Development Challenges in the Indian Economy

Development Practise
Students Name
Institution

India 1
Introduction
Worth noting, India is one of the fast-growing Asian economies. However, despite the
opportunities for growth, challenges, topographical and geographical advantages, the Indian
economy is yet to fully develop. Additionally, the availability of natural resources such as
tourists sites has contributed to the Indian gross domestic product. Among the factors such as a
youthful labor force, low wages and technological advancements have contributed to the
economic development of the Indian economy. Some of the challenges include governance and
political will. Unfortunately, social-cultural issues such as caste, religion, education have played
a role in the entrepreneurial culture of the Indian economy. Imperatively, economic development
depends on the stability of macroeconomic factors, governance structure, currency appreciation,
and political will to sustain economic development Among the constraints to economic
development in India are the social-cultural factors, high and inefficient energy costs and
inadequate infrastructure. Despite all these challenges, the Indian economy is bound to grow
according to IMF forecastings.
India’s Demography, geography, and topography
Notably, India is situated on the Northern Indo-Australian region. Basically, the Indian
geography is mad eup of snowy mountain ranges, range of deserts, hills, and series of
plateaus. On a topographical front, the Indian landscape is identified by the Himalayas,
Peninsular plateau, Northern Plains, Coastal plains as illustrated in the image below (Maps of
India, 2019). These geographical regions are key tourist attractions for the country hence raising
revenue to the Indian gross domestic product growth. According to recent demographic statistics,
the Indian population was estimated to be 1,281,935,911 as of July 2017(Indexmundi,2018). It

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is estimated that the population level grew by 1.17 percent in the year 2017. Overall, India‘s
population is male-dominated. However, the female median age is higher than the male's median
age. Worth noting the Indian population life expectancy rate stands at 67.6yr for men and 70.1
years for women as at the year 2017(Index Mundi.com,2018).
Maps of India . (2019). Topography of India. Maps of India .com.Online Image .Retrieved from
https://www.maps ofindia.com/maps/india/topographic-map.htm
Key development challenges
Worth noting, the Indian economy was ranked 177/180 in Environmental Performance Index
conducted by the World Economic forum alongside the Universities of Yale and Columbia (PTI,
2018). Specifically, India was ranked second last as to air quality thus making India among the
most polluted countries. In a way, environmental degradation leads to depletion of natural
resources and affects the health and wellbeing of the labor force thus affecting economic
outcomes. Due to air and other forms of pollution, life expectancy rates and workforce health
care /wellbeing will be affected by diseases and deaths which reduce the healthy labor

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participation required to engage in economic development activities. According to the Indian
Institute for health metrics and Evaluation report of 2017, PM 2.5 death incidences have been on
the rise and the same is estimated to be 1,640,113 deaths yearly. Also, the report observed that
air pollution was responsible for two-thirds of the deaths in the Indian economy thus reducing
the labor market participation rate. It is important that the Indian government puts into place
measures to eradicate carbon emissions to curb ills and death related to air pollution for a healthy
and productive labor market.
Governance and Political capabilities
Noteworthy, the Indian political landscape is federal and parliamentary in nature. Similar
to all economies, political will play a critical role in the formulation, implementation, and
achievement of economic development goals. Due to the lack of transparency and accountability
systems in the public sector, the implementation of economic policies for the wellbeing of
Indians has been cut short. There has been massive corruption in public procurement and
expenditure leading to low economic outcomes for the Indian citizens. Also,lack of professional
and educational qualifications to handle public service offices has led to poor economic and
social outcomes for the economy. It is important that qualified staff be appointed to run public
services for the benefit of all citizens. Also, there is a need for transparency and accountability
mechanisms in public procurement and investment for better economic outcomes for all.
Arguably, the weak macroeconomic conditions of the Indian economy can be attributed to poor
policy and decision making on the part of the Indian government. Worth noting, monetary and
fiscal policy formulation and implementation are the responsibilities of the Indian government
through its agencies and institutions.