Challenges faced by the Indian economy from "summary" of Oswaal NCERT One For All for UPSC & State PSC's Indian Economy Classes-9 to 12 (Old & New NCERT Edition) (For 2023 Exam) by Oswaal Editorial Board
The Indian economy faces several challenges that hinder its growth and development. One of the major challenges is the problem of unemployment. The lack of job opportunities for the growing workforce leads to underutilization of human resources and affects the overall productivity of the economy. This issue is further exacerbated by the mismatch between the skills possessed by the workforce and the skills demanded by the market. Another significant challenge is the issue of poverty. Despite several poverty alleviation programs and schemes, a large section of the Indian population still lives below the poverty line. Poor infrastructure, lack of access to basic amenities, and unequal distribution of wealth contribute to the persistence of poverty in the country. In addition to unemployment and poverty, the Indian economy also faces challenges in the form of inflation and fiscal deficit. Inflation erodes the purchasing power of the common man and makes essential goods and services unaffordable. On the other hand, a high fiscal deficit puts pressure on the government's finances and can lead to crowding out of private investment. Moreover, the Indian economy grapples with issues such as inadequate infrastructure, inefficient bureaucracy, and red tape. The lack of proper infrastructure hampers the smooth functioning of businesses and impedes economic growth. Inefficient bureaucracy and red tape create hurdles in the ease of doing business, discouraging both domestic and foreign investors. Furthermore, environmental degradation poses a significant challenge to the Indian economy. Rapid industrialization and urbanization have taken a toll on the environment, leading to pollution, deforestation, and depletion of natural resources. Addressing these environmental challenges is crucial for sustainable development in the long run.- The challenges faced by the Indian economy are complex and multifaceted. Addressing these issues requires a concerted effort from the government, private sector, and civil society. By implementing effective policies and programs, India can overcome these challenges and achieve inclusive and sustainable growth in the future.
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