TNPSC Free Notes Economy In English- Indian Economy

இந்தக் கட்டுரையில், TNPSC குரூப் 1, குரூப் 2, குரூப் 2A, குரூப் 4 மாநிலப் போட்டித் தேர்வுகளான TNUSRB, TRB, TET, TNEB போன்றவற்றுக்கான முறைகள் இலவசக் குறிப்புகளைப் பெறுவீர்கள்.தேர்வுக்கு தயாராவோர் இங்குள்ள பாடக்குறிப்புகளை படித்து பயன்பெற வாழ்த்துகிறோம்

Indian Economy

Indian Economy
 Indian economy is the seventh largest economy of the world. Being one of the top listed
countries. In terms of industrialization and economic growth, India holds a robust
position with an average growth rate of 7% (approximately).
 Even though the rate of growth has been sustainable and comparatively stable, there
are still signs of backwardness.
Features of Indian Economy
Strengths of Indian Economy

 India has a mixed economy
Indian economy is a typical example of mixed economy. This means both private and
public sectors co-exist and function smoothly. On one side, some of the fundamental
and heavy industrial units are being operated under the public sector, while, due to the
liberalization of the economy, the private sector has gained importance. This makes it a
perfect model for public-private partnership.
 Agriculture plays a key role
Agriculture being the maximum pursued occupation in India, it plays an important role
in its economy as well. 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. Green revolution, evergreen revolution and inventions in biotechnology have
made agriculture self-sufficient and also surplus production. The export of agricultural
products such as fruits, vegetables, spices, vegetable oils, tobacco, animal skin, etc. also
add to forex earning through international trading.
 An emerging market
India has emerged as a vibrant economy sustaining stable GDP growth rate even in the
midst of global downtrend. This has attracted significant foreign capital through FDI and
FII. India has a high potential for prospective growth. This also makes it an emerging
market for the world.
 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 Indian Economy
has a place among the G20 countries.

 Fast-Growing Economy
India’s economy is well known for high and sustained growth. It has emerged as the
world’s fastest-growing economy in the year 2016-17 with the growth rate of 7.1% in
GDP next to People’s Republic of China.
 Fast-growing Service Sector
The service sector, contributes a lion’s share of the GDP in India. There has been a high
rise growth in the technical sectors like Information Technology, BPO etc. These sectors
have contributed to the growth of the economy. These emerging service sectors have
helped the country go global and helped in spreading its branches around the world.
 Large Domestic consumption
With the faster growth rate in the economy, the standard of living has improved a
lot.This in turn has resulted in rapid increase in domestic consumption in the country.
The standard of living has considerably improved and lifestyle has changed.
 Rapid growth of Urban areas
Urbanization is a key ingredient of the growth of any economy. There has been a rapid
growth of urban areas in India after independence. Improved connectivity in transport
and communication, education and health have speeded up the pace of urbanization.
 Stable macroeconomy
The Indian economy has been projected and considered as one of the most stable
economies of the world. The current year’s Economic survey represents the Indian
economy to be a “heaven of macroeconomic stability, resilience and optimism.
According to the Economic Survey for the year 2014-15, 8%-plus GDP growth rate has
been predicted, with actual growth turning out to be a little less (7.6%). This is a clear
indication of stable macroeconomic growth.
 Demographic dividend
The human capital of India is young. This means that India is a pride owner of the
maximum percentage of youth. The young population is not only motivated but skilled
and trained enough to maximize the growth. Thus human capital plays a key role in
maximizing the growth prospects in the country. Also, this has invited foreign
investments to the country and outsourcing opportunities too.

Weakness of Indian Economy
 Large Population
India stands second in terms of size of population next to China and our country is likely
to overtake China in near future. Population growth rate of India is very high and this is

always a hurdle to growth rate. 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
There exists a huge economic disparity in the Indian economy. The proportion of income
and assets owned by top 10% of Indians goes on increasing. This has led to an increase
in the poverty level in the society and still a higher percentage of individuals are living
Below Poverty Line (BPL). As a result of unequal distribution of the rich becomes richer
and poor becomes poorer.
 Increasing Prices of Essential Goods
Even though there has been a constant growth in the GDP and growth opportunities in
the Indian economy, there have been steady increase in the prices of essential goods.
The continuous rise in prices erodes the purchasing power and adversely affects the
poor people, whose income is not protected.
 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
With growing youth population, there is a huge need of the employment opportunities.
The growth in production is not accompanied by creation of job. The Indian economy is
characterized by ‘jobless growth’.
 Outdated technology
The level of technology in agriculture and small scale industries is still outdated and
obsolete.