Indian Economy

Chapter I Structure of the Indian Economy A detailed study of Indian Economy is of great importance to students for its three objectives 1.For analyzing what causes poverty, 2.To devise a workable solution to remove poverty and 3.Laying down the right policies for rapid and planned Economic development. Concepts of Economic development Meier and Baldwin define economic development as a process where by an economys real national income increased over a long period of time. Benjamin Higgins defines economic development as a discernible rise in total and per capita income in a country, widely diffused throughout occupational and income groups, and continuing long enough to become cumulative. From these definitions we can understand that economic development refers to 1. a process leading to some positive results in the society, 2. a process that brings some change in the economy, 3. it results in increases in real national income and not merely money income, and 4. the increase in real national income must be sustained for a prolonged period, and temporary increase in national income should not be considered. Stages in Economic development Many Economists have contributed to the concept of economic development 1.1. UNDERDEVELOPMENT AND GROWTH FEATURES, CAUSES UN Experts have defined an underdeveloped country as one in which per capita real income is low when compared with the per capita real incomes of the USA, Canada, Australia, and Western Europe. Based on Economic development countries are classified into (i) Developed countries, and (ii) Underdeveloped or backward countries. Now a days instead of saying under developed country we call the third world countries as developing nations. The characteristics of underdevelopment are 1. poverty 2. low per capita income 3. inadequate capital resources 4. low capital formation 5. lack of skill 6. lack of technology According to Eugene Staley, underdevelopment is viewed in terms of the following dimensional aspects 1. Incidence of poverty, ignorance and diseases, 2. misdistribution of national income; (iii)Political and administrative incompetence combined with social disorganization. Criterions of under development 1. ratio of population to land in the country 2. Ratio of industrial out put to total output 3. Low ratio or capital to per head of population 4. low per capita income Characteristics of under development Harvey Leibenstein has classified the characteristics of underdevelopment under four major heads, namely 1. Economic, 2. Demographic, 3. Cultural and political, and 4. technological and miscellaneous.
Economic characteristics of under development General economic characteristics of under Agricultural characteristics of under development development 1. Over population 1. Subdivision and fragmentation 2. Disguised unemployment 2. Little mechanization 3. Poor income and no savings 3. Rural indebtedness 4. Zero marginal productivity 5. Export of raw materials and minerals 6. Poor marketing and credit facilities Demographic characteristics of Cultural and political Technological characteristics of under development characteristics of under under development development 1. Absence of family planning 1. High illiteracy 1. Poor technological development 2. Poor nutrition 2. Low status of women 2. Under utilization of resources 3. High fertility rates 3. Prevalence of child labour 3. Poor transport facilities 4. Traditional outlook 5. No technical education 6. Casteism, parochialism, regionalism 7. No recognition for middle class

