Factors Affecting Economic Development

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INTRODUCTION

The ECONOMIC DEVELOPMENT of India was ruled by communist affected approaches, state-claimed areas, and formality & far reaching regulations, all in all known as "Permit Raj". It headed the nation and its economy disconnected from the world economy. However the situation began transforming from the mid-1980s, when India started opening up its market gradually through monetary liberalization. The arrangement played a tremendous effect on the monetary advancement of India. The Indian monetary improvement got a support through its financial change in 1991 and again through its recharging in the 2000s. From that point forward, the substance of monetary improvement of India has changed totally.

The financial change of 1991 assumed …show more content…
The stock of capital and the rate of capital accumulation in most cases settle the question whether at a juven point of time a country will grow or not.
1) Capital Formation: the economic system of a country cannot hope to achieve economic progress unless a certain minimum rate of capital accumulation is realized
2) Natural Resources:
The principal factor affecting the development of an economy is the natural resources. For economic growth, the existence of natural resources in abundance is essential. A country deficient in natural resources may not be in a position to develop …show more content…
There was a time when a country could have a laissez faire economy and yet face no difficulty in making economic progress. In today’s entirely different world situation, a country would find it difficult to grow along the England’s path of development.
B) Non-Economic Factors in Economic Development:
From the available historical evidence, it is now obvious that non- economic factors are as much important in development as economic factors. Here we attempt to explain how they exercise influence on the process of economic development:
1) Human Resources:
Human resources are an important factor in economic development. Man provides labour power for production and if in a country labour is efficient and skilled, its capacity to contribute to growth will decidedly be high.
2) Technical Know-How and General Education:
It has never been, doubted that the level of technical know-how has a direct bearing on the pace of development
3) Political Freedom: ‘Poverty and Un-British Rule in India’ that the drain of wealth from India under the British was the major cause of the increase in poverty in India during that period, which in turn arrested the economic development of the country.
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