Un - Class 10th - Economics

Class 10th - Economics - Development - Full Chapter Explanation
The idea of development
Individual Country
The questions associated with it.
Development
● As an idea is complex, inter-disciplinary and related to the democratic political process.

What Development Promises - Different People, Different Goals
Different People Different Goals
Boys
Farmer
Tribals
Girls
Businessman
Notion for development is In fact, at times two person or groups may seek
different for different people. things which are conflicting.
Explain
A demonstration meeting against raising the height

of Sardar Sarovar Dam on Narmada River
Conclusion
So, two things are quite clear:
1. Different persons can have different developmental goals.
2. What may be development for one may not be development

for the other. It may even be destructive for the other.
Income and other Goals
Try to understand the heading
Goals ≠ High Income only
There are goals other than income. Explain
● Besides seeking more income, one-way or the other, people also seek things like equal
treatment, freedom, security, and respect of others.
● Quality of our life depends on: Material + Non-material things.
● It will be wrong to conclude that what cannot be measured is not important.
● E.g. What factors would you see before accepting a job.
Similarly, for development people at a mix of goals.

National Development
What is national development?
● Individuals seek different goals, then their notion of national development is also
likely to be different.
Similar to developmental goals
It is very important to keep in mind that different persons could have

different as well as conflicting notions of a country’s development.
● How to decide what is best? + Associated questions

How to Compare different Countries or State?
Development Different notions for different people.
How come some countries are generally called developed and others under developed?
Understand with the example of comparing students in your class.
Usually we take one or more important characteristics of persons

and compare them based on these characteristics.
Development How to compare countries?
Income is considered to be one of the most important

attributes of comparing countries.
Rich Nations Poor Nations

What is the income of the country?
Income of all the resident of the country = Total income
Not such a useful measure. Why?
∴ Comparison should be based on the average income.

Total Income
Average Income =
Total Population
● It is also known as per capita income.

World Development Report
● Brought out by the World bank.
● Used to compare countries on the basic of income.
● Countries with per capita income of US $49,300 per annum and above in 2019, are
called rich countries and those with per capita income of US $2500 or less are
called low-income countries.
● India comes in the category of low middle income countries because its per capita
income in 2017 was just US $6700 per annum.
● The rich countries, excluding countries of Middle East and certain other small
countries, are generally called developed countries.
Limitation of average income
● Averages are useful for comparison, but they hide disparities.

Explain
● It does not tell how the income is distributed among the people.
Income and other Criteria
We found that people not only think of better income but also have goals such as security, respect
for others, equal treatment, freedom, etc. in mind.
+
The same applies for the nation.
Analyse
Public Facilities
“Money in your pocket cannot buy all the goods and services that you may need to live well.”
Example
● Pollution free environment.

● Protection from infectious disease.
Significance of Public facilities
I. For many of the important things in life the best way,

also the cheapest way, is to provide these goods and
services collectively.
Example: Security, transportation.

II. With the increase in public facilities other criteria also enhances.
Public facilities Health and Education Analyse
Development
Example -
● Kerala has a low Infant Mortality Rate because it has adequate provision of basic health
and educational facilities.
● Similarly, in some states, the Public Distribution System (PDS) functions well.
● Health and nutritional status of people of such states is certainly likely to be better.
BMI (Body Mass Index)
+ +
Conclusion
Criteria used to find out whether a person is nourished, undernourished or overweight.

How to find out BMI (Body Mass Index)?
Weight of the person in Kg, Height in meter square.
Weight (Kg) 25
Example: = = 25
Height (m)2 (1)2
In this case:
● Less than 18 = Undernourished
Exception -
● More than 25 = Overweight Growing childrens are not evaluated
on body mass index.
● Between 18-25 = Nourished
Human Development Report
Income An inadequate measure of the level of development.
Then what is the other criterion?
Health, education and standard of living are also

some important factors.
Human Development Report

UNDP (United Nation Development Programmes) Human Development Report
Compares countries based on the educational levels of the

people, their health status and per capita income.
HDI (Human Development Index)

Analyse
● Do you think there are certain other aspects that should be considered
in measuring human development.
Sustainability of Development
● What is sustainable development?
Challenges
Is development sustainable?
Development Requires consumption of resources. Depletion 🠋
∴ Sustainable use of resources is required and

development should be sustainable.
Conclusion
Class 10th - Economics
Sectors of Indian Economy
Full Chapter Explanation
Class 10th - Economics - Sectors of Indian Economy - Full Chapter Explanation
Economy People are engaged in various activities.
This makes up the different sectors of economy.