Features of Underdevelopment 1. Dependence on agriculture 2. Population pressure 3. Un employment 4. Poor income 5. Poor savings 6. Underutilization of resources 7. Capital deficiency 8. Low level technology 9. Poor exports 10. Poor economic organization 11. Lack of suitable socio economic setup 12. Dualistic economy: The under developed countries present sharp contrast in all walks of life. There is the old and new, developed and under developed the educated and the illiterate, the rich and poor existing side by side. It is both a bullock cart and motor car economy. There are pockets of extra rich and ultra modern people and vast masses steeped in abject poverty. There are efficient modern industries and the languishing indigenous handicrafts, and soon. 13. Mass poverty 14. Low standard of living 1.2. STRATEGIES OF DEVELOPMENT The strategies for development are classified under two heads namely 1.economic factors and 2.noneconomic factors. Economic factors 1. Natural resources 2. transport and communication facilities 3. rate of capital formation 4. Capital - output ratio ( requirements of capital for a definite output in units) Rate of growth of national Income = Investment Ratio Capital - output ratio 5. Technological Progress 6. marketable surplus of agriculture 7. Economic system Non-Economic factors 1. Social factors (Culture, value system, tradition, customs, religion, caste etc) 2. Human factors (efficiency, education and skill) 3. Political and administrative factors (enlightened electorates, educated responsible politicians, weal political structure, inefficient administration, intelligent government) 4. Climatic factors (countries near equator have less economic development) 5. technical know how and general education 6. less Corruption 7. Desire to develop Obstacles to Economic Development Obstacles to Economic Development Broadly speaking, the features of an under developed economy create obstacles in the way of economic development, and hamper economic progress. These features emerge out of economic, social, political, religious and institutional factors. It would be wrong to conclude that only economic factors are responsible for poverty or economic backwardness of a country. Non-economic factors are equally responsible for the under development of an economy. The factors discouraging economic development may be classified into economic and noneconomic factors which are as under.Now we discuss these factors in detail. A. Economic Factors The important economic factors which obstacles to economic development are: 1. Vicious Circles of Poverty Most important feature of underdeveloped countries is their dependence on vicious circles of poverty which may be considered as the highest bottleneck in the process of their economic development. Poverty is not only distressing but it is also demoralising. A poor man is one who is regarded as a disgrace to the society and a cause of humiliation to himself, and who is unable to have proper food and a suitable house. Neither he helps himself, nor he is able to serve others. He is burden on society. A poor man always finds himself having been caught in a vicious circle of poverty. Since he lacks the means to prosper, he remains poor. What is true to an individual, is also true to the country as a whole. Since an underdeveloped economy lacks the proper and modern means of economic development, its economic development becomes an uphill task.

Since its rate of investment and growth potential is so little, it has to remain poor. We find circular relationships, known as the "vicious circles of poverty" which reveal the low level of economic development in Less Developed Countries (LDCs). Prof. Nurkse defines the concept of "Vicious Circles of Poverty" in these words: "It implies a circular constellation of forces tending to act and react upon one another in such a way, as to keep a poor country in a state of poverty.... A country is poor because it is poor." The vicious circles operate in an underdeveloped economy on the supply as well as on the demand side. On the supply side deficiency of capital and low volume of savings, create vicious circles whereas low purchasing power creates vicious circle on the demand side. Now we discuss how does vicious circle of poverty operate on the supply side? Poverty is responsible for the low level of income which in turn leads to low volume of savings. It results in deficiency of capital and low productivity. Low productivity is the cause of low level of income. The circle starts with poverty and ends with the low level of income and in this way the vicious circle is complete. Diagrammatic representation of the circle is given below.

Just as vicious circle of poverty operates on the supply side, similarly it also operates on the demand side. Again, poverty or low income is the starting point. Low level of income results in low purchasing power and low level of demand. It limits the extent of market, which in turn leads to low investment resulting in low capital formation and low productivity, which is the cause of poverty and low income. In this way the circle completes its round and continues rotating along the fixed path. Ragnar Nurkse has explained the operation of vicious circles in the words. "The inducement to invest may be low because of the small purchasing power of the people, which is due to their small real income which again is due to low productivity. The low level of productivityis however, the result of the small amount of capital used in production, which in turn may be caused, at least partly, by small inducement to invest". 2. Deficiency of capital: The low level of capital formation in an under developed country is due both to the weakness of the inducement to invest and to the low propensity and capacity to save. In such an economy, the low level of per capita income limits the size of the market demand for manufactured output, which weakness the inducement to invest . The low level of investment also arises as a result of the lack of dynamic entrepreneurship, which was regarded by Schumpeter as the focal point in the process of economic development. 3. Market imperfections According to Meier and Baldwin, it refers to immobility of factors, price rigidity, ignotance of market conditions, rigid social structure and lack of specialization. According to Meier and Baldwin, the existence of market imperfections prevents optimum allocation and utilization of natural resources, and the result is underdevelopment, and this, in turn, leads to poverty. The development of natural resources depends upon the character of human resources. But due to lack of skill and low level of knowledge, natural resources remain unutilized, underutilised and misused 4. International forces exposure of underdeveloped economies to world trade results in destabilizing factors such unfavorable BOP 5. Difficulties in adopting western technologies 6. Low agricultural productivity 7. Lack of entrepreneurs 8. Administrative incompetence and corruption B. non-Economic Factors The important non economic factors which obstacles to economic development are: 1. Socio cultural obstacles such as Rigid stratification of society, traditional beliefs, pattern of living, concepts of social dignity, loyalties to castes, regional identification etc. 2. Undeveloped human resources 3. Political instability 4. Religious factors The structure of Indias present day economy is not just of current making; it has its roots steeped in history, particularly in the period when India was under British rule which lasted for almost two centuries before India finally won its independence on 15 August 1947. ECONOMIC DEVELOPMENT PRE-BRITISH PERIOD

