<–2/”>a >Indian economy has come a long way since independence. From socialist pattern to liberalised era it , from being agrarian to service oriented economy it has seen many ups and downs. The basic features of Indian economy are enumerated as follows:
- India is a developing economy with low per capita income. Current Per capita income is 1.11 lakh per annum at constant prices.
- Indian economy is a Mixed Economy, both public and private sector are coexisting and Participating in the production process.
- It is characterised by high Population density and high population Growth rate. Current decadal growth rate is nearly 17%.
- There is high level of Unemployment, underemployment and mal EMPLOYMENT.
- The level of technology used in the production process is very low. Intensive agriculture and poor technology is hallmark of Indian Industries.
- India’s imports are greater than exports. Major export items are engineered goods, gems and jewelleries, handicrafts etc. India’s Current Account mainly lies in deficit zone.
- POVERTY is a major feature of Indian economy. Currently 22% of people live below Poverty Line which translate into nearly 25 crore people. India constitutes 2.4% of the world’s land but it supports near about 17% of the population which shows the pressure on Resources.
- Under utilisation of resources due to low level of technology use.
- Structural problem in the economy :
| Sector | GDP Contribution(%) | Employment |
| Agriculture | 17.32 | 42.74 |
| Industry | 29.02 | 23.79 |
| Service | 53.66 | 42.74 |
- Above data clearly states the structural issues in our economy. They are also the cause of Income inequality.
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India is a country with a population of over 1.3 billion people, making it the second most populous country in the world. It is also a country with a rich history and culture, dating back over 5,000 years. India’s economy is the sixth largest in the world by Nominal GDP and the third largest by purchasing power parity.
India’s economy is a mixed economy, with a large public sector and a growing private sector. The government plays a major role in the economy, through ownership of key industries and regulation of the private sector. However, the private sector has been growing rapidly in recent years, and now accounts for over 70% of GDP.
India’s economy is growing at a rapid pace, averaging 7% per year over the past decade. This growth is being driven by a number of factors, including a young population, a growing middle class, and increasing Investment. India’s economy is also benefiting from the rise of the digital economy, which is creating new opportunities for businesses and consumers.
Despite its rapid growth, India faces a number of challenges, including poverty, inequality, and Infrastructure-2/”>INFRASTRUCTURE deficits. However, the Indian government is taking steps to address these challenges, and the economy is expected to continue to grow in the years to come.
Here are some of the key characteristics of the Indian economy:
- Large population: India has the second largest population in the world, with over 1.3 billion people. This large population provides a large market for goods and Services, but it also puts a strain on resources and infrastructure.
- Diversity: India is a very diverse country, with people from different religions, languages, and cultures. This diversity can be a source of strength, but it can also lead to conflict.
- Rapid growth: India’s economy has been growing rapidly in recent years. This growth has been driven by factors such as a young population, a growing middle class, and increasing investment.
- Low per capita income: Despite its rapid growth, India’s per capita income is still relatively low. This means that there is a large amount of Poverty in India.
- High inequality: India has a high level of inequality, with a small number of people controlling a large share of the wealth. This inequality can lead to social unrest.
- Dependence on agriculture: Agriculture is still a major part of the Indian economy, employing over half of the workforce. However, the sector is facing challenges such as low productivity and water scarcity.
- Infrastructure deficit: India has a large infrastructure deficit, with inadequate roads, railways, and power supplies. This deficit is a major obstacle to economic growth.
- Corruption: Corruption is a major problem in India, and it can hinder economic growth.
- Political instability: India has a long history of political instability, which can make it difficult to implement Economic Reforms.
- Terrorism: India is facing a serious threat from terrorism, which can disrupt economic activity.
- Climate change: India is one of the countries most vulnerable to the effects of Climate Change. This could have a significant impact on the economy.
These are just some of the characteristics of the Indian economy. It is a complex and dynamic economy, and it is constantly evolving.
Here are some frequently asked questions about the Indian economy, along with short answers:
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What is the size of the Indian economy?
The Indian economy is the world’s sixth-largest economy by nominal GDP and the third-largest by purchasing power parity. -
What are the main sectors of the Indian economy?
