India is all set to celebrate 75 years of independence on Monday (15 August 2022). Over the last seven decades, the Indian economy has seen several ups and downs. The country has gone from having a GDP of just Rs 2.7 lakh crore at the time of Independence to now sitting close to Rs 150 lakh crore. Once branded a “third world country”, India is now among the biggest economies of the world. India’s economic history has been marked by several critical milestones amongst which are the crisis years of 1966, 1981 and 1991, and India’s emergence from the economic crisis as the world’s fastest growing major economy.
Incorporation of Amul is one the key milestones of the Indian economy as it made the nation the world’s largest producer of milk and milk products. A few months before Independence on 19 December 1946, exploitation of marginal milk producers by traders and agents and exploitative trade practices followed by the local trade cartel in Anand Gujarat, led to farmers approaching Sardar Vallabhbhai Patel for a solution who advised them to get rid of middlemen and form their own co-operative, which would have procurement, processing and marketing under their control. Under the guidance of leaders like Sardar Patel, Morarji Desai and Tribhuvandas Patel, these farmers formed their own cooperative, the Kaira District Co-operative Milk Producers Union Ltd (KDCMPUL), now known as Amul.
1. Many of India's strengths and flaws were revealed by COVID-19. One of the worst-affected nations was India. A pandemic of this magnitude was entirely unprepared for and could not be handled by the current health system. Following the interruption of health services like immunizations, nutrition programmes, and screening for non-communicable diseases, catch-up programmes are now urgently required. However, the COVID-19 vaccine programme in India has been effective coupled with a significant rise in cutting-edge digital technology and telemedicine, which has aided in the delivery and oversight of high-quality medical services in many regions of the nation. The government is currently concentrating on expanding the healthcare system. Since 2018, more than 120 000 Health and Wellness Centers have opened, providing a range of primary healthcare services. By the end, another 150 000 will be prepared.
2. India's health and development continue to be significantly hampered by gender disparity. There is widespread gender discrimination and a persistent disadvantage for female survival. Unacceptably high levels of malnutrition and anaemia still exist, and they have hardly decreased despite supplementation programmes. Women's access to healthcare is less than men's, and women's participation in the labour market has significantly decreased. Gains in the areas of child marriage, domestic violence, and dropping out of school were undone by the pandemic. In a society where nuclear families are increasingly anticipated, data also reveal a disproportionately high percentage of older women—especially widows and single women—without a social safety net. It would take a significant adjustment in social, cultural, and institutional norms to reverse these gender prejudices. a multisectoral strategy encompassing industries like enhancing women's agency requires investment in labour and employment as well as in education, health, nutrition, water, and sanitation. But if the political system refuses to acknowledge these inequalities, let alone take steps to close them, nothing will change.
3. In 2023, India is expected to overtake China as the world's most populated nation. A growing young population is a result of the demographic dividend, but fertility is presently stabilising. As a result, India gets the chance to enjoy the prospective advantages for a brief time. Investment in the population's health and welfare is necessary for capitalization. The social, political, economic, and cultural determinants of health must be addressed. And it must acknowledge that any goal to become a true global power would remain a mirage unless every Indian, regardless of gender, caste, class, religion, or location, is able to realise their full potential, encouraged and empowered by the state.
India recently celebrated the 75 years of independence. The journey from 1947 to 2022 was not an easy one. India being a developing country has many challenges to overcome some of them are as follows:-
1.) Population - India is the 2nd most populated country in the world. Due to population Explosion problems such as housing & healthcare problems, low per capita income, persistent poverty, heavy pressure on land, etc are caused.
2.) Unemployment - The youth of any nation is backbone of it's country, but in India the major proportion of youth is unemployed due to lack skills or education required. As technology is developing day by day it becomes difficult to train them. Over population has resulted into decreasing employment opportunities day by day.
3.) Illiteracy - Education is the most important tool for development. The rate of literacy in India is around 77.7 % in 2022 hence around 22.3 % of population is illterate that gives rise to problems of poverty, unemployment, poor sanitation, inequaltiy, etc.
4.) Lack Of Infrastructure Development - Poor Infrastructure is a speed breaker in economic development. It includes communication, transportation, health, electricity, banking, hospitals problems, etc.
Other than these, problems such as poverty, corruption, terrorism, relations with neighbouring countries such as china & pakistan, Corona Pandemic, unfavourable climatic conditions, etc also contribute to India's weak economic growth.
Our country India, India for which we have respect in our hearts, India which is the pride of all Indians, it has been 75 years since India got independence, during this India achieved many achievements, many such opportunities came When the country's head was raised with pride, during these 75 years, India has changed, how much has progressed, but there are many such aspects which still probably need a lot of improvement, which are still in India today is a big challenge.We will look at some such important aspects.1) Terrorism The challenge of unemployment is within the country, but an even bigger challenge is terrorism, which is a big problem for the country, India is number four among the countries affected by terrorism.2) UnemployedEconomic development in India seems to be lagging due to employment needs, employment opportunities in India are continuously decreasing. The biggest challenge here is the lack of jobs for the youth.3) Corruption In India, 54 percent of the people gave bribe to get some important work done, that is, every other person in the country believes in giving bribe.4) Population According to a recent estimate, by 2020, the population of working age people in the country will reach 90 crore and the average age of citizens will be 29 years, which is a matter of concern.5) Education systemPoor education system in a changing India is a cause of concern, 50 percent of the children reaching class five in schools are unable to read even class two books.6) Cyber CrimeIn a changing and digital India, where people are getting modern on one hand, on the other hand cybercrime has also started increasing, this is a fatal problem for the country, it is true that India has made a lot of progress after independence. But these are some such challenges on which only the government and we all need to think together.Name: Prajakta RedkarID no: 1220210570Std:168 SYBA
From being a great teacher to the world in ancient times to becoming an IT hub tody India has came a long. Since 1947 to 2022 India made remarkable progress in various fields. Despite 75 years of independence there are certain challenges which we face even today. When British left India they also left behind broken, needy, underdeveloped and economically unstable country. And even today we face various issues for instance poverty, unemployment,high population,lack of infrastructure,low literacy rate,lack of skilled labour,social inequalities etc. These act as speed breaker in the development of nation.