Primary Sector
Tertiary Sector
Secondary Sector
Interdependence
Primary Sector
● Activities that are undertaken by directly using natural resources.

● When we produce a good by exploiting natural resources, it is an
activity of the primary sector.
Why Primary?
● Primary sector, it forms the base for all other products that we
subsequently make.
● Since most of the natural products we get are from agriculture,
dairy, fishing, forestry, this sector is also called agriculture and
related sector.
Secondary Sector
● The secondary sector covers activities in which

natural products are changed into other forms
through ways of manufacturing that we associate
with industrial activity.
● This sector gradually became associated with the

different kinds of industries that came up, it is also
called as industrial sector.
● Example?
Tertiary Sector
● These are activities that help in the development of the

primary and secondary sectors.
● These activities, by themselves, do not produce a good

but they are an aid or a support for the production
process.
● Since these activities generate services rather than goods,

the tertiary sector is also called the service sector.
● Example?
● Expanding nature of tertiary sector.

Comparing the Three Sectors
● Large number of goods and services are produced.

Sectors of economy ● Huge employment is generated.
● Which sector contributes what in economy?
How do we calculate all this?

● Practical problem in counting and comparing different sectors of economy.
[Nails to Cars]
∴ To get around this problem, economists suggest

that the values of goods and services should be used
rather than adding up the actual numbers.
Explain
Comparing and calculating various sectors of economy Value is used, not the quantity.
!! Precaution !!
● Not every good (or service) that is produced and sold needs to be counted.
● The value of only “final goods and services” are to be included/calculated.
● Value of intermediate goods and services are not, to include/calculated.
How?
Because the value of intermediate goods and services are already in final
Explain
goods and services.
GDP (Gross Domestic Product)
The value of final goods and services produced in each sector during a particular
year provides the total production of the sector for that year.
+
The sum of production in the three sectors gives what is called the Gross
Domestic Product (GDP) of a country.
GDP is the value of all final goods and services produced within a country during a particular year.
➔ Mammoth task of measuring GDP.
Undertaken by a central government ministry.
This Ministry, with the help of various government

departments of all the Indian states and union Counting GDP
territories, collects information relating to total
volume of goods and services and their prices and
then estimates the GDP.
Historical Change in Sectors
Primary Sector Secondary Sector Tertiary Sector
● New methods of - In the past 100 years, there has

● Initial stage
manufacturing. been a further shift from
● Technological improvement
secondary to tertiary sector in
and increase in production.
● Coming up and expanding developed countries.
of factories. - The service sector has become
● Many people could now take ● Dominance of secondary the most important in terms of
up other activities. sector. total production.
- This is the general pattern
observed in developed countries.
Historical Change in Sectors
Primary Sector Secondary Sector Tertiary Sector

Primary, Secondary and Tertiary Sector in India
Analyse
Reasons behind the rising importance of

the tertiary sector in production?
➔ Reasons behind the rising importance of the tertiary sector in production?
I. Some services are basic services (hospitals, educational institutions, post and telegraph services,
police stations, courts, village administrative offices, municipal corporations, defence, transport,
banks, insurance companies, etc). In a developing country, the government has to take
responsibility for the provision of these services.
II. The development of agriculture and industry leads to the development of services such as
transport, trade, storage.
III. As income levels rise, certain sections of people start demanding many more services like eating
out, tourism, shopping, private hospitals, private schools, professional training etc.
IV. Over the past decade or so, certain new services such as those based on information and
communication technology have become important and essential. The production of these
services has been rising rapidly.
Disparities in the growth of the service sector.

