Challenges For The Indian Economy

profile
Suparshva Dixit
Jun 12, 2019   •  6 views

India is considered as a developing mixed economy.Mixed economy means an economy which contains a mixture of private enterprises and public enterprises.India has been the fastest growing economy in the world but the current data on growth shows a slow down in the economy.The growth rate in the financial year 2018 for India was 7.1% but the growth in the first half of the current financial year has only been 6.8%.As per IMF (International Monetary Fund) in terms of GDP(Gross Domestic Product)India is ranked 7th in the list of countries, the nominal GDP touching $2.716 trillion.Although the growth rates for India has been magnificent but the economy faces numerous challenges.

Overpopulation :

Overpopulation has been one of the major barriers in the devlopment of our economy.The population of the country has been rapidly growing and we are the world's second largest population after China. At present we are just 5 crores behind the population of China and it's expected that we wiil soon become the world's largest populated country.

We have scarce resources in our country and we just cannot cater the requirements of every citizen hence we have to take some accurate steps so that we can deal with this problem.

World's largest country in terms of population directly refers to world's largest manpower but to develop that skilled manpower various and accurate steps have to be taken from the very beginning.The steps can include various measures on elementary education as well as through skill devolpment programmes.

Unemployment :

As per reports the unemployment rate in the financial year 2018 was 6.1%.Unemployment has been one of the biggest challenges for the Indian Economy since independence.Government has taken several steps to eradicate the problem of unemployment from the economy but in my opinions the benefits has just not reached to the actual people affected.There are numerous reasons behind this,one of them can be inaccurate assessment from the policy makers.India has been the second largest country with respect to population, we are growing rapidly hence causing problems for the economy.

Is educated unemployed a major challenge for the economy?

Yes in my opinion educated unemployed are one of the major challenges which the country has to deal with in order to develop and expand. The above picture says it all. The educated people in our country are not getting paid as per expectations because they lack skills.They do not posses the employment skills because the education system of our country has many faults that has to be made good. Schools or the basic education in our country has been consistently linked with the amount of marks you scored and not with the skills you have Similarly the colleges in our country are just meant for degress and not for acquiring skills.Some may have a different point of view but if this is not the case then, "Why are the graduates of our country unemployed "?

Although the country has been growing rapidly it has numerous challenges to deal with which are causing a great threat for the economy.

1



  1