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(Http://Gradestack.Com/SSCCombined-GraduateLevel-Exam/IndianEconomy-AndPolity/3151/SubjectStudy) 1. An Introduction to Indian Economy. (http://gradestack.com/SSCCombined-GraduateLevel-Exam/AnIntroduction-to-IndianEconomy/15521-31517088-study-wtw) 2. National Income. (http://gradestack.com/SSCCombined-Graduate-LevelExam/NationalIncome/15522-3151-7032study-wtw) 3. Agriculture. (http://gradestack.com/SSCCombined-Graduate-Level-

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An Introduction to Indian Economy

An Introduction to Indian Economy

The Economy of India is the ninth largest in the world by nominal GDP and the third largest economy by Purchasing Power Parity (PPP). India is the fourteenth largest exporter and eleventh largest importer in the world. Economic growth rates are projected at around 7.6% for the 2012-13 fiscal year and 6.9% for 2011 - 12. However, Indian Economy is still lagging behind in many spheres. Agriculture and allied sectors like forestry, logging and fishing accounted for 15.7% of the GDP in 200910, employed 52.1% of the total workforce; this is an indicator of backwardness of the economy. Indian Industry accounts for 28% of the GDP and employ 14% of the total workforce. The services sector provides employment to 23% of the work force and is growing quickly, with a growth rate of 9.4% in 201112, accounting for 58% in 2009-10.The annual growth rate, however was 6.9% in 2011-12. Main characteristics and various aspects of Indian Economy are being given below: Comment
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Various aspects of Indian Economy

Agrarian Economy Even after 60 years of independence, 52.1% of the work force of India is still agriculturist and its contribution to Gross Domestic Product is approximately 17%. Mixed Economy Indian Economy is a unique combination of public and private sector, i.e. a mixed economy. After liberalization, Indian Economy is going ahead as a capitalist economy or market economy. Developing Economy The following facts show that Indian Economy is a developing economy: National income of India is very low on international standards and per capita income is much low in India as compared with other developed countries. Indias per capita income is approximately 1/75 of the U.S. level of per capita income. 26.1% population is still living Below Poverty Line. Level of unemployment is very high. Unemployment in India is mainly structural in nature because the productive capacity is

inadequate to create sufficient number of jobs. There is an acute problem of disguised unemployment in the rural areas. A person is considered employed if he/she works for 273 days of a year for eight hours every day. Savings are low in India due to low national income and high consumption expenditure. The low savings results in shortage of capital formation. Capital is an important factor of production. There is lack of capital and resources although during the recent years, the rate of domestic savings has remained at 26%. India is the second most populated country of the world. With the high growth rate of population about 1.7 crore new persons are being added to Indian population every year. According to 2011 census, the total Indian population stands at a high level of 1.21 billion which is 16.7% of the worlds total population. To maintain 16.7% of world population India holds only 2.42% of total land area of the world. India lacks in large industrialisation based on modern and advanced technology which fails to accelerate the pace of development in the economy.

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Important facts relating to characteristics of Indian Economy

The contribution of agriculture sector in the national income is 17%. The contribution of public sector in the gross production is less than 20%. Primary sector of Indian Economy is agriculture and the related sectors. Secondary sector of Indian Economy is related to industry, manufacturing, electricity etc. Its contribution to GDP is approximately 28%. Tertiary sector of Indian Economy is related to business, transport, communication and services. Its contribution in GDP is highest (approximately 58%). The best indicator of economic development of any country is per capita income. The following factors are important in Economic Development of a developing country: (1) Natural resources (2) Capital gain

(3) Skilled labour force (4) Surplus sale of agri- product (5) Justified social organization (6) Political freedom (7) Freedom from corruption (8) Technological knowledge and general (9) Education

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