Saturday, 26 September 2015
Major Problems of the Indian Economy
* When the Britishers left India, our Economy was crippled beyond repair.
* Our masses were steeped in poverty, agriculture was in the back gear and our industry was in a bad shape.
* Some of the challenging problems of the economy were as follows:
- Almost half of the country's population lived under the poverty. They were not able to meet basic minimum essential requirements.
- There was a huge imbalance between population and resources like land, mineral and capital etc.
- Indian agriculture was one of the least productive in the world and there was no use of modern fertilizers, tools and equipments etc.
- There was a serious lack of social overhead capital like railways, electricity, communication, banking etc. Development of such infrastructure is essential to permit growth of other industries.
- The limited amount of land and the obsolete techniques of agriculture provided very few jobs and there was a widespread unemployment.
- Another major issue facing the economy is the sharp and persistent rise in general price levels which culminated into high inflation since independence.