Chapter 1: Development
A comprehensive, exam-ready guide covering every concept, table, and fact from the NCERT chapter — with UPSC-standard MCQs.
1. Introduction to Development
The idea of development or progress has always been with us. We have aspirations or desires about what we would like to do and how we would like to live. Similarly, we have ideas about what a country should be like.
- What are the essential things that we require?
- Can life be better for all?
- How should people live together?
- Can there be more equality?
Development involves thinking about these questions and about the ways in which we can work towards achieving these goals.
Answers to development questions come not just from economics but also from history and political science, because the way we live today is influenced by the past. It is only through a democratic political process that these hopes and possibilities can be achieved in real life.
Development is a multidimensional concept — it encompasses economic growth, social equity, environmental sustainability, political freedom, and human well-being. The chapter establishes that income alone is an inadequate measure of development.
2. What Development Promises — Different People, Different Goals
Different persons have different notions of development/progress because their life situations are different. What may be development for one person may not be development for another — it may even be destructive for the other.
| Category of Person | Developmental Goals / Aspirations |
|---|---|
| Landless rural labourers | More days of work and better wages; local school providing quality education for children; no social discrimination; ability to become leaders in the village. |
| Prosperous farmers from Punjab | Assured high family income through higher support prices; hardworking and cheap labourers; ability to settle children abroad. |
| Farmers dependent on rain | Assured irrigation, fair prices for crops, debt relief, crop insurance, stable income. |
| Rural woman from land-owning family | Equal freedom as her brother; ability to decide her own life path; pursue higher studies. |
| Urban unemployed youth | Good employment opportunities, fair wages, respect, career growth. |
| Boy from a rich urban family | Higher income, maintenance of lifestyle, good business/career. |
| Girl from a rich urban family | Gets as much freedom as her brother; decides what she wants in life; able to pursue studies abroad. |
| Adivasi from Narmada valley | Fair compensation/rehabilitation if displaced; protection of forest rights; no submergence of ancestral land; preservation of culture. |
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.
Example: Industrialists want more dams for electricity; tribals resent displacement and prefer small check dams or tanks for irrigation.
The raising of the height of Sardar Sarovar Dam on Narmada River illustrates conflicting goals: industrialists and farmers upstream get water/power, while tribals and downstream communities face submergence of land and displacement. This led to significant protest movements.
Note: A demonstration meeting against raising the height of Sardar Sarovar Dam on Narmada River is highlighted in the NCERT chapter as an iconic image of conflicting development goals.
3. Income and Other Goals
If you examine the developmental goals across different categories, one common thread emerges: people desire regular work, better wages, and decent prices — in other words, more income.
However, besides income, people also seek:
- Equal treatment
- Freedom
- Security
- Respect from others
- Freedom from discrimination
Money, or material things one can buy with it, is one factor on which life depends. But the quality of our life also depends on non-material things — friendship, freedom, security, dignity — that are not easily measured but mean a lot. It would be wrong to conclude that what cannot be measured is not important.
Example: A job may give less pay but offer regular employment that enhances sense of security. Another job may offer high pay but no job security and no time for family — reducing sense of freedom.
If women are engaged in paid work, their dignity in the household and society increases. However, if there is respect for women, there would also be more sharing of housework and greater acceptance of women working outside. A safe and secure environment allows more women to take up jobs or run businesses.
Hence, developmental goals are not only about better income but also about other important things in life.
4. National Development
Since individuals seek different goals, their notion of national development is also likely to be different. It is very important to keep in mind that different persons could have different as well as conflicting notions of a country’s development.
- Considering whether an idea will benefit a large number of people or only a small group.
- Identifying what is a fair and just path for all.
- Thinking about whether there is a better way of doing things.
- Resolving conflicts between competing development visions democratically.
A vessel dumped 500 tonnes of liquid toxic waste into open-air dumps in Abidjan, Ivory Coast (Africa). The highly toxic fumes caused nausea, skin rashes, fainting, and diarrhoea. Within a month: 7 persons died, 20 were hospitalized, 26,000 were treated for poisoning symptoms. A multinational petroleum and metals company had contracted a local company to dispose the toxic waste from its ship.
