Development Class 10 Economics Notes – Key Concepts, Indicators & NCERT Summary | CBSE 2025

 This chapter lays the foundation for understanding how countries grow and progress.

In this blog, you'll get easy-to-understand notes, key terms, development indicators, and NCERT highlights.
Let's Dive in

Key definitions

Development: Development is generally defined as growth. Some of the important goals are - seeking more income, equal treatment, freedom, security, and respect from others.

ü Different people have different development goals. What may be development for one May not be for the other, it may be destructive for the other.

ü To get more electricity, industrialists may want more dams. But this may submerge the land and disrupt the lives of people who are displaced – such as tribals.

Infant Mortality Rate: IMR indicates the number of children that die before the age of one year as a proportion of 1000 live children born in that particular year.

Literacy rate:  it is the proportion of literate population in the 7-and-above age group.

Net attendance Ratio: Percentage of children in a specific age group attending school.

Life Expectancy: Expected length of life at the time of birth.

Sustainable development: The present generation needs or developmental goals does not compromise with the needs of future.

National Development

ü Process of improving a country's standard of living for its citizens. This involves economic, social and cultural progress.

ü Implementing policies that could benefit a large number of people.

ü Increasing people's income and generating employment opportunities.

ü Prioritising national interests above self interests.

Average Income and It's Limitations as a Development Criterion(Important for exam)

Per capita income: It is defined as the total income of the country divided by its total population. It is also known as average income.

v Why we need income to compare countries?

Total income is not such an useful measure. Since, countries have different populations, comparing total income will not tell us what an average person is likely to earn.

For comparing countries, their Income is considered to be one of the most important attributes. But it is not a reliable indicator to measure a country's development due to following reasons:

ü It does not shows the distribution of income at different levels.

ü It only shows the economic aspects of a country's development.

ü Average income does not tell us about the health, education and various aspects of the population.

Example: The case of Haryana and Kerala

ü Haryana: Higher per capita income but IMR is higher than Kerala.

ü Kerala: Better health and education indicators but less per capita income than Haryana.

For comparing countries, their Income is considered to be one of the most important attributes. National development refers to the ability of a nation to improve the lives of its citizens. Measures of improvement may be material, such as availability of healthcare etc.

World Development Report - World Bank

ü World Development Reports is brought out by the World Bank every year.

ü Average income criterion is used in classifying countries

ü Countries with per capita income of US$ 49,300 per annum and above in 2019, are called high income or rich countries

ü Countries with per capita income of US$ 2500 or less are called low-income countries.

ü India comes in the category of low middle income countries because its per capita income in 2019 was just US$ 6700 per annum.

ü The rich countries, excluding countries of Middle East and certain other small countries, are generally called developed countries.

Human Development Report - UNDP

Human Development Report is published by UNDP every year.

It compares and rank the countries on the basis of following criteria

ü Living standard (Per capita Income)

ü Health Status (life Expectancy)

ü Educational levels of the people (Literacy rate and Enrolment ratio)

The below table is important and students should remember the ranks of the country (India, Sri Lanka and Bangladesh)

BMI

BMI is an abbreviation used for Body Mass Index which is an International standard measurement used to determine whether a person is nourished or undernourished. The formula of BMI is given by:

BMI = Weight (in kg) / [Height (in m)]²

BMI can be calculated by taping the weight of a person (kgs) & height (m) then divide the weight by the square of the height of a person. If the result is less than 18.5 then person in under nourished & if more than 25, then person is overweight.

Sustainability of Development

Groundwater Overuse

ü 300 districts report water level decline over 4 meters in 20 years.

ü Nearly one-third of country overusing groundwater reserves.

ü Projected: 60% overuse in another 25 years.

Non-Renewable Resource Depletion

ü Crude Oil Reserves Analysis.

ü Global reserves expected to last only 50 years.

ü Different countries face varying resource challenges.

Key Environmental Sustainability Issues

ü Resource conservation.

ü Ecological balance.

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