Question
Explain the characteristics of India as a developing country.
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Answer
Characteristics of India as a developing economy:
Although India’s progress has been slow it cannot be considered as a less developed country.
Indian economy shows several characteristics of a progressing economy. Some of them are discussed below:’
$1.$ Growth rate:
- The .growth rate of the economy, especially after the $LPG$ i.e. the policy of Liberalization, Privatization and Globalization in $1991,$ has increased.
- During the period between $1950-51$ and $1990-91$ the average annual growth rate was around $3.5\%.$ But, after the economic reforms of $1991$ through the $LPG$, the average annual growth rate has remained above $6.8\%$ which is an important achievement.
- After $2012-13,$ the growth rate had slowed down. In $2014-15,$ the average annual growth rate was less than $5\%.$
- In $1950-51$ the Net National Product at factor cost i.e. $(NNPFC)$ at constant /rice level was $₹ 2,69,724$ crores. It increased to $₹ 87,51,834$ crores in the year $2013-14.$ Thus, in a period of $63$ years, the $NNP$ has grown by $18$ times.
- Changing share of various sectors in national income and employment:
- A less develop nation’s major income comes from agriculture. As a nation develops the contribution of various sectors in national income and employment changes.
- Under such condition, the contribution of industrial and service sectors in employment and hence national income increases compared to agricultural sector.
- People’s dependency on agriculture reduces. Growth in industrial sector improves technology and increases capital. This generates more employment in the industrial sector and service sector rather than agriculture.
Source: Economic Survey $(2014-15)$
From the data we can conclude that post-independence, the share of agriculture in the National Income $(NI)$ has decreased over the years and that of industrial and service sectors has increased.
- Per capita income:
- In $1950-51,$ the per capita income of India $(PCI)$ at constant prices was $₹ 7,114.$ It increased to $₹ 69,959$ in $2013-14.$
- Thus, in a period of $63$ years $PCI$ increased by approximately $5.6$ times.
- Between $1950-51$ and $1990-91\ PCI $ increased by about $1.6$ percent while after $1991$ it increased by $5.5\%.$
- Level of employment:
In India, employment is studied in three sectors. They are:
$(a)$ Primary sector:
This sector includes agriculture and allied activities, dairy farming and animal husbandry.
All activities that consist of production such as manufacturing, construction, mining, quarrying, etc. are included in service sector.
$(c)$ Service sector:
Service sector includes all activities related to trade, banking, transport, information and broadcasting, health, education, etc.
Share of various sectors in employment
Source: Economic Survey $(2014-15)$ Volume$-II.$
From the table it can be seen that primary sector provided highest employment among all the sectors in $1950-51.$ This reduced drastically by $2011-12$ with the increased contribution of industries and service sector. Thus, it can be seen that from the years $1951$ to $2011-12, $ the employment largely shifted from primary sector to industrial and service sectors.
- Improvement in basic (primary) utilities:
Indian has shown significant improvement in providing various utilities in the urban as well as in the rural areas. These are discussed below.
$(a)$ Irrigation:
In $1950-51,$ only $22.6$ million $(m)$ hectare of land across India used to get irrigation facility. This increased to $63 m$ hectares i.e. $45\%$ of total agricultural land by $2012-13.$
In $1950s$ there were $20$ universities and $500$ colleges. This increased to $719$ universities and $35,000$ colleges by $2013-14.$ This indicates that higher education increased considerably in India.
In $1951,$ India’s literacy rate was $18.33\%.$ This increased to $73\%$ in $2011 ($Source: Economic Survey, $2013-14).$
$(c)$ Electricity:
In $1950-51,$ India used to generate around $2300\ MW$ electricity. This increased to $2,43,000\ MW$ in $2011-12.$
$(d)$ Road network:
Today, India falls among the list of countries with longest road network. -» India has approximately $48.6$ lakh $\ km.$ of concrete roads today.
$(e)$ Railway:
Today, Indian railway network is the fourth largest in the world with a length of $65,000 \ km.$
Conclusion:
- Overall, India is progressing fast and is emerging as a country having strong economy.
- On the brighter side, India’s per capita consumption of essential commodities and average life expectancy has increased, we are progressing in areas of science, research and technology development and so on.
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