ranjan

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 Pa