Explain the features of Indian Economy …

The feature of Indian Economy are:-
(i) Underutilization of resources – India is endowed with rich natural resources and huge manpower but due to lack of capital and knowledge technology, the resources can’t be exploited and utilized.
(ii) Agriculture is the main occupation – Majority of population depends on agriculture due to underdeveloped manufacturing sector and service sector.
(iii) Low rate of capital formation – Capital formation in the form of roads, dams, bridges, machinery, tools, equipment etc. depends upon the savings of the country. But savings depends upon the national income which is very low in India.
(iv) Population pressure – Due to rapidly growing population in India the comparative national product is very low. This restricts the economic development by creating problems of unemployment and underemployment.
(v) Technological backwardness – Due to lack in technology production is carried out using intensive labour. Less of capital like machinery, tools and equipments is used as compared to labour which hampers productive capacity of the country.
(vi) Unfavourable social and religious condition – In India there are social and cultural institutions like caste system, joint family system, laws of inheritance and succession, child marriage etc. These institutions are serious hindrance to our economic growth. These institutions lower the incentive to work, kill initiative, check mobility of labour and encourage the birth rate.