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Characteristics of Indian Economy, Agriculture & Industries

Indian Economy Characteristics

According to the World Bank, Indian Economy becomes the fourth largest economy of the world. In India, in 2008, 58% of total working population was engaged in agriculture. At that time the contribution of Agriculture in national income was 17.5% which is the sign of backwardness of the economy.
Main characteristics of Indian Economy are:

Agrarian Economy

After 60 years of independence, 58% of population in India is still agriculturist and its contributionto Gross National Product is approximately 17.5%.

Mixed Economy

Indian Economy is the blend of public and private sector that is the definition of mixed economy. In its plan period the government has invested 45% capital in public sector but the major sources and resources of production are still in the hands of private sector.

Developing Economy

The following facts craft the Indian Economy a developing economy:

  • As compared to the other developed countries the National Income of India is very low on international standards.
  • Presently in India 27 crore of population are living below poverty line.
  • Level of unemployment is very high. India’s unemployment is mainly structural in nature because India is not capable enough to create sufficient number of jobs.
  • Savings are low and the low savings results in shortage of capital formation. Capital is an important factor of production.

 

Agriculture

Indian Economy is based on Agriculture. Actually agriculture is the backbone of Indian Economy.

52% of the total population of India depends upon Agriculture.

Share in GDP:

According to the survey of 2011-2012 Indian agriculture contributes 14.1% of Gross Domestic Product (GDP). It was 55.4% in 1950-51.

  • The primary food grain of India is rice.
  • India is the 2nd largest producer of sugar in the world (After Brazil).
  • In tea production, India occupies the 1st position. (27% of total production in the world).
  • Wheat production: Uttar Pradesh is the largest producer. Punjab and Haryana is subsequently the 2nd and 3rd largest producer of wheat.
  • Rice production: West Bengal is the largest producer. Uttar Pradesh is the 2nd largest producer and Punjab is the 3rd largest producer of rice.

Green Revolution

  • Dr. Norman Borlaug is credited for Green Revolution in the whole world whereas the credit for Indian green revolution goes to the Dr. M.S. Swaminathan.
  • It started in the middle of 1960s.
  • Indian green revolution is associated with the use of HYVS (High Yielding Variety Seeds), chemical fertilizers and new technology which developed the Indian agriculture.

2nd Green Revolution

  • It started in 1983-84.
  • It provided great development to Indian agriculture.
  • It started during the period of 6th five year plan.
  • The growth rate of Indian Agriculture was increased from 3.8% to 4.3%.
  • The 2nd green revolution was experienced in the entire North India.

Industries

After independence the Industrial policy was passed in 1948.

  • In 1948 the industrial policy was adopted by both the Government sector and public sector. But the main industrial development depended upon the government sector.
  • In the 1956 Industrial policy industries were divided into three categories.
  • The major liberalization of the industrial policy was announced in 1991.
  • In this policy except certain industries all other industrial licensing were abolished.
  • In this policy exports of Indian Products in world markets were promoted.

According to the year 2010 India has 16 Navaratna Company. Originally in 1997 there were 9 companies having the status of Navaratna. Navaratna Companies are now free to decide on investments up to 15% of their net worth in a project.

List of Navratna Companies

    1. Bharat Electronics Limited
    2. Bharat Heavy Electronics Limited
    3. Bharat Petroleum Corporation Limited
    4. GAIL (India) Limited
    5. Hindustan Aeronautics Limited
    6. Hindustan Petroleum Corporation Limited
    7. Mahanagar Telephone Nigam Limited
    8. National Aluminum company Limited
    9. National Mineral Development Corporation Limited
    10. Neyveli Lignite Corporation Limited
    11. Oil India Limited
    12. Power Finance Corporation of India Limited
    13. Power Grid Corporation of India Limited
    14. Rashtriya Ispat Nigam Limited
    15. Rural Electrification Corporation Limited
    16. Shipping Corporation of India Limited

On May 20, 2010 Indian Government counted 5 companies as Maharatna:

Maharatna Companies

  1. Coal India Limited
  2. Indian Oil Corporation Limited
  3. NTPC Limited
  4. Oil and Natural Gas Corporation Limited
  5. Steel Authority of India Limited
  • According to the survey of 2005 50% industries of India are situated in Tamil Nadu, Maharashtra, West-Bengal, Andhra Pradesh and Uttar Pradesh.