Lesson: National development must include environmental protection; development for some cannot come at the cost of destruction for others.
5. How to Compare Different Countries or States?
For comparing countries, income is considered one of the most important attributes. Countries with higher income are considered more developed. This is based on the understanding that more income means more of all things that human beings need.
The total income of the country is the income of all its residents. For comparison between countries, we use Per Capita Income = Total Income ÷ Total Population, because countries have different population sizes.
| Category | Per Capita Income (US$ per annum, 2024) |
|---|---|
| High Income / Rich Countries | US$ 66,500 and above |
| Low Income Countries | US$ 2,300 or less |
| India (Low Middle Income) | US$ 11,000 (approx.) |
Rich countries (excluding Middle East and certain small countries) are generally called Developed Countries.
While averages are useful for comparison, they also hide disparities.
| Country | Citizen I | Citizen II | Citizen III | Citizen IV | Citizen V | Average |
|---|---|---|---|---|---|---|
| Country A | 9,500 | 10,500 | 9,800 | 10,000 | 10,200 | 10,000 |
| Country B | 500 | 500 | 500 | 500 | 48,000 | 10,000 |
Both countries have the same average income (₹10,000), yet they are very different:
- Country A: More equitable distribution — people are neither very rich nor extremely poor. Preferred by most.
- Country B: Most citizens are poor (₹500), one person is extremely rich (₹48,000). Unequal society.
Hence, while average income is useful for comparison, it does not tell us how income is distributed among people. The equitable distribution of income is equally important.
6. Income and Other Criteria — State Comparison
| State | Per Capita Income (₹) |
|---|---|
| Haryana | ₹3,25,759 |
| Kerala | ₹2,81,001 |
| Bihar | ₹60,337 |
If per capita income were the only measure, Haryana would be the most developed and Bihar the least. But this picture changes significantly when we examine other indicators.
| State | Infant Mortality Rate (per 1,000 live births, 2020) | Literacy Rate % (2017–18) | Net Attendance Ratio — Secondary (aged 15–17 yrs, 2017–18) |
|---|---|---|---|
| Haryana | 28 | 82% | 73 |
| Kerala | 6 | 94% | 94 |
| Bihar | 27 | 62% | 69 |
- Kerala’s IMR is only 6 vs Haryana’s 28 — nearly 3 times better, despite Kerala having lower per capita income than Haryana.
- Kerala’s literacy rate (94%) and Net Attendance Ratio (94) are the highest among the three.
- This is because Kerala has adequate provision of basic health and educational facilities (public facilities model).
- Bihar’s Net Attendance Ratio of 69 means nearly one-third of children aged 15–17 are not in school.
- Conclusion: Per capita income alone is not a completely adequate indicator of development.
- Infant Mortality Rate (IMR): Number of children dying before the age of one year per 1,000 live births in a given year.
- Literacy Rate: Proportion of literate population in the 7-and-above age group.
- Net Attendance Ratio: Total number of children aged 15–17 years attending school as a percentage of total children in the same age group.
7. Public Facilities
“Money in your pocket cannot buy all the goods and services that you may need to live well.”
- Money normally cannot buy a pollution-free environment.
- Money cannot ensure you get unadulterated medicines unless you shift to a community that has them.
- Money cannot protect you from infectious diseases unless the whole community takes preventive steps.
For many important things in life, the best way, also the cheapest way, is to provide these goods and services collectively:
- Collective security for a locality is cheaper than individual security for each house.
- If no one else in your village wants to study, you cannot study either — unless parents can afford a private school elsewhere.
- Ability to study depends on many other children wanting to study and government opening schools.
- Even now in many areas, particularly girls cannot go to high school because of inadequate government/societal facilities.
Kerala’s Public Distribution System (PDS) functions well — this leads to better health and nutritional status.
The chapter introduces the concept of public goods — goods and services that are best provided collectively (education, health, sanitation, security) as opposed to private provision. This aligns with the concept of market failures in economics, where markets fail to provide certain goods optimally, necessitating government intervention.
| Category | Male | Female |
|---|---|---|
| Literacy rate for rural population | 76% | 54% |
| Literacy rate for rural children (age 10–14 yrs) | 90% | 87% |
| % of rural children (10–14 yrs) attending school | 85% | 82% |
(a) Literacy rate is 76% for rural males and 54% for rural females. Beyond adult illiteracy, there are children currently not in school.
(b) 18% of rural girls and 15% of rural boys are not attending school. Illiteracy among 10–14 age group is 13% for rural females and 10% for rural males.
(c) This high illiteracy among the 10–14 age group, even after 75+ years of independence, is most disturbing. India is nowhere near the constitutional goal of free and compulsory education for all children up to age 14, which was expected by 1960.
8. Human Development Report (UNDP)
Once it is realised that income is inadequate as a development measure, we look for other criteria. Health and education indicators, along with income, form the basis of the Human Development Index (HDI).
- Published by UNDP (United Nations Development Programme).
- Compares countries based on: Educational levels + Health status + Per Capita Income.
- Per Capita Income is calculated in dollars using Purchasing Power Parity (PPP) — so every dollar buys the same amount of goods and services in any country.
- Life Expectancy at birth: Average expected length of life of a person at birth.
- HDI Ranks are out of 193 countries.
| Country | GNI Per Capita (2021 PPP $) | Life Expectancy at Birth | Mean Years of Schooling (25+ yrs) | HDI Rank (2021–22) |
|---|---|---|---|---|
| Sri Lanka | 12,616 | 77.5 | 10.8 | 89 |
| India | 9,047 | 72.0 | 6.9 | 130 |
| Myanmar | 4,919 | 66.9 | 6.4 | 150 |
| Pakistan | 5,501 | 67.6 | 4.3 | 168 |
| Nepal | 4,726 | 70.4 | 4.5 | 145 |
| Bangladesh | 8,498 | 74.7 | 6.8 | 130 |
- Sri Lanka is much ahead of India in every respect (HDI rank 89 vs India’s 130).
- Nepal and Bangladesh have lower per capita income than India, yet Nepal and Bangladesh are better than India in life expectancy.
- Bangladesh has the same HDI rank as India (130) despite lower GNI per capita.
- Pakistan has a higher GNI per capita than Nepal but much worse HDI rank (168 vs 145).
- This confirms that income alone does not determine human development.
| Aspect | World Bank | UNDP (HDR) |
|---|---|---|
| Primary Criterion | Per Capita Income (GNI) | Education + Health + Income |
| Index Used | Per Capita GNI | Human Development Index (HDI) |
| Currency Basis | US Dollars (market rate) | PPP Dollars |
| Focus | Economic output | Human well-being |
| Limitation | Ignores health, education, equity | May still not capture all dimensions |
By pre-fixing “Human” to “Development”, UNDP makes it very clear that what is important in development is what is happening to citizens of a country — their health and their well-being. It is people that matter most.
BMI Formula: Weight (kg) ÷ [Height (m)]²
- BMI within normal range = healthy
- BMI below normal = underweight/undernourished
- BMI above normal = obese/overweight
- Example: Girl aged 14 yrs 8 months with BMI 15.2 = undernourished
- Example: Boy aged 15 yrs 6 months with BMI 28 = overweight
| State | Male (%) | Female (%) |
|---|---|---|
| Kerala | 8.5% | 10% |
| Karnataka | 17% | 21% |
| Madhya Pradesh | 28% | 28% |
| All States | 20% | 23% |
- Kerala has the best nutritional levels (only 8.5% males, 10% females undernourished).
- Madhya Pradesh is worst (28% both males and females undernourished).
- Nationally, 1 in 5 persons is undernourished even though India argues there is enough food — pointing to distribution and access failures, not production failures.
