This imposes a greater economic burden on the economy of our country as to maintain such a rapidly growing population we require food, clothing, housing, schooling, health facilities etc. In India, the rate of growth of population was about 1. In 2004, nearly 58 per cent of the total working population of our country was engaged in agriculture and allied activities and was contributing about 21. All the under developed countries are characterized by high birth rate which stimulates the growth of population; the fast rate of growth of population necessitates a higher rate of economic growth to maintain the same standard of living. Excessive dependence of agriculture and primary producing Indian economy is characterised by too much dependence on agriculture and thus it is primary producing.
More than 70 per cent of the total population is engaged in agricultural activities while the picture is absolutely different in advanced countries. The techniques applied in agriculture industries milling and other economic fields are primitive in nature. Inequalities of income distribution are to be observed both in the rural and urban sectors of the economy. Every Economy in the world stands on four basic pillars. But despite of all this growth the Indian Economy is curtailed by creaking infrastructure, cumbersome judiciary system, dilapidated roads, severe shortage of electricity, lesser number of schools, lower education, caste system and reservation system.
Lack of Capital Formation: Rate of capital formation is low because of lower level of income. High rate of population growth: India is maintaining a very high rate of growth of population since 1950. In 1947, cement production was 26 lakh tonnes, of sugar 10 lakh tonnes and that of cloth just 421 crore meter. While the Gross Domestic Production tells about the total development in terms of total production in various sectors in a year, the inflation in co relation with the deflation tells about the market indices. Article shared by The demographic feature of Indian economy states characteristics of population constitutes the human resources of a country. These famines showed an unbridled increase in the 18th and 19th centuries. In India the development of financial institutions is.
Famines: In the pre-British period famines had been occurring. Under-utilisation of natural resources In respect of natural endowments India is considered as a very rich country. Indian Economy: features no 7. Low level of technology Prevalence of low level of technology is one of the important characteristics of an underdeveloped economy like India. In 2015, around 170 million people, or 12.
Over-population creates complex economic problems. The economy of our country is thus suffering from technological backwardness. Inadequate development of economic organization Poor economic organisation is another important characteristic of the Indian economy. Income Disparities: The gap between wealth and poverty is exceedingly wide in India. In India, unemployment is structural one, unlike in developed countries, which is of cyclical type. BoP of a country is also an indicator of development or underdevelopment of the country.
The basic problems arise when an economy is facing recession. Heavy Population Pressure: The Indian economy is facing the problem population explosion. In case of physical capital, its total stock is not adequate for equipping well to the entire labour force and full utilization of natural resources. Lack of infrastructure Lack of infrastructural facilities is one of the serious problems from which the Indian economy has been suffering till today. S is the largest trading nation in the world. Inequality in the distribution of wealth Another important characteristic of the Indian economy is the mal-distribution of wealth.
India per capital income is very low as compared to the advanced countries. A huge quantity of mineral and forest resources of India still remains largely unexplored. Low level of living: The standard of living of Indian people in general is considered as very low. In 1948, rate of illiteracy was 18%. In almost all the underdeveloped countries like India there is continuous price instability. Some of the Key factors in the growth of the Indian Economy are the broad spectrum industries, stable parliamentary democracy, independent judiciary, global mindset of corporate sector and lobbying for globalization. As per 2001 census, 65.
Indian economy is a mixed economy combination of public and private sector. For example the capital income of India was 460 dollar, in 2000. Demographic characteristics: 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 15-60 years and a comparatively larger proportion of population in the minor age group of 0-15 years, As per 2011 census, the density of population in India was 382 per sq km. This has resulted from a very high level of birth rates coupled with a falling level of death rates prevailing in our country. In this brand of economy, the closeness of the societal structure generally ensures that every member of society has a purpose and as well, a participatory function in society. India is one of the dense populated countries in the world.
Until recently, India was not in position to develop even 5 per cent of total hydropower potential of the country. Lack of capital does not allow an economy to introduce the latest technologies. So our people remain economically backwards for the lack of utilization of resources of the country. Thus from the foregoing analysis it has been revealed that the Indian economy largely remains underdeveloped as the economy still exhibits the basic features of an underdeveloped economy. Similarly, the per capita consumption of electricity in 2003 was only 594 for India as against 14,057 for U. As central planning authority takes all decisions regarding production, consumption and distribution, thus, it must cover the entire economy which must be comprehensive in scope. Due to low production and productivity, level of income is less, and consequently, less amount of capital is available to adopt better technique of production.
Feudalism was more prominent than other modes of production. This disparity in the per capita income of India and other developed countries has registered a manifold increase during the last four decades 1960-2005. Again, as per 2001 census, 35. A planed economy is usually directed by cent … ral economic plan which is either put in place or influenced by the government. Almost half of country's population is below the poverty line. But nature and degree of unemployment is different in developed and underdeveloped economies.