CHALLENGES FOR ECONOMIC GROWTH IN INDIA – A CRITIQUE

Abstract

India is facing many challenges to hike economic growth, being a fast moving economy during 2016-17 and 2017-18 at 7% - 7.5% growth rate per annum. It fixed a target of 8% per annum though having potential to grow at 10% annually. Indian economy showed fast recovery in Industrial Production(IIP),Gross fixed capital formation (GFCF),and consumer demand indicators reflecting a positive economic growth rose at 12% in the third quarter (2018-19) from 6.92% in the previous quarter. later India’s Gross Domestic Product (GDP) speed got reduced as found from each quarter in 2018-19 due to decline in domestic demand, fall in savings from 30.5% in 2017-18 to 28% in 2018-19, rise in inflation beyond 4%,slow growth in manufacturing, decline in agriculture growth, rising unemployment in both urban as well rural areas, declining contribution from labour force, fall in exports, unfavourable foreign capital flows etc.These challenges are to be tackled effectively by government of India as it aims to attain $5 trillion economy by 2024-25. The study used secondary data from various published reports from Economic survey of India -2019 & 2020,NITI Aayog reports, Ministry of Statistics and Program implementation, Government of India, Reserve Bank of India -Handbook of Statistics, World Bank and IMF reports and Experts opinion published in leading news papers, published articles in journals. The study focuses on growth achieved during 2014-15 and 2018-19,rate of interest, industrial production, growth impact on job creation, unemployment rate factors to present the challenges and revival measures for economic growth in India.