ECONOMICS

PROJECT
2021-22

-Tarun Paul Robins

XII C

INDEX:
 1. Topic 1- Contributions of different sectors of the economy during the
planning period.
2. Topic 2- Socio-economic Survey
3. Acknowledgement
4. Bibliography

Topic 1-
Compare the contribution made by different sectors of the
economy towards GDP growth during the planning period.
INTRODUCTION:

National economic planning is already a critical component of the economy of

the majority of emerging countries. Unlike in the 1940s and 1950s, when
bourgeois economists disputed the need for national economic planning in
emerging nations, they are now actively involved in providing specific
suggestions in this sector. However, as Soviet economists point out, "the major
task of economic programmes, indeed of all government activity in emerging
nations advancing down the capitalist route, is to assist the private sector in
dealing with the disproportions and challenges of development." The early
experience of economic planning in the USSR demonstrates that the essence of
national economic planning in a multi-structured economy should be to fight
spontaneity. V. V. Kuebishev argued that in the early years of the Soviet
administration, "anarchic tendencies in the growth of the national economy had
to be countered by the proletariat government's undivided will and united
programme of action." The economic plan was the manifestation of this shared
determination

The planning period in India refers to the period in which the Planning
Commission of India (or PCI) functioned and made decisions and policies
regarding the country’s economy. The objectives and policies of the
Commission were carried out through certain ‘Five Year Plans’.

Five-Year Plans (FYPs) are national economic initiatives that are controlled and
coordinated. In 1928, Joseph Stalin created the first Five-Year Plan in the Soviet
Union. They were afterwards adopted by the majority of communist regimes as
well as a number of capitalist countries. China continues to employ FYPs, albeit
the Eleventh FYP, from 2006 to 2010, was termed a guideline (guihua) rather
than a plan (jihua) to reflect the central government's less hands-on approach to
development. Under the socialist influence of India's first prime minister,
Jawaharlal Nehru, India established the First FYP in 1951, right after
independence.

The Planning Commission, which had been established in 1950, was replaced by
NITI Aayog or National Institution for Transforming India, which was
established by the Government of India. This action was taken to better fulfil the
people's needs and ambitions. NITI Aayog, was formed via a resolution of the
Union Cabinet on 1 January 2015. It is the premier policy think tank of the
Government of India, providing directional and policy inputs. Apart from
designing strategic and long-term policies and programmes for the Government
of India, NITI Aayog also provides relevant technical advice to the Centre,
States, and Union Territories.
The Gadgil Formula:

Dhananjay Ramchandra Gadgil, a social scientist and the first critic of Indian
planning, inspired the Gadgil formula. It was developed in 1969 in India to
determine the distribution of central aid for state programmes.

The Gadgil formula was developed in conjunction with the development of the
third five-year plan for the allocation of plan transfers across states. It was named
after D. R. Gadgil, the Planning Commission's vice chairman at the time. The
central support envisioned in the first three plans and yearly plans of 1966–1969
lacked impartiality in its design and did not result in equitable and balanced
growth in the states.

Provisions-
1. Special Category states like Assam, Jammu and Kashmir and Nagaland were
given preference. Their needs should first be met out of the total pool of Central
assistance.

2. The remaining balance of the Central assistance should be distributed among

the remaining states on the basis of the following criteria:

 60 per cent on the basis of population;

 7.5 per cent on the basis of tax effort, determined on the basis of individual
State's per capita tax receipts as percentage of the State's per capita income;
 25 per cent on the basis of per capita state income, assistance going only to
States whose per capita incomes are below the national average;
 7.5 per cent for special problems of individual states.

Despite its good intentions, the Gadgil Formula had little effectiveness in
eliminating inter-state inequities. For example, Andhra Pradesh and Tamil
Nadu, which were low-income states at the time, got below-average Plan help,
while Bihar and Uttar Pradesh only received Plan aid equivalent to the
national average. As a result, there was a rising desire for the formula to be
changed, particularly from economically underdeveloped countries.

