Question

Which of the following challenges are faced by Indian Economy?

• A. Inflation
• B. Poor educational standards
• C. Poor infrastructure and rural development
• D. All of above

Answer 1

Answer: (D)

All of above

Following challenges are faced by Indian Economy:-

• Inflation- The increase in prices of food products and other goods & services in India is an ever increasing problem. Current inflation rate in India is 6.51%. For instance, in 2013, the inflation rate was approximately 11%, despite the growth rate being 4.8%. From this data, we can infer that inflation is not because of excess demand, but is also caused by cost push inflationary factors. For example, constraints in agriculture cause rise in food prices, which further leads to inflation.
• Poor educational standards- Around 22-25% of the population in India lives Below Poverty Line (BPL). They are unable to afford quality education and as a result literacy rate declines. Education standard is worse in villages & rural areas. Around 40% of the Indian women are illiterate. This hampers economic development.
• Poor infrastructure and rural development- Nearly 70% of the Indian population lives in rural areas. Many of them don’t have access to basic amenities like water, electricity, proper roads, and medical facilities. It is, therefore, the need of the hour to take their economic and social development to the next level.