End to Population Growth: We are far from a world in which all births result from intended pregnancies. For various reasons they are not using contraception. If all births resulted from women actively intending to conceive, fertility would immediately fall slightly below the replacement level; world population would peak within a few decades and subsequently decline.
This helped the Indian economy to achieve a rapid rate of economic growth and economic development.
However, the economy still faces various problems and challenges, such as corruption, lack of infrastructure, poverty in rural areas and poor tax collection rates. GDP per capita in Geary-Khamis dollars data range 1. Unemployment Despite rapid economic growth, unemployment is still an issue in both rural and urban areas.
The fast rate of economic growth has left unskilled workers behind, and they have struggled to find work in growing industries. Livemint reported on March 6, WIth, little if any government welfare support for the unemployed, it leads to dire poverty. It is worse in rural areas and amongst women.
This limits economic development and a more skilled workforce. Poor Infrastructure Many Indians lack basic amenities lack access to running water. Indian public services are creaking under the strain of bureaucracy and inefficiency. Balance of Payments deterioration.
Although India has built up large amounts of foreign currency reserves, the high rates of economic growth have been at the cost of a persistent current account deficit. Since then there has been an improvement in the current account.
But, the Indian economy has seen imports growth faster than exports. This means India needs to attract capital flows to finance the deficit.
Also, the large deficit caused the depreciation in the Rupee between and Whilst the deficit remains, there is always the fear of a further devaluation in the Rupee. There is a need to rebalance the economy and improve the competitiveness of exports. However, there are concerns about the risk of such loans.
If they are dependent on rising property prices it could be problematic. Furthermore, if inflation increases further it may force the RBI to increase interest rates. If interest rates rise substantially it will leave those indebted facing rising interest payments and potentially reducing consumer spending in the future 6.
Inequality has risen rather than decreased. It is hoped that economic growth would help drag the Indian poor above the poverty line. However, so far economic growth has been highly uneven benefiting the skilled and wealthy disproportionately. More than 78 million homes do not have electricity.
Furthermore with the spread of television in Indian villages the poor are increasingly aware of the disparity between rich and poor. Large Budget Deficit India has one of the largest budget deficits in the developing world.
Although it is fallen a little in the past year. It still allows little scope for increasing investment in public services like health and education. Rigid labour Laws As an example Firms employing more than people cannot fire workers without government permission. The effect of this is to discourage firms from expanding to over people.
It also discourages foreign investment. Trades Unions have an important political power base and governments often shy away from tackling potentially politically sensitive labour laws. Inefficient agriculture Agriculture produces This is the most inefficient sector of the economy and reform has proved slow.
Poor tax collection rates.The renewed turbulence in China’s stock markets—on Monday, the Shanghai exchange closed down more than five per cent—highlights the dual challenges facing the government in Beijing. Nova Iorque New York City; Localidade dos Estados Unidos; Do topo, em sentido horário: Panorama de Midtown Manhattan, sede da Organização das Nações Unidas, Estátua da Liberdade, Ponte do Brooklyn, Central Park, Times Square e a Unisphere no Queens.
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McKinsey Global Institute Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. overview of the Indian retail sector along with the opportunities of expansion of FDI in retail in India and the major challenges that it faces.
Key Words: FDI, Indian retail sector, Opportunities and Challenges, Impact on Stakeholders.