Indian economy and its basic features economics essay

The present calorie level in India is just above the minimum caloric level required for sustaining life which is estimated at calories.

In the primary sector, most of the goods are produced by using natural resources, since India is a overpopulated agro based economy, therefore, this sector plays an important role for economic growth. Toys, bicycles and motor bikes from China, soaps and toiletries from Indonesia and Malaysia, cheese and fruits from Australia and many more await the Indian consumers with the lifting of trade restrictions.

Moreover, lower income level, low level of living including absence of balanced diet and proper housing and medical facilities are responsible for low life expectancy of As per the estimate of National Building Organisation NBOin total there was a shortage of 31 million housing units at the end of March, and by the turn of the century, total backlog of housing shortage in the country is around 41 million units.

High rate of population growth 4. In respect of natural endowments India is considered as a very rich country.

Essay on Effects of Globalization on Indian Economy

Low Rate of Capital Formation: People living in this sector are mainly engaged in either secondary sector or tertiary sector. This sector is also known as industrial sector. Some of the characteristics are: All the government-owned production units come under this head.

Such restrictions were that certain products would not be allowed to be imported as they were manufactured in India. The large scale suicide by Indian farmers in Karnataka, Punjab and Haryana under the burden of heavy loans is directly attributed to this.

Essay on Indian Economy

Since the study of millions of individual economic units is almost impossible, macroeconomics provided tools for the assessment of economic policy. Moreover, low agricultural productivity, lack of modernisation and lack of diversification in its output are some of the basic problems from which our agricultural sector is suffering.

Microeconomics is the study of individual trees, whereas macroeconomics is the study of forest as a whole. The main function of Reserve Bank of India is to control the monetary policy of the country and exchange rate of Indian currency.

There is larger unemployed and under employment is another important feature of Indian economy. Any country can participate to set up, acquire, merge industries, invest in equity and shares, sell their products and services in India. However, in macroeconomics we study the whole economic system like national income, total savings and investment, total employment, total demand, total supply, general price level.

Moreover, in the urban areas of our country, the problem of educated unemployment has also taken a serious turn. Though globalisation and liberalisation of trade have resulted in the availability of large number of quality products at reasonable price, the overall economic benefits are negated due to the slow death of small scale and traditional goods producing sectors employing a large population.

Top 13 Characteristics of the Indian Economy

Bank Rate- It is the rate of interest charged by the Reserve bank of India for lending money to commercial banks. Indian Life Insurance Corporation was living below the poverty line. Food for Work Programme 3.

The demographic characteristics of India are not at all satisfactory rather these are associated with high density of population, a smaller proportion of the population in working age group of years and a comparatively larger proportion of population in the minor age group of years, As per census, the density of population in India was per sq km.

This sector consists of agriculture and its allied activities including dairy, poultry, cattle rearing, fishing, forestry, animal husbandry etc.

Although the per capita income at official exchange rates exaggerated this disparity but after making necessary correction through purchasing power parity figures, the per capita GNP of U.

People living in this sector are mainly engaged in either secondary sector or tertiary sector. In order to evade taxes some people falsify their accounts and do not record all transactions in their books. Supply creates its own demand. To know and understand the nature of Indian economy, it is very necessary to have a clear idea about the meaning of Indian economy.

After Independence India launched her First Five Years plan in ; then now 5-Year Plan is going on. (a) Indian economy is basically an agricultural economy.

The Meaning and Importance of Macroeconomics

More than 60% of the population is engaged in agriculture and allied activities. (b) Low per capita income is the second feature of Indian economy. The Indian economy had grown by per cent inwhich included a growth rate of percent in the India Industry Sector.

There was a marked improvement in the growth rates of manufacturing (from per cent in to per cent in ) and mining and quarrying (from 2 per cent to per cent during the same period).

The following points highlight the top thirteen characteristics of the Indian economy. Some of the characteristics are: per capita income izu-onsen-shoheiso.comive dependence of agriculture and primary producing 3.

High rate of population growth 4. Existence of. Article shared by. Indian economy is an under developed economy in which Agriculture is the back bone of Indian economic. 60% of India’s population are on the below poverty line.

India is developing into an open-market economy, but traces of its past autarkic policies remain. Economic liberalization measures, including industrial deregulation, privatization of state-owned.

Indian economy and its basic features economics essay
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What are the basic characteristics of Indian Economy?