1.

Mixed Economy
2. Pre-dominance of Agriculture.
3. High population.
4. Underutilized Natural resources.
5. Low Human development index.
6. Lack of infrastructure facility.
7. Capital deficiency.
8. Unemployment.
9. Technological backwardness.
10. Poor economic organizations.
11. Low per capita income.
12. Economic backwardness.
13. Poverty.
 Indian economy is mixed. An economic system in
which both the private enterprise and a degree of state
monopoly coexist (usually in public services, defence,
infrastructure, and basic industries).
 All modern economies are mixed where the means of
production are shared between the private and public
sectors.
 It is also called as dual economy.
 Agriculture being the maximum pursued occupation in
India. It plays an important role in its economy as well.
 Earlier around 70% of the occupational practice in
India was covered by the farmers and other agricultural
units.
 In fact, about 30% of our GDP today is earned from the
agricultural sector itself.
 Agricultural sector is thereby also called as the
backbone of the Indian economy.
 Employment By Sector (in % of Total Employment)
Agriculture (42.7), Industry (23.8), Services
(33.5) (Source: World Bank, Latest available data.)
 HDI is a composite of certain indicators such as life
expectancy, education and per capita income
 India continued to rank low in the Human Development
Index (HDI), but climbed five notches to the 131st
rank in the latest UNDP report on account of rise in life
expectancy and per capita income.
 It falls 27 % due to regional disparities, health
parameters and standard living in the year 2017.
 Lack of infrastructural facilities is one of the serious
problems in the rural areas of India which the economy
has been suffering till today.
 These infrastructural facilities include transportation
and communication facilities, electricity generation and
distribution, banking and credit facilities, economic
organisation, health and educational institutes etc.
 Capital deficiency affects economy as well as social
factors, India suffers from deep rooted shortage of
capital.
 The level of savings is very low and capital formation
rate is also low.
 Capital deficiency is very low because the population
rate rises at a rapid rate
 Poverty is an important issue in India, despite having
one of the fastest growing economies in the world,
clocked at a growth rate of 7.6% in 2015, and a
sizable consumer economy.
 Based on the 2015 data, 21.9% of Indian population
falls below the poverty line.
 Unemployment is a phenomenon that occurs when a
person who is actively searching for employment is
unable to find work.
 Unemployment in India is a serious social issue.
 Unemployment records in India are kept by the Ministry
of Labour and Employment of India.
 The most frequently measure of unemployment is the
unemployment rate, which is the number of unemployed
people divided by the number of people in the labour
force.
 Economic organization is an important and pushing
factor for economic institutions have been working in
India, however it is not developed enough.
 Banking systems are not developed well in rural areas,
in recent years capital and money markets are not much
developed in India.
 Industrial banks, financial institutions are not very
common in India. In this point of view India has lack of
structural economic organization set up.
 High population growth rate is also an indicator of
underdevelopment.
 Over population creates complex economic problems.
India is the second largest populated country in the
world having population of 238 million in 2001 and
1138 million in 2011.
 Presently India comprises of 18 % of the worls’s
population.
 It has been stated that India is a rich country inhabited by
poor people.
 Various types of natural resources, viz., land, water,
minerals, forest and power resources are available in
sufficient quantity in the various parts of the country.
 But due to its various inherent problems like inaccessible
region, primitive techniques, shortage of capital and small
extent of the market such huge resources remained largely
under-utilised.
 A huge quantity of mineral and forest resources of India
still remains largely unexplored.
 There exists a huge economic disparity in the Indian
economy. There is a huge difference in the distribution
of income among the various categories of people on
the basis of income.
 This unequal distribution of income has created a huge
gap and economic disparity among the various
categories of people in the Indian economy.
 With growth in the service sector, Indian economy has
formulated its growth in the service sector as well.
There has been a high rise growth in the technical
sectors like-e of Information Technology Sector, BPO,
etc.
 The business in these sectors has not only added and
enhanced the contribution to the economy, but has also
helped in the multi-fold growth of the country a well.
 These emerging service sectors have helped the country
go global and helped in spreading its branches around
the world.
Current trends
 GDP (billions USD) :2,654.17 (Source: IMF – World
Economic Outlook Database, 2018)
 GDP (Constant Prices, Annual % Change) :7.4 (Source: IMF –
World Economic Outlook Database, 2018)
 GDP per Capita (USD) :1,989 (Source: IMF – World
Economic Outlook Database, 2018)
 Inflation Rate (%) :4.9 (Source: IMF – World Economic
Outlook Database, 2018)
 Value Added (in % of GDP) :Agriculture (17.4), Industry
(28.8), Services (53.8) (Source: World Bank, Latest available
data.)