Salient features of the Indian Economy latest

Salient features of the Indian Economy latest

GS paper 3

Indian economy is one of the most agile growing economies in the world. There are many
features that are inherent to the economy. The combination of all the features enables
development economists to classify the Indian economy as a developing one. Some salient features of the Indian economy are as follows

Salient features of the Indian Economy ,Earlypost360
Source: Google


Some salient features of the Indian Economy are:
Mixed Economy: India is a mixed economy. In a mixed economy, the government sector
(government-owned) business operations exist alongside the private sector
Agriculture Based Economy: Agriculture and allied sectors provide around
14.2% of the country’s GDP while 53% of the total Indian population is based on the
farming sector.
Overpopulation: in every decade the Indian population increases by about 20%.
During the 2001-11 population increased by 17.6%.
● Income Disparities: a report released by Credit Suisse revealed that the richest
1% of Indian citizens owned 53% of the country’s wealth, while the share of the top 10%
was 76.30%.
The backwardness of Infrastructural Development: As per a recent study, 25% of
Indian families don’t have the ability of electricity and 97 million peoples don’t have
range of safe drinking water and 840 million people in India don’t have sanitation
services.
Market Imperfections: The Indian economy doesn’t have good mobility from one
place to another which hinders the optimum utilization of resources. These
market imperfections create fluctuations in the price of commodities every year.

Use of Outdated Technology: It is very clear that the Indian production technique is
more labor-oriented in nature. So it increases the cost of production of the
products made in these countries.
Low capital formation: The rate of capital formation is very less in the country.
It is decreasing with every passing year. The rate of savings and investment is
also less. This contributes to the lower rate of economic development in the
country.

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