2.2.Trends in Human Development in Selected Asian Countries:

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1 CHAPTER TWO: PROFILE OF HUMAN DEVELOPMENT IN INDIA (A MACRO VIEW)..Introduction: In this chapter the overall progress of the country in key areas of human development such as economy, education and health is examined. A balance sheet depicting progress and deprivation in the country is analysed. The macro economic indicators such as growth rate of GDP, sectoral growth rate of the economy, foreign exchange reserve and the trends in fiscal deficit in 0s are examined. The macro view on basic literacy in districts of India and their distribution in each state is also analysed...trends in Human Development in Selected Asian Countries: The trend in human progress as measured and computed by human development index along with its rank is given in Table.. The trends in HDI values are computed with uniform methodology so as to make them comparable over the years. The HDI values are given for six countries. These countries have many similarities with respect to their historical, social and economical contexts. Among these countries, China and India are the two largest countries with respect to population size. All these selected countries are developing countries. The percapita income measured in terms of GDPPPP is highest in China followed by Sri Lanka. Nepal is the poorest country among them followed by Bangladesh.

2 Table.: Trends in Human Development Index in SAARC countries: Country Human Development Index (HDI) Change in HDI HDI, GDI and GDPPPP (US $), Rank in HDI GDI Rank in GDI GDP per capita (PPP US$) India China Sri Lanka Pakistan Bangladesh Nepal Source: Human Development Report, 00 There is a wide variation in the state of human development among these countries. Sri Lanka has a higher value and rank in HDI followed by China where as Nepal has the lowest value. From the trends in HDI values, it may be seen that India has moved from an index value of 0.33 in 0 to 0.5 in. It may be noticed that even though the weight age of per capita income is reduced in composite index, still those with higher HDI values have higher per capita income. The per capita income in China is relatively higher than that of Sri Lanka but the value of HDI is higher in Sri Lanka as compared to China. To know the progress over the years we have computed the absolute changes in the composite indices during 0s and 0s. It may be seen that during 0s (00), the change of 0.0 units in composite index value is observed in India and the 0.0 units in 0. During 0s (0) the change is maximum in China followed by Nepal. The graphical presentation of trends in HDI value for India is shown in Graph..

3 Graph.: Trends in Human Development Index in India After comparing the relative state of human development among selected Asian countries, a balance sheet depicting the overall macro perspective on key area of human development is given below..3. Balance Sheet of Human Development, India: A balance sheet depicting the progress and deprivation of the country is given in table.. The key areas of Indian economy such as agriculture, industry, education and health have been assessed. 3

4 Table.: Balance Sheet of Human Development, India Variable Progress Deprivation Agriculture The country has achieved selfsufficiency in agriculture. The total food production has increased from 5 million tones in 5 to 0 million tones in. Industry The industrial structure of our country has been diversified. The contribution of industrial sector to our economy has been increased from per cent in 5 to above 30 per cent of GNP in 000. Poverty The percentage of population living below poverty line reduced from 5 percent in year 3 to percent in 000 Economy The growth rate of GDP is more than 5 percent in 0s and 0s. The foreign exchange reserve has increased from less than billion US dollar in to about 0 billion as on 00. The productivity of agriculture is low and agricultural sector is overcrowded. The percentage of population living on primary sector was percent in 5 and declined marginally to per cent in. The growth of industrial sector is not accompanied with growth of employment. The percentage of population working in industrial sector has increased marginally from 0. percent in 5 to per cent in and remained same The unemployment rate continues to rise with increase in labour force Fiscal deficit continues to be high. Economic reform failed to create employment opportunity and reduce inequality in income and wealth. The share of India s export in world export continues to be as low as 0. percent Population Education Health Children Regional Disparity Women The population of our country has increased from 3 millions in 5 to 0 millions in 00 (as on st March, 0). Male and female Literacy Rate has increased from 5 and. percent in 5 to 5 and 5 percent respectively in 00. The expectation of life has increased from years in 5 to years in recent years. The Infant Mortality has declined from per live births in 5 to as on but remains as a plateau in 0s. The states like Kerala, Tamil Nadu has made significant progress in social dimension while the states like Maharashtra and Punjab became economically stronger. The female participation in productive work force is gradually increasing. The country has been ranked as 5 th among a set of countries in the human development index of UNDP with a value of 0.5 in. There are about 00 million illiterates in our country. The quality of education, particularly technical education needs to be expanded. The total number of people affected with HIV is about. million. The proportion of delivery attended by health professionals is only.5 percent. The maternal mortality ratio is 0 per,00,000 live births. The coverage of complete immunisation for children in to 3 months is just per cent The middle school drop out rate is quite high The states like Bihar, Madhya Pradesh, Rajasthan and Uttar Pradesh and Orissa, constitute more than 50 per cent of India s population and are on a very low state of development, both socially and economically. The sex ratio of 0 populations declined from 5 in to in 00.

