Indian Economy NCERT Class 9 Chapter 1 Part 3 | UPSC Economics by Fazal Classes for UPSC

[00:00:05]Okay.

[00:00:06]Next.

[00:00:10]Okay.

[00:00:13]The capital needed in farming. You have already seen that the modern farming methods required a great deal of capital. So that the farmer now needs more money than the before. What is this is called as working capital. Working capital is more very simple. some kind of uh uh some kind of uh things you need it to make some investments. Money is a basic example.

[00:00:40]Money is basically an example of this.

[00:00:42]Okay. Now look at it. Most small farmers have to borrow money to arrange for the capital. They borrow from large farmers or village money lenders or the traders who supply various input for the cultivation. The rate of interest on the loan is very high because these are the mahajans who are mahagans. Mahajans are nothing but the money lenders who charge okay uh interest rates which are very very high or they will take away the land. This is called as the working this is called as the working capital. Okay, which is very much needed for you here. Uh let us switch to this one. We have read about the three factors land, labor and capital. Now among the three factors of production we found that the labor is the most abundant factor of production.

[00:01:29]Okay, this is a very promising contender that means here itself is mentioning that among the three factors of production.

[00:01:39]We found that the labor is the most abundant factor of production. There are many people who are willing to work but there is no work.

[00:01:48]Okay. When there are very much high availability of people to work, there are very high availability of people in to work but there is no work.

[00:01:58]Hence in the factor cause he might ask you a question among the factors of production. Among the factors of production which of the following is abundantly available labor.

[00:02:12]Labor is abundantly available. So among three factors which are following abundant labor is abundant factor of production labor there are many people who are willing to work as a farm labors in the cities or villages where their opportunity of work are very very limited. So abundancy is related to the labor labor which comprise of the factor cost.

[00:02:36]Next, there are many people. Okay, we have studied this limited. They belong to either landless families.

[00:02:44]They are paid low wages and lead a difficult life in contrast.

[00:02:49]Okay. In contrast to the labor uh factor cost or the labor content or the labor capacity is a scarce factor of production. Cultivated land area is very very less. Moreover, even the existing land is distributed unequally among the poor people in the farming. These are the fill in the blanks.

[00:03:16]Sale of surplus. Uh let's see if we could can see anything is available here. Let us suppose that the farmers have produced wheat on their land using three factors of production. The wheat is harvested and production is complete.

[00:03:28]What do farmers do with the wheat? Now they retain a part of the wheat for the family's consumption and sell the surplus wheat. This is when they're eaten apart. This is when when there's something having more than they are more than marginal.

[00:03:42]They're more than marginal. What did I say? What is the size or what is that area with the marginal? I can declare the farmer as a marginal. So what capacity of land he has?

[00:03:54]What capacity of land he has? Okay. Less than it's not 2.47.

[00:04:00]It is less than 2. It can be 1 acre. It can be 2 acres. Okay. Or less than 2.47 acres. Okay. Good. Next. Small farmers like Savvita and Goin Sun have little surplus wheat because the total production is small and from this a substantial share is kept for their own family needs. Okay.

[00:04:26]Good. Now this point you have to highlight. So it is the medium and the large farmers who supply wheat to the market. This is what I have explained.

[00:04:35]In India marginal do not contribute.

[00:04:39]Why marginal do not contribute? Because their land holding capacity is very less. What all they produce they will consume. In the last slide I have shown you. So which are the people who will uh produce and who can also export large.

[00:04:53]Second is medium semidium. You can see the bullet cards streaming into the market each carrying the loads of wheat.

[00:04:59]The traders at the market buy the wheat and sell the further the shopkeepers to the towns. It is not needed but always remember people who actually contribute India that is the fact contribute in India is basically the people who hold large capacity. So in this also same thing is there author is a tractor and the tractor etc. buying capital for the next season they are able to arrange for the capital for farmers. Okay. Some farmers may use tractors, trucks. Okay. This is not needed. Leave it. Dairy farming. The other common activity. Okay. Now, this is needed. Let us start. Now, dairy is a common activity in many families of Palampur. People feed their buffaloos on the various kinds of grass and the jawar and the baja that grows during the rainy season. The milk is sewn in uh Ryan. The nearby so and so chili uh from milk is transported.

