grade 9 characteristics of the Indian economy

1. CHARACTERISTICS OF THE
INDIAN ECONOMY
By karthik

2. WHAT DOES INDIAN ECONOMY CONSIST OF
• Indian economy is divided into 3 main sectors
• Primary sector
• Consists of agriculture activities
• Animal husbandry
• Forestry
• Fisheries
• Secondary sector
• Includes all manufacturing and construction activities
• Paper industry
• Iron industry
• Service sector(tertiary sector)
• Provides services
• Transport
• Banking
• insurance

3. CHARACTERISTICS OF INDIAN ECONOMY
Indian economy
underdeveloped
economy
dualistic
economy
mixed economy
developing
economy
planned
economy
federal economy

4. INDIA AN UNDERDEVELOPED ECONOMY
• Low per capita income
• Per capita income Is so low that a large population of the country lives below the poverty line
• Lack of entrepreneurs
• Task of bearing risks is called enterprise
• Person who bears these risks is called an entrepreneur
• Economy gifted with entrepreneurial skill is bound to grow rapidly
• Indian entrepreneurs focus on quick and speculative profits rather than long term investments
• Low level of technology
• Economy of Indian economy is suffering from technological backwardness
• Scarcity of capital and the high illiteracy rate in India are major obstacles in the use and spread of modern techniques in
agricultural and industrial sectors
• Rapid population growth (rising population greater economic population)
• Falling death rates and decline in birth rate has caused population explosion
• To maintain a rapidly growing population requirements of food, clothing, shelter, medicine all increase

5. INDIAN ECONOMY A DUALISTIC ECONOMY
• Implies on the coexistence of 2 opposing forces in an economy
• Coexistence of backward rural economy and modern urban economy
• Coexistence of primitive technology and modern technology
• First type of dualism is known as regional dualism
• Rural and urban area
• Second type of dualism is known as technological dualism
• Between traditional and modern techniques

6. INDIA A MIXED ECONOMY
• Coexistence of public and private sector
• Public sector
• Basic and heavy industries are being run under public sectors
• private sector
• Huge private sector under which large number of industries are being managed
• Government controls and regulates this sector through various fiscal and monetary policies
• Thus Indian economy has the characteristics of both capitalistic and socialistic economies
• and both planning and market mechanism function side by side
• Market mechanism = Means by which the forces of demand and supply determine prices and quantities of goods and
services offered for sale in a free market.
• Price mechanisms = In economics, a price mechanism is the manner in which the profits of goods or services affect the
supply and demand of goods and service

7. INDIA DEVELOPING ECONOMY
• Development in social sector
• Lot of development in social sector in the country during the 5 year plans
• Social services like health and education have a large scale increase
• As a result death rate has fallen
• Agricultural development
• Improvement in yield per hectare is the most important indicator of our agricultural process
• Average yield per hectare has increased over the years
• Due to the fact Indian agriculture is becoming technology oriented
• Increase in rate of capital formation
• Key role in development of the country
• Increases production and productivity in agriculture industries and mining
• Increase in national income
• the best indicator of economic development in the country
• Rate of increase of national income per annum has been around 4%

8. INDIA PLANNED ECONOMY
• Planning commission of India makes 5 year plans which is the national
target with regard to agricultural and industrial growth rates (fixed)
• 12 five year plans which came to an end on 31/march/2017
• Last 5 year plan as India is emphasizing more on market economy
• Economic planning is necessary to overcome the problems of poverty
and unemployment

9. INDIA FEDERAL ECONOMY
• Constitution has accepted a federal set up for the country
• Indian economy is a federal economy
• Federal economy implies that the government’s economic activities are carried at 2
levels
• State level
• Education, schools, electricity and irrigation come under the state level
• Central level
• Indian railways, post and telegraph, atomic power plants come under the
jurisdiction of the central government