On the completion of 75 years of independence,we need to take new opportunity to build India of our aspirations and make positive contribution in changing landscape of
India is still a developing country so there are many economic challenges in india's economy. Here are some of them. 1. Weak infrastructure:- With the infrastructure we have in the country, industrial development is not easily possible. With the less production of goods and services India is still highly dependent on imports to meet our needs. The less production means less jobs and less economic prosperity of the country. 2. Unemployment :- Unemployment directly impacts the economy as a whole. When people are unemployed, they spend less money,which ultimately contributes to less contribution to the economy . 3. Population growth:- It is the current economic issue in India as it is the second most populated nation in the world, after China. India's birth rate is very high as compared to the death rate. Many times,the government has to take care of basic requirements like health care, food,education, etc. As a result these circumstances increase the economic burden of the nation. 4. Communal conflicts:- Frequent sectarian violence casts a pall over the economy. As social tensions rise in India, it loses its attractiveness to global investors, it affects the economic growth of India. There are many economic challenges apart from these are low per capita income, huge dependence of population on agriculture, inequality in wealth distribution, poor quality of human capital,low level of technology, etc
The Indian economy has fully recovered tp the pre-pandemic levels of 2019-20, according to the provisional estimates of GDP released on May 31, 2022. Real GDP growth in FY 2021-22 stands at 8.7%, which is 1.5% higher than the real GDP in FY 2019-20. However, going forwards, there are several challenges that it needs to face in order to improve the economy.
1) High population - One of the biggest problems that the country faces is that of a higher population and the lack of efficient use of resources to manage this population. We generate more people than we do jobs, which in turn gives rise to problems such as unemployment and people moving to other countries.
2) Lack of proper development of Human Resources - while India has one of the biggest human resource pools in the world, we do not adequately train them and provide them with the resources and support that they require in order to become credible contributors in a competitive market.
3) Excess reliance on agriculture - a majority of the Indian population relies on agriculture for their livelihood and not only is there a major issue of overemployment and disguised and seasonal unemployment in the sector, we also do not fairly compensate them for the work that they put in.
4) Social Inequality - according to a recent survey, only one in 5 Indian women participate and contribute directly to the work force of the country. When we hold women back from doing their best and contributing not only to their own financial independence and career growth, but also economical development, we do not realise that we are not taking advantage of a huge untapped resource that could give us wonderful results in the short and long run.
There are several other problem such as unemployment, low per capita income, heavy reliance on imported goods, illiteracy, etc that we must battle in order to bring about economical development in the country.
The Indian economy is booming and expected to grow further with a huge transformation but it is still a low income developing economy . Being one of the fastest growing economies in the world there are unique economic problems, including heavy population pressure, low per capita income, inequality in wealth and income, massive unemployment and not enough secure jobs to go around, lack of infrastructure, poor tax collection rates etc.Some of the major challenges are :-> *Heavy population pressure* - Huge factor that contributes to economic issue in India is the big population. India stands 2nd in the world population after China. The increasing birth rate and falling death rate rises the task of maintaince of such huge population which leads to creating a burden on the country economically.-> *Low per capita income*- Usually, developing countries have low capita income , Economic growth of any country can be viewed from its level of national or per capita income.Standards of living of masses in India are miserably low. Even the basic necessities are beyond the means of the majority of population. Comparing India’s per capita income with the other countries of the world, one comes to the conclusion that India is one of the poorest nations of the world.-> *Inequality in wealth and income* - Not only per capita income is low, but Indian economy is also marked by great inequalities in the distribution of income and wealth. This inequality widens the problem of poverty. -> *Massive unemployment*- Not only natural resources are under-utilised but also a massive wastage occurs in the case of manpower resources.Slow economic growth rate on the one hand, and rapid growth of population on the other hand, has accentuated the problem of unemployment in India.-> *Lack of infrastructure*- This is one of the serious problems affecting the Indian economy . These includes transportation, communication , electricity generation, distribution , banking and credit facilities , health and educational institution, etc.-> *Poor tax collection rates* -According to some economists, India has one of the poorest tax to GDP rates in the world.The poor tax collection rate reflects widespread corruption, tax avoidance and complicated tax rates .-> *Inefficient agriculture* - Agriculture produces 17.4% of economic output but, over 51% of the work force are employed in agriculture. This is the most inefficient sector of the economy and reform has proved slow.-> *Rising oil prices* - As a net importer of oil, India’s economy is sensitive to increases in the price of oil and other commodities, such as gas, steel and precious metals.
There are multiple challenges such as Unemployment, lack of education, lack of basic and standardised infrastructure, global competition, inflation, deficits in public sector, international unrest or war like situations, inflation, fear of situation similar to Sri Lanka because of freebies, ever lasting corruption, heavy dependence on foreign countries, impractical labour laws which are expected to change, increasing population and inefficient, unorganised agricultural sector or market, population explosion, lack of strong currency.
If these issues are dealt with required effort - then India shall continue to grow ahead even though it's one of the world's fastest growing economies.
75 years of independence India has gone from having a GDP of rs2.5lakh crore to rs150 lakh crore . India has gone through many challanges in last 7 decades . India is still a developing country so there are many challenges political , economics,social , internal & external as well .Economic problems:-Low per capita income,huge dependence on agriculture,heavy population pressure,the existence of chronic unemployment & under employment,slow improvement in rate of capital formation, inequality in wealth distribution,poor capital of human capital,low level of technology,lack of education,lack of excess to basic amenities, demographic characteristics, under utilisation of natural resources lack of infrastructure.etc Measures:-Boost consumption demand,boost investment demand,private sector is constrained at present , government needs to play a critical role in boosting the investment,states also need to increase investment, strategic immigration reform,end the war on drugs,promote economic growth through innovation, unemployed workers to volunteer, agriculture growth & poverty alleviation. ETC .
On Aug 15, 2022, India celebrated its 75th year of independence from British rule The economic problem does exist. The problems are there as the needs and wants of people are endless, while the resources available to satisfy their needs and wants are Added to these are the social challenges which the nation has to go through while dealing with the growth. talking about other problems such as slums....Lack of Basic necessary Inadequate Building unhealthy Living. Now comes unemployment....The government suffers extra borrowing burden because unemployment causes a decrease in the production and less consumption of goods and services by the people. Unemployed persons can easily be enticed by antisocial elements.The problem of unemployment gives rise to the problem of poverty. Now talking about poverty...poverty is the state of having few material possessions or little income. Poverty can have diverse social and political causes and effects. basic personal needs such as food, clothing, shelter... ECONOMIC PROBLEMS SUCH AS:
1) ILLITERACY-
Economic disparities, gender discrimination, caste discrimination, and technological barriers lead to illiteracy in India.
