ISSUES FACED BY INDIAN ECONOMY
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One-liners from this chapter
Free sample — 8 of 65 rapid-fire Q&A cards.
What is the primary characteristic of a dual economy in India?
A dual economy refers to the coexistence of a modern, capital-intensive sector alongside a traditional, labour-intensive sector, creating structural imbalances in productivity and income distribution.
What is meant by 'disguised unemployment' in the Indian agricultural sector?
More workers engaged than actually needed for productive output.
Which term describes the situation where workers appear employed but contribute negligibly to output in agriculture?
This is called disguised unemployment or hidden unemployment, prevalent in India's agricultural sector where surplus labour exists beyond what is productively required.
What is the 'middle income trap' and is India at risk of falling into it?
Stagnation at middle income levels before reaching high income status.
What does the term 'jobless growth' mean in the context of the Indian economy?
Jobless growth refers to a scenario where GDP growth rate is high but employment generation remains inadequate, as seen in India's post-liberalisation period when capital-intensive industries grew faster than labour-intensive ones.
What is meant by 'energy deficit' as an economic constraint for India?
Shortfall in power supply restricting industrial and agricultural output.
What is the significance of the Current Account Deficit (CAD) as an issue for India?
Current Account Deficit arises when a country's imports of goods, services, and transfers exceed its exports, creating pressure on the rupee and requiring capital inflows to finance the gap, which can be destabilising if sustained.
What is the challenge of 'inclusive growth' in the Indian economic context?
Ensuring benefits of economic growth reach all sections of society.
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