Exercises · Q9
Q.Define a developing economy. State any three characteristics of a developing economy.
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Start your 14-day free trial to unlock the full solution →A developing economy is one that is still undergoing the structural transformation from a low-income, agriculture-dominated economy toward a modern, diversified, higher-income economy — as distinguished from a developed economy, which has substantially completed this transformation and typically shows high per-capita income, advanced technology spread widely across sectors, and a services-dominated, high-productivity structure.
Three characteristics of a developing economy, applicable to India:
- Low per-capita income relative to developed economies, even where the country's total national income is large.
- Heavy dependence on agriculture for employment, even as agriculture's share of total output steadily declines relative to industry and services.
- Disguised unemployment and underemployment, especially in agriculture, where more workers are engaged than the land genuinely requires, so removing some workers would not reduce total output. …
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