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Economics · Class 12 Commerce

Ch 11Economics of Development and Planning — Class 12 Economics, concept-first.

Two words used loosely as synonyms in everyday speech — 'growth' and 'development' — mean sharply different things in economics, and the distinction is one of the foundational ideas of this chapter.

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Key concepts

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Economic Growth vs Economic Development

Economic growth is a purely quantitative measure — the sustained increase in an economy's output of goods and services, usually tracked through the growth rate of GDP or per-capita income.

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Chapter contents

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Economic Growth versus Economic Development

Two words used loosely as synonyms in everyday speech — 'growth' and 'development' — mean sharply different things in economics, and the distinction is one of the foundational ideas of this chapter.

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Per-Capita Income and the Physical Quality of Life Index (PQLI)

The simplest, most widely quoted indicator of a country's economic well-being is per-capita income:

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The Human Development Index (HDI)

The most widely used composite measure of development today is the Human Development Index (HDI), introduced by the United Nations Development Programme (UNDP) in 1990, building on the pioneering work…

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Meaning, Need and Essential Features of Economic Planning

Economic planning is the deliberate, conscious direction and coordination of a country's economic activity by the state, according to a pre-determined plan, with the aim of achieving specific economic…

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Types of Planning: Centralised and Decentralised (Indicative) Planning

Economic planning is broadly classified into two types, based on how much control the state exercises over economic decisions:

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Planning in India: From the Planning Commission to NITI Aayog

India adopted formal, centralised economic planning soon after Independence. The Planning Commission was set up in 1950 as the country's central planning authority, tasked with assessing the nation's…

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Sustainable Development Goals (SDGs)

The Sustainable Development Goals (SDGs) are a set of 17 global goals adopted by the United Nations in 2015, as part of the 2030 Agenda for Sustainable Development, intended to be achieved by the year…

Exercises

+Show 12 questions12 questions
  1. Q1Distinguish between Economic Growth and Economic Development, with one example of each.Free
  2. Q2'A country can experience economic growth without economic development.' Explain this statement with reference to income distribution.Free
  3. Q3A country's national income was ₹500 crore in 2020 with a population of 50 lakh, and rose to ₹650 crore in 2023 with a population of 52 lakh…Free
  4. Q4What is the Physical Quality of Life Index (PQLI)? Name its three component indicators.Preview
  5. Q5Explain the three dimensions used to construct the Human Development Index (HDI).Preview
  6. Q6Why is HDI considered a better indicator of development than per-capita income alone?Preview
  7. Q7Define economic planning. State any three essential features of a good economic plan.Preview
  8. Q8Why do developing countries like India need economic planning?Preview
  9. Q9Distinguish between Centralised Planning and Decentralised (Indicative) Planning.Preview
  10. Q10Give one example each of a country that has followed centralised planning and a planning approach that India has increasingly followed since…Preview
  11. Q11Trace briefly the evolution of economic planning in India from the Planning Commission to NITI Aayog.Preview
  12. Q12What are the Sustainable Development Goals (SDGs)? How are they relevant to India's development planning?Preview

Sample & Board Papers

Sample papers and previous-year board questions for this subject.

+Show 30 questions30 questions
  1. Q1Expansion of NITI Aayog : (a) National Institution for Transforming India (b) National Institute for Transport in India (c) National Institu…Preview
  2. Q2Planning Commission was set up in the year : (a) 1948 (b) 1950 (c) 1951 (d) 1947Preview
  3. Q3Short-term plan is also known as ________. (a) De-rolling plans (b) Controlling plans (c) De-controlling plans (d) Rolling plansPreview
  4. Q4Write any four functions of NITI Aayog.Preview
  5. Q5(a) Compare the features of Capitalism and Socialism. OR (b) Explain the Importance of National Income.Preview
  6. Q6(a) Describe different types of planning. OR (b) Calculate the Karl Pearson's Co-efficient of Correlation from the following data. | Demand…Preview
  7. Q7Planning Commission was set up in the year : (a) 1947 (b) 1950 (c) 1948 (d) 1951Preview
  8. Q8The Chairperson of NITI Aayog is ________. (a) Vice-president (b) Prime Minister (c) Finance Minister (d) PresidentPreview
  9. Q9Elucidate major cause of vicious circle of poverty with diagram.Preview
  10. Q10Expansion of NITI Aayog : (a) National Institute for Tomorrow's India (b) National Institute for Transport in India (c) National Institution…Preview
  11. Q11PQLI is the indicator of ________. (a) Economic progress (b) Economic growth (c) Economic development (d) Economic welfarePreview
  12. Q12The country following Capitalism is ________. (a) India (b) Russia (c) China (d) AmericaPreview
  13. Q13The basic philosophy behind long-term planning is to bring ________ changes in the economy. (a) Industrial (b) Financial (c) Structural (d)…Preview
  14. Q14Sustainable Development Goals and Targets are to be achieved by : (a) 2030 (b) 2020 (c) 2050 (d) 2025Preview
  15. Q15What are the social indicators of economic development ?Preview
  16. Q16Indicate the demerits of Socialism.Preview
  17. Q17(a) Describe the different types of Planning. OR (b) What are the objectives of Monetary Policy ? Explain.Preview
  18. Q18Planning Commission was set up in the year __________. (a) 1947 (b) 1950 (c) 1948 (d) 1951Preview
  19. Q19Short-term plan is also known as __________. (a) Rolling plans (b) Controlling plans (c) De-rolling plans (d) De-controlling plansPreview
  20. Q20What are the functions of NITI Aayog ?Preview
  21. Q21Expansion of NITI Aayog : (a) National Institution to Transform India (b) National Institute of Transport India (c) National Institution for…Preview
  22. Q22Which of the following plan has focused on the agriculture and rural economy ? (a) Gandhian plan (b) People’s plan (c) Vishveshwarayya plan…Preview
  23. Q23In which sector Foreign Direct Investments is not permitted in India ? (a) Pharmaceutical (b) Banking (c) Insurance (d) Atomic EnergyPreview
  24. Q24The Chairperson of NITI Aayog is ______. (a) Vice-President (b) Prime Minister (c) Finance Minister (d) PresidentPreview
  25. Q25In India, Economic policy reforms were started in the year : (a) 1993 (b) 1991 (c) 1994 (d) 1992Preview
  26. Q26Which of the following country adopt Indicative Planning ? (a) Italy (b) France (c) Russia (d) GermanyPreview
  27. Q27Sustainable Development Goals and targets are to be achieved by ______. (a) 2040 (b) 2030 (c) 2050 (d) 2035Preview
  28. Q28What do you mean by Capitalism ?Preview
  29. Q29Indicate the demerits of Socialism.Preview
  30. Q30What is meant by Planning by Direction ?Preview