Swot of Indian Economy
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The developing economy of India is developing at a very fast rate and is the second contender after China in the race of super power. Indian economy has strengths which can do wonders to the economy if its weaknesses are worked upon. It has a vast pool of opportunities offered to it by the world due to its structure and the bright future which it has. There are also threats which can prove hindrance in its path to success but then its the duty of Indian government and its people to watch out for these threats and save their economy from being affected by any of these.
India is an agricultural country with its major population employed in this sector. The strength in this sector which India enjoys is the huge cultivable land (2nd in world), huge labour force, diverse soil type and climate and most important governments special support to this sector in the form of subsidies and welfare schemes for farmers. Indian economy is a stable economy due to its structure and control tactics which it has in the form of monetary and fiscal policies. Any crisis in any part of the world has an equal effect on other parts as well but RBI and Indian government have always succeeded to isolate Indian economy to a great extent as in cases of recession and euro zone crisis. Huge English speaking population and a large reservoir of engineers have opened the doors for service sector in India. Emerging IT and BPO sector is bringing valuable foreign exchange and hence service sector is the largest contributor to GDP today.
The involvement of high population in agriculture sector with this sector contributing only 23% to GDP is a matter of grave concern. Low levels of income due to unemployment and disguised employment has resulted in one-fourth of Indian population below the poverty line. Poverty is a major problem in India which adversely affects the growth of the economy as huge amount of fund in the budget is allocated towards solving this problem which has remained intact since independence. Low literacy levels and lack of skilled labours also weaken the Indian economy. The under developed infrastructure is a hurdle in the growth of our economy which has caused stagnation in industrial sector. Also the weak bureaucracy and widespread corruption add to the problems of Indian economy.
Indian economy has an opportunity to exploit its resources in fisheries, plantation, poultry etc. along with agriculture. Indian market has always been an area of interest for the private firms to invest in various sectors. There are huge prospects of earning foreign exchange from IT and ITES sector. India can also grab the opportunity of increasing trade with its neighbouring countries. The plan of government to increase FDI in various sectors is also an opportunity for the Indian economy to get increased inflow of foreign currency.
The major threats that have always worried the economy is the excessive dependence of agriculture sector on monsoon,