Features of the Pre-Conditions for Take-off Stages of Economic Growth

(i) Importance to non-agricultural sectors:

There is less dependence on agriculture as compared with traditional society. It is because other sectors like industry, transport, trade etc. are in the process of development.

(ii) Expansion of social overhead capital:

The government spends a part of her income in spreading infra-structure i.e. social over-head, capital like rail, roads, hospitals, dams, schools, colleges etc.

(iii) New Ideology:

The dogmatic views are replaced by new ideas.

(iv) Technological Advancement:

Technological development can be seen in this stage due to which there is increased capital formation. As a result, investment level also shows upward trend.

(v) Exports and Imports:

In this stage, finished goods, capital goods and machinery are imported but raw-materials, minerals and semi-finished goods are exported.

(vi) Rate of Savings and Investment:

The rates of savings and investment during this stage are likely to be under 5 percent of the net national product in economy.

(vii) Stress on Development of Transport:

The greater stress is laid on the development. As a result, expansion of transport and communication.

(viii) Economic and Social Costs:

A part of the government revenue is devoted to the construction of roads, dams and bridges besides schools, hospitals and research institutes. So, there is development of infrastructure.

(ix) Decline in Birth Rate:

Birth rate starts declining in this stage. This is because the demand for workers starts reducing. People are less desirous of enlarging their family size.

(x) Change in Views:

There is a perceptible change in the views of the people. They become confident of increased production with appropriate utilization of the resources.

(xi) End of Conservatism:

Unnecessary conservatism comes to end and the economy is driven on the path of modernization.