• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

ClearIAS

UPSC: Latest News, IAS, IPS, UPSC Online Preparation

UPSC Prelims Test Series 2021Enroll Now
  • Home
  • Start
    • IAS
    • IAS Exam Eligibility
    • UPSC
    • UPSC Syllabus
    • UPSC Exam Date
    • UPSC Results
    • FAQs
  • Programs
    • Prelims
    • Mains
    • Interview
  • Buy
    • Courses
    • Mock Test Series
    • IAS Books
    • eBooks (PDF)
  • Free
    • Study Materials
    • Guidance
    • eBooks (PDFs)
    • Mock Exams
    • ClearIAS App
    • Downloads
  • Toppers
  • Blog
  • Login
ClearIAS » Economics Notes » Indian Economy : Mobilization of Resources

Indian Economy : Mobilization of Resources

Last updated on December 2, 2017 by Alex Andrews George

Mobilization of Resources : Mobilizing is the process of assembling and organizing things for ready use or for a achieving a collective goal. The term mobilization of resources should be seen in the same context. Mobilization of resources means the freeing up of locked resources.

Every country has economic resources within its territory known as domestic resources. But often they might not be available for collective use. The percentage of resources used when compared to the potential is often very low. For a country to grow, identification and mobilization of its resources is necessary. It should be available for easy use and for central and state level planning.

So the first task here is – identification of resources.

Types of Resources of India

mobilisation of resources

  1. Natural Resources – Coal, Petroleum, Natural Gas, Water, Spectrum etc.
  2. Human Resources – The labour force and intellectual capacity of a nation.

The proper utilization of these resources lead to generation of economic resources – savings, investment capital, tax etc. While mobilisation of resources is considered, the mobilisation of economic resources (financial resources) should also be studied.

Mobilization of Natural Resources

India, though a country with sufficient reserves, due to policy bottlenecks, is importing coal and iron. This is increasing our Current Account Deficit.

130+ Prelims Marks is Possible. Only if you are guided the right way.

Join ClearIAS Prelims Test Series 2021.

Take a Free Test

Mobilization of Human Resources

Organizing human potential for ready use is necessary for growth of India. In-fact, as country of 125 crore people, India now is eyeing more on its human resource potential. The demographic dividend is also in favour of India.

Adding in points, the glimpse of the topic for easy understanding.

  • Mobilization of human resources highlights the need to empower human resources.
  • Weaker sections like women, children, SC, ST, OBC etc should be brought into mainstream.
  • There should be right employment opportunities for human resources, and when there is lack of skill the job demands, there should be skill development programs.
  • Utilize the demographic dividend.
  • India is currently levering on its technologists – engineers, doctors and scientists.

Mobilization of Financial Resources

Mobilisation of Resources

If a country needs to grow, more goods and services should be produced. The production can be done by government sector, private sector or in PPP mode. But for that, the economic resources of a country should be mobilised. [Hope the relation is now clear!:-)]

In India, despite having good savings rate, domestic investment is less. Indians are investing in less productive assets like gold and consumer durable.  If India needs to grow, there should be more investments in agriculture, manufacturing or services.

Adding in points, the glimpse of the topic for easy understanding.

  • In India, tax collected is very less. The tax base has to be widened.
  • Four factor of production- land, labour, capital and organization – should come to together. There should be an atmosphere for growth and investment.
  • Organizations do not “spontaneously emerge” but require the mobilization of resources.
  • In modern capitalistic society, these resources are more “free flowing” and are easier to mobilize than in more traditional societies. Many factors impact the development of the organization.
  • Initial Resource Mix: There are various resource needs in a starting organization (technology, labor, capital, organizational structure, societal support, legitimacy, etc.). But the right mix of resources are not always available.
  • The most important resource of an organization is it’s people.
  • More savings and more productive investment.

How does public sector mobilize domestic resources?

  1. Taxation.
  2. Public revenue generation for investment in social services and infrastructure.

How does private sector mobilize domestic resources?

The private sector mobilizes the savings of households and firms through financial intermediaries, which allocate these resources to investment in productive activities.

Don't miss the latest updates of ClearIAS!

Join ClearIAS Telegram Chanel.

Get free studymaterials and guidance.

Join for FREE

Issues with mobilisation of resources

Issues with mobilisation of resources include all those issues and problems highlighted in – mobilization of natural resources, human resources and financial resources.

Why is Domestic Resource Mobilization (DRM) particularly important?

In low-income countries confronting widespread poverty, mobilizing domestic resources is particularly challenging, which has led developing countries to rely on foreign aid, foreign direct investment, export earnings and other external resources. Nevertheless, there are compelling reasons to give much more emphasis to DRM.

  • Greater reliance on DRM is vital to elevating economic growth, accelerating poverty reduction and underpinning sustained development.
  • High-growth economies typically save 20-30 per cent or more of their income in order to finance public and private investment.
  • DRM is potentially more congruent with domestic ownership than external resources.
  • Foreign aid invariably carries restrictions and conditionality.
  • FDI is primarily oriented to the commercial objectives of the investor, not the principal development priorities of the host country.
  • DRM is more predictable and less volatile than aid, export earnings, or FDI.

Model Questions for UPSC Civil Services Mains :

  1. Role of NGOs and SHGs in resource mobiliization.
  2. Role of education in human resource mobilization.
  3. Explain the term mobilizatiion.
  4. How does the end of licence raj affect Domestic Resource Mobilisation?
  5. During the age of globalization and FDI, what are the compelling reasons to think about Domestic Resource Mobilization?
  6. Trace the effect of bottlenecks in coal and iron mining in the widening Current Account Deficit of India.
  7. Why India is not yet able to mobilise its full potential resources? List out all issues in the mobilization of resources.

