Challenges Before Indian Economy


 
 
Concept Explanation
 

Challenges Before Indian Economy

Challenges Before Indian Economy: Despite vigorous economic expansion, India is still facing many challenges like widening the economic inequality across the nation, etc. According to Goldman Sachs' prediction, India will continue to linger a low-income nation for many more decades with per capital reasonably less than it is in other BRICS counterparts. However, overall the Indian economy will supersede the US by the year 2043, if the Indian government takes steps to meet the challenges. Some of the myriad challenges that India is still grappling with are mentioned here under:

  • Population explosion: The biggest monster, which is eating up into the success of India, is population explosion. The total population as per Census 2011 is 1,210,193,422. The growth rate of population is 17.64% in 2011 as compared to 21.15% in 2001 i.e. a decline of 3.9% but still such a vast population puts lot of stress on economic infrastructure of the nation. Thus, it becomes urgent for India to control its burgeoning population.
  • Poverty: Poverty, as a challenge, is no less important. Though the government has made a number of efforts to combat this evil, yet some major steps are needed to be taken to eliminate poverty from India.
  • Unemployment: The increasing population, mass illiteracy and no proper linking of the educational system with the job market are some of the major reasons for widespread unemployment in India. This problem becomes acute in rural areas, which but contain around 70% of India's population. The huge population is pressing hard on economic resources as well as job opportunities. Though the  Indian government has started varions schemes such as Jawahar Rozgar Yojna and Self Employment Scheme for Educated Unemployed Youth (SEEUY), these are proving to be a drop in an ocean.
  • Rural urban divide: Gandhi once said, "Real India lives in its villages", but today, despite the dreams of some of our legends, rural India has been relegated to the backseat. All the policies and programmes for development accorded only the secondary importance to these regions, if not forgotten completely, Consequently, these regions have been suffering from problems like mass unemployment, hunger, low standard of living, etc. This in turn compels these poor people to migrate to ensure their survival. Thus, it can be said that most of the problems of India, if not all, could be  solved by paying adequate attention to these rural areas. Hence, there is a need to ensure balanced development of Indian economy.
  • Dependence on monsoons: Though India is primarily an agricultural country and this sector is still the largest cmployer, when it comes to security of living, India still lags far behind. Despite the efforts made in the planning era to strengthen and revamp the agricultural sector, it is still suffering from various problems, among which dependence on monsoons and inadequate irrigational facilities are the major ones. India, being an agricultural country cannot afford to ignore its agricultural sector. All these challenges can be overcome by the sustained and planned economic reforms.
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