Essentials for Economic Growth for India

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Economic growth is essential in order to reduce poverty in Developing countries & to improve people living standards. The activities of public and private sector enterprises play an important role in achieving high economic growth rates.
Following factors influence the economic development of  a country -
1) Natural Resources
2) Capital Formation
3) Conditions in Foreign Trade
4) Economic System
5) Marketable Surplus of Agriculture
6) Human Resources
7) Political Freedom
8) Education and Technical Know how
Despite optimism for India's prospects for economic growth & development, there are number of obstacles which may effect adversely the growth and development. \
1) Poor Infrastructure - notably in Transport and Power Networks.
2) Low Productivity and Weak Human Capital.
3) High Inflation and Persistent Trade Deficit.
Despite Govt. efforts to get positive trade balance, India was facing consistently balance of payments deficit since 1950. Also during 1965 Pak war, foreign aid was cut off which necessitated devaluation.  The 1966 devaluation was result of first major crisis. In 1991 again, due to downward pressure on value of Indian Rupee from International Market & reducing foreign reserves, second devaluation took place. It was a part of bringing economic reforms in India. India relaxed restrictions on imported Capital Goods. Import Export Policy replaced Import Quotas with Tariffs causing major overhaul of Trade Policy.
Very often Economic Growth in a nation does not bring about economic development. It can be accompanied with by increase in poverty and growing levels of unemployment.

Presently, Govt. should initiate shifting Public & Private sector to rural areas which will give
benefits like - Freedom from Pollution, Traffic congestion, Growth to rural areas, Making of smart cities,  Subsidized housing for workforce, Increased revenue to Govt., Employment potential and with the passage of time more services, businesses etc. 
Ultimately Economy has to be measured in the real eyes of the real people.



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