2) SLUMS-
Slums are a growing problem for our country. It is the population migrated from villages to towns that have led to their creation. Our population in the villages and lack of resources to feed the added mouths, make people migrate in search of jobs. No place of shelter in the towns
3)UNEMPLOYMENT-
Many people in India do not get job due to lack of requisite skills and due to poor education level, it becomes difficult to train them.
4) POVERTY-
The most important causes of Poverty in India are Poor agriculture, ,growing Population , gap between rich and poor, corruption and black money. Poor agriculture: India is mainly an agricultural country. About 80% people of our country depend on agriculture. But our agriculture is in a bad route as per our usage
Major challenges of India in the 75th year of independence are as follows:-1) Low per capita income - Usually, developing economies have a low per-capita income. The per capita income in India in 2014 was $1,560. Apart from the low per-capita income, India also has a problem of unequal distribution of income. This makes the problem of poverty a critical one and a big obstacle in the economic progress of the country. Therefore, low per-capita income is one of the primary economic issues in India 2)Heavy population pressure- Another factor which contributes to the economic issues in India is population. Today, India is the second most-populated country in the world, the first being China.3) Chronic unemployment and under-employmentThe huge unemployed working population is another aspect which contributes to the economic issues in India. There is an abundance of labor in our country which makes it difficult to provide gainful employment to the entire population.4)Slow improvement in Rate of Capital FormationIndia always had a deficiency of capital. However, in recent years, India has experienced a slow but steady improvement in capital formation. We experienced a population growth of 1.6 percent during 2000-05 and needed to invest around 6.4 percent to offset the additional burden due to the increased population.5) Poor Quality of Human CapitalIn the broader sense of the term, capital formation includes the use of any resource that enhances the capacity of production.Therefore, the knowledge and training of the population is a form of capital. Hence, the expenditure on education, skill-training, research, and improvement in health are a part of human capital.
Since it’s independence, India has come a long way, yes it’s still a developing country, but the magnitude of development is so large that many developed nations are left in awe. The opening of the economy in the 90s acted as a catalyst in bringing India closer to being a developed nation, however India is still riddled with many obstacles and economic challenges on its 75th year of independence. Issues such as lack of formal education of a large amount of the population, created barriers such as a low English speaking population, and vast amounts of unskilled labourers, resulting in the population being unemployable, chocking development and upliftment of the population, also resulting in high amount of inequality, and the income inequality gap rises all the more. A reason for lack of education is also the low availability of good quality education at a cheap cost making it out of reach for most of its population. A large amount of the population is also living in poverty, and with rising costs of living and inflation, it is only going to get harder for them to escape the plight of poverty. India also has a crippling dependence on agriculture, at least on the employment front, employing around half of the nation, yet only contributing a little under 20 percent of the GDP, this just indicates that disguised unemployment is taking place, disabling the other sectors from gaining more workers, and hence stunting the growth of them, along with the economy. India is also riddled with internal conflicts in several regions, all this slows down development, as well as discourages other nations to invest in it , by scaring off investors due to the lack of stability. Since it’s independence, India has also witnessed a decline in the value of its currency, the Rupee, which is still suffering inflation, leading to several setbacks, and also a strain on its foreign reserves, all this while it depends on imports for large amounts of energy and oil is only slowing the growth of the country. All this along with a lack of infrastructure and technology pose as some of the nations greatest economic challenges, and only upon successfully addressing such issues, India will usher into an era of prosperity and economic well-being.
There are various economic problems India is facing after the 75th year of independence and there are many challenges that India is yet to face . Some of them are as follows. India is not able to vanish poverty in fact it is increasing day by day due to inflation . Even after the demonetisation of banknotes in 2016 in India is unable to stop the flow of black money from the country .Apart from this the fraud in tax payment is also very common problem in India from which it is still fighting to stop it
Since 1991, the Indian economy has pursued free market liberalisation, greater openness in trade and increase investment in infrastructure. This helped the Indian economy to achieve a rapid rate of economic growth and economic development. However, the economy still faces various problems and challenges, such as corruption, lack of infrastructure, poverty in rural areas and poor tax collection rates.
Unemployment: The fast rate of economic growth has left unskilled workers behind, and they have struggled to find work in growing industries. In 2017, the official unemployment rate was just below 5%. However, a report by the OECD found over 30% of people aged 15-29 in India are not in employment, education or training (NEETs). Livemint reported on March 6, 2017. With , little if any government welfare support for the unemployed, it leads to dire poverty.
Poor educational standards: Although India has benefited from a high % of English speakers, (important for call centre industry) there is still high levels of illiteracy amongst the population. It is worse in rural areas and amongst women. Over 50% of Indian women are illiterate. This limits economic development and a more skilled workforce.
Poor Infrastructure: Many Indians lack basic amenities lack access to running water. Indian public services are creaking under the strain of bureaucracy and inefficiency. Over 40% of Indian fruit rots before it reaches the market; this is one example of the supply constraints and inefficiency’s facing the Indian economy.
Balance of Payments deterioration: Although India has built up large amounts of foreign currency reserves, the high rates of economic growth have been at the cost of a persistent current account deficit. Whilst the deficit remains, there is always the fear of a further devaluation in the Rupee. There is a need to rebalance the economy and improve the competitiveness of exports.
High levels of private debt: Buoyed by a property boom the amount of lending in India has grown by 30% in the past year. However, there are concerns about the risk of such loans. If interest rates rise substantially it will leave those indebted facing rising interest payments and potentially reducing consumer spending in the future.
Inequality has risen rather than decreased: It is hoped that economic growth would help drag the Indian poor above the poverty line. However, so far economic growth has been highly uneven benefiting the skilled and wealthy disproportionately. Many of India’s rural poor are yet to receive any tangible benefit from India’s economic growth.
Large Budget Deficit: India has one of the largest budget deficits in the developing world. Excluding subsidies, it amounts to nearly 8% of GDP. Although it is fallen a little in the past year. It still allows little scope for increasing investment in public services like health and education.
