Indian Economy and Its Challenges

Due to economic reforms India's Gross Domestic Product (GDP) has increased sharply. India has become the sixth largest economy on the basis of GDP, but at the moment there are many challenges before the economy. Compared to the dollar, rising prices of rupee and crude oil have raised concerns about India.

Growing non-performing asset (NPAs) in public banks have reached a distressed level of Rs10.25 lakh crore by March 2018. With the concerted effort where the economy can be brought to higher level, the happiness of the common man will also increase.

According to the World Bank's latest report published in July this year, India's GDP at the end of 2017 has become $ 2.6 trillion (178.59 trillion). Five other economies include the United States, China, Japan, Germany and Britain. The World Bank says that the economy of India has improved in the last few years.

If India continues the process of economic and business reforms as it does today, then it could become the fifth largest economy in the world by following the UK in 2018. In its latest report, the International MonetaryFund (IMF) has said that by the year 2030, India can also become the world's third largest economy.

It has been stated in the report submitted by the Ministry of Finance of India that the strategies created for augmenting the development of district-based agriculture-industry, strengthening infrastructure and creating a demand for investment, by 2025, amounted to 5,000 billion Will reach the dollar, which is now close to $ 2,500 billion.

China is projected to grow 6.6 percent in 2018 and 6.4 percent in 2019. While the IMF says that India's growth rate will be 7.4 per cent in 2018 and to 7.8 per cent in 2019. Direct tax contribution in GDP has increased. After economic liberalization, the Indian middle class also has a special role in polishing the economy.

With the growth rate of the country as well as the high growth rate of urbanization, the economic strength of the middle class has increased rapidly in India and the middle class of India will continue to be a source of more production, more sales and more profitable in India for a long time.

There are many challenges before the country. A major challenge is comparatively related to low per capita income. Economic inequality in the country is worrying. The number of rich in the country is increasing rapidly.

But the income of the common man is not increasing rapidly. Only after solving these challenges will the economy grow. So the infrastructure needs to be strengthened. The investment will have to be increased. The new demand will have to be created. In the field of manufacturing, the country has to move forward. The youth must be equipped with skill training for development. The Make in India plan has to be dynamic.

There will also be emphasis on structural reforms in which the export oriented manufacturing sector can get the pace. Only then can the new possibilities of economic and industrial development take shape in India. The success of Make in India will be to overcome the lack of skill-trained youth. In the industry-business, skill gap in the demand and supply of trained trainers must be overcome.

Credit rating agency Moody's said in the past that the trade war between the US and China, the rising international crude oil prices and the historical decline in the price of rupees, now the pace of growth in petrol and diesel is the biggest denger for the Indian economy.

In such a situation, it would be advisable that the government should focus its attention on renewing the energy policy to save the country from the inflation of petrol and diesel so that the economic difficulties due to rising prices of petrol and diesel can be reduced. The government has to give a lot of emphasis on electricity-driven vehicles. Electric cars have to be promoted by reducing tax.

In June 2018, it will have to look at the important suggestions given by the Policy Commission, which states that the state transport corporations will have to target that they include electric vehicles in a certain percentage in their transport fleet. Central and state governments should make the public transport easier.

We hope the government will give new dimensions to manufacturing sector and skill training to transform India into the world's third largest economy in the next 10-12 years, shining as the sixth largest economy in the wake of the World Bank report. . Government will move forward on the demand to increase demand and investment. At the same time, he will give due consideration to the startup and the construction of infrastructure.He will develop new strategies on rising oil prices rising as the biggest threat and options of petrol and diesel. He will move forward strategically even to increase the income of the common man. If this happens, the Indian economy will certainly become the world's third largest economy by 2030.