Which of the following correctly explains that India is an underdeveloped economy?

Q. Which of the following correctly explains thatIndia is an underdeveloped economy?

1. Inequitable distribution of income

2. High dependency ratio

3. Slower rate of increase in national income

4. Change in banking and financial sector

Select the correct answer using the codes given below:

(a) 1, 3 and 4

(b) 1, 2 and 4

(c) 1 and 4

(d) All of these

(e) None of these

Answer: e

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Inequitable distribution of income, high dependency ratioand slower rate of increase in national income correctlyexplain that India is an underdeveloped economy whilechange in banking and financial sector is not among thecharacteristics of underdeveloped economy.

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