Tertiary Sector
Primary Sector Secondary Sector

Where are most of the People Employed?
Analyse
The shift in the GDP is not same to the share in the employment. Why?
➔ Why there has been no shift in the share of sectors in

employment as it has been share of sectors in GDP?
● It is because not enough jobs were created in the secondary and tertiary sectors.
● Even though industrial output or the production of goods went up by more than nine
times during the period, employment in the industry went up by around three times.
● While production in the service sector rose by 14 times, employment in the service
sector rose around five times.
● People in the primary sector are underemployment/distinguished unemployment.

● Example: Story of Laxmi.
This kind of underemployment is hidden in contrast to someone who does not have a job
and is clearly visible as unemployed. Hence, it is also called disguised unemployment.
Underemployment/distinguished unemployment
● Founds mainly in agriculture sector. Why?
● This underemployment can also happen in other sectors.
Example: Casual workers (Painters, plumbers, repair persons

and others doing odd jobs)
● They may spend the whole day but earn very little.
How to Create More Employment?
➔ Connect with the story of Laxmi + Role of government
● Providing irrigation facilities
Reduction in disguised unemployment, employment in construction work.
● Investment in transportation and storage facilities
Employment to farmers and others involved in transport or trade.

● Availability of cheap/credit loan
Useful in buying equipments and starting new work.
● Identify, promote and locate industries (small scale industries)
➢ Food processing
➢ Cold chain storage
➔ Exploring new sectors for employment
● Planning Commission (now known as NITI Aayog)

estimates that nearly 20 lakh jobs can be created in
the education sector alone.
● Similarly, if we are to improve the health situation,

we need many more doctors, nurses, health
workers etc. to work in rural areas.
● If tourism as a sector is improved, every year we

can give additional employment to more than 35
lakh people.
➔ The suggestion discussed till now would take a long time

to implement.
For short term, we need some quick measures to solve

the problem of unemployment.
∴ Recognising this, the central government in India made a

law implementing the Right to Work in about 625 districts of
India.
MGNREGA (Mahatma Gandhi National Rural

Employment Guarantee Act, 2005)
MGNREGA, 2005
● Mahatma Gandhi National Rural Employment Guarantee Act

2005.
● State funded work creation programme.
● Under MGNREGA 2005, all those who are able to, and are in
need of, work in rural areas are guaranteed 100 days of
employment in a year by the government.
● If the government fails in its duty to provide employment, it

will give unemployment allowances to the people.
● The types of work that would in future help to increase the

production from land will be given preference under the Act.
Division of Sectors as Organised and Unorganised
Division of sectors of economy

of the basis of work conditions.
Organised Sector Unorganised Sector
● Terms of employment are regular and people have assured ● The unorganised sector is
work. characterised by small and scattered
● They are registered by the government and have to follow its units which are largely outside the
rules and regulations such as the Factories Act, Minimum control of the government.
Wages Act, Payment of Gratuity Act, Shops and Establishments ● There are rules and regulations but
Act etc. these are not followed.
● Workers in the organised sector enjoy security of employment. ● No job security.
● They are expected to work only a fixed number of hours. ● Jobs here are low-paid and often not
● If they work more, they have to be paid overtime by the regular.
employer. ● There is no provision for overtime,
● They get paid leave, payment during holidays, provident fund, paid leave, holidays, leave due to
gratuity etc., medical benefits. sickness etc.
● When they retire, these workers get pensions as well. ● Employment is not secure.
Example
Organised Sector Most desirable
But the employment opportunities in the organised

sector have been expanding very slowly. Organised Sector
Exploitation of workers Need for protection

Rural Area Urban Area
Landless agricultural labourers, small and Workers in small-scale industry, casual workers in
marginal farmers, share croppers and construction, street vendors, head load workers,
artisans garment makers, rag pickers etc.
How to protect them?
● Timely delivery of seeds. ● Government should support in the

● Providing agricultural inputs. procurement of raw material.
● Cheap credits, storage facilities and ● Special government programme.
marketing outlets.
Workers from scheduled castes,

tribes and backward communities.
Problems
Unorganised sector
Besides getting the irregular and low paid work,
these workers also face social discrimination.
Protection and support to the unorganised sector workers is thus necessary

for both economic and social development.
Sectors in terms of Ownership: Public and Private Sector
Ownership
Public Private
● Owned by government. ● Owned by private individuals or group.
Example - Railways Example - Reliance
Service motive v/s Profit motive

Public sector Service motive
● Modern day governments spend on a whole range

of activities. What are these activities?
● Why do governments spend on such activities?

