i. The Indian economy is a developing economy. It has not yet reached the level of economic development seen in America and Europe.
ii. The Indian economy is a mixed economy in the sense that both private sector and public sector coexist and participate in the production process.
iii. It is characterised by high population density and population growth.
iv. About one-third of the population live below poverty line. ‘Vicious cycle of poverty’ operates in many sectors of the economy.
v. There is high level of unemployment and underemployment. In addition, there is ‘disguised unemployment’ in the agricultural sector.
vi. The level of technology used in production process is low in many sectors. Modern technology has not been adopted in all sectors of the economy.
vii. There is a shortage of physical and economic infrastructure. Transportation (roads, railways, airlines), power (electricity, gas), and communication (telephone, Internet) have not reached all parts of the country. Even some parts of the country do not have provisions for schools, colleges, hospitals, and safe drinking-water supply.