What are the factors which affect the economy of India

Explain the various factors which affect the economy of India.
There are several factors that affect the economy of India. Here are some of them:
  • 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.
Overall, economic growth is dependent on several internal and external factors, which must be taken into account by policymakers.
Answered a year ago
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