1. Nature of Indian Economy

2. Indian Economy Indian Economy is a Combination of two words:
“Indian” refers to those concerning India.
“Economy” refers to all those activity & arrangements which the citizens of a country , either individually or collectively , undertake to satisfy their wants of food ,clothing , shelter etc.

3. We Will Study Indian Economy as
An Underdeveloped Economy.
An Mixed Economy.
A Planned Economy

4. Theories of Underdevelopment
Theory of Vicious Circle of Poverty
Theory of Low Income Level Equilibrium

5. Theory Of Vicious Circle Of Poverty:
Low Income
Low Saving
Low Investment
Low Productivity

6. Theory of Low Income Level Equilibrium
Unstable Equilibrium
Due to certain condition Per Capita Income tends to fall.
In Initial stages of development , factor lowering the income are more powerful.

7. Indian Economy as an Underdeveloped Economy: Features
Stagnant Per Capita Income.
Low Level of per capita Income.
Low standard of living.
Unequal distribution of Income & wealth.
Excessive Development of Agriculture.
Lack of Proper Industrialisation.
Lack of Proper Banking Facilities.
Less Development of Means of Transport.
Pressure of population.
Unemployment & Under –employment .
Lack of capital.
Underdeveloped Natural resources.
Outdated social Institution.
Low grade Human Capital.
Low Level of Technology.
Dualistic Economic Structure.

8. Indian Economy as a mixed economy
Public Sector.
Licensed Sector.
Private Sector.
Industries Development & Regulation Act, 1951.
Development Of Co-operative Sector.
Production Reserved For Small-sector Industries.

9. Indian Economy as a Planned economy
PLANS
PERIOD
1. First Five Year Plan
2. Second Five Year Plan
3. Third Five Year Plan
4.Fourth Five Year Plan
5. Fifth Five Year Plan
6. Sixth Five Year Plan
7. Seventh Five Year Plan
8. Eighth Five Year Plan
9. Ninth Five Year Plan
10. Tenth Five Year Plan
11. Eleventh Five Year Plan

10. Progress of Indian Economy during Planning
Economic Development Or Increase in National Income.
Growth of National Income is 3.6% in 1st Plan.
Growth of National Income is 5.0% in 5th Plan.
Growth of National Income is 9.0% in 11th Plan.
Increase in Per Capita Income.
Increase in Rate of Capital Formaiton.
Development of Industries.
Development of Infrastructure.
Social Services.
Increase in Employment.
Modernisation.
Development of science & Technology.
Less Cyclical Fluctuations.
Production According to Needs.
Balanced Economic Growth.

11. Dualistic Nature of Indian Economy
Economic Dualism.
Technological Dualism.
Sociological Dualism.

12. Sectoral Distribution of Indian Economy
Primary Sector
Secondary Sector
Tertiary Sector/ Service Sector