IE 3: Major issues of Indian Economy

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.

These were some of the major problems of our economy at the time of independence and most of them still prevails. They are calling for urgent developmental efforts.