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Exercises · Q11

Q.Explain any three major problems facing the Indian economy today.

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Despite sustained economic growth, particularly after the 1991 reforms, the Indian economy continues to face several significant problems:

  1. Poverty — while the proportion of India's population living below the poverty line has fallen substantially since Independence, a significant share of the population continues to face poverty, particularly in rural and less-developed regions.
  2. Unemployment and underemployment — open unemployment, especially among educated youth seeking formal-sector jobs, coexists with widespread disguised unemployment in agriculture, where more workers are engaged than the land genuinely requires.
  3. Regional and income inequality — economic growth has not been shared evenly across India: some states, cities and social groups have grown considerably faster and become far more prosperous than others, leaving genuine and persistent disparities. …

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