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

A developing country is in transition from a backward to a modern economy. India shows the classic features: low per capita income, mass poverty, dependence on agriculture, high population growth, unemployment, weak human capital, low capital formation and a dualistic structure.

This is a core topic of AP Intermediate 2nd year Economics, and the AP syllabus here aligns closely with the NCERT/CBSE treatment of development economics. The main features of a developing country, illustrated with India, are explained below.

1. Low per capita income. The average income of citizens is low compared with developed nations, which keeps saving and investment low. India's per capita income, though rising, is still far below that of advanced countries.

2. Mass poverty and inequality. A large share of the population lives below or near the poverty line, and income and wealth are very unequally distributed between the rich and the poor and between regions.

3. Over-dependence on agriculture. A large proportion of the workforce depends on agriculture and the primary sector, even though their contribution to national income is relatively small. This shows an under-diversified economy.

4. Rapid population growth. High birth rates with falling death rates lead to fast population growth, raising the dependency burden and eating into the gains of economic growth.

5. Unemployment and disguised unemployment. Open unemployment in towns and disguised and seasonal unemployment in villages are widespread because jobs grow slower than the labour force.

6. Weak human capital. Levels of literacy, education, skills, nutrition and health care are low, which reduces labour productivity.

7. Low capital formation. Low incomes mean low savings and low investment, so the economy grows slowly - the "vicious circle of poverty."

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