Rigid labour Laws: As an example Firms employing more than 100 people cannot fire workers without government permission. The effect of this is to discourage firms from expanding to over 100 people. It also discourages foreign investment.
Inefficient agriculture: Agriculture produces 17.4% of economic output but, over 51% of the work force are employed in agriculture. This is the most inefficient sector of the economy and reform has proved slow.
Poor tax collection rates: According to the Economist, India has one of the poorest tax to GDP rates in the whole world. India’s tax revenue as a % of GDP is just 12%. Compared to an EU average of 45%. This poor tax collection rate reflects widespread corruption, tax avoidance and complicated tax rates. In 2017, Narendra Modi has sought to improve tax collection rates and reduce complications through the introduction of a general sales tax (GST) which involves a single tax rate – rather than tax rates applied multiple times at different stages of production. (Modi’s tax gamble at Economist)
Business difficulties: According to the World Bank, the ease of doing business in India is poor. India ranks 130/190. Big issues for companies include:-
Ease of enforcing contracts
Dealing with construction contracts
Paying taxes
Trading across border
Inequality within regions: India’s economic growth has benefitted some regions more than others. Technological hubs, such as Delhi and Mumbai have attracted higher-paying jobs. This has attracted an inflow of most mobile and skilled workers; this has created congestion in these super-cities but failed to address the poverty of rural areas, especially in the northeast
Since Independence, Indian economy had faced .any challenges. After 1991, it has pursued free market liberalization opening in trade and increase in infrastructure leading to achieve a rapid rate of economic growth and economic development.According to current reports, rising commodity prices, surging inflation, supply shortages and shifting geopolitical realities across the world weigh on the growth outlook. Still, India will likely reign as the world's fastest growing economy.RBI has projected a GDP growth of 7.2 percent for the current fiscal ending March 2023. However despite asch great growing of economy, India still faces some challenges.1. Population :- One of the biggest challenge to India economy is population. India being the second most populated country in the world today, 1st being China. India has high birth rate and falling death rate, hence to maintain growing population of especially young children, Government needs to take care of basic amenities increasing economic burden to country.2. Unemployment :- Unemployment is still an issue after such economic growth. Rapid economic growth left unskilled workers behind for then struggling to work in industries leading to poverty in country.3. Huge dependence on Agriculture :- Since Independence, Agriculture sector had been the most active sector where almost over 51% of population is employed but economic output is only 17.4% which proved Agriculture as most inefficient sector leading to more poverty.4. Lack of infrastructure and technology :- These are also serious problem affecting Indian economy. Infrastructure includes transportation communication, electricity generation, health and educational facilities, etc. Every region of country can't provide all these facilities so therefore India lacks in Infrastructure.New technologies are developed every now and then but they are expensive and requires skill and training. Hence, lack of skilled labour in India is one of the hurdles to not opt for technologies more. Also poor farmers can't buy these expensive machines for Agriculture so level of technologies used in India is decreased.There are many other challenges to Indian economy like lack is education, inequality in wealth distribution, low per capita income, etc. Also in current scenario due to Russia - Ukraine War, Covid-19 pandemic has affected Indian economy in large terms.
According to a recent report by the Centre for Economic and Business Research, India may overtake France in 2022 to become the sixth-largest economy in the world. The feel-good factor for India is that the report also predicts that India will overtake Germany by 2031 to become the third-largest economy in the world with a GDP of more than US$6.8 trillion.
But despite 75 years of its independence, India faces some major Economic challenges which prove to be a barrier in its growth, they are:
· Unemployment:The overall unemployment rate eased to 6.80% in July, a 1 per cent decline compared to June, the lowest since 6.56% in January, Centre for Monitoring Indian Economy (CMIE) a private organisation reported on Monday. Despite rapid economic growth, the major problem that the Indian economy faces is unemployment. People are jobless not only in rural areas but also in urban areas.
· Lack of Education due to High Costs: In India, many people remain illiterate. There are several parts of the country where females are still not given the right to get an education. This happens because education is too costly, and all cannot meet education costs. This results in lesser job opportunities because all sectors need workers who can be trained or know the working of complex machinery. Thus, lack of education leads to lesser job opportunities for the people.
· The Economic Difference between Poor and Rich: There is a vast difference in wealth between the rich and the poor. Rich is getting richer, and the poor are getting poorer. The distribution of income in India is hugely uneven, which is quite unfair and stops the country from growing.
· Agriculture predominates the Indian economy: According to a report, agriculture provides employment to 60% of the population of India and, in turn, forms 17% of the GDP in India. Agriculture has grown in India, and various commodities are produced in the country itself. The articles produced from agriculture undergo various operations before reaching the market like transportation, bagging, storage, etc. These operations employ people and contribute to India’s economy.
· Lack of Infrastructure: India lacks an efficient infrastructure. This means India lacks the basic system required to work to perfection. A perfect example of the same can be seen as a lack of irrigation facilities for the farmers. Transportation infrastructure needs to be improved. The government needs to invest in roads, railways, ports, etc. Improvement of infrastructure leads to a trade boost.
With a large young population, a booming economy and huge untapped potential to become the global manufacturing hub, India is at a critical juncture in its growth trajectory.
The challenges that the Indian economy has, and has been facing are diverse. For clarity, we categorize them as internal, and external.
Internal challenges
these challenges are within the country. these include
rising subsidies, particularly in the agricultural sector, which drain the government treasury.
rising welfare expenditures, but lower focus on the development of primary health centres, and Anganwadis
challenges to India's internal security with attacks on Kashmiri Pandits, and the influx of Rohingyas, which are burdensome to India's resources
stagnating labour force participation amongst women (at 21%), due to prevailing societal attitudes
External challenges
India faces these challenges in the international community. these include
depreciation of rupee, by Rs. 75 in 75 years with respect to a dollar
rising import dependence in defence, power, crude oil, and so on, leading to a high current account deficit of roughly 3% of its GDP
Hence, a way forward in this direction would be for the government to raise its revenues, with tax compliance measures, and stricter penalties in case of non-compliance. incentives must be provided for women to increase their participation in the labour force; primary health centres, Anganwadis must be developed so that every last person has access to quality health and educational facilities. further, higher investments in research and development, clubbed with import substitution policies, will also be helpful.