Why government is needed to spend?
I. There are several things needed by the society as a whole but which the private sector will
not provide at a reasonable cost.
Explain
∴ Governments have to undertake heavy spending and ensure that these facilities are available for everyone.
II. There are some activities, which the government has to support, activities like selling electricity
at the cost of generation, PDS system, etc.
Why?
Why?
● The private sector may not continue their production

or business unless government encourages it.
● Many units, especially small-scale units, might have to
shut down.
∴ Government has to bear part of the cost.

III. There are a large number of activities which are the

primary responsibility of the government.
● The government must spend on these.

● Example: Health and education
Class 10th - Economics - Money and Credit
Introduction -
Money and Credit
Importance of money in everyday life.
Goods are being bought and sold with the For some, there might not be any actual
use of money. In some of these transactions, transfer of money taking place now but
services are being exchanged with money. a promise to pay money later.
Money Credit
Introduction -
What was the

Why only
situation before the
money?
invention of money?
Introduction -
Money
In the absence of money we would have to rely on the double coincidence of wants.
What a person desires to sell is exactly

what the other wishes to buy.
The transaction in absence of money is known as Barter system.
A system where goods are directly exchanged without the exchange of money.
Introduction -
Money as a medium of exchange
Economy with money Eliminate the need for double coincidence of wants.
Explain
Money Acts acts an intermediate in the exchange process.
∴ Money as a medium of exchange.

Modern Forms of Money -
Money as a medium of
exchange for transaction.

Currency
● Modern form of money (paper notes and currency) Issue
● Modern currency is not made of precious metal

such as gold, silver and copper.
Fiat value, No intrinsic value
● Unlike grain and cattle, they are neither of
everyday use.
● The modern currency is without any use of its own.
Then why it is accepted as medium of exchange?

➔ Because it is authorised by the government of the country.

Authorised by the government of the country
● The Reserve Bank of India issues currency notes

on behalf of the central government.
● No other individual or organisation is allowed to
issue currency.
● No individual in India can legally refuse a
payment made in rupees.

Deposits with Banks
● Deposits with banks people have Also a type of money.
Questions
Extra cash People deposit it with bank (Bank account). क्यों?
● Banks pay an amount as interest on the deposits.

● People’s money is safe.
● People also have the provision to withdraw the money as
and when they require.
➔ Can be withdrawn on demand Demand deposits

➔ Demand deposits offer another interesting facility. Cheque
A cheque is a paper instructing the bank to pay a specific amount from the person’s account
to the person in whose name the cheque has been issued.
Advantages
Loan Activities of Banks -

➔ What do the banks do with the deposits which they accept from the public?
Loan Activities of Banks -

Loan activities of Banks - On ground
● Banks keep a small proportion of their deposits as cash with themselves.

● पैसों का करता क्या है बैंक?
■ Banks make use of the deposits to meet the loan requirements of the people.
■ Banks mediate between those who have surplus funds (the depositors) and those
who are in need of these funds (the borrowers).
■ Banks charge a higher interest rate on loans than what they offer on deposits.
■ The difference between what is charged from borrowers and what is paid to
depositors is their main source of income.
Two Different Credit Situations -

Credit Loan
The lender supplies the borrower with money, goods or services in return for the promise of
future payment.
Story of Salim Story of Swapna

