What are the features of Indian economy?

Main features of Indian Economy:

India is considered as a developing economy. The basic feature of Indian economy are mentioned below-

(i) Low per-capita Income: In India, per-capita income is very low and it is a basic feature of the economy. The per capita income of India is lower than China and Pakistan. The low per capita income is responsible for low level of saving and capital formation in India.

(ii) Based on agriculture: Indian economy is characterized by too much dependence on agriculture and allied activities about 60% of the working population engaged in agriculture. It should be noted here that the Indian agriculture is suffering from over crowing problem.

features of Indian economy

(iii) Huge population: India is maintain a very high rate of growth of population. The pressure of population in India is very heavy. High birth rate and fall in the death rate are the primary factor responsible for these high rate of population growth. It is responsible for rapid increase in the labour force in our country.

(iv) Unemployment problem: Another important feature of Indian economy is it's growing unemployment and underemployment problem. It is responsible for huge less of human capital in the country.

(v) Poor rate of capital formation: Capital deficiency is one of the basic feature of the Indian economy, low per capita income and the high consumption propensity are responsible for low capital formation in India.

(vi) Inequality in the distribution of income: Another important feature of the Indian economy is the distribution of income and wealth, for this reason in Indian society we observed a wide difference between rich and poor.

(vii) Under utilization of natural resources: India is very rich in different types of natural resources. Various types of natural resources such as land, water, minerals, forest etc. are available in sufficient quality in different parts of the country. But due to low level of technology, low level of capital formation and lack of planning. These resources remain under utilized.

(viii) Poor quality of human capital: Indian economy is suffering from it's poor quality of human capital. Mass illiteracy is the proof of this problem. Beside low level of educational attainment another factor is poor health condition of the general people.

(ix) Low level of technology: The economy of India is suffering from technological backwardness. It is very much deficiency to adopt modern technology in India due to illiteracy and unskilled labour.

(x) Lack of infrastructure: It is another serious problem of Indian economy. The infrastructure facilities includes transport and communication, education, power, health etc. the economy is still suffering from infrastructural bottlenecks.

(xi) Poor level of living standard: Another very important feature of Indian economy is the poor living standard. According to the human development Report 46% of the child population in India.

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