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India is about to complete 75 years of Independence in 2022. A diamond jubilee is around the corner for the nation that boasts of the second largest population in all of the world. Even after so many years, the Indian economy remains somewhat in turmoil. Globalisation put the Indian economy up against the world economy and some very worrying signs could be noticed.
The US boasts of the largest economy in the world and we who are much more densely populated are nowhere near them in terms of economy. India has been a developing nation for years now and will continue to remain one for the foreseeable future, it is not an opinion but a rather interesting take that seems to be popular with people.
Indian economy is characterised by the points that we will mention below, these are some attributes that play an important factor that tells us our place in the world economy.
Characteristics of the Indian economy
A lot of books have been written in the past on the Indian economy, the characteristics of the Indian economy, which are,
Per capita income is very low
For such a hugely populated country, 1900$ per capita income is supposed to be a worrying sign. It is as recently as 2017 that the country posted such a less estimated per capita income figure and thus the Indian economy has been visibly weak.
Agricultural Economy
In the day and age of technology and gadgets, India remains to be heavily focused on earning income through Agriculture. The largest economy in the world cannot be built by merely doing agriculture. If more than 50% of the people of the nation are earning money via agriculture then that tells us that not even 100 years might be enough to get this economy to the world top.
Population problem
The explosion of the population remains another challenge that blocks India from trying to become the largest economy in the world. The population increase eats up all the economic growth that the country tries to achieve and this increasing population demands more growth on an economic scale but problems of unemployment and various other issues have hampered this economic growth from taking place.
Wealth inequality
We have been hearing this from our childhood, that Indians don’t have their wealth divided equally. This unequal division of wealth has played a part in making the rich richer and poor poorer and thus, this has been another hindrance in our march to becoming the largest economy in the world.
Technological Handicap
On the technological level, India has been poor for years now. The production quality of goods has suffered because of improper machinery and this has haunted agriculture as well as the industrial sector. ‘Make in India’ campaign is a positive step taken to deal with this issue, however, things take time to change and we will have to be patient here as well.
Resource Management
To become the largest economy in the world, managing resources needs to be focused on heavily. We as a nation have failed to do so. Resources that are on the decline continue to be used without finding a replacement for them. All this happens while a lot of resources wait to be discovered as we haven’t even explored half of them that still remain to be found. Combined with weak infrastructure this problem significantly demonstrates the position of the Indian economy.
Natural resources not being used efficiently, quality of infrastructure, low standard of living, illiteracy, and lack of economic means for lower sections of society are some other important characteristics of the Indian economy that act as a barrier to stop us from becoming the largest economy in the world.
Conclusion
The Indian economy is an important subject taught to kids in schools and colleges. Multiple generations have completed their education from books that have had the same content for over years now. The characteristics mentioned above have been there for years now and continue to remain. If we fail to deal with these problems then we will always be a developing economy.
