Aspirant Academy

Economy

Key Points at a Glance

Growth & Development Concepts, HDI, Climate Change, Environmental Degradation

Paper I · Unit 2 Section 1 of 11 0 PYQs 25 min
Topic Preview Subject Inventory

Public Section Preview

Key Points at a Glance

  1. Economic Growth vs Development

    • Economic growth is a quantitative increase in GDP/GNP
    • Economic development is broader — structural change, improved living standards, human well-being
    • Growth is a necessary but not sufficient condition for development

  2. India GDP 2024–25 (Advance Estimate)

    • GDP at current prices: Rs 324.11 lakh crore
    • Real GDP growth rate: 6.4% in 2024–25
    • Fastest-growing major economy for the third consecutive year

  3. Human Development Index (HDI)

    • Published annually by UNDP since 1990
    • Three dimensions: life expectancy, education (mean + expected years), GNI per capita (PPP)
    • India ranked 134th out of 193 in HDI 2023 (value: 0.644) — "Medium Human Development"

  4. Sustainable Development

    • Brundtland Commission (1987): "Development that meets present needs without compromising future generations"
    • India adopted Agenda 2030 with 17 SDGs in September 2015

  5. India's NDC to UNFCCC (Updated 2022)

    • Reduce GDP emissions intensity by 45% by 2030 (from 2005 levels)
    • Achieve 50% cumulative electric power from non-fossil sources by 2030
    • Create carbon sink of 2.5–3 billion tonnes CO₂ equivalent through forest cover by 2030

  6. Paris Agreement (2015)

    • Ratified by India in October 2016
    • Limits global temperature rise to well below 2°C above pre-industrial levels; pursues 1.5°C
    • India committed to net-zero emissions by 2070

  7. Environmental Degradation in India

    • Deforestation: ~1.5 lakh ha forest lost per year
    • Soil degradation: 32% of total land area is degraded
    • Groundwater depletion: 21 states have water-stressed districts
    • Air pollution: 14 of 20 most polluted cities globally are in India

  8. Mission LiFE (Lifestyle for Environment)

    • Launched by PM Modi at COP26, November 2021
    • Promotes mindful consumption to fight climate change as a global movement
    • Formally launched as a programme in 2022

  9. Capability Approach and MPI

    • Amartya Sen's Capability Approach and Mahbub ul Haq's HDI framework (1990) shifted discourse from income-centric to human-centric
    • Multidimensional Poverty Index (MPI) — published by UNDP-OPHI
    • Measures poverty across 10 indicators in 3 dimensions (health, education, living standards)

  10. Green GDP

    • Accounts for environmental costs by subtracting resource depletion and pollution damage from conventional GDP
    • India's ENVIS (Environmental Information System) and NSO work on natural capital accounting frameworks

  11. India's Climate Action Milestones

    • Solar capacity: 89.9 GW (March 2025)
    • Total renewable energy capacity: 220+ GW (April 2025)
    • FAME India Phase-II (2019) promotes electric vehicles
    • National Green Hydrogen Mission (2023): targets 5 MMTPA green hydrogen by 2030

  12. Inclusive Growth

    • Theme of the 12th Five Year Plan (2012–17)
    • Ensures benefits of growth reach all sections — particularly the poor, marginalized, and rural
    • NITI Aayog's SDG India Index (published annually) tracks state-wise progress on all 17 SDGs