India is all set to celebrate 75 years of independence on Monday (15 August 2022). Over the last seven decades, the Indian economy has seen several ups and downs. The country has gone from having a GDP of just Rs 2.7 lakh crore at the time of Independence to now sitting close to Rs 150 lakh crore. Once branded a “third world country”, India is now among the biggest economies of the world. India’s economic history has been marked by several critical milestones amongst which are the crisis years of 1966, 1981 and 1991, and India’s emergence from the economic crisis as the world’s fastest growing major economy.
Incorporation of Amul is one the key milestones of the Indian economy as it made the nation the world’s largest producer of milk and milk products. A few months before Independence on 19 December 1946, exploitation of marginal milk producers by traders and agents and exploitative trade practices followed by the local trade cartel in Anand Gujarat, led to farmers approaching Sardar Vallabhbhai Patel for a solution who advised them to get rid of middlemen and form their own co-operative, which would have procurement, processing and marketing under their control. Under the guidance of leaders like Sardar Patel, Morarji Desai and Tribhuvandas Patel, these farmers formed their own cooperative, the Kaira District Co-operative Milk Producers Union Ltd (KDCMPUL), now known as Amul.
1. Many of India's strengths and flaws were revealed by COVID-19. One of the worst-affected nations was India. A pandemic of this magnitude was entirely unprepared for and could not be handled by the current health system. Following the interruption of health services like immunizations, nutrition programmes, and screening for non-communicable diseases, catch-up programmes are now urgently required. However, the COVID-19 vaccine programme in India has been effective coupled with a significant rise in cutting-edge digital technology and telemedicine, which has aided in the delivery and oversight of high-quality medical services in many regions of the nation. The government is currently concentrating on expanding the healthcare system. Since 2018, more than 120 000 Health and Wellness Centers have opened, providing a range of primary healthcare services. By the end, another 150 000 will be prepared.
2. India's health and development continue to be significantly hampered by gender disparity. There is widespread gender discrimination and a persistent disadvantage for female survival. Unacceptably high levels of malnutrition and anaemia still exist, and they have hardly decreased despite supplementation programmes. Women's access to healthcare is less than men's, and women's participation in the labour market has significantly decreased. Gains in the areas of child marriage, domestic violence, and dropping out of school were undone by the pandemic. In a society where nuclear families are increasingly anticipated, data also reveal a disproportionately high percentage of older women—especially widows and single women—without a social safety net. It would take a significant adjustment in social, cultural, and institutional norms to reverse these gender prejudices. a multisectoral strategy encompassing industries like enhancing women's agency requires investment in labour and employment as well as in education, health, nutrition, water, and sanitation. But if the political system refuses to acknowledge these inequalities, let alone take steps to close them, nothing will change.
3. In 2023, India is expected to overtake China as the world's most populated nation. A growing young population is a result of the demographic dividend, but fertility is presently stabilising. As a result, India gets the chance to enjoy the prospective advantages for a brief time. Investment in the population's health and welfare is necessary for capitalization. The social, political, economic, and cultural determinants of health must be addressed. And it must acknowledge that any goal to become a true global power would remain a mirage unless every Indian, regardless of gender, caste, class, religion, or location, is able to realise their full potential, encouraged and empowered by the state.
India recently celebrated the 75 years of independence. The journey from 1947 to 2022 was not an easy one. India being a developing country has many challenges to overcome some of them are as follows:-
1.) Population - India is the 2nd most populated country in the world. Due to population Explosion problems such as housing & healthcare problems, low per capita income, persistent poverty, heavy pressure on land, etc are caused.
2.) Unemployment - The youth of any nation is backbone of it's country, but in India the major proportion of youth is unemployed due to lack skills or education required. As technology is developing day by day it becomes difficult to train them. Over population has resulted into decreasing employment opportunities day by day.
3.) Illiteracy - Education is the most important tool for development. The rate of literacy in India is around 77.7 % in 2022 hence around 22.3 % of population is illterate that gives rise to problems of poverty, unemployment, poor sanitation, inequaltiy, etc.
4.) Lack Of Infrastructure Development - Poor Infrastructure is a speed breaker in economic development. It includes communication, transportation, health, electricity, banking, hospitals problems, etc.
Other than these, problems such as poverty, corruption, terrorism, relations with neighbouring countries such as china & pakistan, Corona Pandemic, unfavourable climatic conditions, etc also contribute to India's weak economic growth.
Our country India, India for which we have respect in our hearts, India which is the pride of all Indians, it has been 75 years since India got independence, during this India achieved many achievements, many such opportunities came When the country's head was raised with pride, during these 75 years, India has changed, how much has progressed, but there are many such aspects which still probably need a lot of improvement, which are still in India today is a big challenge.We will look at some such important aspects. 1) Terrorism The challenge of unemployment is within the country, but an even bigger challenge is terrorism, which is a big problem for the country, India is number four among the countries affected by terrorism. 2) Unemployed Economic development in India seems to be lagging due to employment needs, employment opportunities in India are continuously decreasing. The biggest challenge here is the lack of jobs for the youth. 3) Corruption In India, 54 percent of the people gave bribe to get some important work done, that is, every other person in the country believes in giving bribe. 4) Population According to a recent estimate, by 2020, the population of working age people in the country will reach 90 crore and the average age of citizens will be 29 years, which is a matter of concern. 5) Education system Poor education system in a changing India is a cause of concern, 50 percent of the children reaching class five in schools are unable to read even class two books. 6) Cyber Crime In a changing and digital India, where people are getting modern on one hand, on the other hand cybercrime has also started increasing, this is a fatal problem for the country, it is true that India has made a lot of progress after independence. But these are some such challenges on which only the government and we all need to think together. Name: Prajakta Redkar ID no: 1220210570 Std:168 SYBA
From being a great teacher to the world in ancient times to becoming an IT hub tody India has came a long. Since 1947 to 2022 India made remarkable progress in various fields. Despite 75 years of independence there are certain challenges which we face even today. When British left India they also left behind broken, needy, underdeveloped and economically unstable country. And even today we face various issues for instance poverty, unemployment,high population,lack of infrastructure,low literacy rate,lack of skilled labour,social inequalities etc. These act as speed breaker in the development of nation.
