Nature of Indian Economy Video Lecture | Business Economics for CA Foundation

Indian economy and characteristics of
the same according to the Planning
Commission underdeveloped country is one
which is characterized by coexistence of
unutilized and underutilized manpower
and unexploited Natural Resources
of these underdeveloped economies
countries which show the tendency of
high growth rate are called developing
economies now a look at characteristics
of Indian economy as a developing
economy low per capita income
occupational pattern
heavy pressure of population
underdeveloped and chronic unemployment
mild distribution of well poor quality
of human resource low level of
technology low level of living low per
capita income
a good comparison of data for different
nations of the world as per data for the
year 2003 per capita income of an Indian
was just five hundred and thirty dollars
however during the same year per capita
income in Switzerland was seventy five
times
United States of America for 71 times
and that of Germany forty eight times
more than the per capita income in India
occupational pattern one of the basic
characteristics of an underdeveloped
economy is that it is a primary
producing economy a very high portion of
working population is engaged in
agriculture and allied primary
activities which contribute a relatively
small share to the national income as
for 1999 data 61% of the working
population was engaged in agriculture
but its contribution to the national
product was merely 28%
heavy pressure of population there has
been a substantial net increase in the
population of India two major factors
have contributed to the rapid spurt in
population first steep form in death
rate and second
fallen both rate at a much less
proportion in comparison to the death
rate
underdeveloped and chronic unemployment
population is one of the greatest
concerns of India over and above a large
number of workforce is added each year
to it to absorb such a large workforce
it would require capital to a very great
extent to expand its industrial base
thus it is very difficult to provide
gainful employment to the entire working
population besides with no other
alternative means of employment in rural
India disguised unemployment is
prevalent to a great extent in Indian
villages male distribution of wealth
male distribution of wealth means
inadequate or faulty distribution of
wealth or income among people wealth is
a person's net worth which is expressed
as
wealth equals assets minus liabilities
the word wealth is often confused with
income wealth consists of those terms of
economic value that an individual owns
while income is an inflow of items of
economic value poor quality of human
resource India is the seventh largest
country in the world our country is
blessed with many natural resources but
all these resources cannot help a
country unless they are tapped handled
and used in a planned way this can be
done only by the citizens of our nation
man can develop these existing resources
only when he is wise healthy educated
and properly trained
thus the real resources of our country
are its people they are our human
resources the living conditions of the
people can be improved by providing
enough food better education and health
conditions a minimum level of education
is necessary to acquire skill as also to
comprehend social problems as a result
the expenditure on education skill
formation research and improvements in
health are included in human capital a
quick look at the statistics which
indicate a far from satisfactory
situation the Human Development Index is
a comparative measure of life expectancy
literacy education and standards of
living of a country a quick look at the
statistics which indicate a far from
satisfactory situation no level of
technology in India the most modern
techniques of production exist along
with the most primitive techniques in
the same industry however the majority
of the productive units and major part
of the output are produced with the help
of the primitive techniques to be in a
position to adapt to modern techniques
of production basic minimum level of
education among people is a prerequisite
besides there are quite a few hurdles in
the path to adapt to modern technology
in the economy
they are illiteracy absence of skill
labor force poverty which impedes buying
of improved seeds fertilizers and
pesticides which restricts the usage of
tractors harvesters sewing machines the
last characteristic of Indian economy is
low level of living a quick look and the
characteristics of Indian economy once
again