HISTORY OF INDIAN ECONOMY : Indian Economy became the largest economy in the world per the latest report of the world Bank. But, India is still lagging behind the many spheres. Since 2007-2008, USA and European countries have been facing severe economic crisis, considered to be worst-ever economic crisis since the great depression of the 1930s. Indian Economy has faced many problems as export demand and many more. CHARACTERISTICS OF INDIAN ECONOMY : After India got independence, the basic economic structure of the country has became more powerful. In quantitative terms there has been substantial development. The annual growth rate, however was 8.0% during 2008-2009. Important and main characteristics and various aspects of Indian Economy are :
- Agrarian Economy
- Mixed Economy
- Developing Economy
There are many important fats relating to characteristics of Indian Economy, they are :-
- Primary sector of Indian Economy is agriculture and the related sectors. The contribution of agriculture sector in GDP in 2008-2009 was 18.9℅.
- Secondary sector of Indian Economy is related to Industry, manufacturing, electricity etc. It’s contribution to GDP is approximately 23.8℅.
- Tertiary sector of Indian Economy is related to business, transport, communication and services. It’s contribution in GDP is approximately 57.3℅ in 2008-2009.
- The contribution of public sector in the gross production is less than 20℅.
- The best indicator of economic development of any country is per capita income.
The following factors are Important in Economic Development of a developing country are :
- Natural Resources
- Capital Gain
- Skilled Labour Force
- Surplus sale of agriculture
- Justified social organisation
- Political freedom
- Freedom from corruption
- Technological knowledge and general education.