Question

Discuss the developing characteristics of the Indian economy.

Answer 1

Indian economy is termed as the developing economy of the world. Some features like low per capita income, higher population below poverty line, poor infrastructure, agriculture based economy and lower rate of capital formation, tagged it as a developing economy in the world. The basic characteristics of India as a developing economy are:

• Low per capita income
• Occupational pattern – primary producing
• Heavy population pressure
• Prevalence of chronic unemployment and under-employment
• Need for a steady improvement in the rate of capital formation
• Inequal distribution of wealth and/or assets
• Poor quality of human capital
• Prevalence of low levels of technology
• Low level of living of an average Indian
• Demographic characteristics of an underdeveloped country