Indian economy has come a long way since independence. From socialist pattern to liberalised era it , from being agrarian to service oriented economy it has seen many ups and downs. The basic features of Indian economy are enumerated as follows:
India is a developing economy with low per capita income. Current Per capita income is 1.11 lakh per annum at constant prices.
both public and private sector are coexisting and Participating in the production process.
It is characterised by high population density and high population growth rate. Current decadal growth rate is nearly 17%.
There is high level of unemployment, underemployment and mal employment.
The level of technology used in the production process is very low. Intensive agriculture and poor technology is hallmark of Indian Industries.
India’s imports are greater than exports. Major export items are engineered goods, gems and jewelleries, handicrafts etc. India’s Current account mainly lies in deficit zone.
Poverty is a major feature of Indian economy. Currently 22% of people live below poverty line which translate into nearly 25 crore people. India constitutes 2.4% of the world’s land but it supports near about 17% of the population which shows the pressure on resources.
Under utilisation of resources due to low level of technology use.
Structural problem in the economy :
Sector
GDP Contribution(%)
Employment
Agriculture
17.32
42.74
Industry
29.02
23.79
Service
53.66
42.74
Above data clearly states the structural issues in our economy. They are also the cause of Income inequality.
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