Two different Credit Situations -
Story of Salim Story of Swapna
Credit Helped him Credit Pushed her in debt trap
● Helps him to meet the ongoing ● The failure of the crop made loan
expenses of production, complete repayment impossible.
production on time, and thereby ● She had to sell part of the land to repay
increase his earnings.
the loan.
● Credit therefore plays a vital and
positive role in this situation.
Analyse
Whether credit would be useful or not, therefore, depends on the risks in the situation
and whether there is some support, in case of loss.
Terms of Credit -
What is terms of credit?
➔ Interest rate, collateral and documentation requirement, and the mode of repayment
together comprise what is called the terms of credit.
DO CO MO Internet
Terms of Credit -
Documentation Mode of
Interest Rate Collateral
requirement Payment
Borrower must pay to Collateral is an asset that Paperwork Installment/

the lender along with the borrower owns (such Lump Sum Cash/
the repayment of the as land, building, vehicle, Gold/ Property
principal. livestocks, deposits with
banks) and uses this as a
guarantee to a lender
until the loan is repaid.
➔ Terms of credit may vary depending on the nature of the lender and the borrower.
Formal Sector Credit in India -

Formal sector loans Informal sector loans
Loans from banks and cooperatives. Moneylenders, traders, employers,

relatives and friends, etc.
The Reserve Bank of India supervises the
functioning of formal sources of loans. There is no organisation which supervises
the credit activities of lenders in the
informal sector.
How?
Why?

How reserve bank in India supervises the functioning of
formal sources of loans?
● The RBI monitors the banks in actually maintaining cash balance.

● The RBI sees that the banks give loans not just to profit-making
businesses and traders but also to small cultivators, small scale
industries, etc.
● Periodically, banks have to submit information to the RBI on how
much they are lending, to whom, at what interest rate, etc.

Credit activities in Informal sector
● Interest rate is high.

No organisation which supervise it ● Lender use unfair means to get their
money back.
Interest rate Cost of borrowing
Large part of the earnings of the borrowers is used to repay the loan.
Debt trap
➔ People who might wish to start an enterprise by borrowing may not do so because of the
high cost of borrowing.

What can done to improve the situation in informal sector?
➔ Banks and cooperative societies need to lend more. Why?
Cheap and affordable credit is crucial for the country’s development.


Formal and Informal credit : Who gets what?
● Majority of poor household gets loans from informal sector.

● Majority of rich household gets loan from formal sector.
What’s the problem?
➔ The formal sector still meets only about half of the total credit needs of the rural people.
➔ The remaining credit needs are met from informal sources. Most loans from informal
lenders carry a very high interest rate and do little to increase the income of the borrowers.
Solution


Solution
● Thus, it is necessary that banks and cooperatives increase their lending particularly in the
rural areas, so that the dependence on informal sources of credit reduces.
● Secondly, while formal sector loans need to expand, it is also necessary that everyone
receives these loans.
Self-Help Groups for the Poor -

➔ Poor households Depends on informal sector Why?
● Banks are not present everywhere in rural India. Absence of collateral
● Getting a loan from a bank is much more difficult than taking a loan from informal sources.
● Absence of collateral is one of the major reasons which prevents, informal lenders know the
borrowers personally and hence are often willing to give a loan without collateral.
Problems ∴ Organising people into SHG (self help group) is necessary.


What is self help group?
● Self Help Groups (SHGs) are small groups of poor people. The members of an SHG face
similar problems. They help each other, to solve their problems. SHGs promote small
savings among their members
Pool fund to help their members.
● Members can take small loans from the group itself to meet their needs.
● The group charges interest on these loans but this is still less than what the moneylender
charges.
● After a year or two, if the group is regular in savings, it becomes eligible for availing loan
from the bank.
● Empowerment of members (decision taking power, accountability).
● Provide a platform to discuss and act on a variety of social issues such as health, nutrition,
domestic violence, etc.

Grameen bank of Bangladesh
● It was started by Professor Muhammad Yunus, the founder of

Grameen Bank, and recipient of 2006 Nobel Prize for Peace.
● Started in the 1970s as a small project, Grameen Bank in 2018
had over 9 million members in about 81,600 villages spread
across Bangladesh.
● Almost all of the borrowers are women and belong to poorest
sections of the society.
Professor Muhammad Yunus

Class 10th - Economics - Globalisation and the Indian Economy
Introduction -
Globalisation
The Indian Economy
In a matter of years, our markets have been transformed!

