Page 8 - DECO303_INDIAN_ECONOMY_ENGLISH

Unit 1: Nature of Indian Economy

the people save since the per capita income is low and there is mal-distribution of income Notes
and wealth the ability of the people to save is very low in under developed countries for
which capital formation is very low.
6. Poor Technology: The lever of technology is a common factor in under developed economy.
India economy also suffers from this typical feature of technological backwardness. The
techniques applied in agriculture industries milling and other economic fields are primitive
in nature.

7. Backward Institutional and Social Framework: The social and institutional framework
in under developed countries like India is hopelessly backward, which is a strong obstacle
to any change in the form of production. Moreover religious institutions such as caste
system, joint family universal marriage affects the economic life of the people.
8. Underutilization of Resources: India is a poor land. So our people remain economically
backwards for the lack of utilization of resources of the country.
9. Price Instability: Price instability is also a basis feature of Indian economy. In almost all
the underdeveloped countries like India there is continuous price instability. Shortage of
essential commodities and gap between consumption aid productions increase the price
persistently. Rising trend of price creates a problem to maintain standard of living of the
common people.

Did u know? Punjab is also the second-largest producer of cotton and blended-yarn and
the third-largest producer of mill-made fabrics in India. The advance estimates for 2008-09
projects Punjab state economy to be growing at the rate of 6.26%.

Caselet Condition of Labourers in Malwa

alwa is the prime agricultural belt of Punjab. In this region, agriculture is the
principal source of livelihood. The role of the secondary and tertiary sector is
Mminimal in providing alternative employment. The influx of migrant labour is
also quite substantial in this region. It grew phenomenally during the 1980s and 1990s and
has begun to cause unemployment among local agricultural labourers. The impact of
mechanization, particularly the role of combine harvesters in paddy and wheat harvesting,
also leads to unemployment among local agriculture labourers.
This region is different from the Majha and Doaba region. The phenomenon of Siri and
attached labour is still strongly embedded in the agrarian structure of this region. Migrant
labourers are gradually replacing locals as attached labourers.
Both the Siri and attached labourers are deeply indebted and find it difficult to extricate
themselves from the debt trap. Indebtedness and impoverishment lead to a high incidence
of suicides both among farmers, as well as agricultural labourers. The number of days of
employment of a casual agricultural labour is limited to 70 days in Sangrur district and
152 days in Faridkot district. In the absence of alternative sources of employment, labourers
become severely dependent on local landowners and moneylenders to meet their survival
needs.
Source: http://www.im4change.org/docs/49009-agriculture.pdf

LOVELY PROFESSIONAL UNIVERSITY 3