What Are The Disadvantages Of Indian Economy?


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Tash Naz , Freelance Writer, answered

India has a vast population with a variety of professionals from various fields with scope for investments. However, although India has a large and varied population there are many challenges facing the Indian economy.

Some of the main disadvantages of the Indian economy are as follows:

1. Inflation

Inflation is souring in India due to the increased cost of living. Fuel prices have gone up, property and food prices have increased by 10% and this has significantly hindered the Indian economy. The Central Bank of India have expressed their concern in tackling rising inflation with urgency.

2. The need for improved infrastructure

There are many poorer areas of India which are in need of improved infrastructure. Many people in India do not have access to running water or fresh food. Many of the agricultural fruits rot before it comes to market without the necessary resources to keep them fresh. There needs to be improvement in the Indian infrastructure in order to maintain economic stability.

3. Education

The lack of educational standards have hindered the Indian economy. The level of literacy in English in India has affected poorer areas and there are some rural areas where people have not been able to receive the proper education they need in order to excel. Education can help spur the economy and bring greater talents to the wider sector.

4. The need for Capital flows

Indian banks lack sufficient capital flow to finance the deficit and this has hindered the economy at large. There are many overseas importers in India but there needs to be transparency in order for the economy to further progress.

5. High levels of debt

The Indian economy has high levels of debt from private sectors which need to be addressed in order to benefit the economy at large. Inflation in India is one of the reasons why the economy has such a large amount of debt that is affecting the country at large.

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