On the completion of 75 years of independence,we need to take new opportunity to build India of our aspirations and make positive contribution in changing landscape of
India is still a developing country so there are many economic challenges in india's economy. Here are some of them. 1. Weak infrastructure:- With the infrastructure we have in the country, industrial development is not easily possible. With the less production of goods and services India is still highly dependent on imports to meet our needs. The less production means less jobs and less economic prosperity of the country. 2. Unemployment :- Unemployment directly impacts the economy as a whole. When people are unemployed, they spend less money,which ultimately contributes to less contribution to the economy . 3. Population growth:- It is the current economic issue in India as it is the second most populated nation in the world, after China. India's birth rate is very high as compared to the death rate. Many times,the government has to take care of basic requirements like health care, food,education, etc. As a result these circumstances increase the economic burden of the nation. 4. Communal conflicts:- Frequent sectarian violence casts a pall over the economy. As social tensions rise in India, it loses its attractiveness to global investors, it affects the economic growth of India. There are many economic challenges apart from these are low per capita income, huge dependence of population on agriculture, inequality in wealth distribution, poor quality of human capital,low level of technology, etc
The Indian economy has fully recovered tp the pre-pandemic levels of 2019-20, according to the provisional estimates of GDP released on May 31, 2022. Real GDP growth in FY 2021-22 stands at 8.7%, which is 1.5% higher than the real GDP in FY 2019-20. However, going forwards, there are several challenges that it needs to face in order to improve the economy.
1) High population - One of the biggest problems that the country faces is that of a higher population and the lack of efficient use of resources to manage this population. We generate more people than we do jobs, which in turn gives rise to problems such as unemployment and people moving to other countries.
2) Lack of proper development of Human Resources - while India has one of the biggest human resource pools in the world, we do not adequately train them and provide them with the resources and support that they require in order to become credible contributors in a competitive market.
3) Excess reliance on agriculture - a majority of the Indian population relies on agriculture for their livelihood and not only is there a major issue of overemployment and disguised and seasonal unemployment in the sector, we also do not fairly compensate them for the work that they put in.
4) Social Inequality - according to a recent survey, only one in 5 Indian women participate and contribute directly to the work force of the country. When we hold women back from doing their best and contributing not only to their own financial independence and career growth, but also economical development, we do not realise that we are not taking advantage of a huge untapped resource that could give us wonderful results in the short and long run.
There are several other problem such as unemployment, low per capita income, heavy reliance on imported goods, illiteracy, etc that we must battle in order to bring about economical development in the country.
The Indian economy is booming and expected to grow further with a huge transformation but it is still a low income developing economy . Being one of the fastest growing economies in the world there are unique economic problems, including heavy population pressure, low per capita income, inequality in wealth and income, massive unemployment and not enough secure jobs to go around, lack of infrastructure, poor tax collection rates etc. Some of the major challenges are : -> *Heavy population pressure* - Huge factor that contributes to economic issue in India is the big population. India stands 2nd in the world population after China. The increasing birth rate and falling death rate rises the task of maintaince of such huge population which leads to creating a burden on the country economically. -> *Low per capita income*- Usually, developing countries have low capita income , Economic growth of any country can be viewed from its level of national or per capita income.Standards of living of masses in India are miserably low. Even the basic necessities are beyond the means of the majority of population. Comparing India’s per capita income with the other countries of the world, one comes to the conclusion that India is one of the poorest nations of the world. -> *Inequality in wealth and income* - Not only per capita income is low, but Indian economy is also marked by great inequalities in the distribution of income and wealth. This inequality widens the problem of poverty. -> *Massive unemployment*- Not only natural resources are under-utilised but also a massive wastage occurs in the case of manpower resources.Slow economic growth rate on the one hand, and rapid growth of population on the other hand, has accentuated the problem of unemployment in India. -> *Lack of infrastructure*- This is one of the serious problems affecting the Indian economy . These includes transportation, communication , electricity generation, distribution , banking and credit facilities , health and educational institution, etc. -> *Poor tax collection rates* -According to some economists, India has one of the poorest tax to GDP rates in the world.The poor tax collection rate reflects widespread corruption, tax avoidance and complicated tax rates . -> *Inefficient agriculture* - Agriculture produces 17.4% of economic output but, over 51% of the work force are employed in agriculture. This is the most inefficient sector of the economy and reform has proved slow. -> *Rising oil prices* - As a net importer of oil, India’s economy is sensitive to increases in the price of oil and other commodities, such as gas, steel and precious metals.
There are multiple challenges such as Unemployment, lack of education, lack of basic and standardised infrastructure, global competition, inflation, deficits in public sector, international unrest or war like situations, inflation, fear of situation similar to Sri Lanka because of freebies, ever lasting corruption, heavy dependence on foreign countries, impractical labour laws which are expected to change, increasing population and inefficient, unorganised agricultural sector or market, population explosion, lack of strong currency.
If these issues are dealt with required effort - then India shall continue to grow ahead even though it's one of the world's fastest growing economies.
75 years of independence India has gone from having a GDP of rs2.5lakh crore to rs150 lakh crore . India has gone through many challanges in last 7 decades . India is still a developing country so there are many challenges political , economics,social , internal & external as well . Economic problems:- Low per capita income,huge dependence on agriculture,heavy population pressure,the existence of chronic unemployment & under employment,slow improvement in rate of capital formation, inequality in wealth distribution,poor capital of human capital,low level of technology,lack of education,lack of excess to basic amenities, demographic characteristics, under utilisation of natural resources lack of infrastructure.etc Measures:- Boost consumption demand,boost investment demand,private sector is constrained at present , government needs to play a critical role in boosting the investment,states also need to increase investment, strategic immigration reform,end the war on drugs,promote economic growth through innovation, unemployed workers to volunteer, agriculture growth & poverty alleviation. ETC .
On Aug 15, 2022, India celebrated its 75th year of independence from British rule The economic problem does exist. The problems are there as the needs and wants of people are endless, while the resources available to satisfy their needs and wants are Added to these are the social challenges which the nation has to go through while dealing with the growth. talking about other problems such as slums....Lack of Basic necessary Inadequate Building unhealthy Living. Now comes unemployment....The government suffers extra borrowing burden because unemployment causes a decrease in the production and less consumption of goods and services by the people. Unemployed persons can easily be enticed by antisocial elements.The problem of unemployment gives rise to the problem of poverty. Now talking about poverty...poverty is the state of having few material possessions or little income. Poverty can have diverse social and political causes and effects. basic personal needs such as food, clothing, shelter... ECONOMIC PROBLEMS SUCH AS:
1) ILLITERACY-
Economic disparities, gender discrimination, caste discrimination, and technological barriers lead to illiteracy in India.
