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Explain any two main features of …

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Explain any two main features of the Indian economy

    • Posted by Leishithem Awungshi 3 years, 6 months ago

    Entrance Exam > JEE main > Physics
    • 1 answers

    Yogita Ingle 3 years, 5 months ago

    1. The per capita income in an underdeveloped economy is low,and therefore,majorityof the population live below the poverty line. Consequently, people in this economy live in miserable conditions.
    2. In mostunderdeveloped economies, the population growth rate is very high as compared to the other economies. Also, because of improved medical facilities, the mortality rate among all the sections of societyis reduced. As a result, as the population increases, the consumption of the limited resources also increases, resulting in less saving of resources and a slower growth rate.
    3. For many under developed economies enriched with large and sufficient resources,most of these resources remain underutilised because oflack of skilled personnel and technology.
    4. Underdeveloped economies suffer from widespread unemployment. Because of various reasons,such as rapid population growth and lack of investment, unemployment prevails in such an economy. It is estimated that underemployment and unemployment together constitute nearly30% of the workforce of an underdeveloped economy.
    5. Inequality in the distribution of income is prevalent in these economies. As a large part of the national income goes to smaller sections of society, the larger sections of society have to be satisfied with whatever part of income is available to them. According to the Human Development Index, the top 20% of India’s population receives 45.3% of the national income,while the poorest 20% of the population receives 8.1% of the national income.

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