Features of the Indian Economy
UNIT 17 FEATURES OF THE INDIAN
ECONOMY
Structure
1 7.0 Objectives
17.1 Introduction
17.2 Features of the Indian Economy
17.3 Growth and Development
1 7.4 Mixed Economy
1 7.5 Demographic Transition
1 7.6 Sectoral Composition of GDP
1 7.7 Employment Structure
1 7.8 Inter-Governmental Fiscal Relations
17.9 Let Us Sum Up
17.10 Key Words
1 7.1 1 Answers to Check Your Progress Exercises
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17.0 OBJECTIVES
After going through this unit, you will be able to: identify the important features of the Indian economy; distinguish between economic growth and economic development; explain the pattern of demographic transition in India; explain the sectoral composition of the Indian economy; and explain the pattern of employment in India.
17.1 INTRODUCTION
Let us begin with the word 'economy'. It denotes the operations and management of the economic system - the activities related to production of goads and services, consumption, investment, exchange of g d and services within the geogmphical territory, and exports and imports with rest of the world. You may have observed that production of goods and services requires inputs such as labour, capital
(machineries, buildings, etc.) and raw materials. The inputs are available in limited quantity, i.e., there is a shortage of inputs. When these inputs are used in the production process, they need to be paid some reward. For example, if you want to employ a unit of labour you have to pay some wage to himher. Similarly, building can be hired by paying some rent or money can be borrowed by paying some interest. Ultimately utilization of inputs involves some costs. Thus the objective before the economy is to utilize the scarce resources efficiently so that production of goods and services is maximized and cost is minimized.
Economic Development Now let us try to explain the structure of the Indian economy. The word structure, as you know, implies the way in which something is organised or put together.
Thus we should look into the way the
ECONOMY
Structure
1 7.0 Objectives
17.1 Introduction
17.2 Features of the Indian Economy
17.3 Growth and Development
1 7.4 Mixed Economy
1 7.5 Demographic Transition
1 7.6 Sectoral Composition of GDP
1 7.7 Employment Structure
1 7.8 Inter-Governmental Fiscal Relations
17.9 Let Us Sum Up
17.10 Key Words
1 7.1 1 Answers to Check Your Progress Exercises
- -
17.0 OBJECTIVES
After going through this unit, you will be able to: identify the important features of the Indian economy; distinguish between economic growth and economic development; explain the pattern of demographic transition in India; explain the sectoral composition of the Indian economy; and explain the pattern of employment in India.
17.1 INTRODUCTION
Let us begin with the word 'economy'. It denotes the operations and management of the economic system - the activities related to production of goads and services, consumption, investment, exchange of g d and services within the geogmphical territory, and exports and imports with rest of the world. You may have observed that production of goods and services requires inputs such as labour, capital
(machineries, buildings, etc.) and raw materials. The inputs are available in limited quantity, i.e., there is a shortage of inputs. When these inputs are used in the production process, they need to be paid some reward. For example, if you want to employ a unit of labour you have to pay some wage to himher. Similarly, building can be hired by paying some rent or money can be borrowed by paying some interest. Ultimately utilization of inputs involves some costs. Thus the objective before the economy is to utilize the scarce resources efficiently so that production of goods and services is maximized and cost is minimized.
Economic Development Now let us try to explain the structure of the Indian economy. The word structure, as you know, implies the way in which something is organised or put together.
Thus we should look into the way the