9. Sustainability of Development
We would like the current level of development to go up further or at least be maintained for future generations. However, since the second half of the twentieth century, scientists have been warning that the present type and levels of development are not sustainable.
Types of Resources
Resources that are replenished by nature, e.g., crops, plants, groundwater (replenished by rain).
However: Even renewable resources can be overused. If groundwater is extracted more than what is replenished by rain, it will be overused.
Resources that will get exhausted after a few years of use. A fixed stock on earth — cannot be replenished. New discoveries add to stock, but over time even these will get exhausted. Example: Crude oil.
Example 1 — Groundwater Crisis in India
- About 300 districts have reported water level decline of over 4 metres in the past 20 years.
- Nearly one-third of the country is currently overusing groundwater reserves.
- In another 25 years, 60% of the country would be doing the same if present use continues.
- Groundwater overuse is particularly found in: Punjab, Western U.P., hard rock plateau areas of central and south India, some coastal areas, and rapidly growing urban settlements.
| Region/Country | Reserves (2017) (Thousand Million Barrels) | Years Reserves Will Last |
|---|---|---|
| Middle East | 836 | 70 years |
| United States of America | 69 | 10.5 years |
| World | 1,732 | 47 years |
- World crude oil reserves (as of 2017) would last only about 47–50 years at present extraction rates.
- India depends on importing oil from abroad — lack of sufficient domestic reserves.
- Rising oil prices become a burden for oil-importing countries like India.
- Countries like USA with low reserves seek to secure oil through military or economic power.
- The question of sustainability raises fundamentally new issues about the nature and process of development.
Consequences of environmental degradation do not respect national or state boundaries. This issue is no longer region or nation specific — our future is linked together. Sustainability of development is a comparatively new area of knowledge in which scientists, economists, philosophers and other social scientists are working together.
10. UPSC Value Addition — Beyond the NCERT
Nobel laureate Amartya Sen (who contributed to UNDP’s HDI) argues that development should be seen as expansion of human capabilities and freedoms — not just income growth. Real development means having the freedom to live a life of value: health, education, political participation, and social respect.
The UN’s 2030 Agenda for Sustainable Development has 17 SDGs, replacing the earlier Millennium Development Goals (MDGs). They address poverty, hunger, health, education, gender equality, clean water, clean energy, economic growth, inequality, climate action, etc. India has committed to achieving SDGs by 2030.
| Metric | Meaning |
|---|---|
| GDP | Total value of goods/services produced within a country’s borders |
| GNI | GDP + Net factor income from abroad (used by World Bank for HDR) |
| PPP | Purchasing Power Parity — adjusts for price differences across countries |
| HDI | Composite index of GNI per capita (PPP) + Life Expectancy + Education (UNDP) |
| IMR | Infant Mortality Rate — proxy for healthcare quality |
- India’s HDI Rank: 130 out of 193 countries (HDR 2025, 2021–22 data)
- India’s GNI per capita: $9,047 (PPP, 2021)
- India’s Life Expectancy: 72 years
- India’s Mean Years of Schooling: 6.9 years
- India’s per capita income (World Bank, 2024): ~US$ 11,000 (Low Middle Income)
- Haryana Per Capita (2023–24): ₹3,25,759 | Kerala: ₹2,81,001 | Bihar: ₹60,337
11. NCERT Exercise Questions with Answers
-
Development of a country can generally be determined by (MCQ):
Answer: (iv) All the above — per capita income, average literacy level, and health status of its people.
-
Which neighbouring country has better human development than India?
Answer: (ii) Sri Lanka — HDI rank 89 vs India’s 130.
-
Average per capita income = ₹5,000. Three families earn ₹4,000, ₹7,000, ₹3,000. What does the 4th earn?
Answer: (iv) ₹6,000. [Total = 5,000 × 4 = ₹20,000; 20,000 – (4,000+7,000+3,000) = ₹6,000]
-
World Bank’s criterion for classifying countries and its limitations:
Criterion: Per capita income (GNI). Limitations: Hides income inequality; does not reflect health, education, freedom, dignity, or quality of life. Two countries with same average income may be very different in actual well-being.
