Indian Economy

Outline of Indian Economy Nature

Mixed Economy Existence of both public and private sectors. This term was coined by JM Keynes.

Agrarain Economy  Even after six-decades of independence 58% of the work force of India is stell agriculturist and its contribution to GDP is 14.5% in 2010-11.

Features

(1)   Slow growth of national and per capital income.

(2)   Capital deficiency and low rate of capital formation, hence low rate of investment, low production, etc; poor quality of human capital.

(3)   Over dependence on agriculture along with low productivity in agriculture; heavy population pressure.

(4)    Unequal distribution of income and wealth.

(5)   Mass poverty, chronic inflation and chronic unemployment.

Classification

·        According to the World Development Report (2012),  sub-titled Gender Equlty and Development, India with its per capital income of US $ 1340 is placed in lower middle income countries in 2010.

·        Even on PPP (Purchasing Power Parity) basis India with US $ 3560  is placed in middle income countries in 2010.

·        India has a share of 17.4% in world population but accounts for only 2.3% of world GNI on exchange rate basis.

Socio-Economic Indicators

·        Per capital daily intake calorie is 2496 (in 1999).

·        Poverty Level more than 37% (Tendulkar Committee).

·        With HDI  value of 0.547, India ranked 134/187, and hence has a medium human development (HDR 2011).

·        Inequality in India, in terms of Gini co-efficient of 0.36 is huge.

·        Illiteracy more than one-fourth of population.

Issues in Development

(1)   Low per capital income and low rate of economic growth.

(2)   High proportion of people below the poverty line.

(3)   Low level of productive efficiency due to inadequate nutrition and malnutrition.

(4)   Imbalance between population size, resources and capital.

(5)   Problem of unemployment.

(6)   Instability of output of agriculture and related sectors.

(7)   Imbalance between heavy industry and wage goods.

(8)   Imbalance in distribution and growing  inequalities.