Nature of Indian Economy

Indian Economy Indian Economy is a Combination of two words: “Indian” refers to those concerning India. “Economy” refers to all those activity & arrangements which the citizens of a country , either individually or collectively , undertake to satisfy their wants of food ,clothing , shelter etc.

We Will Study Indian Economy as An Underdeveloped Economy. An Mixed Economy. A Planned Economy

Theories of Underdevelopment Theory of Vicious Circle of Poverty Theory of Low Income Level Equilibrium

Theory Of Vicious Circle Of Poverty: Low Income Low Saving Low Investment Low Productivity

Theory of Low Income Level Equilibrium Unstable Equilibrium Due to certain condition Per Capita Income tends to fall. In Initial stages of development , factor lowering the income are more powerful.

Indian Economy as an Underdeveloped Economy: Features Stagnant Per Capita Income. Low Level of per capita Income. Low standard of living. Unequal distribution of Income & wealth. Excessive Development of Agriculture. Lack of Proper Industrialisation. Lack of Proper Banking Facilities. Less Development of Means of Transport. Pressure of population. Unemployment & Under –employment . Lack of capital. Underdeveloped Natural resources. Outdated social Institution. Low grade Human Capital. Low Level of Technology. Dualistic Economic Structure.

Indian Economy as a mixed economy Public Sector. Licensed Sector. Private Sector. Industries Development & Regulation Act, 1951. Development Of Co-operative Sector. Production Reserved For Small-sector Industries.

Indian Economy as a Planned economy PLANS PERIOD 1. First Five Year Plan 1951-56 2. Second Five Year Plan 1956-61 3. Third Five Year Plan 1961-66 4.Fourth Five Year Plan 1969-74 5. Fifth Five Year Plan 1974-78 6. Sixth Five Year Plan 1980-85 7. Seventh Five Year Plan 1985-90 8. Eighth Five Year Plan 1992-97 9. Ninth Five Year Plan 1997-2002 10. Tenth Five Year Plan 2002-2007 11. Eleventh Five Year Plan 2007-2012

Progress of Indian Economy during Planning Economic Development Or Increase in National Income. Growth of National Income is 3.6% in 1st Plan. Growth of National Income is 5.0% in 5th Plan. Growth of National Income is 9.0% in 11th Plan. Increase in Per Capita Income. Increase in Rate of Capital Formaiton. Development of Industries. Development of Infrastructure. Social Services. Increase in Employment. Modernisation. Development of science & Technology. Less Cyclical Fluctuations. Production According to Needs. Balanced Economic Growth.

Dualistic Nature of Indian Economy Economic Dualism. Technological Dualism. Sociological Dualism.

Sectoral Distribution of Indian Economy Primary Sector Secondary Sector Tertiary Sector/ Service Sector