Issues Facing Indian Economy: Challenges and Solutions – JAIIB Paper 1 Module A
Understanding the major economic challenges facing India is essential for JAIIB Paper 1 Module A. These issues impact banking operations and economic policy decisions.
Unemployment
Unemployment remains one of India’s most pressing challenges. Despite economic growth, job creation hasn’t kept pace with the growing workforce.
Types:
- Structural unemployment
- Cyclical unemployment
- Seasonal unemployment
- Disguised unemployment (especially in agriculture)
Income Inequality
The gap between rich and poor continues to widen, creating social and economic challenges.
Key Issues:
- Wealth concentration
- Regional disparities
- Urban-rural divide
- Gender pay gap
Agricultural Challenges
Despite reforms, agriculture faces multiple challenges affecting farmer incomes and food security.
Problems:
- Small landholdings
- Lack of modernization
- Water scarcity
- Market access issues
- Inadequate storage facilities
Infrastructure Deficit
India needs massive infrastructure investment to support economic growth.
Other Key Issues:
- Fiscal deficit management
- Current account deficit
- Banking sector NPAs
- Education quality
- Healthcare access