The following are the feature of Indian economy.
(a) Underutilization of resources: India is endowed with rich natural resources and huge manpower but due to lack of capital and knowledge technology, the resources have not been utilized.
(b) Agriculture—main occupation: The majority of population depends on agriculture due to underdeveloped manufacturing sector and service sector.
(c) Low rate of capital formation: Capital formation in the form of roads, dams, bridges, machinery, tools and equipment depends upon the savings of the country. But savings depend upon the national income, which is very low.
(d) Population pressure: Due to rapidly growing population, the comparative national product is very low. This restricts the economic development by creating problems of unemployment and underemployment.
(e) Technological backwardness: Due to lack in technology, production is carried out using intensive labour. Less of capital, like machinery, tools and equipment, is used as compared to labour, which hampers productive capacity of the country.
(f) Unfavourable social and religious conditions: In India, there are social and cultural institutions like caste system, ** family system, laws of inheritance and succession, and child marriage. These institutions are a serious hindrance to our economic growth. These institutions * initiative, check mobility of labour and encourage the birth rate.