[00:05:52]I thought there is something is going to come here. But there is nothing okay first year production surplus consumption my dear don't do don't go for all such things okay these are like school books now this is for uh those people there the teachers will give assignment here I'm not here to give you assignments no an example of small scale manufacturing now let read this at present less than 50 people are engaged in manufacturing in the palampur unlike the manufacturing that takes place in the big factories in towns and cities These manufacturing in Palampur involves very simple production methods and these are done on the small scale. They are carried out mostly at home on in the fields with the help of the family labor rarely are laborers hide. That means what? Who are the laborers? Their family members are the laborers because smallcale business which are uh conducted at a household who are the laborers family members are the laborers. Mishiral has purchased a mechanical sugarcane crushing machine run on electricity.

[00:06:54]uh but what he's trying to say I'll tell you like see he the jars and sold to the traders are sharper in mush makes a small profit he's making uh some sort of production he's trying to evaluate this sugar cane he'll put it aside he will make sugar out of it he'll make it jaggery out of it and he will sell in the market next what is Karim doing here karim found that a number of students in the class are also attending computer classes okay this is not needed okay next The shopkeepers of Palampur.

[00:07:26]So is there anything here Palampur? The shopkeepers what they are selling? They are selling sugar, tea, soap, books etc. Leave it. Transportation a fast developing sector. There are v variety of vehicles on the road connecting rajadalas, tangawalas etc. They f people from place to another place not needed at all. Loan from the bank uh cheap loan rate for Okay.

[00:07:54]Is there anything needed here? Present the non-form sector in the villages is not very large.

[00:08:00]Okay.

[00:08:01]Exercises are there. Anything glossery is given references. That's it. Okay.

[00:08:07]So, key terminologies which we have uh key terminologies which we have discussed here. Those kind of key terminologies you have to read. See what happens. Sometimes the examiner will ask you very microbasics.

[00:08:23]There are many micro basics which we have found in this uh chapter in this book. What are the micro basics? He'll ask you what's the difference between the working capital, fixed capital, what is the human capital. So what is the most abundant? What is the factors of production? What are the different terminologies which you have shown like piece of land? Okay. What is the concept of stratification? How is it applied in India? So such kind of questions he will be asking you. All right. So this is about the chapter number one.

[00:08:54]Okay. Yeah. Now let us go to the chapter number two.

[00:09:01]So people as resource.

[00:09:04]People as the resource. This is what has been given here.

[00:09:12]People as the resource. Okay. Now let us read what are the things which are available here.

[00:09:21]Okay. The chapter people as resource is an effort to explain population as an asset for the economy rather than liability. Population becomes human capital. Obviously it is in human capital which we have highlighted in the our first part.

[00:09:38]It's in human capital. When there's an investment made in the form of education, training. So can I make this uh progress in the human capital? Yes sir, I can make skill over it. If you people are not having a good knowledge in uh making use of online transaction, what I will do? I will try to train new people. So this is called as progressing progressing the human capital. Updating the skill development skill of the human capital. Okay.

[00:10:08]Next, for example, people as resource is a way of referring to a country's working people in terms of their existing productive skills and abilities. Looking at the population from this productive aspects, emphasis its ability to contribute to creation of the gross national product. Okay, let us stop here. Now, what is gross national product? Gross national product.

[00:10:33]What is the meaning of gross national product? There are two types of products. See imagine you went into a market Indian market okay you get different types of products in an Indian market first product which you get in Indian market is a domestic product domestic product you get it produced by produced by India domestic product you'll get it produced by India you will also get uh the foreign product okay produced by foreigner but available in India you will also get a domestic product produced by foreigner three cases see I'll tell you very simply a very simple case you went to the market today you want to buy product you get three categories of product first category product was produced in India by Indian product was produced in India by Indian domestic product only why are we calling domestic product because that product was produced in India so whoever it is producing it we don't care who can produce it Indian can produce it foreigner can also produce it becomes an Indian product so this is the good domestic good I'm calling because this is produced by Indian in India. Next is the domestic product in India by foreigner.

[00:12:12]It's not by Indian who has produced foreigner has produced. Next is product foreign product info. In for so this is a case one case two case three out of all 1 2 3 which are considered as imports. Think and reply. Which are considered as inputs? I want 1 2 3 all the above.