Production Across Countries -

Before After
● Production was largely organised within ● Coming up of companies called
countries. multinational corporation (MNCs).
● Raw material, food stuff and finished ● Owns or controls production in more
products. than one nation.
● Trade was the main channel connecting
distant countries.
What are MNCs?
Multinational corporation are the large companies which owns or controls production in
more than one nation. They set up offices and factories for production in regions where
they can get cheap labour and other resources, so that they can earn greater profits.
Analyse

Production is organised in increasingly complex ways.
The goods and services are produced globally
China Mexico and Eastern Europe India
● Advantage of being a
● Closeness to the markets ● Skilled engineers
cheap manufacturing
in the US and Europe. ● English speaking youth
location.
!!This process reduces the cost.!!

Interlinking Production Across Countries -

Who is Interlinking Production Across Countries? MNCs
How?
Factors’ MNCs consider before setting up any production units.
● Is it close to the markets .

● Is there skilled and unskilled labour Having assured of these conditions
available at low costs. MNCs invest in countries.
● Whether the availability of other factors of
production is assured.
● MNCs might look for government policies Foreign Investment
that look after their interests.

Ways through which MNCs set up their production are
I. MNCs set up production jointly with some of the local companies of these countries.
Why?
Benefits to Local Company Benefits to MNCs
● Get money for additional investments.

● MNCs might bring with them the latest
technology for production.
Local Companies + MNCs

II. MNC buy up local companies and then expand production.
MNCs with huge wealth normally do this. Example
Parakh foods was bought up by the Cargill foods.
Why did MNCs do so?


III. Large MNCs in developed countries place orders for
production with small producers.
● Garments, footwear, sports items are examples of

industries where production is carried out by a large
number of small producers around the world.
● These products are then sold under the brand name of
MNCs.
Women at home in Ludhiana
making footballs for large MNCs
➔ These large MNCs have tremendous power to determine

price, quality, delivery, and labour conditions for these
distant producers.
Foreign Trade and Integration of Markets -

Foreign Trade Integration of market
Historical perspective.
E.g. East India Company coming to India.

What
Whatis the
arebasic function of of
the Advantages Foreign Trade?
Foreign Trade?
Producers Buyers
● Foreign trade creates an opportunity for ● Import of goods produced in another

the producers to reach beyond the country is one way of expanding the choice
domestic markets. of goods beyond what is domestically
● Producers can sell their produce not only produced.
in markets located within the country but ● Competition among the producers reduces
can also compete in markets located in the price and the quality improves.
other countries of the world.
● Cost of production is reduced.
Foreign trade thus results in connecting the markets or integration of markets in different countries.

Foreign trade - Chinese toys in India
Chinese manufacturer started exporting

Toys were sold by domestic manufacturer.
toys in India.
High price V/S Low price
Buyers in India now have the option of choosing between Indian and the Chinese toys.
● Cheaper prices and new designs.

Analyse ● Chinese toys become more popular in the Indian markets.
What is Globalisation?
➔ MNCs investing in various parts of the world.
+ Agent of Globalisation
➔ Foreign trade between countries has been rising rapidly.
Foerign Investment + Foerign Trade = Integration of production and

market across countries.
∴ Globalisation is this process of rapid integration or

interconnection between countries.
What is Globalisation?
Globalisation : A broad concept
● World coming closer.

● Movement, of goods, services, investments and technology.
+
● Movement of people between countries. Why?
■ People usually move from one country to another in search of

better income, better jobs or better education.
■ However, there has not been much increase in the movement of
people between countries due to various restrictions.
Factors that have Enabled Globalisation -
Factors that have Enabled Globalisation
● Technology
● Liberalisation of foreign trade
and foreign investment policy.