On the eve of the Sixth Plan's development, the formula was adjusted. The
10% indication for ongoing power and irrigation projects was removed, and
the portion of per capita income was increased to 20%, to be awarded to states
with per capita incomes below the national average. For the Sixth and Seventh
Plans, the modified Gadgil formula was used. In comparison to the allocations
made during the Fourth and Fifth Plans, the allocations made during the Sixth
and Seventh Plans demonstrate a clear change in favour of poorer states.

Contributions of different sectors of the economy towards GDP growth-

1. Agriculture:
Agriculture has a long history in India, dating back to the Indus Valley
civilisation and even earlier in some regions of southern India. Agriculture
is one of the most significant businesses in the Indian economy, which
means it employs a large number of people. Around 60% of the Indian
population is employed in the sector, which accounts for approximately
18% of India's GDP. This proportion generally declines with each passing
year, as other sectors of the country's economy grow.

Agriculture includes
forestry & fishing,
crops, livestock, forestry & logging, fishing and
aquaculture. We see that in the early years of the
planning period, agriculture has a high share in the
country’s GDP as the economy was extremely
dependent on this particular sector as it was largely
underdeveloped. The country was still recovering from
the parasitic policies of the previous rulers, the British,
who left the nation’s economy in ruins.As the years go
on, we see that the economy’s dependence on agriculture gradually
decreases and primarily focuses on the service sector.

As it’s share in the country’s GDP decreases, the lesser impact or

contribution it makes to growth.  Its share in the GDP of the country has
declined and is currently at 14%. However, more than 50%
of the total population of the country is still dependent on
agriculture. Keeping this in mind, the Union Budget 2017 -
18 gave high priority to the agricultural sector and aimed to
double farmers’ incomes by 2022.

2. Industrial sector:
Another important part of the Indian economy is the
Industrial sector. Its impact on the GDP has greatly
increased since new policies and laws that eased the process of setting up
industries. Proliferation of industries, from conventional iron and steel to
jute and automobiles, autonomy in production, marketing, and distribution,
and encouragement of both local and FDI private investment. Industrial
development is necessary for modernisation of agriculture. It encourages
the development of science and technology.
The industrial sector includes
activities such as mining, quarrying
and manufacturing
From the above data we can say that the GDP share of the industrial sector has
steadily increased. The mining sector increased and peaked about midway
through the planning period and later decreased to its initial numbers towards the
final few Five-Year Plans. Compared to the agricultural and service sector, a
large change in the GDP share over the years is absent. Change is consistent and
the defined.

3. Service sector:
The service sector creates intangible goods, or services rather than goods,
and includes warehousing and transportation services, information services,
securities and other investment services, professional services, waste
management, health care and social assistance, and arts, entertainment, and
recreation. Countries with service-oriented economies are deemed more
advanced than industrial or agricultural economies. The services sector
profited the most from the New Economic Policy. Banking, finance, BPO,
and, most critically, information technology services have all grown by
double digits.
Here, we see a consistent and defined increase in the share
of GDP of the Service sector. A major reason to attribute this increase to would
be the IT boom in India. Another reason could be the development of tourism,
transportation and communication which cater to a large demography.

CONCLUSION-

The planning period was truly an important part of India’s growth as an

economy. The efforts of the Planning Commission of India and various other
governmental agencies in formulating policies and strategies to stimulate
economic growth through Five-Year plans were not rendered futile. Although the
economy has come a long way from its Post-Independence state, there is still
work to be done for India to establish itself as one of the world’s superpowers.
Poverty, unemployment and illiteracy still plague this nation. Hopefully, the
newly formed NITI Aayog shall be able to continue to work towards balanced
economic growth and development just as it predecessor did for various decades.
Topic 2-

Conduct a Socio-Economic survey of a locality (minimum

sample size should be 30 households) with reference to:

(a) Demographic features.

(b) Consumption Pattern – Expenditure on

necessities, comforts and luxuries.

(c) Occupational structure.

Introduction:

Economy and Society are two different concepts. An economy is a framework

within which activities such as production, distribution and consumption take
place in a given geographical area. However, a society is a large group of people
who live together in an organised way and makes decisions.

But despite being different, various economic factors affects society and there are
social processes affect the economy as well. For example, income of a family
increases the status of a family in society increases. Here, the economic factor,
income, has affected society. Similarly, if ‘all’ the people living in a society
receive proper healthcare and education facilities, then they will receive better
jobs with higher incomes. Therefore, there will be economic development. In this
case, social processes have led to economic changes.

