Nature of Indian Economy

• The Indian economy is the Sixth largest economy of the world.

Strength of Indian Economy

India has a mixed economy:

1. This means both private and public sectors coexist and function smoothly.

Agriculture Plays the key role

• Around 60% of the people in India depend upon agriculture for their livelihood.
• In fact, about 17% of our GDP today is contributed by the agricultural sector.

An emerging market

Emerging Economy

• Emerging as a top economic giant among the world economy, India bags the seventh position in terms of nominal Gross Domestic Product (GDP) and third in terms of Purchasing Power parity (PPP).
• As a result of rapid economic growth the Indian economy has a place among the G20 countries.

Fast Growing Economy:

• India’s economy is well known for high and sustained growth.

Fast growing Service Sector:

• The service sector contributes a lion’s share of the GDP in India.

Large Domestic consumption

Rapid growth of Urban areas

Stable macro economy

• The current year’s Economic survey represents the Indian economy to be a “heaven of macroeconomic stability, resilience and optimism”

Demographic dividend:

The human capital of India is young.

Weakness of Indian Economy

Large Population

• India stands second in terms of size of population next to China
• The population growth rate in India is as high as 1.7 per 1000.
• The annual addition of population equals the total population of Australia.

Inequality and poverty

• As a result of unequal distribution of the rich becomes richer and poor becomes poorer.
• Increasing Prices of Essential Goods.

Weak Infrastructure

• Even though there has been a gradual improvement in the infrastructural development in the past few decades, there is still a scarcity of the basic infrastructure like power, transport, storage etc.

Inadequate Employment generation

Outdated technology

• The level of technology in agriculture and small-scale industries is still outdated and obsolete.