A developing economy is an economy leading to development, though all the economies of the world fall into this category, the indicator is used to indicate an economy that is trying to move from a backward state to high growth. For example, India, China, Brazil, etc. are headed for development.
Basic features of the Indian economy as a developing economy-
The Indian economy has been a prosperous and developed economy since ancient times. In ancient and medieval India, the dealings with various countries were beneficial. But as soon as it came under British rule in the 18th century, the country became a true figure of poverty. The condition of the Indian economy was extremely pathetic at the time of independence. At the same time, under the leadership of Pandit Nehru, the Indian economy started moving on the path of development from a planned search to a mixed economy, followed by a period of liberalization from 1991, making the present-day Indian economy the third-largest economy in the world and Its form is also changing from mixed economy to capitalist economy and developing economy to developed economy. Although the predominance of the Indian economy is inequality in the distribution of wealth and income, etc., it corresponds to an underdeveloped economy, but in the last few decades its rapid growth has started and he has given Prof. W. W. The third of the five stages of economic prosperity proposed by Rostov, ie "Tack of Self", was achieved by India only in 1952 and now the economy of the country is moving towards maturity. The following facts illustrate the developing nature of the Indian economy-
(1) Development oriented economy - After independence, the economic planner was made the basis of development in India, which started in 195156
Basic characteristics such as low per capita income, agriculture. It had a growth rate of 3.6. The 12th Five Year Plan 2012-2017 is currently underway. In which the rate of growth has been targeted at 8 percent.
(2) Continuous growth in national and per capita income - The laxity of almost two centuries had completely destroyed the economy of India. But after the independence, the strategy of economic development that India adopted, there has been a steady increase in national income and per capita income. The national income and per capita income at current prices in the country in 1950-51 was Rs 8574 crore and Rs 248.80 respectively, which increased to Rs 123: 41 lakh crore and Rs 86879 respectively in the year 2014-15 (First Amendment).
The growth rate in the national income has been recorded from 1950-51 to 2014-15, which is the driver of the developing state of the Indian economy.
(3) Infrastructural change in the economy - Changes in the structure of the Indian economy are reflected in the post-independence period. If the contribution of the primary, secondary, tertiary sectors to the total national product is studied in chronological order, it is clear that the contribution of the primary sector, especially agriculture, has decreased continuously, while the secondary and tertiary sector has increased continuously. Where the contribution of agriculture in 1950–51 was 58.8 percent. The same has come down to 17.5 percent in 2014-15. The 1950–51 contribution of the secondary and tertiary sectors is 15 percent and 28.5 percent, which has increased to 31.8 percent and 50.7 percent respectively in 2014-15. This highlights its evolving nature.
If the changes related to the ownership of land are studied, then, of course, a remarkable change in this direction, the government has abolished the Zamindari system and has given the farmers ownership of their land. Along with consolidation, increase the base of sources. There has been an effort to have an independent India.
(4) Development of basic industries - Before independence, the industries of the country were destroyed by the British government in the considered ways and the number of basic industries was also negligible. After independence, special attention was paid to the development of basic industries in the Second Five-Year Plan, which has resulted in the rapid development of industries like iron steel, heavy engineering, chemicals, rail engines, heavy electrical equipment, petroleum products, fertilizer, etc. in the country. Due to which the industrial scenario of the country is changing.
(5) Expansion of social overhead capital- Social overhead means transport system, energy production, irrigation system, health and education facilities, etc. Their development makes the economy more prosperous as well as more convenient for human life. This area of independence has certainly developed rapidly.
(6) Development of banking and other financial institutions - After independence, there have been significant changes in the banking system and financial structure of the country.
Commercial banks, as well as cooperative banks, are continuously increasing their business. The area has developed a lot since the Bank's National Karan (1969). The facilities for obtaining loans and saving have increased from them. In fact today 99 percent of commercial banks of the country are public
Belong to the region. In recent years, the new government has also started encouraging the establishment of private and foreign banks under the policy of liberalization. Also, the insurance sector was also opened to the private sector.is.
(7) Increase in savings and capital formation rate - The basis of economic development is considered both saving and increase in the rate of capital formation. Both have increased substantially in the planning period in India. The savings rate and the rate of capital formation as a gross domestic product were 8 percent and 10.2 percent respectively in the year 1950-51, which has increased to 30.1 percent and 34.8 percent respectively in the year 2012-13.
(E) Increase in production- During the planning period, agricultural production, basic industries, iron and steel, heavy engineering, chemical, fertilizer, etc. have all increased in a huge amount. The agricultural sector recorded unprecedented growth rates due to the Green Revolution in the 60s. The total food production in the country was 50 million tonnes in the year 1950-51, which has increased to 265 million tonnes in the year 2013-14.
All the above traits testify to the development-oriented nature of the Indian economy and the healthy trend of both its direction and condition.
It makes sense, but in the planning period, the aspects of the Indian economy have also come to light. Such as increasing economic inequality, poverty, uneven distribution of wealth, rising unemployment, economic corruption, the concentration of economic resources, etc. Therefore, on equal economic distribution and equal expenditure,
The benefit of economic development should be extended to all sections by formulating economic policies, only then the developing economy and welfare in India
The two streams of the economy will flow together and the day is not far when India can register its name in the category of developed countries.