The Nature of Indian Economy — Flashcards

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Indian economy is a developing economy, an underdeveloped economy, and a mixed economy at the same time. It has been moving from economic backwardness toward development since 1951, but it still shows…

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1951 is important because economic planning began in that year. From that point, India started moving toward economic development in a planned way. Public investment, industrial growth, and infrastruc…

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It was backward, traditional and stagnant. Per capita income was low, living standards were very poor, unemployment and poverty were high, industry was very small, and most people depended on low-prod…

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National income is the total income earned in an economy. It is an important measure of economic progress because it shows the overall size and growth of the economy. In India, it grew at around 5.4 p…

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Per capita income shows the average income per person, so it gives a better idea of the living standard of people. Total national income can rise even when population is also large, but per capita inc…

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Per capita net real national income increased from about ₹12,490 in 1950-51 to about ₹115,750 in 2022-23. This is an increase of more than 9 times. It shows steady economic progress over the years.

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GDP growth shows how fast the economy is expanding. India’s GDP grew at an average annual rate of 7.0 per cent between 2003-04 and 2022-23, and the growth rate was 6.8 per cent in 2022-23. This indica…

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India’s GDP contracted by 6.2 per cent in 2020-21 due to the Covid-19 lockdown. This was the first contraction of GDP in over four decades since 1979-80. It shows how a major shock can affect the econ…