5 The first important sector of any country is agriculture. The basic indicators reflecting agricultural development is selfsufficiency in food production (Table.). Our country has achieved self sufficiency in food production. The total food production has increased from 5 million tones in 5 to 0 million tones in. The country is no more dependant on foreign countries for food grains. On the other hand, the reporting of starvation death, malnutrition and under nutrition is rampant in the country. Though the govt claimed buffer stock of 0million food production, a large section of population does not have the purchasing power. The productivity of agriculture is very low as compared to any other developing countries like China or Sri Lanka. Also the agricultural sector is overcrowded. The percentage of population living on primary sector declined from percent to percent in. The implication is two fold. First the non agricultural sector should absorb the additional labour force. The second is that the productivity of agriculture need to be increased by suitable agricultural development strategy. On industrial sector, the industrial sector has been diversified. The contribution of industrial sector to GNP has increased from percent in 5 to 35 percent in. But, the industrial sector is not accompanied by growth in employment. The percentage of population in the industrial sector increased marginally from 0 percent in 5 to percent in. The last two years had experienced slow down in industrial growth mainly due to decline in industrial demand and slow growth rate of export. This is the most pressing challenge, as the supply of labour force will increase in coming decades. On the population front, the population of the country has increased from 3 million to 0 million where as the country ranked 5 th in HDI among countries in. Similarly, the infant mortality rate has reduced to (in Table.) in while it is still high in many states of India. 5

6 The percentage of population living below the poverty line has declined both in rural and urban areas. Similarly, the percentage of population living below the poverty line declined from 5 percent in 3 to percent in. In other words, about 0 million people are not able to fulfill the bare minimum necessities. This is very high as compared to many other countries in the world. The unemployment rate is on continuous rise. This is the most pressing challenge before the country. On literacy component, the male and female literacy has increased from 5 and percent in 5 to 5 and 5 percent respectively in 00. But the gender differential in literacy, low school enrolment of girls and the need of technical education are the posing challenges for the country. On health dimension, there is a steady increase in life expectancy at birth for both, males and females but the gender discrimination in mortalities still high till age 30. The growing epidemic of HIV is the main threat to the country... Economic Development in India (Macro Economic Indicators in 0s): The trends in selected macro economic aggregates are a reflection of economic development in the country. The various macro economic indicators such as food production, foreign exchange reserve, fiscal deficit as percentage of GDP, annual rate of inflation and percapita GNP are given in Table.3 to assess the achievement of economic reform. It may be noted that the growth rate of the economy during 3 and 000 was close to.5 percent. The growth rate in agricultural sector is reflected in total food production. The balance of payment has substantially improved and the foreign exchange reserves are at alltime high, despite imposition of sanction and sharp rise in oil prices. Inflation has come down from. percent in 0 to 3.3 percent in

7 000. Compared with the record of the first 0 years of development, there is little doubt that Indian economy is stronger than before (Bimal Jalan, 00). However, major critics against liberalisation process, mainly focus on the rising unemployment, growing disparities in income level among the states, higher revenue deficit and lack of development in social infrastructure. It is true that the growth rate in recent years is jobless growth; and some states are performing very poorly in economic progress. The country has maintained a percent growth rate in 0s, built confidence on foreign investors, achieved price stability but has failed to curb fiscal deficit and unemployment. Also, the per capita income is low probably because of the addition of million people to an already high base population. Table.3: Selected Macro Economic Indicators in 0s, India Year Growth rate of GDP Food grain Production in Million tones Foreign exchange reserve billion US$ in Fiscal deficit as percentage of GDP Source: Economic Survey, 0000 & World Development Report Annual rate of Inflation (WPI) Percapit a GNP (US$) The sectoral growth rate of Indian economy in 0s is given in Table.. Despite a slow down in the world economy and East Asian crisis, the Indian economy continued to grow more than

8 percent in the 0s compared to an average of 5 percent in 0s. The manufacturing sector continues to be the major determinant of industrial growth. It may be seen that agriculture is the most volatile sector with a high growth rate of. percent in and. percent in. The growth rate of industrial sector has was a low of 3.3 percent in 000 and a high of. percent in 5. The service sector continues to grow on a uniform scale in 0s. Any further growth largely depends on the growth of the industrial sector. Table.: Sectoral Growth Rate of Indian Economy Sector Sectoral Growth Rate of Economy nfyp 0000 I. Agriculture and allied II. Industry Mining & Querrying Manufacturing Ecty, Gas etc Construction III.Service Trade, comm Fincl & services Cty,scl & Pservice Total GDP On the social sector the percentage of population living below poverty line declined substantially (table.5). These poverty estimates are taken from Planning Commission (Government of India), which are based on calorie intake.

