Progressing Indian economy:
Challenges:
The Indian economy has faced several challenges in recent times, including:
Weak Demand: The economy has grappled with weak demand, which has impacted various sectors
Unemployment: Rapid growth in unemployment has been a significant challenge, affecting the country's workforce
Poor Infrastructure: India's infrastructure gap, estimated to be around $1.5 trillion, has hindered economic development and the quality of life, particularly in rural areas Balance of Payments Deterioration: The country has been running a persistent current account deficit, reflecting its dependence on foreign goods and services
High Levels of Private Debt: The economy has been burdened by high levels of private debt, impacting financial stability
Inequality: There is a significant disparity between the rich and the poor, posing a challenge to inclusive economic growth
Population Growth: The heavy population pressure has strained the economy, affecting Resource allocation and social welfare
Agrarian Crisis: The agriculture sector, which employs a large portion of the population, has faced challenges, contributing to the overall economic issues
Inflation: High inflation has affected the cost of living and household financial savings, impacting purchasing power
Trade Imbalance and Global Developments: The economy has been influenced by trade imbalances, global demand, and macroeconomic policies, posing risks to growth and development
Income poverty
Causes:
Solutions:
To address income poverty in India, several measures have been proposed and implemented. Some of the common solutions include: