The main characteristics of the Indian economy are:
A. Market economy
B. Mixed economy
C. Developing economy
D. Agrarian economy
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → B, C, D
A. Market economy Incorrect. In a pure market economy, what is produced and at what price is left wholly to private firms and the market. India gives the state a large role through the public sector and planning, so it is not a pure market economy.
B. Mixed economy Correct. The public and private sectors work side by side: the government runs the railways, defence production and many large undertakings, while most farms, shops and industries are privately owned.
C. Developing economy Correct. India's income per head is low compared with the developed countries, and poverty and unemployment remain, but output and incomes are growing; this marks a developing economy.
D. Agrarian economy Correct. Agriculture still employs the largest share of India's workforce, close to half, and a large part of the population depends on it for a living.