A.1. Definition of the term Economy
The term ‘Economy’ today refers to the overall economic framework of a region or nation. It encompasses the systems involved in the production, distribution, and consumption of goods and services between various economic agents.
- A more straightforward way to define an economy is: the wealth and resources of a country or area, particularly with respect to how goods and services are produced and consumed.
- India, with a population exceeding 1.3 billion, is a diverse and rapidly progressing nation, making significant strides in various sectors of its economy.
- The Indian economy is the fifth largest in the world by nominal GDP, and it is characterized by a mixed economic system that includes elements of both socialism and capitalism.
- Over the past few decades, India has experienced rapid economic growth, and it is now considered to be a major player in the global economy.
- However, despite this growth, the country still faces numerous challenges, including high levels of poverty, inequality, and unemployment.