1. Human Capital vs. Liability:
    • The chapter explains that population should be seen as an asset (human capital) rather than a liability for the economy.
    • Human capital refers to the skills, knowledge, and health of people, which contribute to the economy when invested in education, training, and healthcare.
  2. People as Resource:
    • The term “People as Resource” refers to the working population and their productive skills.
    • When individuals are educated and healthy, they become more productive, adding to the national income, similar to physical capital (machines, infrastructure).
  3. Human Capital Formation:
    • Human capital formation occurs when people are educated and healthy, which increases their ability to contribute to the economy.
    • Investment in human capital (education, training, medical care) yields returns in the form of higher incomes and productivity.
  4. Green Revolution & IT Revolution:
    • The Green Revolution shows how knowledge and technology can increase productivity in agriculture, using limited land resources efficiently.
    • The IT Revolution highlights how human capital (skilled workers) is more important than physical resources like land or machinery in the modern economy.
  5. Literacy & Education:
    • Literacy rates have increased significantly from 18% in 1951 to 85% in 2018.
    • However, there are disparities: males have higher literacy rates than females, and urban areas have better literacy than rural areas.
    • Initiatives like Sarva Shiksha Abhiyan and mid-day meal schemes aim to improve access to education and encourage school attendance.
  6. Gross Enrolment Ratio (GER):
    • The GER in higher education for the 18-23 age group is 27% (2019-20), in line with the global average.
    • The government is focusing on improving access to education, quality, and vocational skills, especially through distance education and technology.
  7. Health & Economic Growth:
    • Health is critical for productivity. A healthy workforce is more efficient and contributes more to the economy.
    • India has made strides in improving healthcare infrastructure and reducing infant mortality rates (from 147 in 1951 to 28 in 2020).
    • Life expectancy has risen to 67.2 years (2021), indicating improved living standards.
  8. Unemployment:
    • Unemployment is when people willing to work cannot find jobs at prevailing wages.
    • Types of unemployment:
      • Seasonal unemployment: Occurs when jobs are unavailable in off-seasons, particularly in agriculture.
      • Disguised unemployment: Occurs when more people are employed than needed. E.g., family members working on the same agricultural plot without adding extra productivity.
      • Educated unemployment: A growing issue in urban areas, where graduates and post-graduates struggle to find jobs.
    • Unemployment leads to social waste and economic underutilization of human resources.
  9. Case Study: Village Development:
    • A village develops by investing in education and skills.
    • Example: A boy from the village goes to an agricultural college, learns agro-engineering, and brings back knowledge to improve farming. This results in increased productivity and job creation.
    • The village then opens a school, allowing children to pursue education, leading to long-term development.
  10. Importance of Education and Health for Economic Growth:
    • Educated and healthy individuals contribute significantly to economic growth.
    • Investing in education, vocational skills, and healthcare enhances the productive capacity of the population, making it a valuable resource for the economy.

Additional Key Concepts:

  • Physical Capital Formation: Refers to investment in infrastructure, machinery, and technology.
  • Primary Sector: Agriculture and extraction of raw materials.
  • Secondary Sector: Manufacturing and industry.
  • Tertiary Sector: Services such as healthcare, education, and IT.

Understanding the Impact of Unemployment:

  • Underemployment: People working at jobs below their potential or in jobs that do not require their qualifications.
  • Surplus Manpower vs. Shortage of Skills: India faces a paradox where there are too many people in some job categories but a shortage of skilled workers in others.

Summary:

  • Population can be a key economic asset if invested in properly through education, training, and health. The chapter emphasizes the importance of human capital formation, where an educated and healthy population contributes significantly to the economy’s growth and development.

THESE ALL ARE THE NOTES OF CHAPTER 2 ECONOMICS. AND AFTER SOME TIME YOU GET IMPORTANT QUESTIONS HERE. *#THANKS FOR VISITING, VISIT AGAIN#* 😊