Published on September 1, 2020

Salient Features of Indian Economy

CC BY-SA 3.0, 2011

1. Agriculture based economy

According to census 2011, 54.6% of Indian are relay on agriculture and it contributes 17% of the country’s GDP (Gross Domestic Production).

2. Mixed Economy

India has a mixed economy. In India both government and private sector co-exist. Although the government control the private sector to some extent.

3. Low per-capita Income

As India is a developing country the per-capita income is much lower than the developed countries like USA, UK etc. Nowadays per-capita income is calculated on the basis of Purchasing Power Parity (PPP) at the international level.

4. Over-Population

India is the second-most populous country in the world, with over 1.2 billion people. India occupies 2.4% of the area of the world but only support over 17.5% of the world population.

5. Unequal Distribution of Wealth

The high degree of disparity in income or wealth distribution is found in India. The 1% of millionaire Indian hold 58.4% of the country’s wealth.

6. Lack of Infrastructure

There is a severe lack of physical and social infrastructure in the country.

7. Poverty

India is one of the poorest countries in the world; women and children, the elderly people of Indian society, suffer most. Two-thirds of the Indian is poor. The vicious circle of poverty are still present in the Indian economy.

8. Market Imperfection

lack of mobility of production factors from one place to another and lack of optimum usage of available resources.

9. Limited Transport and Communication Facilities

In India, transport and communication facilities are not well developed due to which industrial development is not eventually distributed among various parts of the nation.

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