1 November 20268 min readBy Learnijoy Team
Development Class 10: Notes and Important Questions
Per capita income, what averages hide, IMR, HDI and sustainability, explained simply with model answers.
Development is chapter 1 of the Class 10 Economics book, Understanding Economic Development. It explains that development means improving people's lives, that different people want different things from it, and that income alone cannot measure it. The chapter compares countries and states using average income, then adds health, education, public facilities and sustainability.
The whole chapter is in the CBSE 2026-27 board exam. It shares the 20 Economics marks with Sectors of the Indian Economy, Money and Credit and part of Globalisation.
Different people, different goals
Development is about our aspirations and how we can reach them. Because people's lives differ, so do their goals.
| Person | What development may mean |
|---|---|
| Landless rural labourer | More days of work and better wages |
| Prosperous farmer in Punjab | Higher family income through higher support prices for crops |
| Girl from a rich urban family | The same freedom as her brother, including the chance to study abroad |
Goals can also conflict. Industrialists may want a large dam for electricity, but it may submerge land and displace the people who live there. What is development for one group can be destructive for another, so a fair national choice asks who gains and who bears the cost.
Income and other goals
Most people want more income: better wages, regular work or a fair price for their crops. Money buys many of the goods and services we need. But people also seek non-material goals such as equal treatment, freedom, security and respect. For example, a far-away job with high pay but no job security or time for family may not feel like progress.
The same is true for a nation. When women do paid work, their dignity at home and in society grows. A safe environment lets more women take up jobs or run a business.
Comparing countries: average income
Countries have different populations, so total income is not a fair comparison. We use average income, also called per capita income:
Per capita income = total income of the country ÷ total population
The World Bank's World Development Reports use this criterion to classify countries. The current textbook says countries with a per capita income of US$ 66,500 a year and above in 2024 are called high-income or rich countries, and those with about US$ 2,300 or less are low-income countries. India is a low middle income country, with a per capita income of just about US$ 11,000 a year in 2024.
What averages hide
An average does not tell us how income is shared. Look at two imaginary countries with five citizens each:
| Citizen | Country A (₹ per month) | Country B (₹ per month) |
|---|---|---|
| I | 9,500 | 500 |
| II | 10,500 | 500 |
| III | 9,800 | 500 |
| IV | 10,000 | 500 |
| V | 10,200 | 48,000 |
| Average | 10,000 | 10,000 |
Both averages are the same, but most people in Country B are very poor. Most of us would prefer to live in Country A, where income is shared more equally.
Income and other criteria: three states
The chapter compares Haryana, Kerala and Bihar.
| State | Per capita income (2023-24) | Infant mortality rate (2020) | Literacy rate (2017-18) |
|---|---|---|---|
| Haryana | ₹3,25,759 | 28 | 82% |
| Kerala | ₹2,81,001 | 6 | 94% |
| Bihar | ₹60,337 | 27 | 62% |
- Infant mortality rate (IMR): the number of children who die before the age of one, per 1,000 live births in that year.
- Literacy rate: the share of literate people in the population aged 7 and above.
Haryana has the higher income, yet Kerala has a far lower IMR and a higher literacy rate. More money in the pocket does not automatically bring better health or education.
Public facilities
Money cannot buy everything. It cannot buy a pollution-free environment or make sure medicines are not adulterated. Many important things are cheapest and best when provided collectively: it costs less to have one security guard for a whole locality than one for every house.
Kerala's low IMR comes from adequate basic health and education facilities. In states where the Public Distribution System (PDS) functions well, the health and nutritional status of people is likely to be better. Where there are no nearby schools, many children, especially girls, cannot study further, however much their families earn.
Human Development Index
The Human Development Report published by the UNDP compares countries on three things: health (life expectancy at birth), education (mean years of schooling of people aged 25 and above) and income (per capita income in PPP dollars). The chapter's table:
| Country | Per capita income (2021 PPP $) | Life expectancy (2023) | Mean years of schooling | HDI rank |
|---|---|---|---|---|
| Sri Lanka | 12,616 | 77.5 | 10.8 | 89 |
| India | 9,047 | 72 | 6.9 | 130 |
| Bangladesh | 8,498 | 74.7 | 6.8 | 130 |
| Pakistan | 5,501 | 67.6 | 4.3 | 168 |
Sri Lanka, a much smaller country, ranks well above India. Bangladesh has a lower per capita income than India but a higher life expectancy. The word "human" reminds us that what matters is what happens to people. Use the table to understand the indicators, not as a live ranking.
Sustainability of development
Development should last for future generations too.
- Renewable resources, such as groundwater, are replenished by nature but can still be overused. Nearly one-third of India is overusing its groundwater.
- Non-renewable resources, such as crude oil, have a fixed stock and run out. The chapter's table puts the world's crude oil reserves at about 47 years at the production rate it uses, which the text rounds to about 50 years.
Sustainability means meeting today's needs without taking away the choices of those who come after us.
Remember this
- Development goals differ between people and can conflict.
- Per capita income = total income ÷ population.
- An average hides how income is distributed.
- Kerala: lower income than Haryana, but lower IMR and higher literacy.
- HDI = health + education + income.
- Even renewable resources can be overused.
Important questions with answers
1. What is per capita income? (1 mark) The total income of a country divided by its total population.
2. Define infant mortality rate. (1 mark) The number of children who die before the age of one, as a proportion of 1,000 live births in that year.
3. Give an example of conflicting development goals. (3 marks) A large dam may give electricity that industries want, but it can submerge land and displace the local people. One group's development becomes another's loss.
4. Why is average income not enough to compare countries? (3 marks) It does not show how income is distributed. A country can have a high average because a few people are very rich while most remain poor.
5. Kerala has a lower per capita income than Haryana but a lower IMR. Why? (3 marks) Kerala has adequate basic health and education facilities. Public facilities, not just private income, decide the health and education of people.
6. What are the three components of the Human Development Index? (1 mark) Life expectancy at birth, mean years of schooling, and per capita income.
7. Why are public facilities important for development? (3 marks) Some things, such as security, clean surroundings, schools and health care, are cheaper and better when provided collectively. A family may have money but still lack a nearby school or clinic.
8. Explain why sustainability matters for development. (5 marks) Development must continue for future generations. Renewable resources like groundwater are being overused; nearly one-third of India uses groundwater faster than it is replenished. Non-renewable resources like crude oil have a fixed stock that will run out. So development must meet present needs while protecting the resources and choices of the future.
Common mistakes to avoid
- Saying per capita income is what every person actually earns. It is only an average.
- Saying HDI measures income alone. It also measures health and education.
- Saying renewable resources can never run out. They can be overused.
- Mixing years in tables: income here is for 2023-24, IMR for 2020 and literacy for 2017-18.
To practise these answers and test yourself, study this chapter with Joy.