Important Features of India as an Underdevelopad Country
Indian economy is an underdeveloped economy because almost all important features of an underdeveloped economy arc still present in Indian economy. Some of these features are discussed below:
1. Low Income:
In India GNP (Gross National Product) per capita was $1,180 in 2009 at current prices, roughly one third of the population is below the poverty line. On world scale, income inequalities between the developed and underdeveloped countries arc very large.
According to the World Hank estimates, in 2009 the average GNP per capita of the high income economies was $38,139 whereas it was $503 in low income underdeveloped countries.
2. Predominance of Agriculture:
In India agriculture and allied sectors contribute nearly 14.2 percent of Gross Domestic Product (GDP) according to the 2010-11 estimates released by the Central Statistics Office (CSO). Moreover, in India agriculture provides employment to around .50 per cent of the workforce.
The share of income in agriculture is however, considerably less than the share of employment in agriculture which clearly reflects the relatively low productivity per labour unit in the agricultural sector.
3. Rapid Population Growth Rate and High Dependency Ratio:
High population growth rate is also an indicator of underdevelopment. India’s population growth rate was 1.93% per annum and 21.34 % per decade during 1991-2001, which is still very high as compared to developed economies. Dependency ratio refers to ratio of dependent population (non-working) to total population. In India dependency ratio is around 60% which is very high. This is because of high birth rate and social circumstances.
4. Mass Poverty:
According to United Nations Development Programme’s (IJNDP) Global Human Development index 2011. India is ranked 134th among 187 countries. The report says 53 per cent of Indians suffer from multidimensional poverty. The Planning Commission released the second India Human Development Report (HDR) 2011.
The report claims
1. Low Income:
In India GNP (Gross National Product) per capita was $1,180 in 2009 at current prices, roughly one third of the population is below the poverty line. On world scale, income inequalities between the developed and underdeveloped countries arc very large.
According to the World Hank estimates, in 2009 the average GNP per capita of the high income economies was $38,139 whereas it was $503 in low income underdeveloped countries.
2. Predominance of Agriculture:
In India agriculture and allied sectors contribute nearly 14.2 percent of Gross Domestic Product (GDP) according to the 2010-11 estimates released by the Central Statistics Office (CSO). Moreover, in India agriculture provides employment to around .50 per cent of the workforce.
The share of income in agriculture is however, considerably less than the share of employment in agriculture which clearly reflects the relatively low productivity per labour unit in the agricultural sector.
3. Rapid Population Growth Rate and High Dependency Ratio:
High population growth rate is also an indicator of underdevelopment. India’s population growth rate was 1.93% per annum and 21.34 % per decade during 1991-2001, which is still very high as compared to developed economies. Dependency ratio refers to ratio of dependent population (non-working) to total population. In India dependency ratio is around 60% which is very high. This is because of high birth rate and social circumstances.
4. Mass Poverty:
According to United Nations Development Programme’s (IJNDP) Global Human Development index 2011. India is ranked 134th among 187 countries. The report says 53 per cent of Indians suffer from multidimensional poverty. The Planning Commission released the second India Human Development Report (HDR) 2011.
The report claims