Indian economy, during the pre-British period, was considered to be backward, isolated and selfsustaining villages on the one hand and on the other hand, there are number of towns which were the seats of administration and handicrafts. The economic condition of farmers was very painful. India had an independent economy before the advent of the British rule. Though agriculture was the main source of livelihood for most people, yet, the countrys economy was characterised by various kinds of manufacturing activities. India was particularly well known for its handicraft industries in the fields of cotton and silk textiles, metal and precious stone works etc. These products enjoyed a worldwide market based on the reputation of the fine quality of material used and the high standards of craftsmanship seen in all imports from India. ECONOMIC DEVELOPMENT BRITISH PERIOD The system of colonialism had its origin mostly from British imperialism. Thus the word colonialism refers to a system of economic, political and social relation between two such countries i.e., the ruler country and its colony. The British colonial rule caused the following serious impacts on the traditional India Economy:1. Destruction of Indian handicraft. 2. New land system. 3. Commercialization of agriculture. 4. Development of railway network. 5. Occurrence of famines. 6. Transforming trade pattern. The economic policies pursued by the colonial government in India were concerned more with the protection and promotion of the economic interests of their home country than with the development of the Indian economy. Such policies brought about a fundamental change in the structure of the Indian economy transforming the country into a net supplier of raw materials and consumer of finished industrial products from Britain. Obviously, the colonial government never made any sincere attempt to estimate Indias national and per capita income. SALIENT FEATURES OF INDIAN ECONOMY ON THE EVE OF INDEPENDENCE The British rule was a long story of the systematic exploitation by an imperialistic government of a people whom they had enslaved by their policy of divide and rule. The benefits of British rule were only incidental, if any. Their main motive was to promote their selfish interests at the cost of India. Thus in 1947 we inherited a crippled economy with extreme poverty and stagnant agriculture, lopsided industrial sector. The policies of British rule brought about a fundamental change in the structure of Indian economy-transforming the country into a supplier of raw material and consumer of finished industrial products from Britain. AGRICULTURAL SECTOR 1) Weak Productive Accumulation- At the time of independence, the means of production were defective, there was insufficient use of fertilizers, seeds, irrigation, etc., machines were less & defective, etc. All these led to weak productive accumulation. 2) Commercialization of Agriculture- Commercialization of agriculture means production of crops for sale in the market rather than for self consumption. During the British rule, farmers were given higher price for producing cash crops (like cotton and jute), so that such crops could be used as raw material for British industries. 3) Adverse effects of Partition- Indias agricultural production received a further set back due to the countrys partition at the time of independence. Almost, the whole of jute producing area became part of East Pakistan (now Bangladesh). Indias jute goods industry, which had enjoyed a world monopoly so far, suffered heavily for lack of raw material. 4) Defective Land Tenure System - the British Government of India set up a land revenue system also known as Zamindari system establishing a triangular relationship among government, the owner of the soil and the tiller of the soil. According to this system, Zamindars were permanent owners of the soil; they have to pay a fixed sum to government as land revenue and were free to charge any amount as revenue from the tillers of the soil. INDUSTRIAL SECTOR 1) Deindustrialization of Indian Industries - The primary motive of deindustrialization by British Government was to exploit world famous Indian handicrafts industry by opting for discriminatory tariff policy with a two-fold motive of : a) To get raw material from India at cheap rate for the British industries b) To create market for British machine made cheap goods. 2) Lack of Capital Goods Industries - The growth of capital goods industries in India was unbalanced and lopsided, as Britishers did not want to develop those industries which could compete with British Industry and they wanted Indians to be dependent on Britain for the supply of capital goods and heavy equipments.

