Indian Economy & Its Types
Highlights of Indian Economy:
- Economy is a framework, within which economic activities are carried out which could be production, investment, consumption, etc.
- Indian Economy is the 10th Largest Economy in the World.
- Indian Economy is the 3rd Largest by Purchasing Power Parity which is shortly named as PPP Model.
- India is the 17th Largest Exporter & 10thLargest Importer in the World.
- Indian Economy is termed as Mixed Economy, due to involvement of both Public Sector and Private Sector.
- According to International Monetary Fund Report India’s Rank is 10th by nominal GDP & 133th by using PPP Model.
What Do You Mean By Economy?
- Economy is the term which consists of Production, trade of distribution and consumption of limited goods & services by different agents in a given Geographical area. The Economic agent can be an individuals, organisations, businesses, etc.
What are the Types of Economy?
Generally we can divide Economy in various which is listed here:
- Mixed Economy: It is that types of Economy which consists of a combination of both Public Sector & Private Sector. In Indian Economy is a mixed Economy. The Main role in Indian Economy is incorporated by governmental involvement in market based economy.
- Traditional Economy: It is that types of Economy in which there is very little role played by Government. Allocation of resources here is based on rituals, habits or customs.
- Socialist Economy: It is that types of Economy in which all important decisions related to production, exchange and consumption of goods and services are taken by the government only. Best Example of Socialist Economy is Soviet Union.
- Free Market Economy: It is that types of Economy in which Government plays a very minor role. In this types of economy the economic decisions are based on market principles.
- Capital Economy: It is that types of Economy, the central problems of economy i.e. there is no interference by the government and price mechanism operate through the forces of demand and supply. Best Examples of Capital Economy is “The USA”. In USA the role of government is minor and thus it is one of the best example.
- Green Economy: Green Economy is an economy or economical development model based on sustainable development and a knowledge of ecological economics. It is one that results in improved human well-being and social equity, while significantly reducing environment risks and ecological scarcities.