with the help of the infomation in the capter complet the list of the challenges before india and the strengths of india
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Answer:
★India has come a long way in modernizing its economy, reducing poverty and improving living standards for a large segment of its population.
Its economy has been one of the largest contributors to global growth over the last decade, accounting for about 10% of the world’s increase in economic activity since 2005, while GDP per capita in PPP (purchasing power parity) terms is today three times as high as in 2000.
Yet, this period also witnessed a rise in inequality, which has been mainly driven by income gaps between India’s states, and a growing urban-rural divide. India continues to have the largest number of poor in the world (approximately 300 million are in extreme poverty), and nearly half of the poor are concentrated in five states.
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Growth has slowed in recent years and several challenges remain unsolved. Bringing more people into the process of generating growth and sharing the gains more widely will make India more resilient for the future.
ith one of the largest and youngest populations in the world, India needs to create millions of good-quality jobs in the near future to ensure decent living conditions for the vast majority of its citizens.
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The country is often cited as an example of an economy that is modernizing by jumping directly into services without passing through manufacturing. The weight of manufacturing in India has been relatively stable over the past two decades, at much lower levels than China and ASEAN countries. Business services – a high value added sector – represent a larger share of economic activity in India than in Europe.
Will India be able to achieve shared prosperity without a growing manufacturing sector? Agriculture accounts today for only 16% of total value added (down from 44% in 1965), but still employs about half of the Indian population. Productivity in this sector did not increase significantly in the past decades, limiting improvements in living standards in rural areas.
India has a great deal of opportunity to enhance the generosity and progressivity of its social protection system so that it can give its citizens the safety net needed to take risks and participate fully in the economy and society.
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Increasing its narrow tax base can also give India more fiscal space to make these much needed social expenditures, particularly in health. India’s public health system remains limited in coverage. Out-of-pocket expenses are high, limiting affordability. This translates into poor (and unequal) health outcomes. Inequality adjusted life expectancy is 25 years while in many peer countries like Thailand and Vietnam there is only around 10 years’ difference between high and low-income individuals.