While India is expected to sustain its growth trajectory it is facing number of developmental challenges. Discuss in the light of the World Bank report.

Ahead of the annual meeting between the World Bank and the International Monetary Fund, the World Bank has made the following observations on the growth trajectory of India:

  • India has halved its poverty rate since the 1990s and has achieved a seven-plus growth rate over the last 15 years.
  • India’s growth is expected to continue and the elimination of extreme poverty in the decade is within reach for India.

Challenges Highlighted by the World Bank

The World Bank noted that India’s growth is expected to continue and the country’s development trajectory nonetheless faces considerable challenges.

Efficient Resource Utilization

India is required to achieve greater resource efficiency as it sustains growth, given its resource endowments and large population.

Land Use

The Land resource must be put in use productively in urban areas through the spatial transformation of cities by achieving agglomeration economies and in rural areas by increased agricultural productivity.

Water Use

For efficient water management, there is a need to shift water allocation to higher-value uses and policies to increase the value of water use within sectors.  In addition, 230 million people are not properly connected to the electricity grid while generation will need to be less carbon-intensive.


About 230 million people in India are yet to be properly connected to the electricity grid. The increased generation capacities must be achieved through less carbon-intensive methods.


Sustained growth must also accelerate inclusion, especially to create more and better jobs.  An estimated 13 million people enter the working-age population each year whereas only three million new jobs are being generated on an annual basis.

India is also facing a particular challenge of declining female labour force participation which at 27 per cent is among the lowest in the world despite overcoming gender gaps in education.


India’s public sector institutions must be modernised to deliver services and regulations that match the aspirations of a middle-income country. This will entail improving accountability and effectiveness, improving the ability of the state to interface with the private sector, and strengthening the compact among tiers of government to improve service delivery.


Leave a Reply