[00:12:40]1 2 3 all the above.

[00:12:52]Obviously two very good. So two two are nothing but the imports here. Two are basically nothing but the imports here.

[00:13:00]So if I say only domestic product, if I say only domestic product, what is your answer?

[00:13:10]If I say only domestic product, what is the answer?

[00:13:14]Read properly. If I say only the domestic product, what is an answer?

[00:13:21]I'm read the question properly. People are giving answer as uh only one. If I say domestic product exactly 1 and three. If I say domestic product answer is 1 and three because domestic product means what? Very simple. I'll draw Indian map here.

[00:13:40]Domestic product means this is the domestic product. Why you are calling domestic product? This is produced in India. Domestic product. This domestic product can be produced by Indian in India only. This domestic product can be produced by the foreigner in India only. So foreigner came to India produced one good domestic product only where he produced that means what this is called as the GDP which is called as where where the product is uh produced product is produced in India. This will add to gross domestic product.

[00:14:20]Okay, that means what? Indians have produced this product in India. Foreigner came to India, produced the product in India. So both the things are part of what Indian territory. So even Indian produce or foreigner produce if it is produced in India, we will simply call it as domestic product feed in your mind. Any good which is not part of this territory.

[00:14:46]any good which is not part of this territory then I will not call this as an Indian good you will I will call this as an foreign good imagine you have been to market you'll buy a product what products you'll buy Indian producing in India foreigner producing in India foreigner producing abroad so three products you will get it I'll prefer any product it's up to me but which calcul calculations government will take that is important in the calculations of GDP government will take only one and three read what is one produced in India read what is three produced in India anything which is produced in India which will be considered under GDP anything which is not produced in India which is coming out of the India we will consider them under GNP gross national product. People as resources is a way of referring to country's working people in terms of their existing productive skills and abilities. Looking at the population from these productive aspects emphasizes its ability to contribute to the creation of the gross national product.

[00:16:07]Looking at the population from this productive aspect emphasizes its ability to contribute to the creation of gross national product means what meaning of this gross national product means you have labor you have capital you're producing goods in India okay fine added to GDP but they are people who are efficient enough they are going out of India and then working there and they also produce good send back this goods or basic uh profits add to GMPP.

[00:16:41]Next you produce more goods produced in India but you sold in abroad. Someone will buy in abroad then you are getting profits that profits you will show as part of G&P.

[00:16:53]Any good produced in India sold in India adds to GDP. Any good produced in India but sold in abroad adds in GMPP.

[00:17:08]Okay, GMPP is what? G&P is something we will take more than GDP. That means what? Any production which is happening and out of this production you are adding anything profits to your country then that comes under the the concept of GMP.

[00:17:28]Now we will have the more uh case studies about what is GDP and GMPP. I'll explain you more about this. Let me move forward now.

[00:17:41]Now again the same uh topic has been given.

[00:17:46]Look here when the existing human resources is further developed by becoming more educated and healthy we call it as a human capital formation. What is human capital formation? Human capital form is an asset.

[00:18:00]I am contributing to my country by teaching economy. You're also contributing to the country. Tomorrow you will take some service.

[00:18:08]Effective human capital formation means what? I was not adaptive to economy because I did my mechanical engineering.

[00:18:19]So when the market required economy, what you have to do? Come on, take the scale of economy, upgrade yourself, come to the market and prove yourself so that you are actually making some capital formation.

[00:18:33]That means when the existing human resource means I was existing a human resource is further developed by becoming more educated and healthy, we call it as a human capital formation.

[00:18:43]Okay, that adds to the productive power of the country. For example, GDP or physical capital formation.

[00:18:53]Investment in human capital. How you will invest in human capital like education, training, medical yields are written just like investment in physical capital. This can be seen that education matters. Okay. That's why he have written here education matters, training matters, medical benefits matter, medical care matters, all these are part of the uh making this uh physical capital formation.

[00:19:19]Okay. Next it will be a two-way discussion and let me finish this textbook. We have only two chapters left services etc. So that I can finish it by tomorrow. Then we'll go to 10th class book. All right take care and we'll meet tomorrow. Good night.