Question

Prepare a list of macroeconomic problems of indian economy and comment on them in brief

Answer 1

Indian the economy  faces various problems and challenges. Some of them are:
 
1. Inflation:

Property prices and food prices inflation in India has increased.

Inflation is currently between 8-10%.

Example:  supply constraints in agriculture have increased food prices causing inflation. Because of this living standards of the poor sensitive to food price are reduced.

2. Poor educational standards:

There is high levels of illiteracy  in rural areas and women. Because of this economic development  and skilled workforce is affected.

3. Poor Infrastructure:

Most areas in India lack basic amenities and water. 

Example: Because of poor infrastructure, over 40% of Indian fruit rots before they reach market.

4. High levels of private debt:

Increasing real estate marketing have increased the amount od lending in India by 30% in the past year. If the inflation increases further, RBI tend to increase the interest rates.