The main sectors of the Indian economy are agriculture, manufacturing, and services. -
What are the main challenges facing the Indian economy?
The main challenges facing the Indian economy are poverty, inequality, and Infrastructure Development. -
What are the main opportunities for the Indian economy?
The main opportunities for the Indian economy are its large population, young workforce, and growing middle class. -
What is the future of the Indian economy?
The future of the Indian economy is bright, with the potential to become one of the world’s largest economies in the coming decades.
Here are some characteristics of the Indian economy:
- It is a mixed economy, with both private and public sectors.
- It is a developing economy, with a per capita GDP of $2,000.
- It is a rapidly growing economy, with an annual growth rate of 7%.
- It is a large economy, with a population of over 1.3 billion people.
- It is a diverse economy, with a wide range of industries.
- It is a young economy, with a Median age of 28 years.
- It is an increasingly urbanized economy, with over 300 million people living in cities.
- It is a consumer-driven economy, with a growing middle class.
- It is a technology-driven economy, with a large number of startups.
- It is a globalized economy, with a growing trade and investment relationship with the rest of the world.
The Indian economy is a complex and dynamic system that is constantly evolving. It is a major player in the global economy and is expected to play an even greater role in the years to come.
The Indian economy is the world’s sixth-largest economy by nominal GDP and the third-largest by purchasing power parity. It is a mixed economy with a large public sector and a rapidly growing private sector. The economy is driven by services, which account for over 50% of GDP, followed by industry and agriculture. India is a major exporter of Software, pharmaceuticals, and other manufactured goods.
The Indian economy is characterized by a number of factors, including:
- A large and growing population: India has the second-largest population in the world, with over 1.3 billion people. This large population provides a large domestic market for goods and services.
- A young population: The median age in India is 28 years old, which is much younger than the median age in most developed countries. This young population provides a large pool of workers and consumers.
- A rapidly growing middle class: The Indian middle class is growing rapidly, and is expected to reach 500 million people by 2030. This growing middle class is a major driver of economic growth.
- A skilled workforce: India has a large and skilled workforce, which is a major advantage in the global economy.
- A favorable investment climate: The Indian government has made a number of reforms to improve the investment climate in India, including reducing taxes and simplifying regulations.
- A strong Democracy: India is a vibrant democracy, which provides stability and predictability for businesses.
The Indian economy is facing a number of challenges, including:
- A high level of poverty: Over 20% of the Indian population lives below the poverty line.
- A large informal economy: The informal economy accounts for over 50% of GDP in India. This informal economy is difficult to regulate and tax.
- A poor infrastructure: India’s infrastructure, including its roads, railways, and power grid, is in need of improvement.
- A high level of corruption: Corruption is a major problem in India, and it can hinder economic growth.
- A climate of uncertainty: The Indian economy is subject to a number of uncertainties, including the global economic slowdown and the ongoing trade war between the United States and China.
Despite these challenges, the Indian economy is expected to continue to grow in the coming years. The World Bank projects that India’s GDP will grow at an Average rate of 7.5% per year from 2019 to 2023. This growth will be driven by the continued expansion of the services sector, the growth of the middle class, and the government’s reforms to improve the investment climate.
Here are some MCQs on the Indian economy:
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Which of the following is not a characteristic of the Indian economy?
(A) A large and growing population
(B) A young population
(C) A rapidly growing middle class
(D) A skilled workforce
(E) A poor infrastructure -
Which of the following is a challenge facing the Indian economy?
(A) A high level of poverty
(B) A large informal economy
(C) A poor infrastructure
(D) A high level of corruption
(E) All of the above -
Which of the following is a factor that is expected to drive economic growth in India in the coming years?
(A) The continued expansion of the services sector
(B) The growth of the middle class
(C) The government’s reforms to improve the investment climate
(D) All of the above -
What is the projected average annual growth rate of India’s GDP from 2019 to 2023?
(A) 5%
(B) 6%
(C) 7%
(D) 8%
(E) 9% -
Which of the following is not a factor that has contributed to the growth of the Indian economy?
(A) The large and growing population
(B) The young population
(C) The rapidly growing middle class
(D) The skilled workforce
(E) The favorable investment climate