Thus, it is clear that society and economy affect each other. In this project, a
socio-economic survey will be conducted in 40 households spread across 3
municipal wards so that the pattern of changes can be studied through the
collected data and analysis can be made to find out the cause of these changes.

Socio-economics:

Socio-economics (also known as social economics) is the social science that

studies how economic activity affects and is shaped by societal processes. In
general, it analyses how societies progress, stagnate or regress because of their
local or regional economy or the global economy.

It is in fact the study of the interrelation between economics and social

behaviour.

Socio-Economic Survey:

Socio-economic survey and analysis are a very important aspect of any

developmental activity. The different types of changes in society due to
economic factors can be studied through economic factors can be studied through
economic surveys.

Demographic details, household category-wise population report, educations

status, land holding and income and expenditure of families can all be found out
through social economic surveys. Such surveys are usually conducted over a
particular area or for a group of people.

Obejectives of the survey:

The objectives of this survey are as follows:

1. To collect required information, sort it and analyse it.

 2. To collect information based on demographic features as well as economic
attributes like consumption patterns and occupational structure across
various income groups.
3. To use the collected information to identify the social, demographic and
economic features of the population under study.
4. To learn more about the survey by comparing it with other socio-economic
surveys with a different population unit.
5. To study the socio-economic problem faced by this population and to come
up with appropriate policies to resolve these issues.

The above five objectives will help us attain perfect knowledge and
understanding about socio-economic surveys and their uses.

Population unit of the survey:

The unit of populations of the survey is

households. A random sample of 40
households is collected by means of a
questionnaire shared through a Google Form. These households are spread across
three municipal wards:

1. Ramamurthy Nagar (Backward A category)

Population= 21999
Male= 11330 Female=10669
2. Ulsoor (Scheduled Caste)
Population= 35891
Male= 20526 Female= 15365
3. Banaswadi (General)
Population= 31998
Male=16634 Female= 15364

The 40 households include households from

four different categories: (i)upper class,
(ii)upper middle class, (iii)lower middle class
and (iv)lower class; which are divided on the
basis of income. Thus, though the sample size
is small, it represents the sample of mixed
distribution of income categories.

Apart from this, the 3 municipal wards across which the survey is conducted
belongs to different categories. This further mixed distributions.

Scope of the Survey:

To personally collect information for this survey from the respondents, the
questionnaire method has been used. The questionnaire contains 16 questions.
These questions are framed in such a way that it is simple and easy to
understand by the respondents. ‘
The questions are designed to cover the main themes of the survey-(i)
Demographic features, (ii) Consumption patterns and (iii)Occupational
structure. None of the questions are open-ended and so the respondents will be
able to give definite, specific, and objective answers.

The questionnaires from the 40 households in this survey has been used as the
primary data for the calculations, graphs and comparative study of the survey.
Example of the questionnaire:
Demographic Features-

1. Size of household-________
2. Sex composition: Male-______, Female-________
3. Age composition of the household:
 O-20-________
 21-55-________
 56 and above-_________
4. Child population (0-6 years)-______
5. No. of literates in the family-______
6. Number of married couples-______
7. The level of education of the members-_______
8. Type of family-
 Joint
 Nuclear
9. Origin of the head of the family-
 Original resident
 Migrant
10. Consumption Pattern-
 2-5 lakhs
 5-10 lakhs
 10-20 lakhs
 20 lakhs and above
11. Proportion of income spent on necessities-
 5-10%
 10-20%
 20% and above
12. Proportion of income spent on comforts:
 0-5%
 5-10%
 10-20%
 20% and above
13. Proportion of income spent on luxuries:
  0-5%
 5-10%
 10-20%
 20% and above

Occupational Structure:

14. Occupation of the head of the household-________

15. Whether the spouse of the householder is working (if yes her/his occupation)
 Yes-__________
 No
16. The income of each earning member (state occupation and income)-_____________
Findings:

Through the information collected from various household by means of

questionnaires, the differences in demographic features, consumptions patterns
and occupational structure can be identified and analysed. The following
calculations have been made

DEMOGRAPHIC FEATURES:
1. Size of the household:

Banaswadi Ward Ramamurthynagar Ward Ulsoor ward

Members No. of Members No. of Members No. of
households households households
2 1 2 0 2 0
3 3 3 3 3 4
4 5 4 6 4 8
5 3 5 3 5 1
6 1 6 1 6 1

Majority of the households, from all three wards have 3, 4 or 5 members.

