Salient features of indian economy essays on poverty

Moreover, low agricultural productivity, lack of modernisation and lack of diversification in its output are some of the basic problems from which our agricultural sector is suffering.

Indian economy 2020

This balance is critical to maintaining the costs of living. Inequality in the distribution of wealth: Another important characteristic of the Indian economy is the mal-distribution of wealth: The report of the Reserve Bank of India reveals that nearly 20 per cent of the households owing less than Rs worth of assets possess only 0. Indian Economy: Characteristic 7. Tribal people, Dalits and labour class including farm workers in villages and casual workers in cities are still very poor and make the poorest class in India. There exists disguised unemployment in Indian agricultural sector which has resulted from too much dependence of population on land and absence of alternative occupations in the rural areas. Poor Quality of Human Capital In the broader sense of the term, capital formation includes the use of any resource that enhances the capacity of production. The average protein content in the Indian diet is about 49 grams only per day in comparison to that of more than double the level in the developed countries of the world. Pre-dominance of Agriculture: Agriculture is the main sector of Indian economy, which is in total contrast to the economic structure of a developed economy. Also, the deficiency of capital has led to the inadequate growth of the secondary and tertiary occupations. 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. Inequalities of income distribution are to be observed both in the rural and urban sectors of the economy. Moreover, the problem of illiteracy in India makes way for conservatism and this is going against the economy of the country. The government should really find a way to impose minimum wage standards for these workers. Depreciated Economy: On the eve of Independence Indian economy was depreciated.

In India, the rate of growth of population has been gradually increasing from 1. This was clear from the fact that for almost a century, the average annual growth rate of per capita income in India was not more than 0. Demographic Characteristics Demographically speaking, India has a high density of population with high infant mortality rates and comparatively lower life expectancy as compared to the developed countries.

Stagnant Economy: During the British period, Indian economy remained almost stagnant.

Features of economic growth

This has reduced the marginal product of agricultural labourer either to a negligible amount or to zero or even to a negative amount. Further, Further, most enterprises in India are micro or small. In most of the countries of Asia, Middle East and Africa, from two-thirds to four- fifths of their total population are solely dependent on agriculture. 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. Industrial Backwardness: On the eve of independence Indian economy was backward from industrial point of view there was deficiency of basic and heavy industries. But in spite of all the attempts, the overall number of poor in India is still increasing and becoming a hurdle. In India the rate of saving as per cent of GDP has gradually increased from But in many areas we still have long way to go. Table 1. Therefore, the deficiency of human capital and the absence of skilled labor are major hurdles in spreading technology in the economy. Underprivileged children are unable to attend school and, and those have the opportunity drop out after a year or so. Related Links:. The problem lies with the unorganized sector as owners do not bother the way their workers live and the amount they earn.

Poverty must be eradicated from India as every person has the right to live a healthy life. A substantial developed capitalistic sector had emerged. Low level of technology New technologies are being developed every day.

explain the features of indian economy class 10

Further, apart from the low per-capita income, India also has a problem of unequal distribution of income. Also, 57 billionaires have the same amount of wealth as the bottom 70 percent of India.

But agriculture itself was backward. Where do the majority of poor live in India?

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10 Basic Characteristics of India as a Developing Economy