Economists opinion that India ia a rich country with poor people. Nature has provided vast resources to the country including ideal geographical location, vast stretching fertile and densely populated plains, luxuriously forested hilly areas, minerally rich plateau, numerous perennial rivers, a varied climate and fertile soils capable of growing a variety of agricultural crops and huge animals population. Abundant natural resources offers a high potential for development of industries and economy. Unfortunately, however India remains an under-developed nation, still struggling for development. India abounds in human resources too which unfortunately excel quantitatively but not qualitatively. 

The country has a low per capita income as well as production. It is considered one among the top 20 poorest countries of the world. In fact, the low standard of living of the people of India may be attributed to a number of factors including a fast growth of population and under-utilization of natural resources. 

Several political, social and cultural factors have been responsible for the under-utilization of natural resources. India suffered for about a century and a half, at the hands of British rulers who exploited the resources of India for their benefits only. Industrialization began quite late in India. Even after independence, Indians economy contribute to be adversely affected by the imperialist exploitation for a long time. Indians are basically fatalist and have little faith in labour and enterprise. An ever increasing population eats up all economic progress and development. Agriculture in India continues to be traditionally subsistence type. Industrial development is not commensurate with the need of population. The disparities in agricultural and industrial development have hampered balence regional development on the one hand, and have aggravated the existing problems of unemployment and poverty on the other. Economic growth with sharp disparities have widened the gulf between the 'haves' and 'have not's'. The rich became richer while the poor grew poorer.