In this article we will discuss about how to measure economic development in India. GNP as a Measure of Development: It is now important to explain how economists measure development. Prior to 1970, economic development was generally meant to be sustained increase in the productive capacity of a country over a period and was interpreted in the same sense as [...]
Gross national income per capita of different countries of the world varies a good deal and further that there exists a large income or development gap between the developing and the developed countries. It is important to explain how income inequalities between various countries in the world economy are exactly measured. However, methods of measuring income inequalities between countries are [...]
In order to raise capital formation in the economy we have first to raise ratio of surplus to capital or rate of surplus to national income and then measures have to be adopted to mobilize this surplus for purposes of productive investment. 1. Raising the Ratio of Surplus to Capital: In this connection the distinction between potential economic surplus and [...]