List of macro-economic problems of Indian economy and comment on them in brief
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India is one of the fastest growing major economies in the world. However, it has huge macro problems. While inflation has come down of late, food inflation raises its ugly head every once in a while. This is simply due to the lack of infrastructure in the rural areas. Also, we have a significant current account problem. We have not had a Current Account Surplus since I think 2003-04. That means that we have to sell assets, borrow money in order to fund our imports. This problem has somewhat been solved with oil prices coming down to 50 dollars a barrel. However, even with oil at multi year lows, we yet have a current account deficit of more than 1% of GDP.
On the unemployment front, despite huge economic growth, jobs are not being generated. A report showed that during the 10 years of the UPA rule, a period of high growth, there were no jobs generated. Besides, 90 percent of jobs are in the informal sector.
Productivity in India is also very low.
On the unemployment front, despite huge economic growth, jobs are not being generated. A report showed that during the 10 years of the UPA rule, a period of high growth, there were no jobs generated. Besides, 90 percent of jobs are in the informal sector.
Productivity in India is also very low.
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