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B.B.A. LL.B. (Five Years) Sem 2 Economic Development in India 2017 Dec Question Paper with Solutions

KSLU Solved Question Papers

Economic Development in India

Previous Year Question Paper with Solution

B.B.A. LL.B. (Five Years) · Sem 2

2017 Dec Examination

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Mumbai

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First published on munotes.in on 21 October 2026.

Published by munotes.in, Mumbai.

Model answers written and edited by the munotes.in editorial desk.

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The University does not publish an official answer key for this paper. The answers in this volume are model answers, written to show how a full-mark answer is built. They are a study aid, not an authority on what an examiner marked.

The question paper reproduced here is the paper as set by Karnataka State Law University at the 2017 Dec examination.

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Contents

The questions below are the paper as Karnataka State Law University set it at the 2017 Dec examination, in the order it was set.

MarksPage

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The Paper as Set

The questions in this volume are the questions asked at the 2017 Dec examination, reproduced as Karnataka State Law University set them, in the order it set them. Long reading passages are shortened to their first and last lines and our summary; the original paper prints them in full. Only the answers are ours. See the original question paper.

Duration 3 hours  ·  Total marks 100  ·  13 questions answered

How to use this volume

Solve the paper first, under exam conditions and against the clock. Then read the answers here and mark your own. Reading a solution before attempting the question feels productive and teaches very little, because recognising an answer is not the same as being able to write one.

Read the original question paper

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Q1Explain various features of India as a developing economy.[16]

Answer

For full marks, cover: what a developing economy is and where India stands in the World Bank's grouping; the features that show India is still a developing economy (income, dependence on farming, productivity, unemployment, poverty, women's work, the informal sector, population, human capital, inequality, technology and infrastructure); the features that show it is developing fast (growth, structural change, investment, food, trade, services, financial inclusion, the demographic dividend, institutions, the external position), each with an official figure where one exists; a then-and-now table; the tasks ahead; and a conclusion.

Introduction

A developing economy is one whose income per head is still low or middling by world standards, but which is growing and changing its structure. Its people are moving from farms to industry and services, from villages to towns, and from traditional to modern methods. The word "developing" carries two ideas: the country is not yet developed, and it is on the way.

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India fits this description well. The World Bank places it in the lower-middle income group for its year 2026-27 (FY27). That group covers countries with income per head of USD 1,176 to 4,635 in 2025. At the same time India is one of the fastest-growing large economies. Its features can therefore be studied in two groups.

I. Features that show India is still a developing economy

  1. Modest income per head. Per capita GDP at current prices was about Rs. 2,43,803 in 2025-26 (provisional estimates of June 2026). The total economy is large, but it is shared among a very large population. Income per head remains a small fraction of that in high-income countries.
  2. Heavy dependence on agriculture for a living. The share of workers in agriculture was 58.2 per cent in 2001 and 54.6 per cent in 2011 (Census). It was still 43.0 per cent in 2025 (Periodic Labour Force Survey). The fall is real but slow. In 2011, for the first time, agricultural labourers outnumbered cultivators.
  3. Low productivity in farming. Agriculture gave only about 18 per cent of gross value added in 2025-26 while employing 43 per cent of workers. Output per farm worker is therefore well under half the average for the economy as a whole. Small holdings, dependence on rain and limited mechanisation keep yields low.
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  1. Unemployment and underemployment. Many people work on family farms or in tiny units where they add little to output. Joblessness is highest among the educated young. Youth unemployment was 9.9 per cent in 2025 (PLFS).
  2. Poverty. NITI Aayog estimates that multidimensional poverty was 55.3 per cent in 2005-06 and 14.96 per cent in 2019-21. Its estimate for 2022-23 is 11.28 per cent. The decline is large, but the numbers who remain poor are still large in absolute terms.
  3. Low participation of women in paid work. Only 40.0 per cent of women aged 15 and above were in the labour force in 2025, against 79.1 per cent of men (PLFS). This is a common feature of developing economies.
  4. A vast informal sector. Most enterprises are micro units run by families. Over 9 crore enterprises had registered on the Udyam portals by August 2026 (PIB). Workers in such units rarely have written contracts or social security.
  5. Pressure of population. The United Nations put India's population at about 1.44 billion in 2024. Land, water, housing and public services are under heavy pressure.
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  1. Gaps in human capital. The literacy rate was about 73 per cent at the Census of 2011 (Ministry of Education). Learning levels, skills and health care remain uneven across States and social groups.
  2. Inequality and regional imbalance. Growth and investment are concentrated in a few regions. In 2025-26 Maharashtra and Karnataka together drew more than half of India's FDI equity inflows (DPIIT). Many States in the north and east lag behind.
  3. Technological dualism. Modern technology in space, software, vaccines and digital payments exists beside bullock carts, hand tools and old looms.
  4. Infrastructure gaps. Roads, railways, ports and power have improved fast. Yet rural roads, urban transport, storage and water supply still fall short of need.
  5. Dependence on the monsoon. A large part of the cropped area still depends on rain. A weak monsoon lowers farm output and rural incomes, and it pushes up food prices for everyone. This exposure to the weather is a typical feature of a developing economy.

