Saumya MishraCSE 2024 · 179 wordsTheir whole copy
Opening · a figure
India is the most populous country of the world (UNFPA) and is the 3rd largest economy in the world, reflecting its population prowess.
Role of domestic demand
Body · points
Fuels production of different products → rising demand of services → growth of service sector industry
Rise in purchasing power of the population → rise in demand of products.
Rising urbanization → rising demand especially of convenience food → fuels FPI industry.
India's domestic consumption is higher than exports of many products (→ food-grains, milk (only 0-5% exported))
Limitation
- Income inequality ↳ 1% of population holds 40% wealth (oxfam)
- Rural-urban divide Cities contribute 60% to GDP.
- Demand of foreign products or high domestic demand leads to imports
- edible oil - India 4th largest producer yet 3rd largest importer
Other factors
- Level of income
- Quality of life
- Infrastructure and logistical efficiency
- Growth of agriculture and its productivity
- Expansion of manufacturing sector and its employment capacity
Close · a summary
(Currently provides only 11-14% employment)
Therefore a diverse and holistically strong economy fuels economic growth
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