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state 10

The document discusses the role of the state in India's mixed economy, emphasizing its responsibilities in promoting economic development through capital formation, infrastructure development, and improving living standards. It highlights the importance of full employment, social security, and the removal of income inequalities, alongside rapid industrialization and agricultural development. Additionally, it addresses the need for price stability, a sound banking system, control of monopolies, and better working conditions to enhance productivity.

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Ayshwarya Rani
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2 views

state 10

The document discusses the role of the state in India's mixed economy, emphasizing its responsibilities in promoting economic development through capital formation, infrastructure development, and improving living standards. It highlights the importance of full employment, social security, and the removal of income inequalities, alongside rapid industrialization and agricultural development. Additionally, it addresses the need for price stability, a sound banking system, control of monopolies, and better working conditions to enhance productivity.

Uploaded by

Ayshwarya Rani
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Chapter 12

The state and economic


development
Indian economy

• India is a mixed economy ,both public and


private sectors coexist .
• The public sector will be under the control
of the government which governs the state
Meaning of economic
development
• It refers to the process by which the
percapita income along with economic
welfare increases
• The power of the government is used for
the general welfare of the people
Role of state in economic
development
• Promoting capital formation
• Development of economic infrastructure
• Improvement in standard of living
• Full employment
• Social security
• Rapid industrialisation
Role of state in economic
development
• Removal of inequalities in income and wealth
• Rapid agricultural development
• Stability of price level
• Sound banking and currency system
• Control on monopoly
• Better conditions of work
Promoting capital formation
• State uses the capital accumulated in the country
for the welfare of the country
• Capital accumulation can be in the form of buying
machines,construction of new buildings etc
• The increase in capital formation increases the
economic development of a country
Development of infrastructure

• It includes development of transport


systems, raw material,irrigation
works,gas ,power and electricity etc
• A good infrastructure improves the
economic development
• Availability of good infrastructure improves
agricultural and industrial development
Improvement in standard of
living
• The standard of living of the people improves and
retards economic development
• The standard of living is always influenced by the
per capita income
• Increase in percapita income improve the standard
of living of the people
• Development of different sectors of the economy
improves the living conditions of the people
Full employment
• Unemployment is a kind of wastage of man power
as well as wastage of resources
• If the unemployed ones are put to use it will
increase the productivity of the country.
• The objective of every government is the
attainment of full employment
• In underdeveloped countries it becomes more
serious
Full employment

• Full employment can be attained by


• Starting new industries
• Starting new infrastructural facilities
• Schemes of employment programmes
Social security

• The life of low income groups


can be secured by the free or
heavily subsidized health care
facilities and also facilities for
helping unemployed people
Rapid industrialisation
• A country’s industrial base rest on the development of its basic
and key industries.As these industries require large investments
and long gestation periods,private sector was not able to invest
in these industries.so govt took some active steps to develop
such industries
• Creating good transport and communication
• Provide credit facilities
• Proper power projects were provided
• Provide tax concessions
Remove inequalities in income
and wealth
• The government adopt progressive
taxation in the economy.Progressive
taxation is a taxation in which rich people
must give more and poor people h give less
which will reduce the burden of low income
groups.
• The poor people were supported by
providing subsidies
Rapid agricultural development

• State can undertake various measures


to improve the productivity of
agricultural sector by the introduction
of improved variety of
seeds,irrigation,credit facilities
Stability of price level

• The increase and decrease in price


level affects the functioning of an
economy ,so whenever the prices
changing govt with the help of RBI
makes stability in the prices
Sound banking and currency
system
• The banks of the country can lead
to capital formation.So the
government should try to bring
more facilities in this sector to
mobilize savings.
Control on monopoly

• The monopolist can bring an


increase in price or hoarding of
goods which can be controlled
by the govt only
Better conditions of work

• The working force is an asset of a


country,This is possible by setting
better facilities and healthy
environment to the workers which
will improve the productivity and
efficiency of workers.

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