II. Features that show India is developing fast

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  1. High and steady growth. Real GDP grew by 7.3 per cent in 2023-24 and 7.2 per cent in 2024-25. It grew by about 7.8 per cent in 2025-26 (National Statistics Office, August 2026). Few large economies grow as fast.
  2. Structural change towards services and industry. In 2025-26 services gave about 54 per cent of gross value added at current prices. The secondary sector gave about 26 per cent (provisional estimates of June 2026). The economy is no longer mainly agricultural in its output.
  3. A high rate of investment. Gross fixed capital formation was 31.9 per cent of GDP in 2025-26. With stocks and valuables, gross capital formation was about 35 per cent (provisional estimates of June 2026). This high rate of saving and investment supports fast growth.
  4. Self-sufficiency in food. Foodgrain output rose from 50.82 million tonnes in 1950-51 to a record 357.73 million tonnes in 2024-25 (Ministry of Agriculture). The food shortages of the 1960s, when India had to import grain, are long past.
  5. Rapid growth of foreign trade. Merchandise exports were about USD 1.27 billion in 1950-51 (Economic Survey). They reached USD 441.8 billion in 2025-26. Total exports of goods and services came to USD 863.1 billion that year (Ministry of Commerce).
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  1. A world-class services sector. India's IT and business services exports were about USD 100 billion in 2014-15. They reached an estimated USD 224 billion in 2024-25 (NASSCOM, cited by the Ministry of Electronics and IT). Software, consulting and back-office services from Indian cities now serve clients across the world.
  2. Financial inclusion and digital payments. About 59 crore Jan Dhan accounts had been opened by August 2026, 55.7 per cent of them held by women (PIB). UPI, launched in 2016, had 741 banks live on it by July 2026.
  3. A demographic dividend. A large share of the population is young and of working age. The United Nations expects India's population to peak at about 1.7 billion in the early 2060s. Until then the working-age population will keep growing.
  4. Reformed institutions. NITI Aayog replaced the Planning Commission on 1 January 2015. The Goods and Services Tax created a national market from 1 July 2017. Four Labour Codes came into effect on 21 November 2025.
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  1. A strong external position. In 1991 India's foreign exchange reserves had almost run out. By the end of March 2026 they stood at about USD 691 billion (RBI).
  2. A push for manufacturing. The Make in India programme was launched on 25 September 2014. Production Linked Incentive schemes now cover 14 manufacturing sectors, with an outlay of about Rs. 1.97 lakh crore (PIB). Mobile phones, electronics, pharmaceuticals and solar modules are among them. The aim is to build the labour-absorbing industry that developing economies need.

III. India then and now

IndicatorEarlierLatest
Foodgrain output50.82 million tonnes (1950-51)357.73 million tonnes (2024-25)
Merchandise exportsUSD 1.27 billion (1950-51)USD 441.8 billion (2025-26)
Share of workers in agriculture58.2 per cent (2001)43.0 per cent (2025)
Multidimensional poverty55.3 per cent (2005-06)11.28 per cent (2022-23)
IT and business services exportsUSD 100 billion (2014-15)USD 224 billion (2024-25)
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The table shows both sides of a developing economy: a large change already made, and a long way still to go on jobs and income.

IV. Tasks ahead

  1. Create productive jobs outside agriculture, especially in labour-intensive manufacturing.
  2. Raise farm productivity through irrigation, technology and better markets.
  3. Improve the quality of education, skills and health care.
  4. Bring more women into paid work.
  5. Spread investment and growth to the lagging States.

Conclusion. India is a developing economy in both senses of the word. It still shows the marks of under-development: modest income per head, heavy dependence on farming and low productivity. Underemployment, poverty, a large informal sector and wide regional gaps remain. It also shows the marks of rapid development: high growth, a shift to services and industry, and high investment. Food self-sufficiency, fast-growing trade and a strong digital economy add to this picture. Turning its young population into a skilled and fully employed workforce will decide how soon it becomes a developed economy.

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