PPT on Basic Economic problems in Engineering Economics & management

1. Basic Economic
Problems
By:-
•Dharit Unadkat -130870111039
•Jenish Thumar -130870111038
•Shivam Rai -130870111029
EC,3rd
Sem
Guided By:-
Prof.- Dipti Patel
Vishal Shah
Bharat Tank

2. Introduction
In developing country like
India,there are many economic problems.
But out of these many problems,the major
problems are:
• Poverty
• Unemployment
• Inflation

3. Poverty
Poverty is general scarcity
or dearth,or the state of one who lacks a
certain amount of material possessions or
money.
It is a major problem that is faced
by a country like India nowadays.Due to
poverty people are not able to fulfill theie
basic needs i.e. food,shelter & clothing.

4. Absolute Poverty
Extreme poverty, or absolute
poverty,was originally defined by
the United Nations in 1995 as “a condition
characterized by severe deprivation of
basic human needs, including food, safe
drinking water, sanitation facilities, health,
shelter, education and information.

5. • India’s government is well aware that poverty is
a giant barrier to overcome if it is to fully develop
the nation. A wide range of anti-poverty policies
have been introduced since the 1950s, which
nonetheless took effect after 20 years of
implementation.
If the decline in poverty went from 60% to 35%
between the 70s and the early 90s, globalization
and liberalization policies have made this trend
go backwards in the 90s.

6. Poverty in India – Statistics:-
• 50% of Indians don’t have proper shelter;
• 70% don’t have access to decent toilets (which inspires a
multitude of bacteria to host their own disease party);
• 35% of households don’t have a nearby water source;
• 85% of villages don’t have a secondary school (how can
this be the same government claiming 9% annual
growth?);
• Over 40% of these same villages don’t have proper
roads connecting them.

7.  Causes of Poverty in India:-
• Rapidly Rising Population
• Low Productivity in Agriculture
• Under Utilized Resources
• Low Rate of Economic Development
• Price Rise
• Social Factors
• Political Factors

8. Measures taken to eradicate Poverty:-
Some of the measures which the
government should take to remove rural poverty
are:
• Small farmer’s development Programme.
• Drought area development Programme.
• Minimum needs Programme.
• National rural employment Programme.
• Assurance on employment.
• Causes for Urban Poverty.

9. Unemployment
Generally a person who is not
gainfully employed in any productive activity is
calle unemployed and this situation is known
as unemployment.
The incidence of unemployment is much
higher in urban areas than in rural areas.The
incidence of unemployment among the
educated is much higher than the overall
unemployment.
There is greater unemployment in agricultural
sector than in industrial and other major
sectors.

10. Types of Unemployment:-
• Voluntary Unemployment
• Frictional Unemployment
• Casual Unemployment
• Seasonal Unemployment
• Structural Unemployment
• Technological Unemployment
• Cyclical Unemployment
• Chronic Unemployment
• Disguised Unemployment

11. Causes of Unemployment:-
• Rapid Population Growth
• Limited land
• Seasonal Agriculture
• Backward Method of Agriculture
• Decline of Cottage Industries
• Defective education
• Lack of transport and communication
• Inadequate Employment Planning

12. Measures taken to eradicate
Unemployment:-
• Development of Agricultural method
• Proper arrangement of irrigation
• Development of transport and Communication
• Reconstruction of Cottage Industries
• Amendments in education system

13. Inflation
Inflation means a sustained
increase in the aggregate or general price level
in an economy.
If inflation is mild, it can actually
spur further economic growth. If prices rise
slowly and gradually, it can encourage people to
buy now and avoid future price increases. This
increases demand, driving further economic
growth. In this way, a healthy economy can
usually sustain a 2% inflation rate.

14. Types of Inflation:-
• Creeping inflation
• Running inflation
• Galloping or hyper inflation
• Demand-pull or cost-pull inflation
• Comprehensive or Sporadic inflation
• Open or Supressed inflation
• Mark up inflation

15. Causes of Inflation:-
• Increase in money supply
• Increase in disposable income
• Increase in public expenditure
• Cheap monetary policy
• Increse in exports
• Industrial disputes
• Natural calamities
• Artificial scarcities

16. Measures to control Inflation:-
• Credit control
• Increase in taxes
• Increase in savings
• Surplus budgets
• Public debt
• Price control

17. Conclusion
Poverty,Unemployment, and Inflation are
the drastic problems in the economic of
developing country like India.
To achieve surplus development in the
nation,these type of problems should be
eradicated as fast as possible.
To overcome these problems, stubborn
economic policies are required.

18. Thank you