Question- 1. India’s consistent growth numbers amidst the global crisis make it a bright spot among all the large economies. Elaborate the challenges that have to be tackled to arrive at a stable growth rate.
Answer. Indian economy is going through challenging times, majorly due to the pandemic and Ukraine war. The growth rate has witnessed a fall and future prediction gives a bleak picture of the growth pattern.
- India has clocked more than 7% growth rate owing to increase in consumer demand and also export of software products.
- The world is counting on India and China to provide impetus to stagnant global economy.
Challenges faced by Indian economy
- Jobless growth
Inspite of growing at more than 9%, the unemployment rate has not witnessed a drastic fall. This is attributed to jobless growth where GDP growth does not generate jobs.
- Consumer mood
India’s growth is dependent on consumption, both domestically and abroad. Domestic consumer sentiments must be positive to ensure that growth is consistent.
- Imbalance in organised sector
In organised sector, the growth and employment generation is contributed by IT, banking and financial services. Critical job creators such as manufacturing is unable to grow at expected rate.
Thus, India will have to make structural changes that can ensure that growth is not concentrated. Achieving high growth is a compulsion for prosperity of the people.
Tags: GS 3 (Economy)