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.
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.
