What are the factors which affect the economy of India
Explain the various factors which affect the economy of India.
- Political Stability: Political instability can negatively impact the economy by reducing foreign investment and slowing down economic growth.
- Infrastructure development: Insufficient infrastructure, such as transportation, communication and power, can hinder economic development.
- Technological advancement: Development in technology positively impacts Indian economy as it creates job opportunities, enhances productivity and increases efficiency.
- Global Economic Conditions: Fluctuations in the global economy affect Indian economy, due to trade agreements, exchange rates and other factors.
- Monetary and Fiscal policies: Monetary and Fiscal policies by the government and the central bank affect the inflation, fiscal deficits and interest rates.
- Government Regulations and policies: Government bureaucracy, red tape and regulations can slow down the growth of small and medium-sized enterprises, which in turn adversely affect the economy.
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