Improvement in technology Stimulate the globalisation process.
Explain
Improvement in transportation Development in information and

technology communication technology
● This has made much faster delivery ● Telecommunication, computers and internet are
of goods across long distances some of the developments which are connecting
possible at lower costs. world to remote areas with satellite
communication devices.



Liberalisation of foreign trade and foreign investment policy
Connect with the imports of chinese toys.
● Role of liberalisation
● Role of trade barrier

Trade barrier
Tax on import is an example of trade barrier, governments can use

trade barriers to increase or decrease (regulate) foreign trade. Why?
● This was considered necessary to protect the producers within the country from foreign
competition.
● Industries were just coming up in the 1950s and 1960s, and competition from imports at
that stage would not have allowed these industries to come up.
No Imports Only essential items were allowed.


Removing barriers or restrictions set by the government
Liberalisation
is what is known as liberalisation.
Explain
➔ Around 1991, some for reaching changes in policy were made in India.
● The government decided that the time had come for Indian producers to compete
with producers around the globe.
● It felt that competition would improve the performance of producers within the
country since they would have to improve their quality.
● This decision was supported by powerful international organisations.

Impact of liberalisation: Foreign trade, Foreign investment
● Goods could be imported and exported easily and also foreign

companies could set up factories and offices here.
● Businesses are allowed to make decisions freely about what
they wish to import or export.
● The government imposes much less restrictions than before
and is therefore said to be more liberal.
Impact of Globalisation in India -

Globalisation
Positive Negative
Advantages to consumers (particularly the Among producers and workers, the impact
well off section in urban areas). of globalisation has not been uniform.
● Greater choice. Explain

● Improved quality of product at lower
price.
● Enjoy much higher standards of living
than was possible earlier.

Positive impact of globalisation on producers
1. MNCs have increased their investments in India.
● MNCs have been interested in industries such as cell phones, automobiles, electronics, soft
drinks, fast food or services such as banking in urban areas.
Impact
● In these industries and services, new jobs have been created.

● Local companies supplying raw materials, etc. to these industries have prospered.

2. Several of the top Indian companies have been able to benefit from the increased competition.
How?
● They have invested in newer technology and production methods and raised
their production standards.
● Some have gained from successful collaborations with foreign companies.

3. Globalisation has enabled some large Indian companies to emerge as multinationals
themselves.
● Tata Motors (automobiles), Infosys (IT), Ranbaxy (medicines), Asian Paints (paints),
Sundaram Fasteners (nuts and bolts)
Tata Motors (automobiles) Infosys (IT) Ranbaxy (medicines)
Asian Paints (paints) Sundaram Fasteners (nuts and bolts)


4. Globalisation has also created new opportunities for companies providing services.
How?
● Example of IT services.
● A host of services such as data entry, accounting, administrative tasks, engineering
are now being done cheaply in countries such as India and are exported to the
developed countries.

Negative impact of globalisation
Small producers: Compete or perish Competition and uncertain
Story of Ravi Story of Sushila
Analyse

Small producers: Compete or perish
Globalisation Posed challenges for small producers.
● Batteries, capacitors, plastics, toys, tyres, dairy products, and vegetable oil are
some examples of industries where the small manufacturers have been hit hard
due to competition.
● Several of the units have shut down rendering many workers jobless.

Competition and uncertain employment
Competition Most employers these days prefer to employ workers ‘flexibly’.
Explain
● Hiring of workers on
MNCs Try to cut their cost. temporary basis.
● Long working hours.
Look for the cheapest supplier. ● Low wages are paid to
the workers.
MNCs make large profits, workers are denied their fair share of benefits
brought about by globalisation.
World Trade Organisation -

Recall Liberalisation: Supported by some very powerful international
organisations.
World Trade Organisation
Why do organisations like WTO support liberalisation?
● These organisations say that all barriers to foreign trade and investment are harmful.
● Trade between countries should be ‘free’.
● All countries in the world should liberalise their policies.

World Trade Organisation
● An organisation whose aim is to liberalise international

trade.
● Started at the initiative of the developed countries.
● WTO establishes rules regarding international trade, and
sees that these rules are obeyed.
● About 164 countries of the world are currently members
of the WTO as on 2016.

