The economy of India is currently the world’s fourth largest in terms of real GDP (purchasing power parity) after the USA, China and Japan and the second fastest growing major economy in the world after China. India’s annual growth rate is above 8% while that of China is about 10%. India is a developing country and our economy is a mixed economy.
In a mixed economy the public sector co-exists with the private sector. Dadabhai Naoroji is known as the Father of Indian Politics and Economics. He is also called the ‘Grand Old Man of India’. In his book Poverty and Un BritNaoroji ish Rule in India he describes his theory, i.e. the economic exploitation of India by the British. His theory is popularly called the Economic Drain Theory. 'Brain drain' means talented men leaving their own country because of lack of opportunities and facilities and going to foreign countries for better conditions. Which of the following does not contribute to the development in India?
(a) Technological research (b) Population growth (c) Diversification of Industry (d) Increased saving Ans : (b) Population growth The socialist pattern aimed at by our planning comes through (a) a closed economy (b) mixed economy (c) public sector (d) open economy Ans : (b) mixed economy Which of the following is not a characteristic of Indian economy? (a) High rate of population growth (b) Extensive disguised unemployment (c) Low level of adult literacy (d) High level of exports Ans: (d) High level of exports
Basic Features of Indian Economy
(i) Low per capita income. (ii) Inequalities in income distribution. (iii) Predominance of agriculture. (More than 2/3rd of India’s working population is engaged in agriculture. But in USA only 2% of the working population is engaged in agriculture.) (iv) Rapidly growing population. (v) Chronic unemployment
(A person is considered employed if he / she works for 273 days of a year for...