National Income, Nature and characteristics of Indian economy

                National Income

The total amount of goods and services produced within the nation during the given period (say one year) is known as national income.

       In other words, national income refers to the money value of all the goods and services produced in a country during a financial year.

     Nature of Indian economy

Since independence india has been a' Mixed Economy ' . India's large public sectors were responsible for rendering the country a ' Mixed Economy ' feature . Indian economy is basically based on the contribution of service sector ( currently provides 60% share of GDP ) and near about 53% of its population is dependent on the agriculture. As soon as the time is passing, the share of agriculture is decreasing and share of service sector is increasing. Currently india is called a developing economy of the world. 

             Indian economy overview was highly inspired by Soviet Union's practices post - independence. India's diverse economy encompasses traditional village farming , modern agriculture , handicrafts , a wide range of modern industries and a multitude of services. Services are the major source of economic growth , accounting for more than half of India's output with less than one third of its labour force.

     Characteristics of Indian

                     economy

Indian economy has the following characteristics:- 

1- Private ownership of means of production

2- Important role in market mechanism

3- Growth of monopoly houses

4- Presence of a large public sector along with free enterprise

5- Economic planning as a means of realizing overall national economic goals

1- Private ownership of means of production:- Agriculture and most of the industrial and service sectors are in the private hands.

2- Important role in market mechanism:- Market forces of demand and supply have free role in determining prices in various market . Government regulations and control over period of time have reduced a lot.

3- Growth of monopoly houses:- Over a period of time, many big business houses have come into being and have been growing such as Tatas , Birlas , Reliance and Infosys etc.

4- Presence of a large public sector along with free enterprise:- After independence, the government recognised the need to provide infrastructure for the growth of the private sector. Also it could not hand over strategic sectors like arms and ammunition, atomic energy and air transport etc, to the private sector . So public sector was developed on a large scale.

5- Economic planning as a means of realizing overall national economic goals:-  Economic planning has been an integrated part of the Indian economy. The planning commission lays down overall targets for the economy as a whole, for public sector and even for the sectors which are in the private hands like agriculture . The government tries to achieve the laid down targets by providing incentive to these sectors.