Nearly 50% of the households have 4 members consisting usually of
parents and 2 children. Households with more members are uncommon
because urban areas usually have similar families.
It is also noticed that most of the families having members fall in th income
bracket 5-10, 10-20 or 20 lakhs and above per annum.
 No. of members
7

0
2 members 3 members 4 members 5 members 6 members

Banaswadi Nagar Ramamurthynagar ward Ulsoor Ward

Locality (includes 2 wards)

Members No. of households

2 1
3 10
4 19
5 7
6 3

Size of households in the Locality

2 members 3 members 4 members 5 members 6 members

2. Sex composition:

Banaswadi Ward Ramamurthynagar Ward Ulsoor Ward

 Male Female Male Female Male Female
25 28 21 33 30 25

In Banaswadi and Ramamurthynagaar wards, the number of females is

higher than the number of males unlike Ulsoor ward, where the number of
males is higher than the number of females. The populations of the 40
households in total is 162 persons. Out of this 76 are male and 86 are
female. Out of the total population, is male and female.
No. of persons
35

30

25

20

15

10

0
Male Female

Banaswadi ward Ramamurthynagar ward Ulsoo Ward

Locality

Male Female
76 86

Sex composition of the locality

Male Female
3. Age composition:

Banaswadi Ward Ramamurthynagar Ward Ulsoor ward

Age Group No. of persons Age Group No. of persons Age Group No. of persons
(yrs) (yrs) (yrs)
0-20 16 0-20 19 0-20 22
21-55 29 21-55 29 21-55 27
56 and above 8 56 and above 6 56 and above 6

In all three wards, there are fewer aged people. The number of children and
students (0-20 years) is more than the number of aged people. Majority of
persons however, are a part of the working class (21-55 years).

No. of persons by age

35

30

25

20

15

10

0
0-20 years 21-55 years 56 years and
above

Banaswadi Ward Ramamurthynagar Ward Ulsoor Ward

Out of the total populations, 35% belongs to the age group 0-20 years
(children and students), 52.5% belongs to the working class (21-55 years)
and 12.5% belongs to the age group 56 years and above.
Age composition of the locality

0-20 21-55 56 and aboves

4. Child population (0-6 years):

Banaswadi Ward Ramamurthynagar Ward Ulsoor Ward

No. of children 0 2 2

Infants and children form a very small portions of the locality. They
compare only 2.5% of the total population.
Child population (0-6 years)
2.5

1.5

0.5

0
No. of children

Banaswadi Ward Ramamurthynagar Ward Ulsoor Ward

5. Number of married couples:

Banaswadi Ward Ramamurthynagar Ward Ulsoor Ward

No. of married couples 13 13 15

In total, there are 41 married couples in the locality. This means that there
are 82 married and living persons. These persons form 50.6% of the
population. Most of these couples are a part of the age group 22-55 years
(working class). No married couples between 18-20 years.
No. of married couples
15.5

15

14.5

14

13.5

13

12.5

12
No. of married couples

Banaswadi Ward Ramamurthynagar Ward Ulsoor Ward

6. Number of literates:

Banaswadi Ward Ramamurthynagar Ward Ulsoor Ward

 No. of Literates 48 52 50

Out of the population of 162 persons, 4 persons are children (0-6 years).
They cannot possibly be literate. The total number of literates in the locality
is 158.

Illiteracy
53
52
51 Total population 162
50 Less: Children (0-6 years) 4
49

48
Less: No. of literates 150
47 No. of illiterates 8
46
No. of illiterates

From the calculations we can identify

Banaswadi Ward Ramamurthynagar Ward Ulsoor Ward

that 8 persons out of 162 persons is

illiterate. 5% of the population is illiterate. Illiteracy still prevails despite
the sample group residing in an urban area.

