Strengths and Weaknesses of Indian Economy

India has risen as the fastest developing major economy on the planet and is relied upon to be
one of the main three financial forces of the world throughout the following 10-15 years,
sponsored by its strong democracy and partnerships. Since 2014, India's economy has been
the world's fastest growing major economy,surpassing China. India was a US$ 1.85 trillion
economy in 2014 and it has reached US$ 2.7 trillion in five years, the fastest growing major
economy and the fifth largest economy in world, compared to 11th largest in 2013-14.

Strengths of Indian Economy -

• India is a mineral rich country and is blessed with a profuse number of natural resources.
For example - Iron ore, Coal, Bauxite, Manganese and so on., are found in abundance.
• Geographical Location favorable for International Trade: The geographical location of
the country is advantageous to foreign trade and commerce due to its 7,517 km long
coastline. India is positioned in a way that it extends between the Middle East and the
Far East. The Trans-Indian Ocean passages are connected to both the industrially
advanced countries of Europe and the developing nations of East Asia. In this way, India
is placed in the center and therefore, it possesses favorable spot for practicing trade with
Australia and other African nations, the Middle and the Far East. Thus, India controls the
Indian Ocean and operates an instrumental dominant form.
• India has a relatively high level of literacy for average GDP per capita levels. The right to
elementary education (from 2002 act) has helped literacy rise from 52.2% in 1991 to
74.04% in 2011
• Fiscal deficit of Central Government declined from 3.5 percent of GDP in 2017-18 to 3.4
percent in 2018-19.

Weaknesses of Indian Economy -

• Over the years the private investment is low and exports are not in good shape growing
at a very low rate, which are significant sources of growth but has slackened
considerably of late in India.
• Perpetually increasing corruption rate decelerating country’s economic growth rate.
• Over the years the private investment is low and exports are not in good shape growing
at a very low rate, which are significant sources of growth but has slackened
considerably of late in India.
• India has struggled to improve its deteriorating infrastructure in business, education, and
healthcare. India's power grid is overstressed, and power failures have been daily
occurrences in the most developed areas of Delhi, Mumbai, and Bangalore.