<–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 the world’s largest Democracy, the second most populous country, and the fastest growing major economy. It has a diverse economy with a wide range of industries, a large and growing middle class, a young population, and significant potential as an emerging market. However, it also faces challenges such as poverty, inequality, and Infrastructure-2/”>INFRASTRUCTURE-development/”>Infrastructure Development.
India’s economy is the sixth largest in the world by Nominal GDP and the third largest by purchasing power parity. It is a mixed economy with a large public sector and a growing private sector. The main sectors of the economy are agriculture, manufacturing, Services, and construction.
Agriculture is the largest sector of the Indian economy, accounting for about 15% of GDP and employing about 50% of the workforce. The main crops grown in India are rice, wheat, sugarcane, Cotton, and oilseeds.
Manufacturing is the second largest sector of the Indian economy, accounting for about 17% of GDP and employing about 18% of the workforce. The main industries in India are textiles, chemicals, pharmaceuticals, automobiles, and electronics.
Services is the third largest sector of the Indian economy, accounting for about 58% of GDP and employing about 32% of the workforce. The main services in India are finance, insurance, real estate, tourism, and telecommunications.
India has a large and growing middle class. The middle class is defined as those who earn between $2 and $10 per day. The middle class in India is estimated to be about 300 million people, and it is growing rapidly. The growth of the middle class is being driven by economic growth, Urbanization, and Education.
India has a young population. The Median age in India is 28 years old, and the population is expected to reach 1.5 billion by 2030. The young population is a major asset for India, as it provides a large pool of workers and consumers.
India is an emerging market with significant potential. The economy is growing at a rapid pace, and the government is investing in infrastructure and education. India is also a member of the G20, and it is a major player in the global economy.
However, India also faces challenges such as poverty, inequality, and infrastructure development. Poverty is a major problem in India, with about 20% of the population living below the poverty line. Inequality is also a problem, with the richest 1% of the population owning about 50% of the wealth. Infrastructure development is another challenge, with India facing a shortage of roads, bridges, and power Plants.
Despite the challenges, India is a country with significant potential. The economy is growing rapidly, the population is young, and the government is investing in infrastructure and education. India is an emerging market with a lot to offer businesses and investors.
Here are some frequently asked questions and short answers about the Indian economy:
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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 Corruption. -
What are the main opportunities for the Indian economy?
The main opportunities for the Indian economy are its large population, its young workforce, and its growing middle class. -
What is the future of the Indian economy?
The future of the Indian economy is bright. The country is expected to grow at a rapid pace in the coming years.
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 large population living in poverty.
- It is a growing economy, with a GDP growth rate of around 7%.
- It is a services-oriented economy, with services accounting for more than half of GDP.
- It is an agriculture-based economy, with agriculture accounting for about 15% of GDP.
- It is a manufacturing-based economy, with manufacturing accounting for about 18% of GDP.
- It is a resource-rich economy, with abundant Natural Resources such as coal, iron Ore, and oil.
- It is a labor-intensive economy, with a large workforce.
- It is a low-cost economy, with low labor costs and low production costs.
- It is a growing market economy, with a large and growing middle class.
- It is a globalized economy, with increasing trade and Investment with other countries.
- It is a volatile economy, with frequent changes in economic policy and economic performance.
- It is a complex economy, with a variety of economic sectors and a variety of economic challenges.
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Which of the following is not a characteristic of the Indian economy?
(A) It is a mixed economy.
(B) It is a developing economy.
(C) It is a Socialist Economy.
(D) It is a market economy. -
The Indian economy is the world’s 7th largest economy by nominal GDP and the 3rd largest by purchasing power parity. Which of the following is not a factor that has contributed to the growth of the Indian economy?
(A) The rise of the middle class.
(B) The increase in foreign investment.
(C) The growth of the IT sector.
(D) The decline in the manufacturing sector. -
The Indian economy is facing a number of challenges, including:
(A) High levels of poverty and inequality.
(B) A large informal sector.
(C) A poor infrastructure.
(D) All of the above. -
The Indian government has taken a number of steps to address the challenges facing the economy, including:
(A) Investing in infrastructure.
(B) Promoting manufacturing.
(C) Reforming the financial sector.
(D) All of the above. -
The Indian economy is expected to continue to grow in the coming years. However, there are a number of risks that could derail the growth, including:
(A) A slowdown in the global economy.
(B) A rise in protectionism.
(C) A political crisis.
(D) All of the above. -
The Indian economy is a complex and dynamic system. It is affected by a variety of factors, both domestic and international. The future of the Indian economy is uncertain, but it is likely to continue to grow in the coming years. However, there are a number of risks that could derail the growth, including a slowdown in the global economy, a rise in protectionism, and a political crisis.