Critically examine the bottlenecks in achieving rapid economic growth in India.
Economic development is referred to as the growth of the standard of living of the people of any country. It helps a nation to conduct an effective transition from a low-income economy to a high-income economy. Improvement of the local quality of life indicates economic development.
Economic growth in India
The economic growth in India followed a socialist-inspired approach for most of its independent history that includes state-ownership of many sectors. The per capita income has just increased by 1% per annum in the post-independent period. Economic liberation opened its market. A free-market economy has been established gradually. Though, the presence of bottlenecks in achieving rapid economic growth in India is still there.
- The problem of corruption in many forms affected India’s economic condition.
- Red tapism in bureaucracy and license raj stalled the growth of private enterprises.
- The 1991 economic reforms failed to achieve the desired points.
- The unemployment rate increased to 9%.
- Land acquisition and proper financing are missing in Infrastructure development.
- Low farm productivity, unfriendly business environment, the inefficiency of the public sector.
- Lack of structural, institutional, and technical change in economic planning.
- Environmental degradation.
- Fewer women participation in the economic development sector.
There is no doubt that fiscal support, infrastructure development, and environmental impact Assessment are the dominant factors for economic development but equally important is enabling suitable policies from the government’s end. Then only the condition of the economy of India could be placed on a high growth trajectory.
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