Question

What are the challenges of the economy today?​

Answer 1

1. Weak demand :

Stagnated demand seems to be the biggest challenge for the economy at the moment.

2. Ballooning unemployment :

The CMIE data show that nearly five million or 50 lakh salaried jobs were lost in July, taking the total number of layoffs in the formal sector to over 1.8 crore.

3.Lack of fiscal stimulus :

the government’s inability to provide direct fiscal stimulus, like many other countries, is due to India’s stretched fiscal deficit. The fiscal deficit has already hit a record $88.5 billion over April to June, which is over 83 per cent of the target for the current financial year.

Hope it helps!