The document discusses key features of India's economic system when it was an underdeveloped country and as it transitioned to becoming a developing country. As an underdeveloped country, India had low per capita income, inequitable income distribution, high poverty rates, a predominant agricultural sector, rapid population growth, unemployment, and technological backwardness. However, over time India saw quantitative gains like rising national income and per capita income. There were also structural changes like a shifting sectoral distribution of domestic product, slow employment changes, and growth in capital goods and financial industries.

1. Indian Economic System
By Radhika Gohel

2. What is
?

3. Main types of econoMy

4. Macro econoMics

5. Features oF IndIan
economy
1. India as An Underdeveloped Country
2. India as a Developing Country

6. IndIa as an
underdeveloped country
1) Low per capita income:
o
o
o
o
o
At the time of independence in early 1950s
Colonial rule
After independence govt.’s role
Still underdeveloped
Though per capita income increases over the
years
o In 2008 GNP per capita was $ 2,960 & in 2013
$ 3,944.30

7. cont.
2) Inequitable distribution of Income:
o Income of small section much larger
o Income of large section much smaller
3) High incidence of Poverty:
o
o
o
Natural outcome of inequalities
It was discovered in 6th Five Year Plan widespread
problem 50.7% rural area 40.3% in urban
Poverty in 2009-10 was 29.8% & in 2011-12 it was 21.9%
(below poverty line)

8. cont.
o A 2013 UN report stated that a third of the worlds
poorest people live in India.
o India is on track to cut poverty by half by 2015 in
1990 it was 51%.
4) Predominance of agriculture:
o Occupational distribution of population in India
not at all good.
o In 1951 70% of population dependent
o Very small portion to GDP in 2008-09 17%

9. Cont.
5) Rapid Population Growth:
o Growing rate
o In 2001 it was 1,029,000,000 (1,029 millions)
which was 4,39,000,000 (439 millions) in 1961.
o Increase rate is 2.14 % per annum today
o Today
6) Unemployment:
o Now-a-days educated unemployment
o Problem of urban unemployment has 2 forms:

10. Cont.
i.
ii.
Industrial unemployment
Unending demand for white collar jobs
7) Technological Backwardness
8) Lack of Entrepreneurs

11. IndIa as a developIng
Country
• Still India is an underdeveloped country but this is not
an adequate description.
• India’s economy has suffered…
• After independence…

12. two faCets
1) Quantitative
– National Income Trend
• Rise in NNP
• Rise in per Capita Income

13. Cont.
2) Structural changes
– Significant changes in sectoral distribution of
domestic product
– Slow changes in employment structure
– Growth of basic capital goods industries
– Progress in the banking & financial sector

15. Guidelines for
AssiGnment-1
• Use single side printed papers only
• Group wise 1 submission only
• Make it perfect neither much longer nor very
short
• Make it more creative rather in detail/depth by
using charts, tables & more use of graphical
presentation with current data
• Must contain at least 15 pages otherwise
rejected