2. An Overview of Indian Economy
The Indian economy is characterized as a mixed economy that blends capitalism and socialism, functioning as one of the world's largest economies. It presents several distinctive features, including a developing status, a large population, and diverse sectors such as agriculture, industry, and services. Economic planning, the role of various sectors, and challenges such as poverty and unemployment are critical components discussed to highlight the complexity and dynamism of the Indian economy.
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2.9Government’s Role In The Economy
What we have learnt
- The Indian economy is a developing and mixed economy.
- Agriculture plays a vital role in employment and food security.
- The service sector is the fastest-growing segment contributing significantly to GDP.
- Economic planning involves strategic decisions for resource allocation.
- The Indian economy faces challenges like poverty, unemployment, and inflation.
Key Concepts
- -- Mixed Economy
- An economic system that incorporates elements of both capitalism and socialism, allowing for both public and private sector participation.
- -- Economic Planning
- The process through which government decisions regarding the allocation of resources and the direction of economic activities are made.
- -- Service Sector
- A segment of the economy focused on providing services, which is currently the fastest growing part of the Indian economy.
- -- FiveYear Plans
- Strategic plans deployed by the Indian government to ensure balanced economic growth initiated in 1951.
- -- NITI Aayog
- The governing body that replaced the Planning Commission in 2015, focusing on policy formulation and strategic thinking for India's economic development.
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