Indian economy is an under developed economy in which Agriculture is the back bone of Indian economic.

60% of Indias population are on the below poverty line. Mineral resources are not fully utilized. We are selling iron ore by trucks and getting blades by packets. Majority of the people of India are leading a poverty line. Indian economic is affected by it. Countries which are on the part of progress and which have their potential for development are called developing economic. So India is termed as developing economic by modern views. The important features of Indian economic: 1. Low per capita income: Under developed economy is characterized by low per capital income. India per capital income is very low as compared to the advanced countries. For example the capital income of India was 460 dollar, in 2000. Where as their capita income of U.S.A in 2000 was 83 times than India. This trend of difference of per capita income between under developed and advanced countries is gradually increasing in present times. India not only the per capita income is low but also the income is unequally distributed. This mal-distribution of income and wealth makes the problem of poverty in ore critical and acute and stands an obstacle in the process of economic progress 2. Heavy Population Pressure: The Indian economy is facing the problem population explosion. It is clearly evident from the total population of India which was 102.67 cores in 2001 census. It is the second highest populated country China being the first. Indias population has reached 110 cores. All the under developed countries are characterized by high birth rate which stimulates the growth of population; the fast rate of growth of population necessitates a higher rate of economic growth to maintain the same standard of living. The failure to sustain the living standard makes the poor and under developed countries poor and under developed. 3. Pre-dominance of Agriculture: Occupational distribution of population in India clearly reflects the backwardness of the economy. One of the basis characteristics of an under developed economy is that agriculture contributes a very large portion in the national income and a very high proportion of working population is engaged in agriculture 4. Unemployment:

There is larger unemployed and under employment is another important feature of Indian economy. In under developed countries labor is an abundant factor. It is not possible to provide gainful employment the entire population. Lack of job opportunities disguised unemployed is created in the agriculture fields. There deficiency of capital formation. 5. Low Rate of Capital Formation: In backward economics like India, the rate of capital formation is also low. capital formation mainly depends on the ability and willingness of the people save since the per capita income is low and there is mal-distribution of income and wealth the ability of the people to save is very low in under developed countries for which capital formation is very low . 6. Poor Technology: The lever of technology is a common factor in under developed economy. India economy also suffers from this typical feature of technological backwardness. The techniques applied in agriculture industries milling and other economic fields are primitive in nature. 7. Back ward Institutional and social frame work: The social and institutional frame work in under developed countries like India is hopelessly backward, which is a strong obstacle to any change in the form of production. Moreover religious institutions such as caste system, joint family universal marriage affects the economic life of the people. 8. Under utilization of Resources: India is a poor land. So our people remain economically backwards for the lack of utilization of resources of the country. 9. Price instability: Price instability is also a basis feature of Indian economy. In almost all the underdeveloped countries like India there is continuous price instability. Shortage of essential commodities and gap between consumption aid productions increase the price persistently. Rising trend of price creates a problem to maintain standard of living of the common people.

INDICATORS OF ECONOMIC DEVLOPMENT

(a) Equality improvement. (b) Poverty alleviation (c) Quality of life (d) Capital formation (e) Fulfillment of basic needs. (f) Population growth rare (h) Decrease in dependence on agriculture (i) Increase in entrepreneurship (j) Utilisation of natural resources (k) Increase in export of finished goods. (l) Trade diversification (m) Extension of infrastructures

(n) Extension of markets. (o) Improvement in technology (p) Urbanisation, Gender equality, Human rights, etc. Human development indicators Development often takes place in an uneven way. A country may have a very high GDP - derived, for example, from the exploitation of rich oil reserves - while segments of the population live in poverty and lack access to basic education, health and decent housing. Hence the importance of human development indicators, measuring the noneconomic aspects of a country's development.

A school in Guinea

A classroom in the UK Human development indicators include:

Life expectancy - the average age to which a person lives, eg this is 79 in the UK and 48 in Kenya.

Infant mortality rate - counts the number of babies, per 1000 live births, who die under the age of one. This is 5 in the UK and 61 in Kenya. Poverty - indices count the percentage of people living below the poverty level, or on very small incomes (eg under 1 per day). Access to basic services - the availability of services necessary for a healthy life, such as clean water and sanitation. Access to healthcare - takes into account statistics such as how many doctors there are for every patient. Risk of disease - calculates the percentage of people with diseases such as AIDS, malaria and tuberculosis. Access to education - measures how many people attend primary school, secondary school and higher education. Literacy rate - is the percentage of adults who can read and write. This is 99 per cent in the UK, 85 per cent in Kenya and 60 per cent in India. Access to technology - includes statistics such as the percentage of people with access to phones, mobile phones, television and the internet. Male/female equality - compares statistics such as the literacy rates and employment between the sexes. Government spending priorities - compares health and education expenditure with military expenditure and paying off debts.

