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By rohit.pandey1
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Updated on 17 Jul 2026, 14:21 IST
Development is Chapter 1 of Class 10 Economics in the NCERT book Understanding Economic Development. This chapter explains what development means, why different people may have different goals, how countries and states are compared, why income alone is not enough to measure development, and why sustainability is important for the future.
In simple words, development means improvement in the quality of life. It includes better income, good education, healthcare, security, equality, freedom, clean environment and access to basic facilities.
Development means progress or improvement in the living conditions of people. For some people, development may mean higher income. For others, it may mean equal treatment, job security, freedom, safety, education, healthcare or a clean environment.
In Class 10 Economics, development is not limited to money. It includes both material and non-material goals that help people live a better and more dignified life.
Development goals are the aims or desires that people want to achieve for a better life. These goals may differ from person to person because people have different situations, needs and priorities.
For example:
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This shows that development has different meanings for different people.
Different people have different developmental goals because their life conditions are different. A goal that is development for one person may not be development for another. Sometimes, it may even be harmful for someone else.
For example, an industrialist may want to build a factory because it can increase profit and employment. But people living near the proposed site may oppose it if it causes pollution or displacement.
Development includes both material and non-material goals.
| Material Goals | Non-Material Goals |
| Related to income and money | Related to quality of life |
| Can often be measured in rupees | Cannot always be measured in money |
| Examples: salary, profit, property, assets | Examples: respect, freedom, equality, security, health |
Money is important, but it is not the only thing people need. People also want dignity, equal treatment, freedom, safety and social respect.
Income is one of the most important goals of development because it allows people to buy goods and services. However, income alone cannot ensure a good life.
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People also need:
For example, a person with high income may still have a poor quality of life if the area has pollution, unsafe surroundings or no healthcare facilities.
National development means development of the country as a whole. It includes improvement in the lives of most people, better income, reduction of poverty, equality, education, healthcare, employment and sustainable use of resources.
Different people may have different ideas about national development. Therefore, a country must choose goals that benefit the majority and do not harm weaker sections or future generations.
Countries and states can be compared using different development indicators. The most common indicator is income, but income alone is not enough.
Important indicators include:
Per capita income is the average income of the people of a country or state. It is calculated by dividing the total income by the total population.
Formula:
Per Capita Income = Total Income / Total Population
Per capita income is also called average income.
If a country has a total income of Rs. 10,00,000 and a population of 1,000 people:
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Per Capita Income = 10,00,000 / 1,000 = Rs. 1,000
So, the average income is Rs. 1,000 per person.
Per capita income is used because total income alone does not show how rich or poor people are on average. A country with a very large population may have high total income, but the average income of people may still be low.
Per capita income helps compare countries or states of different population sizes.
Per capita income is useful, but it has several limitations.
Two countries can have the same per capita income but very different levels of equality, health and education.
The World Bank classifies countries mainly on the basis of per capita income. Countries with higher per capita income are generally considered more developed according to this income-based method.
This method is simple and useful for comparison, but it does not include other important aspects such as health, education, equality and sustainability.
The United Nations Development Programme, or UNDP, uses the Human Development Index to compare development. HDI gives importance to income, health and education.
| Component | What It Measures |
| Health | Life expectancy |
| Education | Schooling and literacy-related indicators |
| Income | Gross National Income per capita |
The UNDP method is broader than the World Bank method because it looks beyond income.
| Basis | World Bank | UNDP |
| Main criterion | Per capita income | Human Development Index |
| Focus | Income | Income, health and education |
| Scope | Narrower | Broader |
| Limitation | Ignores quality-of-life indicators | Still cannot measure every aspect of life |
| Useful for | Economic comparison | Human development comparison |
Income is important, but development also depends on other criteria. A state or country with lower income may have better health and education outcomes if it provides strong public facilities.
For example, a state with better schools, hospitals, public distribution system, sanitation and drinking water may provide a better quality of life even if average income is not the highest.
Public facilities are services provided by the government for the welfare of people. These services are important because many people may not be able to afford them privately.
Examples of public facilities include:
Public facilities improve quality of life and reduce inequality.
Public facilities are important because they provide essential services to all sections of society. They help poor and middle-income families access education, healthcare, transport and basic needs at affordable rates.
Without public facilities, only rich people may be able to access good schools, hospitals and basic services. This can increase inequality.
Kerala, Haryana and Bihar show that income alone is not enough to measure development. A state may have high per capita income, but if it performs poorly in literacy, health facilities, infant mortality rate or public facilities, it cannot be considered fully developed.
Kerala performs better in many health and education indicators because of better public facilities, while Haryana has had higher income but weaker outcomes in some social indicators. This proves that development should be measured through income as well as health, education and quality of life.
Sustainable development means development that meets the needs of the present generation without harming the ability of future generations to meet their own needs.
It focuses on using resources carefully so that economic progress does not destroy the environment or exhaust natural resources.
Sustainability is important because natural resources are limited. If resources such as groundwater, forests, minerals and fossil fuels are overused, future generations may face shortages.
Development should not only increase income today. It should also protect the environment and resources for tomorrow.
These activities may support short-term growth but can damage long-term development.
| Term | Meaning |
| Development | Improvement in quality of life |
| Developmental goals | Goals people want to achieve for a better life |
| Per capita income | Average income of people in a country or state |
| Average income | Total income divided by total population |
| Public facilities | Government-provided services for public welfare |
| HDI | Human Development Index |
| Life expectancy | Average expected years of life |
| Literacy rate | Percentage of people who can read and write |
| Sustainable development | Development without harming future generations |
| Non-renewable resources | Resources that cannot be quickly replaced |
Development means improvement in the living conditions and quality of life of people. It includes higher income, education, healthcare, equality, freedom, security, dignity and a clean environment.
Different people have different developmental goals because their needs, problems and life situations are different. For example, a farmer may want irrigation, while an unemployed youth may want a job.
Per capita income is the average income of the people of a country or state. It is calculated by dividing total income by total population.
Per capita income does not show income distribution, inequality, health, education, public facilities, freedom, security or environmental quality. Therefore, it is useful but incomplete.
Public facilities are services provided by the government for public welfare, such as schools, hospitals, roads, drinking water, sanitation, electricity and public transport.
Sustainable development is development that meets present needs without reducing the ability of future generations to meet their needs.
Read the case:
Village A has a high average income because a few large farmers earn a lot. However, most families do not have access to clean drinking water, good schools or healthcare. Village B has lower average income, but it has a government school, health centre, clean water supply and better roads.
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Development means improvement in the quality of life of people. It includes income, education, health, equality, freedom, security, dignity and environmental quality.
Developmental goals are the aims people want to achieve for a better life. These goals differ because people have different needs and situations.
Per capita income = Total income / Total population.
Income does not show inequality, education, health, public facilities, freedom, security or environmental quality. That is why income alone is not enough.
HDI stands for Human Development Index. It compares development using health, education and income indicators.
The World Bank mainly uses per capita income, while UNDP uses HDI, which includes income, health and education.
Sustainable development means development that fulfils present needs without harming the ability of future generations to fulfil their needs.
Public facilities are important because they provide essential services such as education, healthcare, water, sanitation and transport to all people, including poorer sections.