why is india a developing country
Answers
Answer:
Firstly due to democracy and there are the great share of all three sector s
FIRSTLY, India has a very low per capita income as compared to the developed countries. Our per capita income was as low as $5610 as estimated in 2014. The difference of per capita income between the developed countries and India is also very large. However, we notice post 1990 to 2014, the Indian economy has grown at a faster rate than many of the developed countries. Even though the per capita income difference got narrowed down, there still exists a difference between the standard of living conditions of the residents of a developed country and India which is quite significant and large.
SECONDLY, one of the basic features of a developing nation is its primary product. In India, a very large population (as much as half) is dependent on agriculture which also comprises a very important part of its national income. In 2014, the World Bank estimated that 47% of the Indian population was engaged in agriculture and its contribution to the National Income was 17%. The proportion of the workforce with respect to the population engaged in agriculture is much less in developed countries as compared to India. Hence India’s large dependence of agriculture as opposed to the secondary and tertiary sectors is also an important reason as to why our National Income is so low.
THIRDLY, the most weighted problem which India faces is the pressure of its huge population. According to recent estimates India is the second most populated country in the world and our population is equivalent to 17.74% of the world’s population in total. This is due to the fact that India has very high level of birth rate with a declining level of death rates. This increasing population also demands a higher rate of economic growth which could maintain the same standard of living for the entire population. This further adds on to the burden on the agricultural sector which has to feed this increasing population. Moreover, this increase in the population levels also leads to an increase in the labour supply and this rapid growth of labour force creates a high supply of labour than its demand which in turn leaves majority of the people unemployed
FOURTHLY, we know that India has an abundant labour supply and it is actually very difficult to provide employment to its entire working population. In developed nations unemployment does not prevail as such and even if it does, it is cyclic and is due to the lack of effective demand. On the other hand, unemployment is India is structural and is due to the deficiency of capital, which could have otherwise absorbed this excess labour supply. Likewise, we also see that in our agricultural sector, more labourers are employed than what is actually needed. The marginal productivity of these excess workers is zero or negative and therefore we can say these excess workers are disguised unemployed. Disguised unemployment prevails in our economy because of the absence of alternative employment opportunities and the heavy pressure of population.
BECAUSE OF THIS REASONS INDIA IS A DEVELOPING COUNTRY