Rapid growth of population of a state retards the economic growth. There is surplus labor force and helps in the development of natural and economic resources utilization. The additional labor force helps-in the expansion of industries. The rapid growth of population is associated with the initiation of the process of economic development in these countries. In the underdeveloped countries today increasing population is more of a hindrance to the development of the economy. In India, unchecked growth of population is posing the greatest threat to the growth of Indian economy. It is universally accepted that an effective control of population growth is necessary. If our development efforts, is to yield any result. Let us analyze in which ways the growth of population hinders the development of an economy:-
Main Economic Problems
Problem of increasing National and per capita income:
Increase in both national and per capita income is an induction of economic development. The rising population lowers national and per capita income in the country. Whatever additional income is produced during the period of five year plans is eaten up by the increasing population and so the real per capita income does not rise very insignificantly. The national income increased by 64 percent in the course of the First Five Year Plan giving an annual growth of 4.3 percent. But per capita income during the same period rose only by 20 percent or by 1.3 percent per year. In between 1960-61 and, I988-89.the annual average growth rate of national income was estimated at 3.8 percent and the annual average growth rate of per capita income was only 1.6 percent. This, low growth of per capita income is directly due to the in population during the period.
Problem of increasing food supply:
We require food for our existence for growing population in India has resettled in a serious food shortage in the country. In our country, more than 65% of populations are engaged in agriculture and still they are not getting food to eat in time. Production has risen from 55 million tons in 1950-51 to 209 million tons in 2001. Even then we are not able to provide our people with two square meals a day. This is because the rate of population growth is geometrically and production rises too arithmetically.
Problem of capital formation:
Population growth and capital formation have in hares relationship. A rapid increase in population has adverse effect on per capita income and productivity. This results in the fall of rate of saving and investment. The income of the people remains constant and burden of the dependent increases. This leads to an increase in expenditure on consumption. So there is fall in saving and investment. There is need of additional facilities like education, medical Sid and social head discourage expenditure on productive activities and capital formation.
Problem of large number of unproductive consumers:
The unproductive consumers do not contribute to the national income, such children (0-14 years), old persons and unemployed persons (15-59 years). With the increase of the size of the population such unproductive consumer’s rate has increased. 464 million in 1981 to 529 million in 199. As a result saving would be low and low capital formation in the economy.
Problem of Unemployment:
The increasing population has further aggravated the problem of unemployment in the country both educated and uneducated, both in rural and urban areas. The total number of unemployed was 20.7 million in 1980 which represents 7.74 percent or the total labor force. The total number of unemployment was 20 million in 1990.
Problem of increasing pressure of land:
In India 65 percent of working a person in India depends on agriculture land is necessary for cultivation land is limited and the growth of population is unlimited. So there is pressure on land. The increasing pressure of population on land has resulted in sub-division and fragmentation of land holdings. The agricultural productivity has affected adversely due to high growth of population.
Population growth lowers labor efficiency:
Since an increase in population reduces per capita income and lowers the standard of living of the masses it make the people less efficient. People cannot be physically fit and mentally strong as they are not provided with the basic necessities of life. The efficiency of the people declines and it hampers the development of our economy.
Growth of population hampers Rural Development:
In rural area, population growth pressures on land, productivity and agriculture and create acute disguised unemployment. The rapid increasing populations aggravate to food problem, increase the unemployment situation, reduce per capita income, increase the rate of unproductive people, hamper capital formation and make the people inefficient. Now effort has made to reduce birth rate of family planning programmes.