What are the key challenges faced by India in boosting its economic growth

Explain the economic issues that hinder India to achieve double-digit growth rate.
India possesses a number of strengths that can help it to achieve robust economic growth; however, it still faces several key challenges in realizing its potential. Some of the key economic issues that hinder India from achieving its double-digit growth rate include:
  • Infrastructure Deficits: Despite efforts to improve infrastructure facilities in the country, India still lags behind in many key areas such as transportation, power, water supply, communication networks etc. This affects various industries and consequently hampers the GDP growth rate.
  • Restraints on Innovation: India lacks in research and development facilities and hence its innovativeness doesn't get full scope
  • Policy Making: Vital issues like deregulation, reforms, skill development, and foreign investments face unwarranted political delays restricting the country's growth upon global platforms.
  • Corruption: Corruption in India hinders the inflow of FDI and its erosion is often related to foreign economic policy.
  • Social Inequality: India is plagued with widespread poverty, income inequality, and social disparities which affect the economy at a wider scope.
  • Human capital constraints: India has a large and young workforce, but their education and skills, particularly in technical areas, are often deemed insufficient
All these factors bear down upon India's growth prospects and so it must address them in a determined manner to move with confidence towards economic growth and prosperity.
Answered a year ago
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