Question

11.          Cite at least three challenges facing India and describe how each hinders economic growth.

                12.          How much did the World Bank contribute to India in development assistance?

                13.          Cite at least one news item for India and explain how it relates to economic growth.

                14.          Find the statistics (1–5 above) India, Is your country converging? Explain.

GDP If national income is a good measure of well-being, why is Switzerland’s Gross Domestic Product so much lower than India’s GDP ? What measures would better compare the well-being for residents of different countries? How do you expect these direct measures to correlate with per capita GDP?

Answer 1

question 11 ) India has been amongst the fastest growing nation in the past few years , however it has not been able to achieve double digit growth because of the challenges faced by it . Some of the challenges are :

1. Unemployment

Despite growing at a rapid pace , Indian economy I facing the arable of jobless growth i.e it is unable to provide gainful employment opportunities to its rapidly growing labour force .This is primarily because of service sector led growth rather than manufacturing based growth which utilises the vast pool of semi skilled Labour. Low employment opportunities lead to outflow of human capital , increased incidences of poverty affecting growth .

2. Low literacy rate

Although India has an literacy rate of nearly 67% , yet the standards of education are very low making it difficult to seek job later . Further high incidence of poverty prevents the children from entering school . As the result the vicious cycle of low growth - poverty continues .

3. Inequality has risen rather than decreased.

Economic growth has been highly uneven in India making it difficult for the people below poverty line to overcome their poverty and enjoy better living standards . Increasing inequality affects the ability of people to access health , educational and job opportunity affecting their chances of contributing to economic growth .

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