Problems and challenges faced by our Indian economy. - MAINS QUESTION - DAILY CURRENT AFFAIR QUESTIONS AND ANSWERS

Saturday, August 22, 2020

Problems and challenges faced by our Indian economy.

The first challenge for the Indian economy is that the current budget deficit in the country has increased considerably as a percentage of GDP. Due to populist promises inspired by politics, it is becoming difficult to curb it. This budget deficit will have an impact on inflation and ultimately many important public interests to balance the budget.
Plans may also have to be postponed. This is bound to have an adverse effect on the ability and income of the common people. So now it's necessary
It has become that the government should put a stop to unhelpful, populist announcements, and make concerted efforts to balance the budget.

The second challenge is the problem of increasing trade credit in the center and states. Although several resolutions have been passed to keep the Banat in balance and to limit the extent of trade credit, many of which have also been given legal status, the governments of the Center and the States are continuously taking loans from the market And due to this the central and state
The bulk of the budget is spent on paying interest.

The third challenge is the slow growth pace of industries. Central and state governments call big industrialists from home and abroad and expect investment from them
Have been. Every state is inviting big industries under 'Make in India' by giving them many facilities and incentives. Most multinational companies and big industrialists of the country are also working on a strategy to export cheap produce abroad in India. But in reality, industrial exports from the country have been very less, because the demand for industrial goods is decreasing worldwide. As a result, despite many temptations, there is no expected satisfaction in industrial production. Another drawback of this policy is that there is very little evidence that employment is being created which can create a crisis in a country like India, where an increasing number of  youth are looking for employment. Obviously, unless the small and medium scale industries are given the same incentive as the big ones are getting, it will be
Weakness will not go away.

The fourth challenge that is most serious is the suspension of agricultural production. In the last three years, agriculture is not increasing by two to three percent. This is directly impacting the farmers, as their income is not increasing. Farmers are not getting the full benefit of the investment made so far to increase the production of agriculture. For example, the amount spent on irrigation
There is no growth of the irrigated area in the evidence and what we call irrigated area, there is less capacity of irrigation sources to provide water to the crop.

Similarly, the achievements of agricultural technology are repeatedly announced, but so far there has not been a miraculous increase in any major crop. The plight of small farmers and a large number of farmers
Suicide makes it clear that our policies in this area are not succeeding, we will be able to fight the global recession and develop sustainable economic growth only if we can overcome the weaknesses mentioned above.

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