C. Indian Economy and issues relating to Growth
The Indian economy, one of the world’s fastest-growing, stands at the crossroads of leveraging its demographic advantage and overcoming structural challenges. Several issues need to be addressed to sustain its growth trajectory.
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Key Issues: |
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Economic Reforms |
Implementation of reforms such as GST and FDI liberalization has boosted economic activity, yet uneven execution presents hurdles. |
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Employment |
Harnessing the demographic dividend requires significant job creation and skill development to match industry needs. |
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Agriculture |
The sector, crucial for employment, faces productivity challenges due to small landholdings, inadequate technology access, and dependence on monsoon |
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Infrastructure: |
Despite progress, gaps in the quality and reach of infrastructure like roads, railways, and power remain, affecting business efficiency. |
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Financial Sector |
Addressing non-performing assets and strengthening the banking sector are essential for financial stability and growth. |
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External Factors |
Global economic conditions and oil price volatility impact India’s growth prospects significantly. |
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Environmental Concerns |
Balancing economic growth with environmental sustainability and addressing issues like pollution and resource depletion is critical. |
To realize its full potential, India must navigate challenges related to employment, agriculture, infrastructure, and financial health, all while ensuring environmental sustainability. Strategic policy-making focused on inclusivity and sustainability will be pivotal in achieving comprehensive growth and development.