[Mobilization of Resources: Specifically mentioned in Civil Service Mains GS Paper 3. It can also be asked for Prelims and Interview]

Print Friendly, PDF & Email
Share73
Tweet
WhatsApp
73 Shares

Integrate Learning With Test-Taking!

Is UPSC Prelims your weak area?

Don’t worry!

We can help you score high marks!

Are you ready to practise the right way?

Yes, I want ClearIAS to help me score high!

Get our newsletter

Don't miss our email updates!

About Alex Andrews George

Alex Andrews George is a mentor, author, and entrepreneur. Alex is the founder of ClearIAS and one of the expert Civil Service Exam Trainers in India.

He is the author of many best-seller books like 'Important Judgments that transformed India' and 'Important Acts that transformed India'.

A trusted mentor and pioneer in online training, Alex's guidance, strategies, study-materials, and mock-exams have helped thousands of aspirants to become IAS, IPS, and IFS officers.

Reader Interactions

Comments

  1. mahendra says

    November 20, 2014 at 2:01 am

    This was simply good article

    Reply
  2. Mr.Nilesh says

    November 4, 2017 at 12:24 pm

    What a Useful article! Superb job Man!God bless You

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Aim to be an IAS Officer?

Nothing can beat practice!

Join ClearIAS Prelims Test Series 2021

Practice 40+ online mock exams!

Limited Period Offer: 40% OFF!

Enroll Now!

ClearIAS Study Materials for UPSC Prelims and Mains

  • Indian History - Indian History and Culture.
  • Geography - Indian and World Geography.
  • Economics - Indian Economy.
  • Indian Polity - Constitution, Social Justice etc.
  • General Science - Science and Technology.
  • Environment - Biodiversity, Climate Change etc.
  • Current Affairs - National and international.

ClearIAS Study Materials for UPSC Mains (Extra-Topics)

  • World History - GS paper 1.
  • Indian Society - GS paper 1.
  • Foreign Relations - GS paper 2.
  • International Affairs - GS paper 2.
  • Internal Security - GS paper 3.
  • Disaster Management - GS paper 3.
  • Ethics - GS paper 4.

ClearIAS Study Materials for UPSC Mains (Paper-wise)

  • Essay Paper
  • GS 1 Paper
  • GS 2 Paper
  • GS 3 Paper
  • GS 4 Paper

ClearIAS Online Mock Exams (Prelims and Mains)

  • Prelims Mock Exams
  • Mains Mock Exams (AWP)

Congrats! You are at the right place - ClearIAS!

  • 1 million+ monthly users!
  • 9,00,000+ ClearIAS App Downloads!
  • 4,50,000+ Facebook Followers!
  • 3,50,000+ Email Subscribers!
  • 3,00,000+ Registered Aspirants!

Prepare for UPSC Online!

Get Started

UPSC Online Preparation Guidance

  • UPSC - Union Public Service Commission
  • IAS - Indian Administrative Service
  • Civil Services Exam (CSE) - Exam Pattern
  • UPSC Syllabus - Subjects to learn
  • IAS Books - Books to learn
  • UPSC CSE Eligibility - Who can appear?
  • UPSC Exam Dates - When should you apply?
  • UPSC Result - Check UPSC Results
  • UPSC FAQs - Clarify your queries

What do toppers' say about ClearIAS?

Poonam Dalal

"Working 24*7 in the police for the last 5 years and been out of touch with the preparation, I took the guidance from your website, especially the ClearIAS prelims test series. I bought it and found it to be the best available online." - Poonam Dalal, ClearIAS Online Student

Read more reviews by UPSC Toppers...

Enroll in

ClearIAS UPSC Prelims Online Test Series 2021

Score High in the IAS Exam!

Trusted by Toppers

Limited Period Offer: 40% Discount!

Enroll now

Don’t lose out without playing the right game!

Adopt the 3 Strategies for Success in the UPSC Civil Services Exam.

Learn UPSC Strategies

  • Home
  • IAS
  • UPSC
  • FAQs
  • Blog
  • Login

UPSC Online Preparation

  • Union Public Service Commission (UPSC)
  • Indian Administrative Service (IAS)
  • Indian Police Service (IPS)
  • IAS Exam Eligibility
  • UPSC Free Study Materials
  • UPSC Exam Guidance
  • UPSC Prelims Test Series
  • UPSC Syllabus
  • UPSC Online
  • UPSC Books
  • UPSC Prelims
  • UPSC Mains
  • UPSC Interview

ClearIAS

  • About ClearIAS
  • ClearIAS Programs
  • IAS Coaching
  • Announcements
  • Book Review
  • ClearIAS App
  • Sitemap
  • Work with us
  • Advertise with us
  • Privacy Policy
  • Disclaimer
  • Terms and Conditions
  • Contact Us

UPSC 2021

UPSC Exam Calendar 2021

Follow us

Follow us on FacebookFollow us on TwitterFollow us on YouTubeFollow us on ClearIAS Learning AppFollow us on ClearIAS Test Prep AppFollow us on Telegram

Featured on

ClearIAS Featured in The Hindu
ClearIAS Featured in the Times of India
ClearIAS Featured in the New Indian Express
ClearIAS Featured in the Yourstory

and many more...

Copyright © 2020 - ClearIAS.com