Explosion of Population and Economic Development in India

Abstract

The present paper is an attempt to analyses the variables that directly influence the growth of the Indian economy. The economists are well aware of the fact that population is an important part of the wealth of a nation. We believe that the human capital, which directly depends upon the population growth, is known as the most distinctive feature of economic system. Human capital facilitates new invention, discoveries and research that play an instrumental role in the gross domestic capital formation. Gross domestic capital formation is known as an instrument of measuring the economic development of the country. The explosion of population inversely related to the exponential growth of the economic development. Most of the natural resources, which are of great economic importance, have not yet been exploited in spite of bulk of human capital in the country. Every country needs to have self-more the human capital, however, its explosion adversely affects the economic growth and living standard of the people.  The causality techniques of Sims and Granger to analyze the relations between population growth and economic growth rate in India has been applied .Empirical findings of the paper provide us with very amazing results that population growth has a positive influence on economic growth. These findings corroborate the economic axiom that the economic growth of any country depends upon the capital stock and that functionally comes into existence because of the human capital of that country.