-
UNDP vs World Bank — difference in measuring development:
World Bank uses only per capita income. UNDP uses a composite HDI — combining per capita income (PPP), life expectancy at birth, and educational attainment (mean years of schooling). UNDP focuses on human well-being, not just economic output.
-
Kerala with lower per capita income has better HDI than Haryana — does this make per capita income useless?
No — per capita income is still a useful but insufficient criterion. Kerala’s better outcomes stem from strong public facilities (health, education, PDS), not higher income. Both income AND quality of public services matter. We need multiple indicators, not just one.
-
Why is sustainability important for development?
Because present patterns of resource use deplete non-renewable resources and overuse renewables, jeopardising future generations’ ability to meet their needs. Environmental degradation crosses national boundaries. Development must be inter-generationally equitable.
-
“The Earth has enough resources to meet the needs of all but not enough to satisfy the greed of even one person.” — Relevance to development?
This Gandhian statement underlines that the problem is not resource scarcity but unequal distribution and greed. Equitable development that conserves resources (sustainable development) can meet everyone’s genuine needs. Overconsumption by a few depletes resources for all.
12. “Let’s Work These Out” — Key Section Questions
- Why do different persons have different notions of development? — (b) Because life situations of persons are different. This is more important than (a) people being different in personality, because it is the material and social circumstances that shape aspirations.
- “People have different goals” vs “conflicting goals” — same? — Not the same. Different goals means each person has unique aspirations (e.g., labourers want work, farmers want better prices). Conflicting goals means the fulfilment of one person’s goal harms another (e.g., industrialists want dams; tribals don’t).
- Where factors other than income matter: Safety at night, clean environment, freedom from discrimination, good health infrastructure, job security, social respect.
- Is Haryana ahead of Kerala in literacy etc.? — No. Despite higher per capita income, Haryana has IMR of 28 vs Kerala’s 6, and lower literacy and attendance ratios. Kerala leads significantly in human development indicators.
- Is collective provision cheaper? — Yes. Examples: collective water supply, public schools, public hospitals, community sanitation. Collective provision achieves economies of scale and serves those who cannot individually afford services.
- Tamil Nadu vs West Bengal PDS: Tamil Nadu (90% rural using PDS) — people are better off because assured food security at subsidised prices prevents hunger and malnutrition.
13. Chapter Summary — Quick Revision
- Development = aspirations of people + ways to achieve them. Multidimensional concept.
- Different people have different (and sometimes conflicting) developmental goals based on their life situations.
- People seek income AND non-material goals (freedom, security, dignity, equal treatment).
- National development = thinking about what benefits the largest number, what is fair and just.
- For comparison, per capita income (average income) is the most common measure; used by World Bank.
- Per capita income hides disparities — distribution of income matters too.
- UNDP’s HDI uses income + education + health (life expectancy). Better than income alone.
- Kerala paradox: lower income, much better human development (better public facilities).
- Money cannot buy everything — public facilities (health, education, clean environment) need collective provision by the state.
- Sustainability of development: we must not deplete resources needed by future generations. Renewable resources can be overused; non-renewable resources will exhaust.
- Environmental degradation crosses national borders — global issue requiring global cooperation.
1. Haryana has higher per capita income than Kerala.
2. Kerala has a lower Infant Mortality Rate than Haryana.
3. Haryana has a higher literacy rate than Kerala.
Which of the statements above is/are correct?
- Economic Survey 2024–25, Government of India
- National Sample Survey Organisation (NSSO), Report No. 585
- National Family Health Survey (NFHS-5), 2019–21, IIPS Mumbai
- Human Development Report 2025, UNDP, New York
- Energy Institute’s Statistical Review of World Energy, 2024
- World Development Indicators, World Bank
- Useful websites: www.budgetindia.nic.in | www.undp.org | www.worldbank.org | www.rbi.org | http://rchiips.org
