What are the characteristics of the Indian economy? Answer the question in 25 to 30 words.
Answers
"The important characteristics of Indian economy that one should understand are given below.
•
The per capita income is low
• It’s dependence on primary producing and agriculture
• The rate of population growth is increasing
• Unemployment at its peak
• Wealth is not equally distributed among the masses
• India does not have adequate technology and infrastructure
"
Presented below Top 13 Characteristics of the Indian Economy:
Characteristic No. 1 :
Low per capita income: Indian per capita income is very low and is $720 per year as estimated by World Bank.
Characteristic No. 2:
Excessive dependence of agriculture as a primary product.
Agricultural labour is the highest work force in our country at about 58%.
Characteristic No.3:
High rate of population growth: Increase rate of population growth is very high at about 49 per 1000 which is a major cause of underdevelopment.
Characteristic No. 4.
Existence of chronic unemployment and under-employment:
Growth of Unemployment is fearful in India. It increased from about 7 % to 8% during 1999-2000 to 2004-2005.
Characteristic No. 5.:
Poor rate of capital formation: Capital availability rate is very poor in India.
Characteristic No.6.
Inequality in the distribution of wealth: Uneven or mal distribution of wealth is very pronouncing.
Characteristic No 7:
Low level of technology: Application of technology in very poor. Obsolete technology instead of advance technology being adopted.
Characteristic No. 8.
Under-utilisation of natural resources:
Characteristic No.9.
Lack of infrastructure: Infrasture development is very poor.
Characteristic No. 10
Low level of living:
Characteristic No.11.
Poor quality of human capital:
Characteristic No. 12.
Demographic characteristics:
Characteristic No. 13.
Inadequate development of economic organisation: