Featuring Basic Characterstics

• Excessive dependence of agriculture and primary producing: Indian economy is having  too much dependence on agriculture and therefore it is considered to be a primary producing sector. A very high proportion of population is engaged in agriculture and other realted activities which making a  national income of our country.This shows a great contribution made by the agricultural sector to the Indian Economic decisions as concerned to other sectors over a period of 10 years i.e from 2005 to 2010.

• Unemployment- The unemployment rate in India fell to 7% in September 2020 which was as high of 29% from the time country  went into lockdown from March 2020 according to CMIE – Centre For Monitoring Indian Economy..There is disguised unemployment in Indian Economy which has led for too much dependence of people of the country on land and absence of alternative occupations in the rural areas. Moreover, in the urban areas there is the problem of educated unemployment people.. Thus both the rural and urban area of our country are suffering from the serious problem of unemployment and under-employment to a large extent.

• Low Capital Formation- Capital deficiency is a characteristic feature of the Indian economy.  In India both the amount of capital available per head and the present rate of capital formation is on a low rate. Consumption of crude steel along with energy are the two important factors of low capital per head in our country India. It is also due to weakness of the inducement of invest and the low propensity and capacity to save.in order to maintain the same standard of living, India requires at least 14 per cent level of gross capital formation.

• Inequality in the distribution of wealth: The report of the Reserve Bank of India says that aroung almost 20 per cent of the households having less than Rs 1000 amount of assets considerably are very less holders. But 51 per cent of the households having less than Rs 5000 assets capacity possessed in total only 8 per cent of the total assets.                                                                             

• Low level of living: The standard of living of Indian people is very low. Nearly 25 to 40 per cent of the population in India suffers from malnutrition. The average protien intake and content in the Indian diet is about 49 grams only per day in comparison to that of more than the other developed countries of the world.

• Inadequate development of economic organisation:Poor-economicorganisation is one of the characteristics of the Indian economy.For achieving  economic development at a satisfactory rate having certain type of institutions are very much essential. Like, for mobilisation of savings and to meet other financial needs particularly in the rural areas, development of certain financial institutions are very much essential.