Topic: Unit 1 - Population and Human Resources (Indian Economy)

 

Topic: Unit 1 - Population and Human Resources (Indian Economy)

1. Introduction & Syllabus Context:
* This topic is the first unit in the Indian Economy section for Group 2.
* It was part of the APPSC syllabus in combined Andhra Pradesh.
* Initially absent in the first TSPSC Group 2 syllabus after state formation.
* Re-introduced in the recent TSPSC Group 2 notification.
* Relevant for various exams including UPSC, APPSC, TSPSC General Studies papers.

2. Scope:
* Indian Economy: Focuses on the national population.
* State Economy (Telangana Economy): Focuses on the state's population (will be discussed separately).
* Discusses population characteristics and trends.

3. Importance & Weightage:
* Considered a chapter with relatively lower weightage but important.
* Often perceived as data-based, but understanding concepts helps retain data.
* Focus on specific, frequently tested areas to score effectively.
* Smart work is needed to handle data; focus on essential figures.

4. Population vs. Human Resources:
* Population: Generally refers to the total number of people in a specific area.
* Human Resources (Manava Vanarulu): Refers to the segment of the population that contributes or can contribute to economic activity (Labor Force).
* Demography: The study of population characteristics (often used interchangeably with population studies in this context).
* Human resources are a part of the total population (0-100 years).
* Labor Force Definition:
* Previously: 15-59 years age group.
* Currently (Since NSO 2019, aligning with international standards): 15-64 years age group.
* 2011 Census: Still used the 15-59 years definition for Human Resources/Working Age Population.
* Human Resources are also called Productive Population as they participate in production activities.
* Non-Productive Population: Children (below 15) and Elderly (above 64/earlier 59) who generally don't participate in production.

5. Factors Influencing Economic Development:
* Four key factors:
1. Natural Resources (Sahaja Vanarulu)
2. Human Resources (Manava Vanarulu)
3. Capital Formation (Muladhana Kalpana) - Crucial factor, often asked in exams.
4. Technology (Saankethika Parignanam)
* Human resources play a vital role alongside other factors.

6. Role of Human Resources in Development:
* Crucial for economic growth.
* Require skills (Naipunya Sikshana) to be effective.
* Abundant and skilled human resources boost development potential.
* Participate in the production process (vastu sevalu).
* Contribute to National Income and wealth creation.

7. Need for Population Study:
* Essential for understanding economic development and people's welfare (Prajala Sankshemam).
* Governments need clear population data for planning and policy-making.
* Census: Conducted every 10 years in India to gather population data.

8. Population Growth: Advantages (Labhalu):
* Increases Human Resources / Labor Supply (Shramika Janabha).
* Boosts the production system (Utpadaka Vyavastha).
* Creates demand/market for goods and services produced.
* Enables Division of Labor (Shrama Vibhajana) and Specialization (Pratyekikarana), leading to efficiency and perfection.
* Drives Innovation (Nuthana Avishkaranalu) - Humans create machines/innovations.

9. Population Growth: Disadvantages (Nashtalu):
* Increases Unemployment (Nirudyogitha) and Poverty (Pedarikam).
* Puts pressure on natural resources and infrastructure.
* Leads to environmental degradation (Paryavaranam paina Vattidi).
* Reduces Savings (Podupulu) and Capital Formation (Muladhana Kalpana) as consumption increases.
* Increases the proportion of Non-Productive Population (Anutpaadaka Janabha - children, elderly).

10. Specific Definitions/Statements on Population:
* T.R. Malthus (Considered Father of Demography):
* Pessimistic view.
* Statement: "Every mouth born brings economic hell (Arthika Narakam)." (Implying consumption pressure).
* Focus: Population grows faster than food supply.
* Edwin Cannan:
* Optimistic view.
* Statement: "Every person born contributes to economic development."
* Focus: Humans have not just a mouth (consumption) but also two hands and feet (production potential).
* Malini Balasingham:
* Statement: "Every birth is an auspicious occasion (Shubha Gadiya) for the family and nation, BUT if the number of births increases excessively, neither the family nor the nation can bear the burden."
* Focus: Moderate population growth is good, but excessive growth is detrimental.

11. Population Theories:

      *   **A) Malthusian Theory (Traditional):**
    *   Book: "An Essay on the Principle of Population" (1798).
    *   Core Idea: Food production increases arithmetically (1, 2, 3, 4...), while population increases geometrically (1, 2, 4, 8, 16...).
    *   Claimed population doubles every 25 years.
    *   Result: Food shortage, inflation, reduced welfare.
    *   Metaphor: Nature is a banquet hall only for invited guests (limited resources).
    *   **Population Control Methods Suggested:**
        *   *Preventive Checks:* Late marriage, celibacy (Brahmacharyam), spacing between births.
        *   *Positive Checks (Nature's Role):* Famines, floods, earthquakes, epidemics (if preventive checks fail).
    *   **Criticisms:** Pessimistic, ignores technological advancements in food production, underestimates labor productivity.

*   **B) Optimum Theory of Population (Edwin Cannan):**
    *   Focuses on the relationship between **Population Size** and **Per Capita Income**.
    *   Categorizes population levels:
        *   **Underpopulation:** Population growth leads to an *increase* in Per Capita Income.
        *   **Optimum Population:** Per Capita Income is at its *maximum*.
        *   **Overpopulation:** Population growth leads to a *decrease* in Per Capita Income.
    *   Conclusion: A country should aim for the Optimum Population level for maximum economic welfare.

*   **C) Theory of Demographic Transition (Modern):**
    *   Based on: **Birth Rate, Death Rate, and Economic Development.**
    *   Pioneers: Thompson and Notestein.
    *   Widely accepted by modern economists.
    *   Describes population changes through different stages as a country develops.
    *   Models exist with 3, 4, or 5 stages (details of stages not covered in this segment, likely in the next).
    

12. Key Terms & Data:

      *   **Birth Rate (Janana Rate / Crude Birth Rate - CBR):** Number of live births per 1000 population in a year.
*   **Death Rate (Marana Rate / Crude Death Rate - CDR):** Number of deaths per 1000 population in a year.
*   **State-wise Data (2011 Census):**
    *   Highest Birth Rate: Bihar
    *   Lowest Birth Rate: Kerala
    *   Highest Death Rate: Odisha
    *   Lowest Death Rate: West Bengal & Maharashtra
*   **India's Rates Comparison:**
    *   **CBR (Birth Rate):**
        *   2011: 21.8 per 1000
        *   2021 (NFHS approx.): 17.23 per 1000 (Decreased)
    *   **CDR (Death Rate):**
        *   2011: 7.1 per 1000
        *   2021 (NFHS approx.): 7.34 per 1000 (Slightly Increased, likely due to COVID-19).
*   **Future Census:** Planned for 2026, then potentially every 5 years (e.g., 2031) instead of 10 years (as per government indication mentioned).
    

13. Economic Development (Arthika Abhivrudhi):
* Defined simply as: Increase in Output (Utpatti) + Increase in Public Welfare (Praja Sankshemam).
* Growth (Vruddhi) = Increase in Output only.
* Sustainable Development = Growth + Welfare + Environmental Protection.