and services in a country over time.
Economic development is a broader concept that includes economic growth along with improvements in quality of life and social welfare.
Human development refers to the process of enlarging people's choices and improving their well-being through education, health, and living standards.
Economic planning is a process where the government controls and directs economic activities to achieve specific objectives.
Democratic planning involves public participation in the formulation and implementation of economic plans while preserving democratic values.
Liberalisation refers to the removal of government restrictions and regulations to promote economic freedom and competition.
Privatisation is the transfer of ownership and management of public sector enterprises to private entities.
Globalisation is the process of integration of economies and societies through cross-border flow of goods, services, capital, and technology.
Economic growth is a narrow concept focusing only on quantitative increase in national income, while economic development includes qualitative improvements in living standards. Growth is measured by GDP increase, whereas development considers factors like education, health, and income distribution. Development implies structural changes in the economy, while growth may occur without such changes. Development is a sustainable and long-term process, while growth can be short-term.
The three indices of human development are: Life expectancy index (measures health and longevity), Education index (measures knowledge through mean years of schooling and expected years of schooling), and Income index (measures standard of living through GNI per capita). These three dimensions are combined to calculate the Human Development Index (HDI), which provides a comprehensive measure of human development beyond mere economic growth.
Extension of collective choice refers to the expansion of opportunities for people to participate in decision-making processes that affect their lives. It involves increasing people's freedom to choose their representatives, express opinions, and influence public policies. This concept emphasizes democratic participation, empowerment, and the right to have a voice in governance. It is a crucial aspect of human development as it enhances people's capabilities and freedoms.
Four important objectives of India's Five Year Plans include: achieving higher economic growth and development, reducing poverty and unemployment, promoting self-reliance in technology and production, and ensuring social justice and equitable distribution of wealth. Other objectives included agricultural development, industrialization, infrastructure development, and human resource development. These objectives aimed at comprehensive socio-economic transformation of the country.
NITI Aayog members include the Prime Minister as Chairperson, a Vice-Chairperson appointed by the Prime Minister, full-time and part-time members from various fields, ex-officio members from Union Council of Ministers, and Chief Ministers of all states and union territories. The organization also has a CEO and a secretariat. This structure ensures representation from central government, state governments, and domain experts in policy planning.
The main difference is that the first phase followed a mixed economy model with strong government control and public sector dominance, while the second phase embraced economic reforms with liberalization, privatization, and globalization. In the first phase, planning was comprehensive and directive, whereas in the second phase, it became indicative and focused on creating an enabling environment for private enterprise. The role of the state shifted from direct producer to facilitator and regulator.
The three main causes for economic reforms in 1991 were: severe balance of payments crisis leading to foreign exchange reserves covering only two weeks of imports, high fiscal deficit and growing public debt putting pressure on government finances, and the inefficiency of the license-permit raj system hindering economic growth. Additionally, the collapse of the Soviet Union (India's major trading partner) and internal recognition of the need for policy changes also contributed to the reforms.
Three benefits of economic reforms include: higher economic growth rate with GDP growth accelerating significantly, increased foreign investment and technology transfer improving productivity, and greater integration with global economy expanding export opportunities. Other benefits include diversification of industrial base, emergence of strong service sector, increased consumer choice, and improvement in foreign exchange reserves. The reforms also stimulated entrepreneurship and innovation.
Two major problems of economic reforms are: increased income inequality with benefits concentrated in urban areas and among higher income groups, and agricultural distress due to reduced public investment and inadequate support systems. Other problems include jobless growth in formal sector, regional disparities in development, environmental degradation, and vulnerability to global economic shocks. The reforms also led to cultural changes and erosion of traditional industries.
Five important objectives of Assam's Twelfth Five Year Plan include: accelerating economic growth with focus on inclusive development, developing infrastructure particularly in transport and energy sectors, promoting agricultural development and rural transformation, enhancing skill development and employment generation, and improving social indicators like health and education. Other objectives included environmental sustainability, industrial development, and improving governance through administrative reforms.