Question

Indian economy is defined as a developing economy, because ___________.

• A. most of the people depend on agriculture
• B. industries have not been spreading rapidly
• C. labor is abundant and capital is scarce
• D. per capita income though small in relation to developed countries is slowly increasing

Answer 1

Answer: (D)

per capita income though small in relation to developed countries is slowly increasing

India is a poor agricultural country that is seeking to become more advanced economically and socially. India has achieved much in the last decades. Yet an economic deceleration in the past few quarters has generated worried commentaries about India’s growth potential. However, our analysis of nearly five decades of data finds that India's long-term growth is steady, stable, diversified and resilient. The per capita income growth rate is slow in our country as compared to developed countries, hence it is defined as a developing country.

Hence, D is the correct option.