7. Level of education of the people:

Banaswadi Ward Ramamurthynagar Ward Ulsoor Ward

Middle Stage 2 4 6
Secondary Stage 13 9 12
Senior Secondary 6 6 7
Stage
Undergraduate 17 17 17
Postgraduate 12 16 6

Most of the people below 55 years have received Undergraduate or

postgraduate education. People who are 56 and above have mostly not
received more than Senior Secondary education.
 Level of education
18

16

14

12

10

0
Middle School 10th grade 12th grade Undergraduate Postgraduate

Banawadi Ward Ramamurthynagar Ward Ulsoor Ward

Locality

Middle Stage 12
Secondary Stage 34
Senior Secondary Stage 19
Undergraduate 51
Postgraduate 34

Out of the population, 8% have finished Middle School, 22.67% has

finished till 12th grade, 24% has finished undergraduate course and 22.67%
has finished a postgraduate course. The education levels are higher mainly
due to urbanization.
 Composition of level of education

Middle School 10th Grade 12th Grade Undergraduate Postgraduate

8. Type of family:

Banaswadi Ward Ramamurthynagar Ulsoor Ward

Ward
Joint 1 1 1
Nuclear 12 12 13
As the three wards are urban areas, joint families are uncommon. People in
urban areas tend to live in nuclear families. Joint families usually exist in
rural areas. 7.5% joint families, 92.5% nuclear families

Type of family

14
12
10
8
6
4
2
0
Joint Nuclear

Banaswadi Ward Ramamurthynagar Ward Ulsoor ward

 Type of family

Joint Nuclear

9. Origin of the head of the family:

Banaswadi Ward Ramamurthynagar Ward Ulsoor Ward

Original Residents 7 5 8
Migrants 6 8 6
Origin of head of family
9

0
Original residents Migrants

Banaswadi Ward Ramamurthynagar Ward Ulsoor Ward

Though the origins of the head of the family is different for all wards, on an
overall basis, 50% of the heads of families are original residents and 50%
are migrants. This shows that over a period of about 3 decades, the number
of people who have migrated to the city or locality has increased two-fold.
Locality

Original residents 20
Migrant 20
 Origin of head of the family

Original Resident Migrant

CONSUMPTION PATTERN:
10. Income groups:

Income Range Banaswadi Ward Ramamurthynagar Ulsoor Ward

(p.a.) (No. of Households) Ward (No. of Households)
(No. of Households)
2-5 lakhs 2 2 6
5-10 lakhs 5 4 2
10-20 lakhs 5 3 2
20 lakhs and above 2 4 4

Banaswadi ward consists of mainly middle class people earning about 5-20
lakhs per year.
Ramamurthy Nagar ward consists of all class of people receiving different
incomes per year.
Ulsoor ward has a he difference between the rich and the less fortunate.
Many people earn a high salary/income (20 lakhs and above) and many
people earn very low incomes of 2-5 lakhs.
 Income groups
7

0
2-5 lakhs 5-10 lakhs 10-20 lakhs 20 lakhs and above

Banaswadi Ward Ramamurthynagar Ward Ulsoor Ward

Information has been collected from households of different income groups

so as to obtain mixed distribution income categories.
Locality

Income range No. of households

2-5 lakhs 10
5-10 lakhs 10
10-20 lakhs 10
20 lakhs and above 10

Income Gropus

2-5 lakhs 5-10 lakhs 10-20 lakhs 20 lakhs and above

11. Proportion of income spent on necessities:

 Income spent (%) Banaswadi Ward Ramamurthynagar Ward Ulsoor Ward
5-10% 0 1 2
10-20% 11 10 10
20% and above 2 2 2

A majority of the people, irrespective of their income group, spend 10-20%

of their income on necessities like food, clothing, etc. They comprise
77.5% of the total population.
% of income spent on necessities
12

10

0
5-10% 10-20% 20% and above

Banaswadi Ward Ramamurthynagar Ward Ulsoor Ward

Locality

Income spent No. of households

0-5% 3
5-10% 24
10-20% 12
20% and above 1
% of income spent on necessities

0-5% 5-10% 10-20% 20% and above

12. Proportion of income spent on comforts:

Income spent Banaswadi Ward Ramamurthynagar Ward Ulsoor Ward

0-5% 1 1 1
5-10% 7 9 8
10-20% 5 3 4
20% and above 0 0 1
 A majority of households, mostly part of the middle income groups, spend
5-10% of their income on comforts like furniture, television, etc. They
comprise 60% of the population. 30% of the population spend about 10-
20% of their income on comforts.
Income spent on comforts
10