Economic development indicators

Cairo - an example of a LEDC

New York - an example of a MEDC To assess the economic development of a country, geographers use economic indicators including:

Gross Domestic Product (GDP) is the total value of goods and services produced by a country in a year. Gross National Product (GNP) measures the total economic output of a country, including earnings from foreign investments. GNP per capita is a country's GNP divided by its population. (Per capita means per person.) Economic growth measures the annual increase in GDP, GNP, GDP per capita, or GNP per capita. Inequality of wealth is the gap in income between a country's richest and poorest people. It can be measured in many ways, (eg the proportion of a country's wealth owned by the richest 10 per cent of the population, compared with the proportion owned by the remaining 90 per cent). Inflation measures how much the prices of goods, services and wages increase each year. High inflation (above a few percent) can be a bad thing, and suggests a government lacks control over the economy. Unemployment is the number of people who cannot find work. Economic structure shows the division of a country's economy between primary, secondary and tertiary industries.

Demographics study population growth and structure. It compares birth rates to death rates, life expectancy and urban and rural ratios. Many LEDCs have a younger, faster-growing population than MEDCs, with more people living in the countryside than in towns. The birth rate in the UK is 11 per 1,000, whereas in Kenya it is 40.

POVERTY
Reasons for poverty
1. over population India is seventh largest country in the world according to the area but 2nd largest in the population and their is not a big difference of population in first China and second India. due to a very big amount of population we are facing the scarcity of resources and we cannot feed population in a proper way. The demand of goods is always greater then the availability or production in our country.

2. Low production agriculture Agriculture is the very old tradition of our country but now we are not able to produce the amount by which we can fill the stomach of all the Indians properly and the main reason for low production in agricultural field is use of old

agricultural technique, no proper capital investment, no proper irrigation facilities etc.

3. Under utilized resources We are even not optimizing the resources which we are having properly our young and innovative youth is seeking jobs but not finding the appropriate packages many proper graduated and hard working people are not getting appropriate jobs so they are migrating to the foreign countries and we are loosing an innovative Indian.

4. Low rate of economic development The rate of development of our country is low as compared to other nations and we are not growing at a proper rate. Our growth rate is less then the required levels and this developed a gap between level of availability and requirement of goods and hence the result is poverty. 5. Rise in prices of goods The rise in prices of a common man's basic needs had made the life of a common man difficult and this makes very difficult to meet the minimum needs for lower income groups.

6. Unemployment The number of unemployed Indians is continuously increasing and thus creating an army of unemployed Indian youth. The number of job seekers is increasing continuously but the job opportunities are not increasing at the rate at which should they increase and the result of this is poverty in India.

7. Shortage of capital and able entrepreneurship

For boosting up the growth of the country these two things are must and the major problem is that we are lacking in these two things and hence the result is inappropriate growth rate of our country.

8. Social factors Today in 21th century also we are socially backward as we were 100 years ago today we use to discuss about the casts, religion etc of each other we don't think about of working together.

9. Corruption Corruption is one of the biggest problem of our country and is one of the biggest reason for poverty in India the corrupted leaders etc had eaten up all the money of our country.

10. Political factors The development plans in India are made with a favor that the people who are making the particular plans should also get the benefit and profit from the development plans why don't they think that the development plans are made for the people who are underdeveloped not for the one who are living luxurious life.

Poverty reduction programmes in india

1 Jawhar Gram Samridhi Yojna 2 National Old Age Pension Scheme(NOAPS) 3 National family Benefit Scheme(NFBS) 4 National Maternity Benefit Scheme 5 ANNAPURNA 6 Integrated Rural Development programme 7 Rural Housing-Indira Awaas Yojana(IAY) 8 Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)

The National Rural Employment Guarantee Scheme (NREGS): Swarnjayanti Gram Swarozgar Yojana(SGSY): Swarna Jayanti Shahari Rozgar Yojana(SJSRJ) JAWAHAR GRAM SAMRIDHI YOJANA (JGSY) EMPLOYMENT ASSURANCE SCHEME (EAS)