Introduction:
The Indian economy is often considered as an underdeveloped economy due to several reasons. These reasons include widespread poverty, high rate of population growth, and widespread income inequalities. This answer will explain each of these factors in detail to provide a comprehensive understanding.

Wide Spread Poverty:
- India has a large population living below the poverty line, which indicates a lack of basic necessities such as food, shelter, and healthcare.
- According to the World Bank, about 21.2% of the Indian population lived below the poverty line in 2011. This translates to over 270 million people.
- Poverty leads to several social and economic problems, including malnutrition, illiteracy, and lack of access to quality healthcare and education.
- The presence of widespread poverty indicates a lack of development and progress in the economy.

High Rate of Population Growth:
- India has the second-largest population in the world, and its population growth rate has been consistently high.
- A high rate of population growth puts pressure on resources, infrastructure, and public services, making it challenging to meet the needs of the growing population.
- It also leads to a higher dependency ratio, where a large proportion of the population is dependent on a smaller working-age population.
- The high population growth rate contributes to poverty, unemployment, and strain on social and economic systems, hindering development.

Wide Spread Income Inequalities:
- India has one of the highest levels of income inequality globally, with a significant gap between the rich and the poor.
- The top 10% of the population holds a disproportionate share of wealth, while a large section of the population struggles to meet their basic needs.
- Income inequalities lead to social unrest, lack of social mobility, and limited access to opportunities for the less privileged.
- The presence of wide income disparities hampers overall economic growth and development.

Conclusion:
The Indian economy is considered underdeveloped due to the presence of widespread poverty, high rate of population growth, and income inequalities. These factors hinder the overall progress and development of the economy. Addressing these issues through effective policies and initiatives is crucial to promote inclusive growth and transform the Indian economy into a developed one.