What are the main characteristics of a developing economy? To what extent are they found in Indian Economy?
The main characteristics of a developing economy are:
Low per Capita Income; Slow Growth Rate of Per Capita Income; Economic Inequalities; Low Level of Living; Low Rate of Capital Formation; Backward Techniques of Production; High Growth Rate of Population and Dependency Burden; Low Productivity of Labour; Underutilization of Natural Resources; Large Scale Unemployment; Dominance of Agriculture; High Incidence of Poverty; Infrastructural Backwardness; Low Volume of Foreign Trade, etc..
Though the Indian economy is growing, it is still lagging behind in terms of reducing poverty, unemployment, backwardness and hunger and in terms of low technological development. Some other culprits for low development include low per capita income, excessive dependency on primary sector and high pressure on natural resources. The above features shows that Indian economy is a developing economy.