9 Table.5:Percentage of Population Living Below Poverty Line Year All India Rural Urban days recall day recall Source: Economic Survey, A Macro View on Literacy Levels in the Districts of India: All the states have experienced an increase in both male and female literacy in 0s. The states like Rajasthan have experienced an increase in female literacy from 0 percent to percent during and 00 (Census of India, 00). The ratio of female to male literacy known as disparity index has increased from to indicating a reduction in literacy disparity. To examine the progress at the district level, we have classified female literacy into four categories, less than 0 percent, 00 percent, 0.0 to 5 percent and above 5 percent (Table.) for and 00 based on Census of India estimates. It may be noted that about 0 percent of the districts had female literacy below 0 percent in which declined to percent in 00. On the other hand only percent of the districts had female literacy above 5 percent in, which increased to percent in 00. Regarding disparity in male and female literacy, it can be seen that about districts had female literacy below 0 percent as compared to only one district where male literacy is less than 0 percent (Dantewada of Chattisgarh) in 00. Further, there are 33 districts where male literacy is above 5 percent compared to 5 districts where female literacy is above 5 percent.

10 Table.: Distribution of districts by Literacy, India and 00 Literacy Female Literacy Less than Above 5 Male literacy Less than Above 5 Literacy Less than Above 5 Disparity Index Less than Percentage Number Percentage Number Above 5 N Source: Computed from Census of India and Further insight reveals that out of the districts with female literacy below 0 percent, 30 are in Bihar, in Uttar Pradseh, in Jharkhand and in Orissa. The State with overall poor performance is also lagging behind in terms of education. None of the districts of Bihar and Jharkhand have female literacy more than 0 percent. This clearly indicates the variation in basic education among the districts of India. 0

11 Table.:Distribution of Districts on female and male literacy in States and Union Territories of India (NUMBER) State/UTs Major States. Andhra Pradesh. Assam 3. Bihar. Chattisgarh 5. Gujarat. Haryana. Jammu & Kashmir. Jharkhand. Karnataka 0. Kerala. Madhya Pradesh. Maharashtra 3. Orissa. Punjab 5. Rajasthan. Tamil Nadu. Uttar Pradesh. West Bengal Smaller States.Arunachal Pradesh. Goa 3. Himachal Pradesh. Manipur 5. Meghalaya. Mizoram. Nagaland. Sikkim. Tripura 0. Uttaranchal Union Territories.Andaman & N. Island. Chandigarh 3. Dadar & Nagra Haveli. Daman & Diu 5. Delhi. Lakshawdeep. Pondichery Less than Female Literacy (Percentage) Above Male Literacy (Percentage) Less than Above 0 India (.) 5(.) 00(33.) (0.) 5(.0) 55(.) Numbe r of District s

12 .. Health Scenario in India and States India is implementing RCH programme through out the country. To assess the development in reproductive and child health, selected key reproductive and child health indicators are given in Table.. These estimates are taken from National Family and Health Survey (NFHS and NFHS ). The first survey was conducted in /3 and the second in /. The indicators selected are coverage of immunization of children, delivery assisted by health professionals, current use of modern method of family planning, unmet need for family planning and the infant mortality rate for the country and its major states. It is clear that while the country has made some progress in improving the state of reproductive and child health, it is not uniform across the states. Table.: Selected Reproductive and Child Health Indicators in India and States ( & ) India/States Delivery attended by health professionals NFHS NFHS Use of modern method of family planning Unmet need for family planning Infant mortality rate Complete Immunization of children aged 3 months NFHS NFHS NFHS NFHS NFHS NFHS NFHS NFHS Andhra Pradesh Assam Bihar Gujarat Haryana J & K Karnataka Kerala Madhya Pradesh Maharashtra Orissa Punjab Rajasthan Tamilnadu Uttar Pradesh West Bengal India

13 Graph.: Sectoral Growth Rate of Indian Economy in 0s 0 GDP AGRICULTURE INDUSTRY SERVICE Year The immunization coverage for children has increased from 35. percent in 3 to percent in while deliveries attended by health professional has increased from 3. percent to.3 percent during this period. Some states like Bihar, Rajasthan and Uttar Pradesh have marginal/no increase in the coverage during the 0s. The success of population stabilization programme also requires promotion of these basic services. From the above discussion it may be stated that though the country has achieved selfsufficiency in food production, but it has failed in reducing the fiscal deficit and creating employment opportunities. During the last decade the growth rate of economy has been well over 5 percent but 3

14 the percapita income has not increased substantially. This is mainly due to the addition of million people to country s population. The state of human development is not uniform across the states of India. States such as Bihar, Orissa and Uttar Pradesh have not raised the standard of living substantially though improvement in literacy is noticeable. The state of reproductive and child health remains at low level in these states. Graph.3: Distribution of districts by female literacy (percentage).3%.%.3% N = 5 < >5.%

15 Graph.: Distribution of districts by male literacy in India (percentage) 0.0%.03% N = 5 5.% 3.0% < >5 5