Economy and Economic
Economy : It is the state of a country or region in terms of the production and consumption of goods and services and the supply of money.

Economics : It is the branch of knowledge concerned with the production, consumption and transfer of wealth.

Types of Economic System
There are four types of Economic System in the world:
  1. Traditional Economics System : A Traditional Economics System is the most traditional and ancient type of economics in the world. Products and Services that are direct result of their beliefs, customs, traditions, religion etc. are produced in this system. There are certain elements of a traditional economy that those in more advanced economies, such as Mixed.
  2. Command Economics System : In terms of Economic advancement, the command Economics system is the next step up from a traditional economy. The most important system is that a large part of the economics system is controlled by centralised power, often, a federal government.
  3. Market Economic System : A market economy is very similar to a free market. The government does not control vital resources, valuable goods or any other major segment of the economy. In the way, organizations run by the people determine how the economy runs, how supply is generated, what demands are necessary, etc.
  4. Mixed Economic System : A mixed up economic system also known as a Dual Economy, is a combination of Economic system, but it primarily refers to a mixture of a market and command economy. In this type of economics system the market is more or less free of government ownership except for a few key areas (usually not the resources that a command economy controls).
Characteristics of Indian Economy
Main characteristics and various aspects of Indian Economy are: 
  1. Agrarian Economy : Even after six decades of independence, agriculture plays a vital role in India's economy. 54.6% of the population is engaged in according to INDIA 2018 it contributes 17% to the country's Gross Value Added (current price 2015-16, 2011-12)
  2. Mixed Economy : India Economy is a unique blend of public and private sectors, i.e. a mixed economy. After liberalisation, India Economy is going ahead as a capitalist economy or market economy.
  3. Developing Economy : The following facts show that India Economy is a developing economy :
(a). National Income : According to the Advance Estimates (AE) 2017-18 of the CSO, Ministry of statistics and Programme Implementation released on 5 Jan 2018 - 
  • The nominal Net National Income also known as national Income  is likely to be 147.11 lakh crore during 2017-18, as against 134.08 lakh crore for the year 2016-17. In terms of growth rate of 9.7% in 2017-18 as against the previous year's growth rate of 11%.
(b) According to Planning Commission of Indian's report, India has 27 crore people or 21.9% population living below Poverty line (as on 31st March 2012).
-> Rural Poverty Ratio : 25.7% in 2011-12 Urban Poverty Ratio : 13.7% in 2011-12

(c) Level of unemployment is very high. Unemployment in India is mainly structural in nature because the productive capacity is inadequate to create sufficient number of jobs. There is an acute problem of disguised unemployment in the rural areas. A person is considered employed if he/she works for 273 days of a year of eight hours every day.
(d) Saving are low in India due to low national Income and high consumption expenditure. The low saving results in shortage of capital formation. Capital is an important factor of production.
(e) India is the second most populated country of the world. During 2001-11, population increased by 17.69%. with this high growth rate of population about 1.83 crore new person are being added to India population every year. According to 2011 census, the total Indian population stands at a high level of 121.07 crore which is 17.5% of world population India holds only 2.42% of total land area of the world.
India lacks in large industrialisation based on modern and advanced technology, which fails to accelerate the pace of development in the economy.

Important facts relating to characteristics of Indian Economy 
  • Primary sector of Indian is agriculture and the related sectors.
  • Secondary sector of Indian is related to industry, manufacturing, electricity etc.
  • Tertiary sector of Indian is related to business, transport, communication and services.
  • The best indicator of economics development of any country is per capita income.
The following factors are important in Economics Development of a developing country : 
  1. National Resources
  2. Capital gain
  3. Skilled labour force
  4. Surplus sale of agriculture
  5. Justified social organisation
  6. Political freedom
  7. Freedom from corruption
  8. Technological knowledge and general education
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