3)

Limited Role of Public Sector-The limited area of operation of the public sector was also a significant reason for drawback of the industrial sector. The Public sector remained confined only to the railways, power generation, communications, ports and some other departmental undertakings. 4) Low contribution to Gross Domestic Product (GDP ) - The growth rate of the new industrial sector and its contribution to the GDP remained very small. FOREIGN TRADE 1) Net Exporter of Raw Material and Importer of Finished Goods - India became an exporter of primary products such as raw silk, cotton, wool, sugar, indigo, jute, etc. and an importer of finished consumer goods like cotton, silk and woolen clothes and capital goods like light machinery produced in the factories of Britain. 2) Monopoly Control of the British Rule - Opening of Suez Canal in 1869 served as direct route for the ships operating between India and Britain. More than half of Indias foreign trade was with Britain. DEMOGRAPHIC CONDITIONS 1) High Birth Rate and Death Rate - Birth rate refers to number of children born per thousand in a year. Death rate refers to number of people dying per thousand persons in a year. At the time of independence both BR and DR were very high at 48/1000 and 40/1000 respectively. Such high rates indicate backwardness of a country and led to massive poverty prevailing all over the country. 2) Poor Health Facilities and Low Literacy Rate - Only 17% of population was literate in the year 1941.There was only one doctor per 6000 of population. There was only one medical institution per 24000 of urban population and one for 50000 of rural population. Both are the indicators of low standard of living and backwardness. 3) Massive Poverty- Lack of purchasing power, widespread famines, (the great Bengal famine), stagnation in food grains production and growing population led to a state of abject poverty. Life expectancy was 32 years in 1950-51. The per capita NI was Rs. 255 per person per annum, in 1950. 4) Occupational Structure- In India at the time of independence majority of labor force was engaged in primary sector a clear indicator of underdevelopment. During the colonial period, the occupational structure of India, i.e., distribution of working persons across different industries and sectors, showed little sign of change. The agricultural sector accounted for the largest share of workforce, which usually remained at a high of 70-75 per cent while the manufacturing and the services sectors accounted for only 10 and 15-20 per cent respectively. Another striking aspect was the growing regional variation. Parts of the then Madras Presidency (comprising areas of the present-day states of Tamil Nadu, Andhra Pradesh, Kerala and Karnataka), Maharashtra and West Bengal witnessed a decline in the dependence of the workforce on the agricultural sector with a commensurate increase in the manufacturing and the services sectors. However, there had been an increase in the share of workforce in agriculture during the same time in states such as Orissa, Rajasthan and Punjab. This is shown below: Sector occupations Primary Agriculture, forestry, animal hubandary, fishing, poultry, farming, mining, and quarrying Secondary Manufacturing industries, small scale and cottage industries Tertiary Trade and transport, communication, banking, insurance

