Top 8 Important  Characteristics of the Indian Economy 2020

India is one of the biggest economies in this world. The Indian economy is not the same as was 50 years ago. We can treat the economy of this country as one of the underdeveloped but developing economies of the world. The economy of this country is known as the mixed economy as both public and private sector coexist. Some basic  Top 8 Important  Characteristics of the Indian Economy are discussed below.

 Top 8 Important  Characteristics of the Indian Economy :

(1)    Low per-capita income: National income and per-capita income of India is very low, and it is one of the basic characteristics of under-development. According to World Bank, India’s per-capita income(nominal) in 2016 was US$ 1,670  ranked at 112 out of 164 countries and on PPP terms it was US$ 5,350 and ranked 106th. This per-capita income of India is very low as compared to the per-capita income of the developed countries of the world. According to IMF, India’s per-capita income in 2017 was only Int.$( International $) 1,174, whereas in Qatar, Macau, Luxembourg, Singapore , Ireland it was Int.$124,927, Int.$114,430, Int.$109,192, Int$90,531, Int.$72,632 respectively.

 Top 8 Important  Characteristics of the Indian Economy

(2)     Excessive dependence on Agriculture: Another characteristic of  Indian economy is that it is too much depending on agriculture of the total working population of it engaged in agriculture contributing a good share of the national income of the country. In 2011 about 60% of the total working population in India was engaged in agriculture and allied activities, contributing nearly 16% of the total national income of the country.

 

(3)      Heavy pressure of population: Population pressure in India is very heavy. This population pressure has resulted from the high level of death rates along with a falling level of death rates. The rate of growth of population in India has increased from 1.31% per annum in 1945-50 to 2.5% in 1971-81 then to 1.31% per annum in 1991-2001.

  

(4)       Chronic unemployment and underemployment: Rapid growth of population along with the inadequate growth of tertiary occupations has led to the problem of unemployment in the country. Unemployment in India is a structural one and it is mainly due to the deficiency of capital. Moreover, there is disguised unemployment and adequate unemployment in India.

 

(5)       Poor rate of capital formation:  India economy is characterized by capital deficiency. This is mainly due to the poor volume of savings in comparison to its requirement.

(6)       Low level of technology: Another important feature of the Indian economy is that the economy suffers from a very backward and low level of technology. Although large numbers of industrial sectors have applied advanced and modern technology in its urban area, industries and agriculture still employ backward method even in this modern technological age.

 

(7)    Unequal distribution of wealth: The distribution of wealth is one of the important characteristics of the Indian economy as per as the report of RBI it is revealed that 51% of the household heaving less than Rupees 5000 worth of assets possessed only 81 % of the total asset and the top 4 % household having assets worth more than Rupees 50,000 over nearly 31 % of total assets.

(8)     Lack of infrastructure: Indian economy is also suffering from lack of infrastructural facilities which includes transportation and communication facilities, electrification, credit, energy, finance, housing and insurance, health education, science and technology, etc.

             

                                                 I hope this article has helped you.