Question

Write any five features of Indian economy.

Answer 1

1. Predominantly agricultural economy: India is primarily an agricultural economy, with about 43% of the labor force engaged in agriculture, although agriculture contributes only around 17% to the country’s GDP.
2. Large and growing population: India has a very large population that continues to grow. As of recent records, India’s population has surpassed 1.4 billion, making it the world’s most populous country.
3. Unequal distribution of income and wealth: There is significant inequality in income and wealth distribution in India. For example, the richest 20% of the population earn about 45.3% of the total income, while the poorest 20% earn only 8.1%.
4. Low standard of living: A large section of India’s population lives under a low standard of living, with malnutrition and low-calorie and protein intake being prevalent among many people.
5. Underemployment and unemployment: The Indian economy is characterized by chronic unemployment and underemployment, partly due to rapid population growth and slow growth in the industrial and service sectors.
6. These features indicate that India is an underdeveloped and developing economy with a mixed economy, where both public and private sectors coexist, and that economic planning is adopted to promote growth and development.