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Growth, Development and Planning – UPSC GS3

This module of the GS Paper 3: Economy, Environment, S&T & Security course covers national income accounting, growth versus development, human development and planning in india. It has 3 study lessons and a 24-question practice quiz. Free lessons can be read in full; premium lessons show a preview.

Lessons in this module

1. National Income Accounting: GDP, GVA, GNP and their Measurement

Free 8 min

National income statistics tell us how much an economy produces, how fast it grows, how income is shared between sectors and how it compares with other countries. Governments use them to plan budgets, the RBI…

2. Growth versus Development: HDI, Inequality and Sustainable Development

Premium 7 min

Economic growth is a quantitative increase in an economy's output, usually measured as the annual percentage change in real GDP. Economic development is a broader, qualitative idea. It covers better health, education, living standards, freedom,…

3. Planning in India: Five-Year Plans to NITI Aayog

Premium 7 min

Economic planning means the deliberate setting of national goals and the allocation of resources to achieve them over a fixed period. India chose democratic, indicative planning in a mixed economy: the public sector led in…

Module quiz: Growth, Development and Planning (24 questions)

Maps & infographics in this module

Flowchart converting GDP at market prices to GNP, NNP and national income by adding NFIA, subtracting depreciation and subtracting net indirect taxes
Each step adds or removes one component; NNP at factor cost is national income.
Three cards describing the production, income and expenditure methods of measuring GDP
All three methods measure the same flow from different angles.
Donut chart showing approximate GDP shares: private consumption 57 percent, fixed capital formation 31 percent, government consumption 10 percent, other 2 percent
Private consumption is the largest driver of demand in India. Shares are rounded approximations.
Organogram of the Human Development Index showing three dimensions: health, knowledge and standard of living with their indicators
Using the geometric mean means a weakness in one dimension cannot be fully offset by another.
Grouped bar chart comparing approximate shares of GVA and employment: agriculture 18 percent of GVA but 46 percent of jobs, industry 28 and 25, services 54 and 29
Agriculture employs far more people than its share of output, which signals low farm productivity.
Timeline of Indian planning from the Planning Commission in 1950 to NITI Aayog in 2015
Planning moved from directive to indicative after the 1991 reforms.

Frequently asked questions

Lessons: National Income Accounting: GDP, GVA, GNP and their Measurement; Growth versus Development: HDI, Inequality and Sustainable Development; Planning in India: Five-Year Plans to NITI Aayog.

Answer: GDP plus net factor income from abroad. GNP = GDP + NFIA.

Answer: NNP at factor cost. NNP at factor cost.

Answer: 2011–12. A revision to 2022–23 is under way.

Answer: Sale of a second-hand car. Only current production counts.

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