INDIAN ECONOMY

SUBMITTED BY ABHIJEET KUMAR SECTION- “A”

Meaning of Indian Economy

Characteristics of Indian Economy

Types of Economy

Chart of Economic System

Overview of Presentation

Introduction

• Indian economy is a developing economy in which Agriculture is the back bone of Indian economic. 60% of India’s population are on the below poverty line. Majority of the people of India are leading a poverty line. Indian economic is affected by it. Countries which are on the part of progress and which have their potential for development are called developing economic. So India is termed as developing economic by modern views

THE INDIAN ECONOMY

The Economy of India is the tenth-largest in the world by nominal GDP and the third-largest by purchasing power parity (PPP). The country is one of the G-20 major economies, a member of BRICS and a developing economy among the top 20 global traders according to the WTO.

CIRCULAR FLOW OF INCOME

Economic Growth

Increase in a country's productive capacity as measured by comparing gross national product (GNP) in a year with the GNP in the previous year. Increase in the capital stock , advances in technology, and improvement in the quality and level of literacy are considered to be the principal causes of economic growth. In recent years, the idea of sustainable development has brought in additional factors such as environmentally sound processes that must be taken into account in growing an economy.

Economic Development

Chart of economic system

Primary SectorSecondary SectorTertiary SectorOther Sectors• Organized Sector• Unorganized Sector:• Public Sector• Private Sector

Contribution of sector towards GDP

Different Sectors

Low per capita income

• Developing economy is characterized by low per capital income. India per capital income is very low as compared to the advanced countries. This trend of difference of per capita income between developing and advanced countries is gradually increasing in present times. India not only the per capita income is low but also the income is unequally distributed.

Heavy Population Pressure

• The Indian economy is facing the problem population explosion. It is clearly evident from the total population of India which was 102.67 cores in 2001 census. It is the second highest populated country China being the first. India’s population has reached 110 cores. All the developing countries are characterized by high birth rate which stimulates the growth of population.

Pre-dominance of Agriculture

• Occupational distribution of population in India clearly reflects the backwardness of the economy. One of the basis characteristics of an developing economy is that agriculture contributes a very large portion in the national income and a very high proportion of working population is engaged in agriculture

Unemployment:

• There is larger unemployed and under employment is another important feature of Indian economy. In developing countries labor is an abundant factor. It is not possible to provide gainful employment the entire population. Lack of job opportunities disguised unemployed is created’ in the agriculture fields. There deficiency of capital formation.

Poor Technology

• The lever of technology is a common factor in developing economy. India economy also suffers from this typical feature of technological backwardness. The techniques applied in agriculture industries milling and other economic fields are primitive in nature.

• Organization Estimated GDP growth rate Month of projection

International Monetary Fund 3.8% in January 2015

World Bank 6.0% January 2015 Asian Development Bank 5.5%

January 2015 Bank of America- Merrill Lynch 3.5%

January 2015 HSBC 5.2% January 2015 Standard Chartered 5.7% January

2015 Centre for Monitoring Indian Economy

7.4% January 2015

Indian economic growth issues

Human Development Index

The Human Development Index (HDI) is a composite statistic of life expectancy, education, and income indices used to rank countries into four tiers of human development. It was created by Indian economist Amartya Sen and Pakistani economist Mahbub ul Haq in 1990,[and was published by the United Nations Development Programme.

The 2010 Human Development Report introduced an Inequality-adjusted Human Development Index (IHDI). While the simple HDI remains useful, it stated that "the IHDI is the actual level of human development (accounting for inequality)" and "the HDI can be viewed as an index of 'potential' human development (or the maximum IHDI that could be achieved if there were no inequality)"

SALUTATION