The Indian economy is one of the largest economies of the world. India is the second most populated country, known for its cultural heritage and religious beliefs. It is the only country where 22 different languages, such as Hindi, Urdu, Gujarati, Marathi, Malayalam, etc. are spoken in different states.
Some great personalities, such as Swami Vivekananda, Aryabhata, Guru Govind Singh, and many others who have played a vital role in history, were all born in India. Indian cinema, majorly Bollywood, is known all over the world for making movies of different genres. But despite being such a versatile nation, the Indian Economy is termed still as “developing” and not yet developed.
Our government introduces various schemes and programs for the overall development of the Indian economy. Still, the country is lagging behind in comparison to other nations. We are the people of India – a democratic country. We have the right to expression. This is the major reason why politics is always a major topic of discussion.
Politics being the secondary issue, there are various other primary factors that have affected the overall development of the country.
The major drawbacks of the Indian Economy-
Pre-dominance of agriculture
India is a developing nation. It is dependent upon the agriculture sector. About 70% of people are engaged in agricultural activities. Most of the output is generated from the agriculture sector. Agriculture is called the backbone of the Indian economy.
Infrastructure development portrays the overall outlook of any country. The main reason why India is lagging behind is the poor infrastructure of roads, railways, transportation, etc.
Not having a basic standard of living, such as being deprived of food, clothing, and shelter, makes a person lie below the poverty line. Poverty is also a major problem in the Indian economy. Most of the population is unable to generate an adequate amount of income to sustain a decent life. This results in the emergence of slum areas. These are usually underdeveloped. They have the least amount of resources and an unhygienic atmosphere to live in.
After discussing poverty, next comes illiteracy. Illiteracy is the main root cause of all other emerging problems.
The deprivation of the weaker sections of the society of the basic level of education occurs. They don’t have the means to go to schools or afford basic educational facilities. So, most of the population is engaged in small work that hardly generates an income a day. The daily wage workers also engage their children in small work. This leads to child labor.
We are all aware of the fact that industries play a vital role in the overall upliftment of the economy. India lags behind when it comes to industrial development. Here, the industries are backward as in comparison to the other nations. In this modern era, according to the present scenario, the Indian industries still use the old methods of production. Hence, the output is of adverse quality and not up to the mark. This is why other nations import most of the products that meet the day-to-day requirements. Majorly China.
According to current estimates, India’s population will be at its peak in the early 2060s at 1.7 billion. This will cause additional pressure on the environment and natural resources. It will boost greenhouse gas emissions.
India’s population is equal to 17.7% of the total world population. India ranks number 2 in the list of most populated countries in the world. It is also quite evident that India is full of creative people who are extremely talented in different fields. But, they don’t have access to proper platforms to showcase their creative energy. This is why the population becomes a drawback as demand is too much but the supply is comparatively less.
Dependence on imports
As discussed earlier, India majorly exports raw material and imports capital goods. This, also, results in a low per capita income of the country. It is very much dependent upon the imports while the exports are comparatively less. This makes the country a little dominated by the foreign Nations. It is also the major reason for the unfavorable balance of payments. The goods and services rendered to other nations are more than what comes in. Due to this, there is a lack of self-reliance.
The rural indebtedness rises mainly due to poverty. Somewhere, it is adversely affecting the Indian economy as a whole. It is said that a farmer is born in debt, lives in debt, and is dies in debt. Ancestral debt is a major factor as most of the family lies in. The next generation inherits this debt and so, the new generation also lives in poverty.
Lack of advanced technology
The people of rural areas, majorly the farmers, still follow older methods of cultivation. The new technology introduced to them for production purposes is difficult for them to understand and implement. Hence, they prefer old methods only. Which is why they are unable to meet the increasing requirement of the population.
Lack of awareness
Well, our last point has to be awareness. It is very important for the population. Basically, the youth has to be aware of emerging technologies and new methods.
Until and unless the population, majorly the rural people, are aware of the Indian Economy and its trends, they won’t implement or accept the new changes.
We just discussed the major drawbacks that have been an obstacle to the development of the Indian economy. Now let’s discuss the measure that needs implementing to tackle the problem.
A Solution –
Implementation of government schemes
The government has taken several initiatives for the poor condition of rural areas. Including setting up different programs to improve adverse conditions.
Our government has also taken certain steps to generate credit facilities for poor people. Even, measures to spread more awareness among the village areas. It includes the importance of education improvement of technology and a better standard of living. One of the major schemes is NABARD.
National Bank of Agriculture and Rural Development
NABARD has the main initiative of providing credit facilities in rural areas. It frames policies and plans for better development. NABARD is one of the major products and biggest initiatives taken by the government. It monitors if all the plans and policies are properly functioning by the rural regional banks and other commercial banks. It ensures that these banks are implementing the plans properly. NABARD takes care of the money related problems of the people. It provides them with loans at a lower rate of interest.
Indian population policy
India has the second-highest population in the world. The population could rise in the future. The government has introduced a new population policy for the citizens of the country. It is to make them aware of the rising problems. This will ensure that there are more programs to let people know and use methods to stop more births. The policy helps people make efficient family planning.
This ensures that there are no increased death rates in the country and no overpopulation. Therefore, the low population would ensure no pressure on production. Thus, the Indian Economy would work smoothly.
Our country has a long way to go. With efficient government and aware citizens, the Indian Economy would definitely soar high, bringing peace and prosperity.