Factors determining the occupational structure 1. geographical factors-the natural resources available in an geographical area would decide the occupation 2. Development of productive forces-availability of technology 3. Division of labour and specialization- this creates new occupations 4. Level of per capita income- countries having low percapita income would have high percent of its population employed in primary sector. INFRASTRUCTURE Under the colonial regime, basic infrastructure such as railways, ports, water transport, posts and telegraphs did develop. However, the real motive behind this development was not to provide basic amenities to the people but to subserve various colonial interests. 1. Roads: Roads constructed in India prior to the advent of the British rule were not fit for modern transport. The colonial administration also could not accomplish much on this front due to a paucity of funds. The roads that were built primarily served the purposes of mobilising the army within India and drawing out raw materials from the countryside to the nearest railway station or the port to send these to far away England or other lucrative foreign destinations. There always remained an acute shortage of all weather roads to reach out to the rural areas during the rainy season. Naturally, therefore, people mostly living in these areas suffered grievously during natural calamities and famines. 2) Railways: The British introduced the railways in India in 1850 and it is considered as one of their most important contributions. The railways affected the structure of the Indian economy in two important ways. On the one hand it enabled people to undertake long distance travel and thereby break geographical and cultural barriers while, on the other hand, it fostered commercialisation of Indian agriculture which adversely affected the comparative self-sufficiency of the village economies in India. 3) Export trade: The volume of Indias export trade undoubtedly expanded but its benefits rarely accrued to the Indian people. The social benefits, which the Indian people gained owing to the introduction of the railways, were thus outweighed by the countrys huge economic loss. 4) Inland waterways and sea lanes: Along with the development of roads and railways, the colonial dispensation also took measures for developing the inland trade and sea lanes. However, these measures were far from satisfactory. The inland waterways, at times, also proved uneconomical as in the case of the Coast Canal on the Orissa coast. Though the canal was built at a huge cost to the government exchequer, yet, it failed to compete with the railways, which soon traversed the region running parallel to the canal, and had to be ultimately abandoned. 5) Electric telegraph: The introduction of the expensive system of electric telegraph in India, similarly, served the purpose of maintaining law and order. 6) Postal services: The postal services, on the other hand, despite serving a useful public purpose, remained all through inadequate. INDIAN ECONOMY AFTER INDEPENDENCE India became independent on August 15, 1947. Under its visionary leader, Nehru, it adopted a system of parliamentary democracy that remains intact today. An understanding of the economy before independence is necessary to know and appreciate the level of development achieved in post independence period. In 1951 India formally initiated its development program via launch of the first five year plan. In 1950s to 1970s India turned progressively inward, embarked on a major expansion of public sector and subjected the private sector to strict controls and licenses. The result was an annual average growth in per capita GDP of just a little above 1% per annum. The absolute number of poor in the country rose. The Economic and BOP crisis compelled the government to announce the dynamic program of New Economic Policy of privatization, liberalization and globalization.Since the economic liberalization of 1991, India's GDP has been growing at a higher rate. Year Growth (real) (%)
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 5.5 6.0 4.3 8.3 6.2 8.4 9.2 9.0 7.4 7.4 10.1 6.8 6.5

