# Lecture 3

## Second Generation Reforms

### Major Points (Social Capital):

* Infrastructure development through PPP
* Extending reforms to state
* Reforming major sectors
* Empowering the poor
* Improving Education sector (LMAO)
* Sustainable development goals

### Recent Trends

* 2012 - Reduced growth 5.6
* 2013-14 - accelerated to 6.4%, rose to 7.5-8%
* 2016-18 - declined to 6.6%, demonitization and GST
* Pandemic()

### Major Drivers

* Industrial delicensing after 1991 allowed private companies to produce whatever
* Devaluation of Indian Currency made software and other exports competitive
* Competition from foreign markets augmented Indian competitiveness
* Non-debt creating investments of MNC's viewed as favourable
* Entrepreneurship instincts of Indian businesses revived
* *Infrastructural reforms*

## Definition: Human development

It is the process of enlarging:

* the range of people's choices
* increasing their opportunities for health facilities
* education and empowerment of socially and economically disadvantaged groups
* covering the full range of human choices from physical environment to economic, political and social freedom

## Difference between growth and development

* Development implies positive growth
* QoL of people, opportunities and freedoms are important aspects of development
* Development is a mixture of opportunities and deprivation
* Main objective of development is increasing freedom - [Amartya Sen]

### Human development index
- A composite statistics of ***life expectancy, education and per capita income*** indicators used to rank countries

#### Factors A