India, as a developing country, features a mixed economy in the world.
The major characteristics of developing economy are low per capita income, overpopulation, maximum population below the poverty line, poor infrastructure, a gro-based economy and a lower rate of capital formation.
Occupational Pattern – Primary Producing
One of the fundamental characteristics of India as a developing economy is that it is majorly primary producing. What this means is that a majority of the population is engaged in agriculture (around 52 percent).
This disparity is slowing India’s progress. The reason behind this difference is that agriculture is a low income earning sector.
Steady Improvement in the Rate of Capital Formation
In 2017, the population growth rate in India was 1.13%. This balance is critical to maintaining the costs of living.
Inequality in Wealth/Asset Distribution
Unequal asset distribution is the primary cause of inequality in income distribution in rural areas.
Poor Human Capital Quality
It is a simple equation. Underdeveloped countries have millions of illiterate citizens.
Low Level of Living of an Average Indian
Citizens of developed countries consume a rich diet which includes fish, fresh fruits meat, sugar, and butter.
Currently, Indians consume nearly half the amount of protein that a citizen of a developed country does. The result, lesser immunity against diseases and lower efficiency at work.
Demographic Characteristics
This makes it an underdeveloped economy. In comparison, the population density of the USA was 34 per square kilometer.
The basic characteristics of India as a developing economy are:
- Low per capita income
- Occupational pattern – primary producing
- Heavy population pressure
- Prevalence of chronic unemployment and under-employment
- Need for a steady improvement in the rate of capital formation
- In equal distribution of wealth and/or assets
- Poor quality of human capital
- Prevalence of low levels of technology
- Low level of living of an average Indian
- Demographic characteristics of an underdeveloped country