2) SLUMS-
Slums are a growing problem for our country. It is the population migrated from villages to towns that have led to their creation. Our population in the villages and lack of resources to feed the added mouths, make people migrate in search of jobs. No place of shelter in the towns
3)UNEMPLOYMENT-
Many people in India do not get job due to lack of requisite skills and due to poor education level, it becomes difficult to train them.
4) POVERTY-
The most important causes of Poverty in India are Poor agriculture, ,growing Population , gap between rich and poor, corruption and black money. Poor agriculture: India is mainly an agricultural country. About 80% people of our country depend on agriculture. But our agriculture is in a bad route as per our usage
NAME- ARYAN SANGHVI
ROLL NO- 57
STD - SYBA
DIV- A
ID CARD NO- 1220210721
Major challenges of India in the 75th year of independence are as follows:- 1) Low per capita income - Usually, developing economies have a low per-capita income. The per capita income in India in 2014 was $1,560. Apart from the low per-capita income, India also has a problem of unequal distribution of income. This makes the problem of poverty a critical one and a big obstacle in the economic progress of the country. Therefore, low per-capita income is one of the primary economic issues in India 2)Heavy population pressure- Another factor which contributes to the economic issues in India is population. Today, India is the second most-populated country in the world, the first being China. 3) Chronic unemployment and under-employment The huge unemployed working population is another aspect which contributes to the economic issues in India. There is an abundance of labor in our country which makes it difficult to provide gainful employment to the entire population. 4)Slow improvement in Rate of Capital Formation India always had a deficiency of capital. However, in recent years, India has experienced a slow but steady improvement in capital formation. We experienced a population growth of 1.6 percent during 2000-05 and needed to invest around 6.4 percent to offset the additional burden due to the increased population. 5) Poor Quality of Human Capital In the broader sense of the term, capital formation includes the use of any resource that enhances the capacity of production. Therefore, the knowledge and training of the population is a form of capital. Hence, the expenditure on education, skill-training, research, and improvement in health are a part of human capital.
Since it’s independence, India has come a long way, yes it’s still a developing country, but the magnitude of development is so large that many developed nations are left in awe. The opening of the economy in the 90s acted as a catalyst in bringing India closer to being a developed nation, however India is still riddled with many obstacles and economic challenges on its 75th year of independence. Issues such as lack of formal education of a large amount of the population, created barriers such as a low English speaking population, and vast amounts of unskilled labourers, resulting in the population being unemployable, chocking development and upliftment of the population, also resulting in high amount of inequality, and the income inequality gap rises all the more. A reason for lack of education is also the low availability of good quality education at a cheap cost making it out of reach for most of its population. A large amount of the population is also living in poverty, and with rising costs of living and inflation, it is only going to get harder for them to escape the plight of poverty. India also has a crippling dependence on agriculture, at least on the employment front, employing around half of the nation, yet only contributing a little under 20 percent of the GDP, this just indicates that disguised unemployment is taking place, disabling the other sectors from gaining more workers, and hence stunting the growth of them, along with the economy. India is also riddled with internal conflicts in several regions, all this slows down development, as well as discourages other nations to invest in it , by scaring off investors due to the lack of stability. Since it’s independence, India has also witnessed a decline in the value of its currency, the Rupee, which is still suffering inflation, leading to several setbacks, and also a strain on its foreign reserves, all this while it depends on imports for large amounts of energy and oil is only slowing the growth of the country. All this along with a lack of infrastructure and technology pose as some of the nations greatest economic challenges, and only upon successfully addressing such issues, India will usher into an era of prosperity and economic well-being.
There are various economic problems India is facing after the 75th year of independence and there are many challenges that India is yet to face . Some of them are as follows. India is not able to vanish poverty in fact it is increasing day by day due to inflation . Even after the demonetisation of banknotes in 2016 in India is unable to stop the flow of black money from the country .Apart from this the fraud in tax payment is also very common problem in India from which it is still fighting to stop it
Since 1991, the Indian economy has pursued free market liberalisation, greater openness in trade and increase investment in infrastructure. This helped the Indian economy to achieve a rapid rate of economic growth and economic development. However, the economy still faces various problems and challenges, such as corruption, lack of infrastructure, poverty in rural areas and poor tax collection rates.
Unemployment: The fast rate of economic growth has left unskilled workers behind, and they have struggled to find work in growing industries. In 2017, the official unemployment rate was just below 5%. However, a report by the OECD found over 30% of people aged 15-29 in India are not in employment, education or training (NEETs). Livemint reported on March 6, 2017. With , little if any government welfare support for the unemployed, it leads to dire poverty.
Poor educational standards: Although India has benefited from a high % of English speakers, (important for call centre industry) there is still high levels of illiteracy amongst the population. It is worse in rural areas and amongst women. Over 50% of Indian women are illiterate. This limits economic development and a more skilled workforce.
Poor Infrastructure: Many Indians lack basic amenities lack access to running water. Indian public services are creaking under the strain of bureaucracy and inefficiency. Over 40% of Indian fruit rots before it reaches the market; this is one example of the supply constraints and inefficiency’s facing the Indian economy.
Balance of Payments deterioration: Although India has built up large amounts of foreign currency reserves, the high rates of economic growth have been at the cost of a persistent current account deficit. Whilst the deficit remains, there is always the fear of a further devaluation in the Rupee. There is a need to rebalance the economy and improve the competitiveness of exports.
High levels of private debt: Buoyed by a property boom the amount of lending in India has grown by 30% in the past year. However, there are concerns about the risk of such loans. If interest rates rise substantially it will leave those indebted facing rising interest payments and potentially reducing consumer spending in the future.
Inequality has risen rather than decreased: It is hoped that economic growth would help drag the Indian poor above the poverty line. However, so far economic growth has been highly uneven benefiting the skilled and wealthy disproportionately. Many of India’s rural poor are yet to receive any tangible benefit from India’s economic growth.
Large Budget Deficit: India has one of the largest budget deficits in the developing world. Excluding subsidies, it amounts to nearly 8% of GDP. Although it is fallen a little in the past year. It still allows little scope for increasing investment in public services like health and education.