Questions on the working of WTO
WTO Supposed to allow free trade for all.
● In practice, it is seen that the developed countries have

unfairly retained trade barriers.
● WTO rules have forced the developing countries to remove

trade barriers.
Example: Current debate on trade in agricultural products.


WTO : Debates on Trade Practices
India (Developing) V/S U.S. (Developed)
The agriculture sector provides the bulk Developed country such as the US with the
of employment and a significant portion share of agriculture in GDP at 1% and its
of the GDP in India. share in total employment a tiny 0.5%.
Impact
People who are engaged in agriculture receive massive support and subsidy for production and
export products. This is not the case in developing countries like India.

Due to this massive money that they receive, US farmers can sell the
farm products at abnormally low prices. The surplus farm products are
Result
sold in other country markets at low prices, adversely affecting
farmers in these countries.
∴ Farmers in developing countries are facing problem, this

is the point of debate on trade practices in WTO.
Developing V/S Developed
Is this free and fair trade?

The Struggle for a Fair Globalisation -

Why? Because not everyone has benefited from globalisation.
Question
Globalisation It is a reality, the question is how to make globalisation more ‘fair’?
What is a fair globalisation?
Fair globalisation would create opportunities for all, and also ensure
that the benefits of globalisation are shared better.
The Struggle for a Fair Globalisation -

How to make globalisation more fair?
Government can play a major role.
● The government can ensure that labour laws are properly implemented and the workers
get their rights.
● It can support small producers to improve their performance till the time they become
strong enough to compete.
● The government can use trade and investment barriers.
● It can negotiate at the WTO for ‘fairer rules’.
● Developing countries can come together to fight against the domination of developed
countries in the WTO.
+
People can also play an important role. (Campaigns, demonstration, Protest, etc.)
CLASS 7th - GEOGRAPHY - CHAPTER - HUMAN ENVIRONMENT - SETTLEMENT, TRANSPORT AND COMMUNICATION

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Class 10th - Economics - Development - Full Chapter Explanation

The idea of development

The questions associated with it.

● As an idea is complex, inter-disciplinary and related to the democratic political process.

What Development Promises - Different People, Different Goals

Different People Different Goals

A demonstration meeting against raising the height

So, two things are quite clear:

1. Different persons can have different developmental goals.

2. What may be development for one may not be development

Income and other Goals

Try to understand the heading

Goals ≠ High Income only

There are goals other than income. Explain

Similarly, for development people at a mix of goals.

What is national development?

Similar to developmental goals

It is very important to keep in mind that different persons could have

● How to decide what is best? + Associated questions

How to Compare different Countries or State?

Development Different notions for different people.

Understand with the example of comparing students in your class.

Usually we take one or more important characteristics of persons

Development How to compare countries?

Income is considered to be one of the most important

Rich Nations Poor Nations

What is the income of the country?

Income of all the resident of the country = Total income

Not such a useful measure. Why?

∴ Comparison should be based on the average income.

● It is also known as per capita income.

World Development Report

● Brought out by the World bank.

● Used to compare countries on the basic of income.

Limitation of average income

● Averages are useful for comparison, but they hide disparities.

Income and other Criteria

● Pollution free environment.

Significance of Public facilities

I. For many of the important things in life the best way,

Example: Security, transportation.

Public facilities Health and Education Analyse

BMI (Body Mass Index)

Criteria used to find out whether a person is nourished, undernourished or overweight.

How to find out BMI (Body Mass Index)?

Weight of the person in Kg, Height in meter square.

Human Development Report

Income An inadequate measure of the level of development.

Then what is the other criterion?

Health, education and standard of living are also

Human Development Report

UNDP (United Nation Development Programmes) Human Development Report

Compares countries based on the educational levels of the

HDI (Human Development Index)

● What is sustainable development?

Development Requires consumption of resources. Depletion 🠋

∴ Sustainable use of resources is required and

Economy People are engaged in various activities.

This makes up the different sectors of economy.

● Activities that are undertaken by directly using natural resources.