NATURAL RESOURCES The term natural resources mean the gifts of nature that include land water resources, minerals, forests, marine resources etc. It doesnt mean that the countries that have fewer natural resources are not economically forward but natural resources constitute a key factor in the economic development of a country. If the natural resources are exploited properly the country would prosper. Natural resources fall into two classes namely, Renewable and exhaustible. Land, Water, fisheries, and forests are renewable while mineral deposits are exhaustible. so they must be conserved. The total cultivable area in India is 1,269,219 km (56.78% of total land area), which is decreasing due to constant pressure from an ever-growing population and increased urbanization. India has a total water surface area of 360 ,400 km and receives an average annual rainfall of 1,100 mm. Irrigation accounts for 92% of the water utilisation, and comprised 380 km in 1974, and is expected to rise to 1,050 km by 2025, with the balance accounted for by industrial and domestic consumers. India's inland water resources comprising rivers, canals, ponds and lakes and marine resources comprising the east and west coasts of the Indian ocean and other gulfs and bays provide employment to nearly 6 million people in the fisheries sector. In 2008, India had the world's third largest fishing industry. India's major mineral resources include Coal (fourth-largest reserves in the world), Iron ore, Manganese, Mica, Bauxite, Titanium ore, Chromite, Natural gas, Diamonds, Petroleum, Limestone and Thorium (world's largest along Tamil Nadus shores). India's oil reserves, found in Bombay High off the coast of Maharashtra, Gujarat, Rajasthan and in eastern Assam meet 25% of the country's demand. Rising energy demand concomitant with economic growth has created a perpetual state of energy crunch in India. India is poor in oil resources and is currently heavily dependent on coal and foreign oil imports for its energy needs. Though India is rich in Thorium, but not in Uranium, which it might get access to in light of the nuclear deal with US. India is rich in certain energy resources which promise significant future potential - clean / renewable energy resources like solar, wind, biofuels (jatropha, sugarcane). India produces 4 Fuel minerals, 11 metallic, 52 Non-metallic and 22 minor minerals, totally 89 minerals. Metallic minerals available from India are Iron ore - India is the World's third biggest Copper - India is one of the 20 major Copper exporter of Iron ore as in 2013. producers. In 2008, India produced 7,10,000 tonnes of copper. Zinc - India is the World's fourth largest Zinc Silver reserve as in 2013. Manganese ore Gold Chromite Lead Bauxite - India is the World's fifth largest Tin bauxite reserve as in 2013. Non-Metallic minerals available from India are Phosphorite - India was 13th largest producer in 1999. Soapstone / steatite Barytes Kaolin Dolomite Sillimanite Gypsum Silica Sand Garnet (abrasive) Limestone Wollastonite - India is one of the largest reserves. In Vanadium 2010, India produced 1,45,000 tons. Diatomite - As on 2010, there was 2.89 Vermiculite million tonnes of resource. Ochre Pyrophyllite Perlite Fluorite Bentonite Dunite Asbestos Ilmenite Minor minerals available are Building stone Brick earth Marble - As on 2010, there was 1931 million tonnes of resource, including all grades of marble. Quartzite HUMAN RESOURCES AND ECONOMIC DEVELOPMENT The theory of demographic transition postulates three sequential stages as typically associated with economic development. First stage of demographic transition In this stage of demographic transition the Death rates high, Agrarian economy, sanitation in primitive stages, poor diet, absence of effective medical aids, widespread illiteracy, high birth rates, absence

of knowledge about family planning, large family size, and high infancy deaths. In this stage the rate of population growth is not high since the high birth rate is balanced by high death rates. Second stage of demographic transition Rise in Income levels, improvement in diet, improvement in transport, reduced death rate, acceleration in population growth, growth in average size of family. Third stage of demographic transition Economy changes from agrarian to industrialized one.population moves from rural to urban, women work outside, low death rate, small family size, and decline in population. Size and growth rate of population in India 1891-1921-Stagnant growth 1921-1951-Steady Growth 1951-1981-rapid high growth 1981-2001- High growth with definite signs of slowing down. The demographics of India are inclusive of the second most populous country in the world, with over 1.21 billion people (2011 census), more than a sixth of the world's population. Already containing 17.5% of the world's population, India is projected to be the world's most populous country by 2025, surpassing China, its population reaching 1.6 billion by 2050. Its population growth rate is 1.41%, ranking 102 nd in the world in 2010. Category Global Ranking Notes (Reference) Area Population 2nd Population growth rate 102nd of 212 as of 2010 Population density 24th of 212 as of 2010 (people per square kilometer of land area) Male to Female ratio, at birth 12th of 214 as of 2009 Provisional data from the census was released on 31 March 2011(Updated 20 May 2013). Complete results are expected to be released in 2012. Population Total 121,07,26,932 Males 623,121,843 Females 587,447,730 Literacy Total 74.04% Males 82.14% Females 65.46% Density of population per km2 382 Sex ratio per 1000 males 943 females Child Sex ratio (06 age group) per 1000 males 919 females

Literacy

Census year

Total (%)

Male (%)

Female (%)

