The report claims that poverty, unemployment and child labour are declining. Under utilization of Resources: India is a poor land. · Deutsche Bank Research estimated that there are nearly 300 million people who are middle class. Feudalism was more prominent than other modes of production. At present, the annual growth rate of population according to 2001 census stands at 2. Until recently, India was not in position to develop even 5 per cent of total hydropower potential of the country.
Inadequate development of economic organisation: Poor economic organisation is another important characteristic of the Indian economy. Moreover, due to the absence of proper infrastructural facilities, development potential of different regions of the country largely remains under-utilised. In 2005, the per capita income figure in Switzerland was nearly 76 times, in U. Obsolete techniques of production are largely being applied in both the agricultural and industrial sectors of our country. Existence of chronic unemployment and under-employment 5.
India has no exception to it. But due to its various inherent problems like inaccessible region, primitive techniques, shortage of capital and small extent of the market such huge resources remained largely under-utilised. Existence of chronic unemployment and under-employment: Rapid growth of population coupled with inadequate growth of secondary and tertiary occupations are responsible for the occurrence of chronic unemployment and under-employment problem in our country. The failure to sustain the living standard makes the poor and under developed countries poor and under developed. It is clearly evident from the total population of India which was 102.
Since independence India has been a 'Mixed Economy'. Moreover, in the urban areas of our country, the problem of educated unemployment has also taken a serious turn. The high birth-rate and low death-rate are responsible for a break-neck rise in Indian population. All these have resulted the problem of poor quality of human capital in the country. India is the possessor of around 17.
In 1948, about 70% population was engaged in agriculture. It's composed mainly of subsistence agriculture and cash production of basic commodities or industrial goods for the international market It's mainly composed of the export market. The urban population increased by 41 percent during 194. It had been recording growth rate not greater than five jumped till 1980s. The density of population determines the magnitude of the burden that India is being called upon to carry and to determine the future potential of growth. This results into the fall in production capacity. All these are so adjusted that they make for the total profit or the growth of the economy.
According to this report the absolute number of the poor 27 per cent stood at 302 million as compared to 320 million in 1973. Lack of infrastructure: Lack of infrastructural facilities is one of the serious problems from which the Indian economy has been suffering till today. The Eleventh Five Year Plan aims at generating 58 million work opportunities in twenty- one high growth sector. · India is developing country and has been facing the problem of unemployment, poverty, low per capita income, lack of technology, high growth rate of population, low labor efficiency, economic ignorance, social and religious problems factors, immobility, limited developed occupation and trade, caste system, corruption at every stage. Thus, economy becomes technologically backward and internationally in competitive. Excessive dependence of agriculture and primary producing: Indian economy is characterised by too much dependence on agriculture and thus it is primary producing. With liberalized financial markets and emphasis on prudential norms the dynamic nature of Indian Economy is seeing new heights.
Consumption of crude steel and energy are the two important indicators of low capital per head in the under-developed countries like India. Thus due to the application of poor technology and lower skills, the productivity- in both the agricultural and industrial sectors of our country is very low. Demographic characteristics: The demographic characteristics of India are not at all satisfactory rather these are associated with high density of population, a smaller proportion of the population in working age group of 15-60 years and a comparatively larger proportion of population in the minor age group of 0-15 years, As per 2011 census, the density of population in India was 382 per sq km. Low level of living: The standard of living of Indian people in general is considered as very low. There deficiency of capital formation. Unemployment: There is larger unemployed and under employment is another important feature of Indian economy. More than 70 per cent of the total population is engaged in agricultural activities while the picture is absolutely different in advanced countries.
Poor quality of human capital: Indian economy is suffering from its poor quality of human capital. Similarly, the per capita consumption of electricity in 2003 was only 594 for India as against 14,057 for U. Indian Economy-Underdeveloped: On the eve of independence, Indian economy was underdeveloped economy. Thus whatever development that has been achieved in the country, it is being swallowed up by the increased population. Rising trend of price creates a problem to maintain standard of living of the common people.
Thus the standard of living of Indian people remained all along very low in comparison to that of developed countries of the world. Majority of the people of India are leading a poverty line. This is because of high birth rate and social circumstances. Its three largest trading partners as of 2010 are Canada, China and Mexico. Keeping aside a very few countries, this per capita income figure of India is the lowest in the world and it is even lower than China and Pakistan.
Total size of Indian population is 1. Unemployment and Underemployment: Unemployment is a phenomenon of all economies whether developed or underdeveloped. Do not change a lot 3. Obsolete techniques of production are largely being applied in both the agricultural and industrial sectors of our country. It means poor countries are trapped in the vicious circle of poverty. Literacy rate in India: In India the level of literacy which was only 18. 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.