Indian Economic Policy Dr.P.M.Honakeri Professor of Economics Karnatak University, Dharwad M.A-Ist Semester Class Hours: 12:30 to 1:30 PM

Outline of Discussion.. Low Per Capita Income Disparities in Income Distribution Over-Population Dominance of Agriculture and Heavy Population Pressure on Agriculture Unbalanced Economic Development

Characteristics of Indian Economy The salient features of Indian Economy are as follows; 1 Low Per Capita Income Per capita income level is much low in India as compared to other developed countries of the world.-----World Development Report(2011) 2 Disparities in Income Distribution Income disparities are somewhat more intensive in urban areas as compared with those of rural areas. 3 Over-Population According to 2011 census, the total Indian population stands at a high level of crore which is about 17.5% of the world’s total population. To maintain this 17.5% of world population India holds only 2.42& of the total land area of the world. 4 Dominance of Agriculture and Heavy Population Pressure on Agriculture Land- labour ratio is not favourable in India. As per the estimates of CSO for agriculture contributes only 13.9% in Gross Domestic Product(GDP). 5 Unbalanced Economic Development 64% of the total labour force is dependent on agriculture, 16% on industries and the rest about 20% on trade, transport and other services.