The Indian Budget 1996-97 The Indian Economy Overview

INDIAN ECONOMY BASICS: Strengths and Weaknesses

[Indian Economy Basics] [Related Pages: 1 2 3 4 5 6 7 ]

INDIAN ECONOMY BASICS: Economic Strengths and Weaknesses

Like its Asian neighbors, India has a large skilled workforce, the engine of prosperity, but corruption and a lack of capital have put the brakes on growth.

Industrial and Economic Strengths...
  • A large pool of skilled workers (go to 'labor' link)
  • A rapidly growing middle class with a strong desire to consume.
  • A rich natural resource base, especially coal, iron ore, water, limestone and granite.

  • and Weaknesses...
  • Lack of Capital
  • Lack of adequate infrastructure
  • Bureaucracy and corruption
  • Foreign currency risk

  • Without capital India cannot invest in education, develop its natural resources, or improve roads, ports, telecommunications, electricity generation, etc. Although the government is in desperate need of funds, the double deuce of corruption and bureaucracy has daunted potential investors. Meanwhile the rupee remains unstable against other foreign currencies.

    [Indian Economy Basics] [Related Pages: 1 2 3 4 5 6 7 ]

    Shalini Gupta is a merchant banker with one of the foremost financial institutions in India, and an expert commentrator on the fundamentals of the Indian economy.

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