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The Economy of India is a Developing Mixed Economy

-- Simrah Ahmad,VIII – C,Indian Learners Own Academy, Kuwait

The economy of India is a developing mixed economy. It’s the world’s sixth largest economy by nominal GDP and the third largest by purchasing power parity . The country ranks 139th in per capita GDP with $2,134 and 122nd in per capita GDP with$7,783 as of 2018 .
India’s economy is gaining momentum , thanks to the implementation of several recent noteworthy policies – such as the enactment of the long – awaited goods and services tax , and the country opening up more to foreign investors .

DEVELOPMENT PATHS

India has followed a different path of development from many other countries . India went more regulated than heavy industry. That said there are some emerging manufacturing giants in the Indian economy.

Supply side factors supporting Indian growth and development

1.A fast – growing population of working age:

There are 700 million Indians under the age of 35 and the demographics look good for Indian growth in the next twenty years at least.

2.India has a strong legal system and many English –language speakers:

This has been a key to attracting inward investment from companies such as those specialising in IT out sourcing.

3.Wage costs are low in India:

And India has made strides in recent years in closing some of the productivity gap between India and other country’s at later stages of development.

RECENT DEVELOPMENTS

With the improvement in the economic scenario , there have been various investments in various sectors of the economy. Some of the important recent developments in Indian economy are as follows :

-Exports from India increased 15.48% year-on-year to $351.99 billion in April- November.
-Around 10.8 million jobs were created in India in 2017.

-India has improved its ranking in the World Bank’s Doing Business Report by 23 spots over its 2017 ranking and is ranked 77 among 190 countries in 2019 edition of the report.

-Consumer Price Index (CPI) inflation rose moderated to 2.33% in November 2018 from 3.38% in October 2018.

GROWTH AND DEVELOPMENT LIMITERS FOR INDIA

Despite optimism for India’s prospects for economic growth and development, there are a number of obstacles which may yet see growth and development falter.

-Poor infrastructure – notably in transport and power networks.

-Low productivity and weak human capital. A high % of workers are low – skilled and work in small businesses.

-High inflation and a persistent trade deficit.

-Relatively closed economy – India is a net importer of primary products.

Characteristics of the Indian Economy

-Low per capita income:

In India , the national income and per capita income is very low and it is considered as one of the basic features of underdevelopment.

-Excessive dependence of agriculture and primary producing:

Indian economy is characterized by too much dependence on agriculture and thus it is primary producing.

-High rate of population growth:

India is maintaining a very high rate of growth of population since 1950. Thus the pressure of population on our country is very heavy.

-Existence of chronic unemployment and under employment:

Rapid growth of population coupled with inadequate growth of secondary and tertiary occupations are responsible for the occurrence of chronic employment and under-employment problem in our country.

-Poor rate of capital formation:

Capital deficiency is one of the characteristic features of the Indian economy. Moreover, this low level of capital formation is due to the inducement of invest and also due to low propensity and capacity to save.

-Inequality in the distribution of wealth:

Another important characteristic of the Indian economy is the mal-distribution of wealth : the report of the Reserve Bank of India reveals that nearly 20% of the households owing less than Rs 1000 worth of assets possess only 0.7% of the total assets .

-Low level of technology:

Prevalence of low level of technology is one of the important characteristics of an undeveloped economy like India . The economy of our country is thus suffering from technological backwardness.

Is AGRICULTURE important to India?
Agriculture is the most important sector of Indian Economy. Indian agriculture sector accounts for 18% of India’s gross domestic product (GDP) and provides employment to 50%of the countries workforce. India has many areas to choose for business such as dairy, eat, poultry, fisheries and food grains etc.

What is the main source of economy in India

It is the service sector which is the main source of national income. Therefore service sectorcontribute more than 50% of the GDP. But it is the agricultural sector which employs more than 50% of the population. In that sense, more numnber of people are supported by agriculture.





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