CHARECTERSTICS OF INDIAN ECONOMY

BY : DHRUV

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

LOW PER CAPITA INCOME

Low Per Capita Income

When the total national income is divided by the total population, it is called per capita income.It is the average income 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 has indeed taken place during the six decades of planning ,but India still remain in some of the most underdeveloped countries in terms of per capita income.

Inequitable Distribution of Income

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%

High Incidence of Poverty

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.

Low Level of Human Development

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 all development 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 villages have first generation infrastructure facilities like safe drinking water, electricity and toilets. About 20% of the population have no access to safe drinking water.

Unemployment

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.

Technological Backwardness

Technological Backwardness
Rate of technological growth; 0.7% to 1.1% 119 researchers per million population Global Information technology report,2010, places India at 117 among 159 countries in the economies effectively using IT

INDIA AS A RAPIDLY EMERGING ECONOMY

SUSTAINED GROWTH
Presently India is fastest growing economy in the world (after China) In terms of purchasing power parity, India had a per capita income of 3,260 $ In the changing demographics, India will have the largest pool of working population in the world.

Self Reliance and minimal Dependence Agricultural Transformation Industrial changes Changes in foreign trade Improvement in Infrastructure Expansion of science and technology Social Changes