By Dr C Dhandapani Professor of Economics Salient Features of Indian Economy Indian Economy is termed as the developing economy of the world Some Features like low per Capita income higher population below poverty line poor infrastructure Agriculture based economy and lower rate of c ID: 1029273
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1. Indian Economics – An OverviewBy Dr. C. Dhandapani, Professor of Economics
2. Salient Features of Indian EconomyIndian Economy is termed as the developing economy of the world.Some Features like low per Capita income, higher population below poverty line, poor infrastructure, Agriculture based economy and lower rate of capital formation, tagged it as a developing economy.
3. WORLD BANKThe world Bank Development Report (2006) classified the various countries on the basis of Gross National Income (GNI) Percapita.The countries are divided into low income countries with 2004 GNP percapita $825 and below; and (b) lower middle income countries with GNP percapita ranging between $826 ans $3255.(c) Upper-Middle income countries with GNP Percapita ranging between $3256 - $3255.
4. Change in World Bank Terminology Following current statstical practices ,the world bank has recently adopted the new terminology in line with the 1993 system of National Accounts.The changes in terms are below;Previous TerminologyGross National Product (GNP)GNP percapitaPrivate ConsumptionGeneral Government consumptionGross Domestic InvestmentNew TerminologyGross National Income (GNI)GNI PercapitaHousehold final Consumption expenditureGeneral GovernmentFinal ConsumptionGross Capital Formation
5. Features of Developing EconomyGradual rise in percapita income from a low level.Gradual rise in percapita saving and capital formation .Gradual decline of the contribution of the agriculture sector towards national income.Gradual expansion of infrastructural facilities.Falling incidence of poverty, adult illiteracy, gender discrimination etc.Gradual shift in occupational structure in favor of industrial and service activitiesGradual improvement in the standard of living of common people.Gradual improvements in science and Technology.
6. Difference between Economic Growth and Economic DevelopmentEconomic GrowthIt indicates quantitative improvement in the economic progress of a country.It shows growthin national income and Percapita income overtime.A country may grow but it may not help.Economic DevelopmentIt indicates qualitative improvement in the economic progress of a country.It shows not only a sustained increase in national and percapita income but also qualitative changes leading to greater equality of distributions of National income ,Improvements in infrastructural facilities.Economic development includes the notion of economic growth.
7. Strategy of Economic GrowthStrategy of Balanced Growth According to Nurkse,this Strategy can contribute to growth of an underdeveloped economy if both the manufacturing and agricultural sectors advance in synchronisation as backwardness of one sector will arrest growth in the other. Advocated by Hirschanman ,Singer,Fleming ,Growth in the underdeveloped countries can be stimulated by creating imbalance rather than balance among different sectors of the economy.
8. Thanks To All