Economic Challenges in India

Economic Challenge

After India got independence, there was an impact on the Indian economy. The agriculture sector had surplus labour but less productivity. On the other hand, the industry sector was looking out for modern technologies, investments, and capacity building. Infrastructure also needed expansion, upgradation, and public orientation.

Economic Issues in India

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 the basic requirements of clothing, food, medicine, shelter, and schooling, etc. These circumstances increase the economic burden of the nation.

The rapid growth of unemployment: The large amount of unemployed population also adds to India’s economic issues.

Rate of capital formation: Due to the high population, India always had a scarcity of capital. In recent years, there has been a moderate but constant development in capital formation.

Inequality in wealth distribution: There is a huge disparity between the rich and the poor, which is one of the major economic issues in India.

Solved Questions:

Q.1- Mention some of India’s most essential economic challenges from the time of independence. (NCERT)
Answer:
Economic challenges from the time of independence are:

  • The increasing dependence of a large proportion of the population on agriculture
  • The use of traditional methods of cultivation, which results in low productivity and stagnation in the agricultural sector
  • Destruction of world-famous Indian handicrafts
  • Low level of development in the industrial sector
  • A massive level of unemployment and underemployment
  • Lack of medical facilities, leading to high infant mortality rate, low life expectancy, and low literacy rate
  • Widespread mass poverty because of natural calamities (famines, epidemics, etc.) and other socio-economic factors
Q.2- What was the reason for low productivity and stagnation in agriculture?
Answer:
The lack of new technology was responsible for low productivity and stagnation in agriculture.
Q.3- what causes a high rate of IMR and life expectancy?
Answer:
Poor medical facilities caused a high rate of IMR and Life Expectancy.

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