0
0-5% 5-10% 10-20% 20% and above

Banaswadi Ward Ramamurthynagar Ward Ulsoor Ward

Locality

Income spent No. of households

0-5% 3
5-10% 24
10-20% 12
20% and above 1
Income spent on comforts

0-5% 5-10% 10-20% 20% and above

13. Proportion of income spent on luxuries:

Income spent Banaswadi Ward Ramamurthynagar Ward Ulsoor Ward

0-5% 9 6 9
5-10% 4 6 4
10-20% 0 1 1
20% and above 0 0 0
 Majority of households spend only 0-5% of their income on luxuries like
gold, expensive vehicles, etc. 60% of people spend 0-5% of income on
luxuries and 35% of people spend 5-10% of income on luxuries.
Proportion of income spent on luxuries
10

0
0-5% 5-10% 10-20% 20% and above

Banaswadi Ward Ramamurthynagar Ward Ulsoor Ward

Locality

Income spent No. of households

0-5% 24
5-10% 14
10-20% 12
20% and above 0
Proportion of income spent on luxuries

0-5% 5-10% 10-20% 20% and above

OCCUPATIONAL STRUCTURE:
14. Occupation of the head of the household:

Occupation Banaswadi Ward Ramamurthynagar Ward Ulsoor Ward

Profession 6 9 6
Business 5 3 6
Employment 2 1 1

On an overall basis, 52.5% of family heads are involved or occupied in

professions, 35% in business and 10% are employed in a firm or company.
 Occupation of the head of the household
10

3
2

0
Profession Business Employment

Banaswadi Ward Ramamurthynagar Ward Ulsoor Ward

Locality

Occupations No. of households

Profession 21
Business 14
Employment 4
Occupation of the head of the household

Profession Business Employment

15. Number of working spouses:

Banaswadi Ward Ramamurthynagar Ward Ulsoor Ward

No. of working spouses 4 7 6

Out of 40 households, only 27 spouses of the householders are working

even though they are educated. It shows how the manpower in the locality
is being left unused. It is a waste of valuable manpower.
 No. of working spouses
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
No. of working spouses

Banaswadi Ward Ramamurthynagar Ward Ulsoor Ward

Locality

No. of working spouses 27

Conclusion-
Through this survey, a lot of information has been collected and many
features of the urban locality has been identified. This has helped in
determining the social and economic structure of the community under
study.
The demographic features are similar to those of any developing
metropolitan city in India. Small nuclear families, higher number of
working class persons, favourable sex composition and satisfactory literacy
rates are a few of the main features.
The consumption pattern is also similar to big cities. Most of the
households spend a major part of their income only on necessities and
comforts. Very few households spend a lot on luxuries.
The occupational structure is however different in certain ways. Unlike
other cities, where business is the main type of occupation undertaken, this
locality has more people occupied in professional services. This is probably
because of the growing IT sector in the city which provides numerous
professional job opportunities.
There are however lesser number of working women in this locality. It
shows how mordernisation and urbanization has not caused much change in
the social and family structure, which expects women to stay at home and
take care of household affairs. The social structure has led to the wastage of
valuable manpower which could otherwise be utilized to fasten economic
growth and development.

ACKNOWLEDGEMENT-
Firstly, I would like to thank our Economics teacher for giving us the
necessary guidance and assistance with regards to this project. Secondly, I
would like to express my gratitude towards my parents for providing me
with the resources required to complete this project. Lastly, I would like to
thank my friends who gave me the motivation and support required to
finish this assignment.

BIBLIOGRAPHY-
1. www.ibef.org
2. niti.gov.in
3. en.wikipedia.org
4. www.economicsdiscussion.net
5. corporatefinanceinstitute.com
6. www.jstor.org
7. www.statista.com
8. planningcommission.gov.in
9. www.investindia.gov.in