Question

State four features of the Indian economy as an underdeveloped economy.

Answer 1

1. Low per capita income: India’s per capita income is very low compared to developed countries, largely due to its large population.
2. Low rate of capital formation: The rate at which capital is accumulated for investment remains low.
3. Widespread unemployment and underemployment: A significant portion of the population is unemployed or underemployed.
4. A huge amount of natural resources remain unutilized and unexplored, along with a lack of infrastructural facilities such as transport, communication, and banking needed for development.