Problems Faced by the Indian Economy

As the Indian Economy is the third largest economy in the world the focus of the world must have been shifted to India and its problems as soon as India gained its third spot. So now the problems that were already existing in the country are given slightly more importance because of its third spot. You might think this is an illogical statement but it’s a psychological thing which is the same in every part of the world. If it would have been any other country then also things would have been the same for them. The problems India is facing can be very generic and found all over the world but they are unique also to India and each country. Because the problem of unemployment in India vs the United States vs any undeveloped country might seem the same from a bird’s point of view. India is a developing country so the problems India is facing can't be solved overnight. They'll take time because a country whose population is the world’s largest and solving problems of roughly each and everyone is not feasible and practical and possible. 

Following are some of the problems of the Indian economy are listed:

1. Unemployment: Unemployment is a larger issue than it seems because it causes loss to a country’s economy by various means such as monetary ways, loss of productive hours of production, cause degradation of the education system because of lack of practical knowledge to acquire a job, they are burden to India’s government and society, and many such consequences which are not directly seen or measured by us human beings. Therefore, the little we can do is start working on our skills and that will end up getting good opportunities that will help us build a better career.

2. Poor Education Standards: It can be treated as interconnected with unemployment because if a country has a better education system then the people will surely end up getting at least any job instead of sitting idle for days and months just to search for a job. Illiteracy is hazardous firstly to the person herself/himself. This limits economic development and a more skilled workforce.

3. Poor Infrastructure: As we are aware of the fact that most of India’s population lives in rural areas and the percentage of illiteracy is more in the rural part of India so only people who had inherent ancestral wealth have the infrastructural facilities available to them. Other than that people don’t even have a strong roof to protect themselves from all the rains, storms, heat, and cold. Including this, the road networks of the Indian rural part are also undeveloped.

4. Poverty Problems: Even though the percentage of people living below the poverty line is been decreasing then also the little 7-10%* of the world’s most population-dense country’s total population is a huge number. These are people who are in poverty because they were born in poverty its called the vicious cycle of poverty. (*-numbers 7-10% are taken for calculation purposes and are not exact or real1)

5. Corruption: It is another big problem present in the Indian economy because as we know it is a waste of resources and it leads to inefficiency and waste in the economy. It also leads to a lot of social problems as well. Such as the money that should be used for a particular purpose is partly available and not fully therefore the quality of jobs done is degraded.

6. Mental Health: During the covid period because of the circumstances many people have faced this problem whose end product was reduced productivity of the people and reduced productivity caused monetary damage to India as well as the world economy.

7. Other than the points mentioned above there are some more problems faced by the Indian economy such as Inflation, Poor Tax Collection Rates, the Falling Price of the Indian Rupee Against the US Dollar, Inequality in Society, Rising Crude Oil Prices, etc.

In conclusion, the Indian economy, despite its status as the third-largest in the world, faces several significant challenges. These problems range from unemployment and poor education standards to inadequate infrastructure and persistent poverty. Corruption further hampers progress, leading to inefficiencies and social issues. Mental health concerns, exacerbated by the recent COVID-19 pandemic, have also impacted productivity. Inflation, poor tax collection rates, currency devaluation, inequality, and rising crude oil prices add to the complexity of the Indian economic landscape.

Addressing these problems requires concerted efforts from various stakeholders, including the government, private sector, and society as a whole. It is crucial to prioritize initiatives that promote employment opportunities, enhance education standards, develop infrastructure in rural areas, and alleviate poverty. Tackling corruption and improving governance practices can lead to more efficient resource allocation. Additionally, investing in mental health support and prioritizing well-being can contribute to a more productive workforce.

While these challenges may seem daunting, it is essential to recognize that progress takes time, especially for a nation with such a vast and diverse population. With sustained commitment and targeted strategies, the Indian economy has the potential to overcome these hurdles and achieve inclusive and sustainable growth. By addressing these issues, India can further strengthen its position on the global stage and improve the well-being of its citizens. It is through collective action and collaboration that the Indian economy can navigate these challenges and build a brighter future for all.