Q.Explain the features of developing countries with special reference to India.

A developing (or less-developed) country is one that has not yet achieved a high level of industrialisation, income and human welfare. India displays almost every classic feature of such an economy — low per capita income, agricultural dependence, population pressure, poverty, inequality, unemployment, low capital formation, technological backwardness and weak human development.

A developing country is an economy in transition — it has started modern growth but is still held back by structural weaknesses. The AP Intermediate 2nd-year Economics syllabus, whose framing closely follows the NCERT/CBSE commerce curriculum, treats India as the leading illustration of a developing economy.

Main features, with reference to India:

1. Low per capita income. Average income is far below that of developed nations, which limits savings, investment and living standards.

2. Dependence on agriculture and the primary sector. A very large share of the workforce (close to half in India) depends on agriculture, even though its share in national income is much smaller, reflecting disguised unemployment and low productivity.

3. Rapid population growth. High birth rates with falling death rates create population pressure, raising the dependency burden and eating into gains in output.

4. Widespread poverty and inequality. A large section of the population lives below the poverty line, and income and asset (especially land) ownership is highly unequal.

5. Unemployment and under-employment. Open unemployment, seasonal unemployment and disguised unemployment are all present, especially in rural areas.

6. Low rate of capital formation. Low incomes mean low savings and low investment, which keeps the economy in a vicious circle of poverty.

7. Technological backwardness. Use of outdated techniques, especially in agriculture and small industry, keeps productivity low.

8. Poor infrastructure. Shortfalls in power, transport, irrigation and communication slow down development.

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