Charecterstics of Indian Economy

7/31/2019 Charecterstics of Indian Economy

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CHARECTERSTICS OF

INDIAN ECONOMY

BY : DHRUV


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INDIA AN UNDERDEVELOPED

ECONOMY

Low per capita income

Inequitable distribution of income

High incidence of poverty

Predominance of agriculture

Rapid population growth and high dependency ratio

Low level of human development

Unemployment

Scarcity of capital

Technological backwardness


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LOW PER CAPITA INCOME


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Low Per Capita Income

When the total national income is divided by the totalpopulation, it is called per capita income.It is the averageincome of an average person in that country.

On the basis of per capita income , india was among the few

poorest countries at the time of indipendence. This poverty and backwardness India had inherited from the

colonial rule

With the efforts of the government some development hasindeed taken place during the six decades of planning ,but

India still remain in some of the most underdevelopedcountries in terms of per capita income.


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Inequitable Distribution of Income


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Inequitable Distribution of Income

The distribution of income and wealth in India is

inequitable.

According to the WORLD DEVELOPMENT

INDICATORS, 2010,the share of the bottom 10%of the

population in aggregate household expenditure was only

3.6%in 2004-2005 while the share of top 10%was as

high as 31.1%


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High Incidence of Poverty


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High Incidence of Poverty

The problem of mass poverty is a natural outcome of

income inequalities.

The planning commission acknowledge the fact of

widespread poverty in the country in the sixth 5 year

plane 1980-95 .

According to the planning commission, the overall % of

the people below the poverty line had declined to 36 %

in 1993-1994 while the incidence of poverty was 37% in

rural areas and 32% in urban areas .

Tendulkar committee has pointed out that 37% of people

were below the poverty line in 2004-2005. This indicate a

very high incidence of poverty after 6 decades of

planning.


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Low Level of Human Development


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Low Level of Human Development

High rate of illiteracy

74.04% people can read and write (2011) i.e. 296 million illiterates

India ranks 106 out of the 127 countries on Education for alldevelopment index (2005 global report)

In skilled areas like computer technology, situation is disastrous

The number of beds available over 1,000 million is only 9.10 lakh

Only 16 out of every 100 Indian households- a mere four in villageshave first generation infrastructure facilities like safe drinking water,electricity and toilets.

About 20% of the population have no access to safe drinking water.


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Unemployment


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Unemployment

Widespread unemployment is perhaps the most striking

symptom of inadequate development in india.

The unemployment rate was 6.6% in 1993-1994 which

rose to 8.35% in 2006-2007.

Over the same period , the number of unemployed rose

from 20.27 million to 36.27 million

This high level of unemployment is a matter of serious

concern.

Unemployment in india is chronic and result from the

structural defects in the economy.


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Technological Backwardness


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Technological Backwardness

Rate of technological growth; 0.7% to1.1%

119 researchers per million population

Global Information technologyreport,2010, places India at 117 among159 countries in the economieseffectively using IT


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INDIA AS A RAPIDLY

EMERGING ECONOMY


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SUSTAINED GROWTH

Presently India is fastest growingeconomy in the world (after China)

In terms of purchasing power parity,India had a per capita income of 3,260 $

In the changing demographics, Indiawill have the largest pool of workingpopulation in the world.


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Self Reliance and minimal Dependence

Agricultural Transformation

Industrial changes

Changes in foreign trade

Improvement in Infrastructure

Expansion of science and technology

Social Changes

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Charecterstics of Indian Economy