Highlight the Characteristics of Indian economy

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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