Chapter 5

Basic features of Indian economy

 

1. When was India's first official census operation under Taken?

Ans. In 1881.

2. Name two economists who were engaged in estimation of national income.

Ans. (i) Dadavai Naroji

(ii) William Digbay.

3. Who presented the first budget of Independent India.

Ans. R. K. Shanmukham Chetty.

4. What is demographic structure?

Ans. Demographic structure describes the age distribution of a population and thereby is also called population age structure.

5. sons living per square kilometer of area within the territory. Mention any two factors influencing density of popu- lation.

Ans: (a) Better fertility of soil for cultivation.

(b) Better transport facilities.

6. Define the term urbanization.

Ans: Urbanization is the process by which a large number of people become permanently concentrated in relatively small areas. forming cities.

7. Write any two causes of urbanization in India.

Ans: (i) Industrialization.

(ii) Employment opportunities.

8. Write any two advantages of urbanization.

Ans: (i) The cost of living has risen.

(ii) The pollution in urban areas.

9. What do you mean by unemployment?

Ans: Unemployment is a condition in which skilled and abled Write any two reasons of unemployment in India,

10. What are the different types of unemployment?

Ans: The different types of unemployment are-

(i) Frictional unemployment.

(ii) Structural unemployment.

(iii) Cyclical unemployment.

(iv) Institutional unemployment.

(v) Demand deficient unemployment.

(vi) Voluntary unemployment.

(vii) Involuntary unemployment.

(viii) Disguished unemployment.

(ix) Seasonal unemployment.

(x) Vulnerable unemployment.

(xi) Technological unemployment.

11. What is structural unemployment?

Ans: Structural unemployment arises when there is a mismatch between the skills that workers in the economy can offer and skills demanded by employers.

(B) Short Questions and Answers :

1. Write any two social problems of urbanization.

Ans: (i) Poverty.

(ii) Unemployment.

2. Write any five causes of slow growth of national in- come in India.

Ans: (a) High growth rate of population is responsible for slow growth of national income in India.

(b) In India, low level of technology is mostly responsible for slow growth of national income.

(c) Poor industrial development is an important factor respon- sible for slow growth rate in India.

(d) The rate of savings and investment in India is also quite poor as compared to that of developed countries of the world.

(e) Poor development of infrastructural facilities have not yet been developed satisfactorily as per its requirement through- out the country.

3. State some problems of urbanization in India.

Ans: (i) Housing and slum development: Unregulated urban expansion results in insufficient housing leading to the mush-rooming of slums.

(ii) Infrastructure deficiencies: Urbanization causes inad- equate water supply, sewage systems, electricity etc. 

(iii) Environmental degradation : Urbanization causes water pollution as well as the loss of green spaces.

(iv) Social issues: Urbanization triggers social congestion and crime.

4. What is the main cause of demographic dividend?

Ans: Change in population structure occur due to

(i) Falling birth rate

(ii) Lower fertility rate

(iii) Increased longevity.

Falling birth rate and lower fertility rate will contribute to a reduction in expenditure, increased longevity will lead to an increase in the size of the working age population.

(C) Long Question and Answer:

1.  Explain the basic features of indian economy.

Ans: (a) Low per capita income: In India, the national tal per capita income is low and it is considered as one of and last features of underdevelopment. As per world bank the per capita income of India stood at only 460 in 2006 income

(b) Excessive dependence on agriculture: Out of total working population of our country, a very high proportion of is engaged in agriculture and allied activities, which contrib uted a large share in the national income of our country.

(c) High rate of population growth: The pressure of popŅ†. lation of our country is very heavy which has resulted from very high level of birth rates coupled with a falling level of death rates.

(d) Poor rate of capital formation: Both the amount of capital available per head and present rate of capital forma- tion in India is very low. It is due to weakness of inducement of invest and also due to low propensity and capacity to save.

(e) Inequality in the distribution of wealth: Maldistribution in income is the result of inequality in the distribution of assets in the rural areas.

(f) Low level of technology: Obsolete technique of produc- tion are largely being applied in both the agricultural and industrial sectors of our country.

(g) Lack of infrastructure: The transport and communica- tion facilities, electricity generation and distribution, banking and credit facilities, economic organization, health and educational institutions etc. are very poor in India.

(h) Poor quality of human capital: Mass illiteracy is the root cause of this problem which retards the process of eco- nomic growth of our country.

(i )Existence of unemployment and underemployment: Rapid growth of population coupled with inadequate growth of secondary and tertiary sector are responsible for occurrence of chronic unemployment and underemployment problem in our country.

(j) Under utilization of natural resources: Various types of natural resources, viz, land, labour, minerals, forest and power resources are available in sufficient quantity in vari- ous parts of our country. But due to various inherent problem like inaccessible region, primitive technique, shortage of capital remained largely underutilised.

 2. Explain the slow growth of national income in India.

Ans: The important causes of slow growth of national income in India are-

(a) High growth rate of population : Whatever increase in national income has been taking place, all these are cater away by the growing population which retards the growth of the country.

(b) Excessive dependence on agriculture: Excessive de- pendence on agriculture prevents quick rise in the level of national income as well as per capita income in the country.

(c) Occupational structure: Prevalence of high degree under employment among the agricultural labours and also among the work force engaged in other sectors are respon sible for slow growth of national income.

(d) Low level of technology: In India, low level of technology is also mostly responsible for slow growth of national income.

(e) Poor industrial development: The industrial sector in come. India failed to maintain a consistent and sustainable growth rate.

(f) Poor development of infrastructure: Poor infrastructural facilities resulting major hurdles in the path of development of agriculture and industrial sector of the country.

(g) Poor rate of savings and investment: The rate of sav- ings and investment is quite poor in India.

(h) Socio-political conditions: Socio-political conditions pre- vailing in the country is also not very much conductive towards rapid development. Peculiar social institutions like caste system, joint family system, fatalism, illiteracy etc. are also responsible for slow growth of national income of the country.

3. Explain the various demographic features of India's population.

Ans: Popdemographic features include density of population, age composition, sex composition, literacy rate, life expectancy rate, rural-urban ratio etc.

(i) Density of population : It implies the average number of persons living per sq. km of area within the territory of the country. In 2001, the density of population was 324 persons per-sq km. While in 2021, it raises to 423.88. Bihar has highest density of population and Arunachal Pradesh gas the lowest.

(ii) Sex composition: In India, the sex ratio is little less imbalanced. The number of females per 1000 males in India were 972 in 1901, 929 in 1991 and 943 in 2021.

(iii) Age composition: The age group of working population in India is considered as 15-60. In 2021, the population within the age group 0-14 years were 25.68%, between 15-64 years were 67.49%, 65 and over were 6.83%.

(iv) Rural urban composition: In India, majority of people lives in rural areas. But there is a gradual shift of population from rural to urban areas. The proportion of rural population were 72.2 percent in 2001, 68.84 in 2011 census.

(v) Life expectancy: The average life expectancy at birth in India has been gradually increasing. It was 60.9 years in 1998 and has raised up to 70.15 years in 2020.

(vi) Literacy rate: In India, the literacy rate was 34.5 percent in 1971, 74-04 percent in 2011 and in 2023, it is expected to be 77.7 percent.