1901 1911 1921 1931 1941 1951 1961 1971 1981 1991 2001 2011 Population

5.35 5.92 7.16 9.50 16.10 16.67 24.02 29.45 36.23 42.84 64.83 74.04

9.83 10.56 12.21 15.59 24.90 24.95 34.44 39.45 46.89 52.74 75.26 82.14

0.60 1.05 1.81 2.93 7.30 9.45 12.95 18.69 24.82 32.17 53.67 65.46

Age structure

Median age Population growth rate Birth rate Death rate Net migration rate

1,205,073,612 (July 2012 est.) 0-14 years: 29.3% (male 187,386,162/female 165,345,284) 15-24 years: 18.2% (male 116,019,042/female 103,660,359) 25-54 years: 40.2% (male 249,017,538/female 235,042,251) 55-64 years: 6.8% (male 41,035,270/female 40,449,880) 65 years and over: 5.6% (male 31,892,823/female 35,225,003) (2012 est.) total: 26.5 years male: 25.9 years female: 27.2 years (2012 est.) 1.312% (2012 est.)

20.6 births/1,000 population (2012 est.) 7.43 deaths/1,000 population (July 2012 est.) -0.05 migrant(s)/1,000 population (2012 est.) urban population: 30% of total population (2010) Urbanization rate of urbanization: 2.4% annual rate of change (2010-15 est.) Major cities NEW DELHI (capital) 21.72 million; Mumbai 19.695 million; Kolkata 15.294 million; population Chennai 7.416 million; Bangalore 7.079 million (2009) at birth: 1.12 male(s)/female under 15 years: 1.13 male(s)/female Sex ratio 15-64 years: 1.07 male(s)/female 65 years and over: 0.9 male(s)/female total population: 1.08 male(s)/female (2011 est.) total: 46.07 deaths/1,000 live births Infant mortality rate male: 44.71 deaths/1,000 live births female: 47.59 deaths/1,000 live births (2012 est.) total population: 67.14 years Life expectancy at male: 66.08 years birth female: 68.33 years (2012 est.) Total fertility rate 2.58 children born/woman (2012 est.) HIV/AIDS - adult 0.3% (2009 est.) prevalence rate HIV/AIDS - people living with 2.4 million (2009 est.) HIV/AIDS HIV/AIDS - deaths 170,000 (2009 est.) Sanitation facility improved: access urban: 54% of population rural: 21% of population

total: 31% of population unimproved: urban: 46% of population rural: 79% of population total: 69% of population degree of risk: high food or waterborne diseases: bacterial diarrhea, hepatitis A and E, and typhoid fever vectorborne diseases: chikungunya, dengue fever, Japanese encephalitis, and malaria Major infectious diseases animal contact disease: rabies water contact disease: leptospirosis note: highly pathogenic H5N1 avian influenza has been identified in this country; it poses a negligible risk with extremely rare cases possible among US citizens who have close contact with birds (2009) noun: Indian(s) adjective: Indian Indo-Aryan 72%, Dravidian 25%, Mongoloid and other 3% (2000) Hindu 80.5%, Muslim 13.4%, Christian 2.3%, Sikh 1.9%, other 1.8%, unspecified 0.1% (2001 census) Hindi 41%, Bengali 8.1%, Telugu 7.2%, Marathi 7%, Tamil 5.9%, Urdu 5%, Gujarati 4.5%, Kannada 3.7%, Malayalam 3.2%, Oriya 3.2%, Punjabi 2.8%, Assamese 1.3%, Maithili 1.2%, other 5.9% note: English enjoys the status of subsidiary official language but is the most important language for national, political, and commercial communication; Hindi is the most widely spoken language and primary tongue of 41% of the people; there are 14 other official languages: Bengali, Telugu, Marathi, Tamil, Urdu, Gujarati, Malayalam, Kannada, Oriya, Punjabi, Assamese, Kashmiri, Sindhi, and Sanskrit; Hindustani is a popular variant of Hindi/Urdu spoken widely throughout northern India but is not an official language (2001 census) definition: age 15 and over can read and write total population: 61% male: 73.4% female: 47.8% (2001 census)

Nationality Ethnic groups Religions

Languages

Literacy

School life total: 10 years expectancy male: 11 years (primary to tertiary female: 10 years (2007) education) Education 3.1% of GDP (2006) expenditures Maternal mortality 200 deaths/100,000 live births (2010) rate Children under the age of 5 years 43.5% (2006) underweight Health 2.4% of GDP (2009) expenditures Physicians density 0.599 physicians/1,000 population (2005) Hospital bed 0.9 beds/1,000 population (2005) density Sex ratio, India : 1901 2001 Census year (females per 1,000 males) Sex ratio 1901 972 1911 964 1921 955 1931 950 1941 945 1951 946 1961 941

1971 1981 1991

930 934 927

2001 933 Some of the important reasons commonly put forward are listed below: Neglect of the girl child resulting in their higher mortality at younger ages High maternal mortality Sex selective female abortions Female infanticide Change in sex ratio at birth India's labor force is growing by 2.5% every year, but employment is growing only at 2.3% a year. Official unemployment exceeds 9%. Regulation and other obstacles have discouraged the emergence of formal businesses and jobs. Almost 30% of workers are casual workers who work only when they are able to get jobs and remain unpaid for the rest of the time. Only 10% of the workforce is in regular employment. India's labor regulations are heavy even by developing country standards and analysts have urged the government to abolish them. From the overall stock of an estimated 458 million workers, 394 million (86%) operate in the unorganized sector (of which 63% are self-employed) mostly as informal workers. There is a strong relationship between the quality of employment and social and poverty characteristics. The relative growth of informal employment was more rapid within the organized rather than the unorganized sector. This informalization is also related to the flexibilization of employment in the organized sector that is suggested by the increasing use of contract labor by employers in order to benefit from more flexible labor practices. Most children never go beyond primary level schooling. Children under 14 constitute 3.6% of the total labor force in the country. Of these children, 9 out of every 10 work in their own rural family settings. Around 85% of them are engaged in traditional agricultural activities. Less than 9% work in manufacturing, services and repairs. Child labor is a complex problem that is basically rooted in poverty. The Indian government is implementing the world's largest child labor elimination program, with primary education targeted for ~250 million. Numerous non-governmental and voluntary organizations are also involved. Special investigation cells have been set up in states to enforce existing laws banning employment of children (under 14) in hazardous industries. The allocation of the Government of India for the eradication of child labor was US$10 million in 199596 and US$16 million in 199697. The allocation for 2007 is US$21 million. Environmental degradation About 1.2 billion people in developing nations lack clean, safe water because most household and industrial wastes are dumped directly into rivers and lakes without treatment. This contributes to the rapid increase in waterborne diseases in humans. Out of India's 3119 towns and cities, just 209 have partial treatment facilities, and only 8 have full wastewater treatment facilities (WHO 1992). 114 cities dump untreated sewage and partially cremated bodies directly into the Ganges River. Downstream, the untreated water is used for drinking, bathing, and washing. This situation is typical of many rivers in India as well as other developing countries. Globally, but especially in developing nations like India where people cook with fuelwood and coal over open fires, about 4 billion humans suffer continuous exposure to smoke. In India, particulate concentrations in houses are reported to range from 8,300 to 15,000 g/m 3, greatly exceeding the 75 g/m3 maximum standard for indoor particulate matter in the United States. Changes in ecosystem biological diversity, evolution of parasites, and invasion by exotic species all frequently result in disease outbreaks such as cholera which emerged in 1992 in India. The frequency of AIDS/HIV is increasing. In 1996, about 46,000 Indians out of 2.8 million (1.6% of the population) tested were found to be infected with HIV. 1. water pollution 2. Air pollution(Suspended particulate matter, High levels of lead) 3. Solid and hazardous wastes 4. Soil degradation 5. Deforestation 6. loss of biodiversity 7. Atmospheric changes(green house effect, Ozone depletion)