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Characteristics of Indian Economy

Detailed explanation of the key characteristics of Indian Economy including Mixed Economy, Developing Economy, Agricultural Economy and its special features.

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🏛️ Characteristics of Indian Economy - Introduction

Characteristics of Indian Economy INDIAN ECONOMY $3.5 Trillion Mixed Economy Developing Agricultural Base Low Per Capita Population Unemployment Inequality GDP: $3.5T | 5th Largest Economy | Per Capita: $2,500 | Growth: 7.2%
What is Economy?
  • 📌 Economy = Production + Distribution + Consumption
  • 📌 Efficient utilization of resources
  • 📌 Satisfying human wants
Indian Economy Status
  • 🌍 World Rank: 5th (GDP Nominal)
  • 💰 GDP: $3.5 Trillion
  • 👤 Per Capita: ~$2,500

🔄 Mixed Economy

Mixed Economy = Private + Public Sector 🏢 Private Sector TATA, Reliance, Infosys HDFC, ICICI Bank IT Sector, Startups GDP: ~75% 🏛️ Public Sector Indian Railways, BSNL SBI, PNB ONGC, BHEL, SAIL GDP: ~25% MIX 🇮🇳 India = Mixed Economy (1948 Industrial Policy)
FeatureCapitalismSocialismMixed (India)
OwnershipPrivateStateBoth
MarketFreePlannedRegulated
CountriesUSA, UKUSSRIndia

📈 Developing Economy & Agricultural Base

Development Stages Underdeveloped Per Capita < $1,000 Developing 🇮🇳 Per Capita $1K-$12K Developed Per Capita > $12,000 🌾 Agricultural Economy - Key Stats GDP Share: 17% Employment: 42% Milk: 1st 🥇 Rice: 2nd Wheat: 2nd GDP: 5th Largest
AspectDevelopedDeveloping 🇮🇳
Per Capita$40,000+$2,500
HDI0.9+0.633
IndustrializationHighMedium
ExamplesUSA, UK, JapanIndia, Brazil

👥 Population Pressure & Unemployment

Population & Unemployment 🌍 Population: 142 Crore 🥇 World Rank: 1st (2023) 📈 Growth: 0.9%/year 👨‍👩‍👧‍👦 Median Age: 28 years 💪 Demographic Dividend: 65% < 35 yrs 📊 Unemployment 📉 Rate: 7.7% (2024) 🧑‍🎓 Youth: ~23% 👩 Female LFPR: ~37% 🌾 Agriculture: Disguised Unemployment 🎯 Key Employment Schemes MGNREGA (2006) PM-KAUSHAL (2015) MUDRA (2015) Stand Up India (2016) Startup India (2016)
Unemployment TypeDescriptionSector
StructuralTechnology changeIndustry
SeasonalPost-harvestAgriculture
DisguisedZero marginal productivityAgriculture
EducatedSkill mismatchUrban

💰 GDP & National Income Concepts

National Income Concepts 📊 GDP Gross Domestic Product Production within country borders GDP = C + I + G + (X-M) India: $3.5T (5th) | PPP: $13.1T (3rd) 🌍 GNP Gross National Product Production by citizens (worldwide) GNP = GDP + NFIA NFIA = Net Factor Income Abroad 📈 Key Formulas NNP = GNP - Depreciation PCI = NI ÷ Population 🏛️ National Income calculated by: NSO (formerly CSO) Per Capita Income: ₹1.72 Lakh | Base Year: 2011-12
ConceptFormulaDescription
GDPC + I + G + (X-M)Consumption + Investment + Govt + Net Export
GNPGDP + NFIAAdd foreign factor income
NNPGNP - DepreciationDeduct wear and tear
PCINI ÷ PopulationPer Capita Income

⚡ Shortcuts & TNPSC Questions

🧠 Quick Memory Tricks "5-3-1" 5th GDP 3rd PPP 1st Population "17-42" Agriculture: 17% GDP Agriculture: 42% Jobs "Mixed-48" 1948 Industrial Policy → Mixed Economy 📊 Key Formulas GDP + NFIA = GNP GNP - Depreciation = NNP Per Capita = National Income ÷ Population
#QuestionAnswer
1India's economy type?Mixed Economy
2GDP World Rank?5th
3PPP World Rank?3rd
4Population Rank?1st (142 Cr)
5Agriculture GDP share?~17%
6Who calculates NI?NSO (CSO)
7GNP Formula?GDP + NFIA
8MGNREGA Year?2006
Next Topic Five Year Plans

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