After India got Independence, the impact was already shown in the Indian economy. The agriculture sector had surplus labor but less productivity. On the other hand, the industry sector was looking out for modern technologies, investments, and capacity building. Infrastructure also needed expansion, up-gradation, and public orientation.
Economic Issues in India
- Population Growth- It is the current economic issues in India as it stands as the second most-populated nation in the world, after China. India’s birth rate is very high as compare to the death rates. Therefore, the authority has to take care of the basic requirements of clothing, food, medicine, shelter, and schooling, etc. These circumstances increase the economic burden of a nation.
- The rapid growth of Unemployment- The enormous unemployed population is another feature which contributes to India’s economic issues.
- Rate of Capital Formation- Due to high population India always had a scarcity of capital. Still, in recent years, India has shown moderate but constant development in capital formation.
- Inequality in wealth distribution- There is a huge disparity between the rich and the poor. Which is absolutely one of the major economic issues in India.
|Q.1- Mention some of India’s most essential economic challenges from the time of independence. (NCERT)
|Economic challenges from Independence time
- The increasing dependence of a large proportion of the population on agriculture.
- Use of Traditional methods of cultivation which results in low productivity and stagnation in the agricultural sector.
- Destruction of world-famous Indian Handicrafts.
- Low level of development in the industrial sector.
- The problem of a massive level of unemployment and underemployment.
- Lack of medical facilities leading to High infant mortality rate, low life expectancy, and literacy rate.
- Widespread mass poverty because of natural calamities (famines, epidemics, etc.) and other socio-economic factors.
|Q.2- What was the reason for low productivity and stagnation in agriculture?
|Lack of new technology was responsible for low productivity and stagnation in agriculture.
|Q.3- what causes a high rate of IMR and life expectancy?
|Poor Medical facilities caused a high rate of IMR and Life Expectancy.
For more data on Economics Class 11 Syllabus, Commerce notifications and sample papers for class 11 Commerce, stay tuned to BYJU’S.