The basic characteristics of underdeveloped countries discussed in research paper might as well be regarded as the obstacles to economic development. Even thought the general characteristics of under development are not common to all the under developed countries. Yet broad answer to the Question why a poor country is poor is implicit in these Characteristic. A number of these characteristics are both the causes and consequence of poverty, unemployment, education, health care, price control, agriculture, industry, service sectors. The above factors analyze the causative relationship that inhibits development. Each and every citizen of the country has a right to lead a decent life. Everybody must be able to fulfil minimum needs such as food, health care, housing basic education etc. However, India is a poor country where a large section of the population cannot afford all there. The matter is made worse due to the fact that our economy does not provide adequate employment Opportunities so that poor people cannot get jobs and earn income. Hence eradication of poverty and unemployment is a major challenge before the economy similarly higher quality of life is achieved by getting proper education and health care facilities. Agriculture is a basic occupation. It is the oldest business in the world and nearly two thirds of the population of the worlds is dependent on agriculture for it livelihood. Agricultural progress is normally regarded as a prerequisite of economic development. Agriculture is the foundation on which the entire superstructure of the growth of industrial and other sectors of the economy has to stand. Industrialization plays a crucial role in the economic development of a country. Industrialization means development of industries, mining power plants, transport etc. It is a continuous process of creation and growth of factors, mills, mines, power plants etc. In a developing country like India building up of industries is essential without the development of industries economic development is impossible in fact, industrialization. It is in this context service sector together play crucial role indeed services have grown an important in Indian economy. Today majority of population earn their livelihood from service sector. Service sector is ?Tertiary Sector? of Indian economy. It covers a wide range of activities like banking and finance, insurance, tourism and transportation, trading construction and related activities, Education, information technology, software services and on.