Decisive Challenges in Indian Economy

Many country depend on other country to make healthy to their economy in global village, like America seems to India as a important destination to make their prosperous economy but if crisis and challenges will exist in one country, another country cannot go ahead to make economy healthy & prosperous So, we can see the towards importance of millennium development goal.

Challenges are lying in Indian economy. Its effect adversely to GDP. First we know the definition of GDP.

Definition - Gross domestic product (GDP) is the monetary value of all the finished goods and services produced within a country's borders in a specific time period. Though GDP is usually calculated on an annual basis, it can be calculated on a quarterly basis as well. GDP includes all private and public consumption, government outlays, investments and exports minus imports occur within a defined territory. Put simply, GDP is a broad measurement of a nation's overall economic activity.
We cannot increase GDP % until Govt does not curb below challenges -

• Water Crisis
• Agricultural
• Agricultural Land Issue

Water Crisis -   Total available water in India -

Data depict the situation of India in terms of water demand.

Consumption of water in India future projection -

Ground water usages pattern in different states -

Above all graphs shows water crisis in India.  12 states facing water crisis. Major states are Maharashtra, U.P., Teleangana and others. Ponds and River acquired by Land Mafia. Government is not taking responsibility and they do not have concrete plan to curb water crisis and ensure water availability to meet future demand. Data are showing the major water crisis in India, Latur district in Maharashtra where 2.5 cr liter water require but available water is 1.5 cr liter through different resources.

• Agricultural -

Agriculture plays a vital role in India’s economy. Over 58 per cent of the rural households depend on agriculture as their principal means of livelihood. Agriculture, along with fisheries and forestry, is one of the largest contributors to the Gross Domestic Product (GDP).

As per estimates by the Central Statistics Office (CSO), the share of agriculture and allied sectors (including agriculture, livestock, forestry and fishery) was 15.35 per cent of the Gross Value Added (GVA) during 2015–16.

Production of Agricultural in India is sufficient but Farmers doing suicide because they do not get proper profit.  Public distribution system is not good as required. India is facing lack of technology & digitization in agricultural. Still farmers are using high consumption of water and they do not aware about soil science. Still, Bank and Financial industry do not have suitable financial product for farmers.

We can see below graph Agri contribution in GDP is declining yr on yr.

• Agricultural Land Issue –

This is a very specious argument that is being made.Data from world Bank shows that around 60.3 percent of India's land area is agricultural land. The bank defines agricultural land as “share of land area that is arable, under permanent crops, and under permanent pastures.” In fact India has the second largest agricultural land in the world. As India Brand equity foundation, a trust established by the Ministry of Commerce and Industry points out: “At 157.35 million hectares, India holds the second largest agricultural land globally but below cycle represent if population is not balanced with land area it will create different kind of issue like degradation of agricultural land, water crisis and sustainability of human beings.

Below data depict that Land availability per person in India –

• Conclusion – I think any country must calculate the figure of requirement of below thing as proportion to population

1. Water
2. Land
3. Food
4. Energy
5. Job
6. Industry
7. Investment

Basis population and it should make balance between population and above need. In India Still government do not have strong population policy. How can Government use their population as a human resource? If people are poor & unskilled, it is worthless for government except vote bank. Still, Indian politician are using Indian population for vote bank and do not care about availability of resources and challenges for people of India.

We can see our GDP 7 to 7.5 % but it is a virtual figure exact figure can be 6 to 6.1 Government do not have concrete policy for equal growth of Indian people.

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