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Thread: Biggest Problems Facing The Indian Economy

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    Default Biggest Problems Facing The Indian Economy




    India's GDP climbed 4.8 per cent year-over-year in the January-March quarter. This was the slowest pace of growth in a decade. For the fiscal year ending March 31, growth was 5 per cent, down from 6.2 per cent the previous year, according to Business Insider.

    Let's take a look at 16 biggest problems facing the Indian economy.





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    Infrastructure

    Inadequate supply of infrastructure: 20.4 per cent say its a problem

    Indian business community repeatedly cites infrastructure as the single biggest hindrance to doing business, well ahead of corruption and bureaucracy.





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    Bureaucracy

    Inefficient government bureaucracy: 12.7 per cent say its a problem

    Discontent within the business community remains high about the lack of reforms and the perceived inability of the government to push them through.





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    Policy

    Policy instability: 7.6 per cent say its a problem

    Indeed, public trust in politicians has been weakening for the past three years.





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    Inflation

    Inflation: 7.5 per cent say its a problem

    The macroeconomic environment continues to be characterised by large and repeated public deficits and the highest debt-to-GDP ratio among the Brics.





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    Financing

    Access to financing: 6.2 per cent say its a problem

    India continues to be penalised for its disappointing performance in the areas considered to be the basic factors underpinning competitiveness.





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    Tax

    Tax regulations: 6.2 per cent say its a problem

    The country's supply of transport, ICT and energy infrastructure remains largely insufficient and ill-adapted to the needs of the economy.





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    Labour

    Restrictive labour regulations: 5.7 per cent say its a problem

    Despite these considerable challenges, India does possess a number of strengths in the more advanced and complex drivers of competitiveness.





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    Workforce

    Inadequately educated workforce: 5.1 per cent say its a problem

    This 'reversed' pattern of development is characteristic of India.





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    Innovation

    Insufficient capacity to innovate: 3.0 per cent say its a problem

    It can rely on a fairly well developed and sophisticated financial market.





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    Instability/coups

    Government instability/coups: 2.8 per cent say its a problem

    It can channel financial resources to good use, and it boasts reasonably sophisticated and innovative businesses.





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    Work ethic

    Poor work ethic in national labour force: 2.7 per cent say its a problem

    Large emerging economies such as Brazil, the Russian Federation, India, China and South Africa are growing somewhat less than they did in recent years.





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    Tax

    Tax rates: 1.9 per cent say its a problem

    India is the worst performer among the Brics, with concerns in both areas of sustainability.





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    Security

    Crime and theft: 1.0 per cent say its a problem

    India is not providing access to some basic services to many of its citizens (only 34 per cent of the population has access to sanitation, for example).




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    Forex

    Foreign currency regulations: 0.7 per cent say its a problem

    The employment of much of the population is also vulnerable, which - combined with weak official social safety nets - makes the country vulnerable to economic shocks.





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