There are several factors that affect the performance of the Indian economy. These factors can be divided into two categories: domestic and global economic conditions. Domestic Factors: 1. Government Policies: Economic policies, such as taxation, industrial regulations, and monetary policies, implemented by the government can have a significant impact on the economy. 2. Infrastructure: The quality and quantity of infrastructure, including transportation, power, and telecommunication facilities, play a crucial role in determining the economic growth and efficiency. 3. Political Stability: Stability in governance and absence of political unrest are essential for attracting investments and maintaining business confidence. 4. Demographics: India's large population and its age distribution can influence consumption patterns, labor supply, and demand for various goods and services. 5. Resource Availability: Access to natural resources, including land, minerals, and water, affects sectors such as agriculture, manufacturing, and energy. Global Factors: 1. Global Economic Environment: Fluctuations in global economic growth, trade tensions, and monetary policies of major economies can impact India's export-import dynamics and overall economic performance. 2. Foreign Investments: Foreign direct investment and portfolio investments can influence economic growth, job creation, and technology transfer. 3. Exchange Rates: Exchange rate volatility can affect the competitiveness of Indian exports and impact the cost of imports, leading to fluctuations in the balance of trade. 4. Global Commodity Prices: Changes in commodity prices, especially crude oil, can impact India's import bill, inflation, and current account deficit. 5. Economic Relationships: Bilateral and multilateral trade agreements, economic cooperation, and financial aid from other countries also have implications for India's economic growth. While these are some of the factors affecting the Indian economy, their impact can vary over time, highlighting the complexity of the economic system.