Effects of population growth in economic development of India

Effects of population growth in economic development of India

Population growth has adverse effects on economic development. The main effects of overgrowth in population are -

1. Population growth reduces savings: Overgrowth of population has an adverse effect on savings. The proportion of non-working age groups would be more than those of working age group. Overgrowth of population retards capital formation. Increase in consumption results in low savings. This effects the economic development of the country.

2. Population growth increases unproductive investment: Overgrowth of population increases social overhead cost or infrastructure cost. The composition of investment is altered in an unproductive direction. Absence of investment on consumption goods retards economic growth. What is required is more investment in consumption goods rather than producer goods.

3. Population growth slows down the growth of per capita income: Per capita income is the ratio of national income to the population. If a growing population consists of more unproductive members then the productivity and hence national income decreases. Decreasing national income coupled with increasing population would drastically reduce the per capita income of the country.

4. Population growth degrades the environment: High birth rate and low death

rates puts pressure on land, soil and food production. Overgrowth of population damages the scarce natural resources. Environmental problems such as air pollution, soil pollution and excessive use of ground water poses threat to life and society. Thus, overgrowth of population has an adverse effect on the environment.

5. Population growth results into under utilization of labour: Growing population adds to the problem of under utilization of labour. In a developing economy, rapid growth of population prevents change in the occupational distribution. Absence of complementary resources and ineffective man power handling and decrease in job opportunities result into underutilization of labour force.

6. Population growth gives continuous pressure on land: Land is a natural resource. Eventhough it is renewable, it is fixed in physical terms. Rapid growth of population puts enormous pressure on the prudent utilization of land. In a predominantly agrarian economy excessive pressure on land will have an adverse effect on .its productivity. This will have a direct impact on national income. Hence, overgrowth of population reduces the productivity of land as a natural resource.

7. Population growth has an adverse effect on the quality of human resources: Modern economists are of the opinion that the quality of human resources plays a vital role in the economic development of the country. Overgrowth of population dilutes this important characteristic of human population. Any dilution in the quality of the human resources will have adverse impact in productivity. Thus, quality of the human resources is vital for the economic development of a nation.