Top 10 features of Indian economy

Features of Indian Economy is not so good as compare to developed countries that's why Indian economy is consider as the developing economy of the world. Because of some features of Indian economy like low per Capita income, inequality, poverty, heavy population pressure Indian economy is consider as the developing economy in the world. In the past time Indian economy was based on agriculture. Approximately 70% of its population was based on the agriculture for the employment but know Indian economy tries to make more better than past time.Indian economy improved very well after the independence. Indian economy is divided into three sectors that is primary sector, secondary sector and tertiary sector.

Primary sector: 

Primary sector is the one which contain agriculture activities and aligned industries. In present time primary sector contribute 13% in the Indian GDP.

Secondary sector: 

Secondary sector contain mining, manufacturing, construction, electricity, gas and water works.This sector contribute 28% in the Indian GDP.

Tertiary sector:

Tertiary sector have the work like trade, transport, communication and social welfare. This sector contribute highest in the Indian GDP with 59%.

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features of indian economy

Some features of Indian economy are given below:

Here we do detail discussion about the top 10 features of Indian economy.

1. Low per Capita Income: 

India’s per capita income is very low as compare to developed countries. Per Capita income of any country is calculated by dividing national income to the total population of the country. India's per Capital income is 7060 PPP dollar means approximately Rs. 61,000 which is very less .When we talk about America than we show that Indian per Capita income is 8 times less than America because America's per Capital income is 60,200 PPP dollar which is very high as compare to India.Even India's per Capita income is very less as compare to small countries like  Sri Lanka.

2. Socio-Economic Indication: 

According to the report of World bank published in the year 2016-17, India is providing 45 unit fat, 2296 unit calories  and 59 unit protein to its population which is very low as compare to United state of America and United Kingdom.

3. Agriculture Based Economy: 

At the time of independence 70% Indians are depend on agriculture but now only approx. 47% people depend on agriculture for their employment. After many years of independence India's huge population depend on agriculture and on the other hand it contribute only 13% to Indian GDP. India have huge distinguish unemployment in the agriculture sector.

4. Heavy population pressure: 

India is the second largest populated country after china with 138 crore in the world. India have huge population pressure. Population pressure can be estimated by its population density i.e. 376 sq/km which is not so good. Currently India is adding the total population of Australia every year.  India have around 17.5% population of the whole world.

5. Income Inequality: 

Approximately 50% population of Indians earn between 10,000 to 20,000 and a report issued by Credit Suisse told that the richest 1% Indians owned 53% of the country’s wealth, while the share of the top 10% was 76.30%.

6. Lack of Capital Formation: 

Capital formation indicates the rate of shaving in any country. Capital formation completely depends on the shaving. India's capital formation was only 10% from 1947 to 1970. After banking reforms in India it increases and at present time it is between 30-35%. But it is not so good as compare to other nations. Rate of capital formation is low because of lower level of income.

7. Human development index: 

In this Index India is also not so good. Human development Index is calculated by many measures like Life expectancy, literacy rate and Gross Enrolment ratio (GER) etc. India have life expectancy of 68 years, literacy rate of 74% and GER of 25% which is very low as compare to japan and america but India continuously increasing its ranking in very field.

8. Poverty: 

Due to low Per Capita income India's 30-40% population are unable to full fill there basic needs and they are under poverty line. Poverty is also depend on the Capital Formation which is also very low till now.

9. Traditional Technology: 

They use traditional technology in agriculture. It is because of poverty and illiteracy of people. Traditional technology is the reason of low productivity.

10. Traditional Set Up of Society: 

The set up of Indian people is not so developing. They are trapped in tradition, they always want to follow traditions and due to this reason they reduce their productivity.

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