Rigid labour Laws: As an example Firms employing more than 100 people cannot fire workers without government permission. The effect of this is to discourage firms from expanding to over 100 people. It also discourages foreign investment.
Inefficient agriculture: Agriculture produces 17.4% of economic output but, over 51% of the work force are employed in agriculture. This is the most inefficient sector of the economy and reform has proved slow.
Poor tax collection rates: According to the Economist, India has one of the poorest tax to GDP rates in the whole world. India’s tax revenue as a % of GDP is just 12%. Compared to an EU average of 45%. This poor tax collection rate reflects widespread corruption, tax avoidance and complicated tax rates. In 2017, Narendra Modi has sought to improve tax collection rates and reduce complications through the introduction of a general sales tax (GST) which involves a single tax rate – rather than tax rates applied multiple times at different stages of production. (Modi’s tax gamble at Economist)
Business difficulties: According to the World Bank, the ease of doing business in India is poor. India ranks 130/190. Big issues for companies include:-
Ease of enforcing contracts
Dealing with construction contracts
Paying taxes
Trading across border
Inequality within regions: India’s economic growth has benefitted some regions more than others. Technological hubs, such as Delhi and Mumbai have attracted higher-paying jobs. This has attracted an inflow of most mobile and skilled workers; this has created congestion in these super-cities but failed to address the poverty of rural areas, especially in the northeast
Since Independence, Indian economy had faced .any challenges. After 1991, it has pursued free market liberalization opening in trade and increase in infrastructure leading to achieve a rapid rate of economic growth and economic development. According to current reports, rising commodity prices, surging inflation, supply shortages and shifting geopolitical realities across the world weigh on the growth outlook. Still, India will likely reign as the world's fastest growing economy. RBI has projected a GDP growth of 7.2 percent for the current fiscal ending March 2023. However despite asch great growing of economy, India still faces some challenges. 1. Population :- One of the biggest challenge to India economy is population. India being the second most populated country in the world today, 1st being China. India has high birth rate and falling death rate, hence to maintain growing population of especially young children, Government needs to take care of basic amenities increasing economic burden to country. 2. Unemployment :- Unemployment is still an issue after such economic growth. Rapid economic growth left unskilled workers behind for then struggling to work in industries leading to poverty in country. 3. Huge dependence on Agriculture :- Since Independence, Agriculture sector had been the most active sector where almost over 51% of population is employed but economic output is only 17.4% which proved Agriculture as most inefficient sector leading to more poverty. 4. Lack of infrastructure and technology :- These are also serious problem affecting Indian economy. Infrastructure includes transportation communication, electricity generation, health and educational facilities, etc. Every region of country can't provide all these facilities so therefore India lacks in Infrastructure. New technologies are developed every now and then but they are expensive and requires skill and training. Hence, lack of skilled labour in India is one of the hurdles to not opt for technologies more. Also poor farmers can't buy these expensive machines for Agriculture so level of technologies used in India is decreased. There are many other challenges to Indian economy like lack is education, inequality in wealth distribution, low per capita income, etc. Also in current scenario due to Russia - Ukraine War, Covid-19 pandemic has affected Indian economy in large terms.
According to a recent report by the Centre for Economic and Business Research, India may overtake France in 2022 to become the sixth-largest economy in the world. The feel-good factor for India is that the report also predicts that India will overtake Germany by 2031 to become the third-largest economy in the world with a GDP of more than US$6.8 trillion.
But despite 75 years of its independence, India faces some major Economic challenges which prove to be a barrier in its growth, they are:
· Unemployment: The overall unemployment rate eased to 6.80% in July, a 1 per cent decline compared to June, the lowest since 6.56% in January, Centre for Monitoring Indian Economy (CMIE) a private organisation reported on Monday. Despite rapid economic growth, the major problem that the Indian economy faces is unemployment. People are jobless not only in rural areas but also in urban areas.
· Lack of Education due to High Costs: In India, many people remain illiterate. There are several parts of the country where females are still not given the right to get an education. This happens because education is too costly, and all cannot meet education costs. This results in lesser job opportunities because all sectors need workers who can be trained or know the working of complex machinery. Thus, lack of education leads to lesser job opportunities for the people.
· The Economic Difference between Poor and Rich: There is a vast difference in wealth between the rich and the poor. Rich is getting richer, and the poor are getting poorer. The distribution of income in India is hugely uneven, which is quite unfair and stops the country from growing.
· Agriculture predominates the Indian economy: According to a report, agriculture provides employment to 60% of the population of India and, in turn, forms 17% of the GDP in India. Agriculture has grown in India, and various commodities are produced in the country itself. The articles produced from agriculture undergo various operations before reaching the market like transportation, bagging, storage, etc. These operations employ people and contribute to India’s economy.
· Lack of Infrastructure: India lacks an efficient infrastructure. This means India lacks the basic system required to work to perfection. A perfect example of the same can be seen as a lack of irrigation facilities for the farmers. Transportation infrastructure needs to be improved. The government needs to invest in roads, railways, ports, etc. Improvement of infrastructure leads to a trade boost.
With a large young population, a booming economy and huge untapped potential to become the global manufacturing hub, India is at a critical juncture in its growth trajectory.
The challenges that the Indian economy has, and has been facing are diverse. For clarity, we categorize them as internal, and external.
Internal challenges
these challenges are within the country. these include
rising subsidies, particularly in the agricultural sector, which drain the government treasury.
rising welfare expenditures, but lower focus on the development of primary health centres, and Anganwadis
challenges to India's internal security with attacks on Kashmiri Pandits, and the influx of Rohingyas, which are burdensome to India's resources
stagnating labour force participation amongst women (at 21%), due to prevailing societal attitudes
External challenges
India faces these challenges in the international community. these include
depreciation of rupee, by Rs. 75 in 75 years with respect to a dollar
rising import dependence in defence, power, crude oil, and so on, leading to a high current account deficit of roughly 3% of its GDP
Hence, a way forward in this direction would be for the government to raise its revenues, with tax compliance measures, and stricter penalties in case of non-compliance. incentives must be provided for women to increase their participation in the labour force; primary health centres, Anganwadis must be developed so that every last person has access to quality health and educational facilities. further, higher investments in research and development, clubbed with import substitution policies, will also be helpful.