What are salient features of developing economy?

Answer 1

These economies are the mid-point between developed and undeveloped economy. It has got the features of both the developed and undeveloped economies. Developing economies refer to India, Pakistan, Brazil, Indonesia and etc.

Important features

Dominance of agricultural sector:

Major source of income in case of undeveloped and developing economies is agriculture. A large section of population earns living through agriculture. Agriculture is the primary sector of these economies

Small and large scale of production:

Both the private and public sectors exist in the economy side by side. Goods are produced on large and also on small scale by public and private sectors.

Production for self-consumption:

A large amount of goods and services produced is consumed by the producers themselves. Majority of farmers grow props for their own consumption.

Illiteracy:

The important feature of developing economy is its illiteracy. Though efforts are made to eradicate illiteracy but there is still considerable illiteracy and unskilled labour.

Under utilisation of resources:

Developing economies have got significant amount of Natural Resources and large number of labour force. Due to lack of technical knowledge, natural resources are not discovered and fully utilised.

Preference to labour intensive industries:

Unemployment and underemployment are also the problems of developing economies, so small scale and cottage industries which absorb large number of hands are preferred.

Vicious circle of poverty:

Poverty is the vicious problems of developing economy due to poverty there is low income, lesser investment, lesser product in and the result is the poverty again.

Our Indian economy is also termed as developing economy. We have achieved considerable amount of industrialisation at faster rate. In certain industrial and technological field we are at par with developed economies