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    Nature and Structure of Economy

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    Ankita Kumari Singh
    The Indian economy is a mixed economy consisting of both private and public sectors. It is primarily a service-based economy, with services contributing 60% of India's GDP, followed by agriculture. The economy can be divided into three sectors: primary (agriculture and mining), secondary (manufacturing and processing), and tertiary (services). Some key characteristics of the Indian economy include a reliance on agriculture, low capital formation and per capita income, poverty, income disparity, overpopulation, and underdeveloped infrastructure and technology.

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    Nature and Structure of Economy

    Uploaded by

    Ankita Kumari Singh
    595 views3 pages
    The Indian economy is a mixed economy consisting of both private and public sectors. It is primarily a service-based economy, with services contributing 60% of India's GDP, followed by agriculture. The economy can be divided into three sectors: primary (agriculture and mining), secondary (manufacturing and processing), and tertiary (services). Some key characteristics of the Indian economy include a reliance on agriculture, low capital formation and per capita income, poverty, income disparity, overpopulation, and underdeveloped infrastructure and technology.

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    Structure of Indian economy

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    Nature And Structure of Economy

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    The Indian economy is a mixed economy consisting of both private and public sectors. It is primarily a service-based economy, with services contributing 60% of India's GDP, followed by agriculture. The economy can be divided into three sectors: primary (agriculture and mining), secondary (manufacturing and processing), and tertiary (services). Some key characteristics of the Indian economy include a reliance on agriculture, low capital formation and per capita income, poverty, income disparity, overpopulation, and underdeveloped infrastructure and technology.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    595 views3 pages

    Nature and Structure of Economy

    Uploaded by

    Ankita Kumari Singh
    The Indian economy is a mixed economy consisting of both private and public sectors. It is primarily a service-based economy, with services contributing 60% of India's GDP, followed by agriculture. The economy can be divided into three sectors: primary (agriculture and mining), secondary (manufacturing and processing), and tertiary (services). Some key characteristics of the Indian economy include a reliance on agriculture, low capital formation and per capita income, poverty, income disparity, overpopulation, and underdeveloped infrastructure and technology.

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    © All Rights Reserved
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    Nature And Structure of Economy

    Meaning of Economy
    An economy is a collective term comprising of economic units, activities and
    performances of agriculturists, businessmen, households, consumers and
    producer. Resources allocation and their optimum use for further growth of
    resources is the main basis of the economy.
    Indian Economy
    The Indian economy is a mixed economy, which means that a part of the
    economy is owned by private businessmen, industrialists, and entrepreneurs.
    The other part is managed by the government. The Indian economy is highly
    dependent on the service sector because of its contribution to the GDP of India
    which is equal to 60% of the total. It is followed by agriculture.
     Structure of Economy 
    Economic activities in an economy, can be classified in three sectors:
    1) Primary Sector
    2) Secondary Sector
    3) Tertiary Sector or Service Sector

    1. Primary sector- Primary sector relates to products produced or raised


    naturally. Example- agricultural and poultry products
    2. Secondary Sector- This sector gets product from primary sector and does
    processing to form new ones. Example- Sugar from sugarcane
    3. Tertiary Sector- This is the service sector which provides different
    services to help the other two sectors. Example - Banking, transportation

     Nature of the Indian Economy

    1) Poor Infrastructural Development


    As per a recent report, India needs almost $100 million in infrastructure, to
    ensure the entire population benefits from electricity, gets safe drinking water,
    and proper sanitation services.
    2) Imperfect Market
    The Indian markets have a lot of easily exploitable loopholes. With an improper
    supply chain, the prices in the market vary significantly at different locations.
    3) Low per Capita Income
    The revenue of a country is highly dependent on the purchasing power of the
    population; the more they spend or purchase products, the more is the increment
    in the revenues of the nation. However, to spend, the population must earn more
    and must be able to fulfil their basic needs. Only then can they manage to
    purchase other facilities and comfort. Therefore, per capita income is one of the
    key factors.
    4) Overpopulation: 
    Overpopulation is one of the major concerns of the Indian economy. The
    population of India gets increased by about 20% in every decade. Around
    17.5% of the world population is possessed by India.

    5) Poverty
    It has been said, “A nation will be poor if it’s poor”, and this is an endless loop.
    Such loops of poverty always hinder the progress of a country and are a major
    issue for a country to be reckoned as a developed nation.
    6) Unadvanced Technology
    Most of the work done in India is labour-intensive work. Thus, there is a huge
    gap between the technology required in the industries and what is in use in the
    country.
    7) Income Disparity
    The concentration of wealth in the country is highly focused and is possessed by
    1% of the population of the nation. This 1% of the population owns 53% of the
    wealth within the country. Therefore, poverty is one of the important points that
    the government needs to highly focus on.
    8) Agro-based Economy
    The Indian economy is highly dependent on the agriculture sector. This sector
    adds up to almost 14% of the total GDP of the country, and more than half of
    the population of the country is dependent on this sector.
    9) Capital Formation
    The average income of a person in India is very low and the GDP of the country
    is dependent on this. Therefore, there is a significant need for improvement in
    the rate of capital development.
    10) Social issues
    Indian society is referred to as a backward society. This is due to communalism,
    a highly male-dominated social structure, a regressive caste system, and other
    such malice.

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