Question

what is developing economy? Explain the basic characteristics of the indian economy as developing economy. ​

Answer 1

Answer:

India, as a developing country, features a mixed economy in the world. The major characteristics of developing economy are low per capita income, overpopulation, maximum population below the poverty line, poor infrastructure, agro-based economy and a lower rate of capital formation. Since, the independence of the country, India has been developing in many perspectives from the economic point of view. Although the Indian economy is developing in nature, it tends to move towards a developed economy.

basic characteristics of Indian economy

1. Low Per Capita Real Income

The real income of a country refers to the purchasing power of the country as a whole in a given financial year, while the per capita real income refers to the average purchasing power of the country or the purchasing power of an individual in a country in that year.

2. High Rate of Population Growth

Where there is a high population, there also has to be the infrastructure in place to support that population. This means there need to be enough educational and medical facilities, enough employment opportunities with good salaries, etc. With a high population, especially an increasingly high population, providing these facilities to each citizen .

3. High Rate of Unemployment

before, the appropriate opportunities and facilities are unavailable for the high population in developing countries. Unemployment is a problem that deserves an explanation of its own because a lack of employment leads to a lack of funds for an individual and his or her family to even beget the basic necessities of life.

4. Dependence on the Primary Sector

When institutions have not yet been developed in a country, and there are not enough jobs available for people, they have to turn to what they have been doing for centuries before - primitive primary sector jobs. While these jobs, such as agriculture, are incredibly important in the larger perspective, they do not fetch workers a whole lot of income, neither do they add to the development of an economy to a very large extent.

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