Growth - Goal of 5 year Plans

Transcript

GROWTH- GOAL OF 5 YEAR PLANS What is Growth It is Increase in Capacity to Produce Goods and Services It means Larger Stock of Productive Capital (Means of Production) Earlier Less Factories Now More Factories Large Stock of Supporting Services Earlier Less Banks Now More Banks Increase in Efficiency of Productive Capital Earlier One Machine Produced 2 Piece Now One Machine Produced 5 Pieces How is Growth Measured? It is measured with the help of GDP More the GDP More Economic Growth Which Country has More Economic Growth? India GDP of India =2 Trillion $ Less Economic Growth USA GDP of USA= 20 Trillion $ More Economic Growth More Economic Growth How is Growth Measured? It is measured with help of GDP (GDP means Gross Domestic Product It is Value of Goods and Service Produced in a Country) More the GDP, More the Economic Growth “Growth Depends upon GDP GDP Depends upon Structural Composition of Economy” “Growth Depends upon GDP GDP Depends upon Structural Composition of Economy” It is the contribution of Different Sectors to Economic Growth (GDP) There are 3 Sectors of Economy Different Sector of Economy Agriculture Sector Industrial Sector Service Sector For a less Developed Economy Share of Agriculture Sector is Higher In GDP As a Country becomes more developed, Share of these Sectors Increase in GDP Summary-Growth - Goal of 5 Year Plans What is Growth It means increase in capacity to produce goods and service How to measure it? It is measured with help of GDP (Gross Domestic Product) GDP is the market value of goods and service produced in a year Higher the GDP, richer the country as people are able to enjoy a large variety of goods and services What is Structural Composition of Economy It is contribution to GDP of Different Sectors of Economy In case of less Developed Economy-Share of Agriculture Sector is More In case Economy become more developed, Share of Industrial and Service Sectors increase What was the Structural Composition of India Economy