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By the economy of a country, we mean the position it holds wealth-wise. The Indian economy helps us to understand how India is doing in matters of income, investment, profit, production, and consumption. An in-depth study on all these matters gives us an insight into India’s incomes, resources, utilities, business, and services. India has a still growing and developing economy. According to GDP (Gross domestic product), the Indian economy is the sixth-largest, and according to PPP (Purchasing power parity), it is the third-largest. A lot of factors and characteristics are responsible for where the Indian economy stands at present. We will discuss these characteristics of the Indian economy and how they matter exactly.
What is the Indian Economy?
India is a developing country, with its economy being the fastest-growing of all. The Indian economy depends on various factors, from its business with other nations to its business within its own. The economic tendencies of India also depend on its technological, social, political, and administrative factors. The capital it is drawing from other nations and the capital it is investing in them also affects the Indian economy.
The Indian economy draws its most income from agriculture and labour. Since and even before independence, India has been known to be a country whose greatest strength lies in agricultural production and the force of labour behind this mass production. Despite all the technological and political advancements, the capital power reserved from agriculture remains unmatched.
Another factor that influences the Indian economy is the country’s population growth. Population growth helps a country to determine how many mouths to feed and what percentage of manpower resources it can get. Manpower remains the most important source of a country’s growing economy.
The diverse characteristics of the Indian economy help us to know better how India is doing economically and why the Indian economy looks the way it does in the present time.
Characteristics of the Indian Economy
The Indian economy is evolving, growing, and changing all the time. It is hard to keep track all the time. The factors determining and influencing the country’s economy are various and fluctuating. It helps you to get an overall idea about the economy of the country you are living in.
As the economy affects every citizen of a country, it holds a valuable position in influencing their life and social status. It is vital that we know about the economy and how it works.
Even if you read and hear news all the time, it is not always possible for a citizen to understand every minute detail leading to changing structures of the economy. But on the other hand, the characteristics of the Indian economy and its nature does not vary very often.
Per capita income
Per capita income means the total amount of money earned by a country in a particular year. A nation’s per capita income is calculated by the total sum of money earned, divided by the total population of the whole area. India’s per capita income is the sole and the most important way of knowing whether the country is running in loss or the economy has developed more than the previous years. The estimated per capita of India in 2020-2021 was Rs 86,659, which is 7,907 less than 2019-2020’s per capita.
Agricultural production
As mentioned above, India is a predominantly agricultural country. Its primary income is drawn from agricultural labour and production. It is very important to check and balance the success rate of agriculture in India or otherwise lose on the economic aspect. The Indian GDP based only on agriculture is somewhat Rs. 4338.58 billion from 2011-2021, proving how greatly agriculture can affect the Indian economy. Agriculture is responsible for at least 18% of India’s total economy, with 60% of the population toiling as agricultural labour.
Population
The population is that factor that influences India’s wealth and controls the characteristics of the Indian economy. India is moving faster than ever in the population aspect. It comes next to China, which is the most populated country in the world. India’s population has a hold on its economy because it is responsible for all the important factors such as income, employment, food supply, investment, and poverty. The positive impact of population growth on the economy can be manpower and more services, whereas the negative impacts can be the unequal distribution of wealth, insufficient jobs, poor health, and poverty.
Employment
The Indian economy is greatly affected by the rates of employment or unemployment that the nation offers its citizens. The better the employment percentage is, the better India’s overall income is. A successful GDP based on the commercial, technological, agricultural, and industrial fields means the country is providing enough employment opportunities for its citizens. Signs of unemployment in any of these areas will lead to an underdeveloped economy.
Conclusion
As India has a growing and changing type of economy, being informed about it is a vital aspect of Indian citizenship. What determines the country’s economy, its mobility tendencies, the varying changes occurring in the Indian economy is thus very important to consider. The country’s economy is most likely to have an impact on a citizen’s life, so people need to know. The characteristics of the Indian economy might be the first step to know further on this huge concept. They help to dive in and know what aspects are responsible for our country’s present economic health.
