The document discusses key aspects of the Indian economy: - It is a developing economy characterized by low per capita incomes, heavy population pressure, and a predominance of agriculture. Unemployment and poor technology are also issues. - Agriculture forms the backbone of the economy, engaging a large portion of the working population. However, most Indians live below the poverty line. - The economy is growing but faces challenges such as unequal income distribution and lack of job opportunities. Projections place GDP growth at around 5-7% annually. - International organizations monitor the economy and Human Development Index, which factors in life expectancy, education and income to rank countries. Inequality is also an important consideration.

1. INDIAN ECONOMY
D R . G . M A N O J , M . B . A . , M . P H I L . , P H . D
A S S O C I A T E P R O F E S S O R

2. ❖ Meaning of Indian Economy
❖ Characteristics of Indian Economy
❖ Types of Economy
❖ Chart of Economic System
Overview of Presentation

3. 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

4. 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.

5. CIRCULAR FLOW OF INCOME

6. Economic Growth
Increaseinacountry'sproductive
capacity asmeasuredbycomparing
grossnational product (GNP) inayear
withtheGNPinthepreviousyear.
Increaseinthe
capitalstock, advancesintechnology,
andimprovement inthequalityand
level of literacyareconsideredtobe
theprincipal causesof economic
growth. Inrecent years, theideaof
sustainabledevelopment hasbrought
inadditional factorssuchas
environmentallysoundprocessesthat
must betakenintoaccount ingrowing
aneconomy.

7. Economic Development

8. Chart of economic system
❖Primary Sector
❖Secondary Sector
❖Tertiary Sector
❖Other Sectors
•
•
•
•
Organized Sector
Unorganized Sector:
Public Sector
Private Sector

9. Contribution of sector towards GDP

10. Different Sectors

11. 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.

12. 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.

13. 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

14. 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.

15. 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.

16. • Organization Estimated GDP
growth rate Month of projection
✓ International Monetary Fund 3.8% in
January 2015
✓ World Bank 6.0% January 2015
✓ Asian Development Bank5.5%
January 2015
✓ Bank of America- Merrill Lynch 3.5%
January 2015
✓ HSBC5.2% January 2015
✓ Standard Chartered5.7% January
2015
✓ Centre for Monitoring Indian Economy
7.4% January 2015
Indian economic growth issues

17. 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)"

18. SALUTATION