This chapter looks at the current status of the Indian Economy – its features, strengths and weaknesses, demographic trends, natural resources and infrastructure – and at the contributions of major Indian economic thinkers: Thiruvalluvar, Mahatma Gandhi, Jawaharlal Nehru, B. R. Ambedkar, J. C. Kumarappa, V.K.R.V. Rao and Amartya Sen.
1. Growth and Development
- Economic growth is usually measured by National Income, indicated by Gross Domestic Product (GDP).
- GDP is the total monetary value of the goods and services produced by a country over a specific period of time, usually one year.
- Economic development is indicated not just by GDP but by an increase in citizens' quality of life or well-being. It is measured by per capita income along with several other development indicators.
- Quality of life is assessed by indices such as the Human Development Index (HDI), Physical Quality of Life Index (PQLI) and Gross National Happiness Index (GNHI).
- The term "Gross National Happiness" was coined by the fourth king of Bhutan, Jigme Singye Wangchuck, in 1972. It measures sustainable development, environmental conservation, promotion of culture and good governance.
- Per capita income is the average national income per head of population, obtained by dividing the National Income by population size.