INDIA'S ECONOMIC DEVELOPMENT CHALLENGES

The paper investigates into the big challenges that Indian economy faces in its economic developments to become developed country by 2047, 100th anniversary of independence. These challenges are hunger, poverty, malnutrition, jobless economic growth and unemployment, law per capita income, rationalising subsidies and increasing capital expenditure, moving large proportion of population engaged in low productivity farm sector to high productivity manufacturing sector and low women participation in labour force. In short run country faces rising inflation and challenge of maintaining the momentum of economic growth with policy rates hike by RBI in response to inflation. In the scenario of high inflation rates in developed countries and policy rate hikes by their central banks specially US Fed, there is gloomy picture for international trade. It will widen current account deficit (CAD). Inshort run rising inflation and widening CAD pose a challenge for economic growth. In Global Hunger Index (GHI) 2022 India ranks 107th among 121 countries. India 14.36% population is still multidimensionally poor, 32% children are under weight, 35% children stunted and, 19% children are wasted. Women participation in labour force is only 32 percentage. Unemployment rate is 7.33 percent. country will have to rationalise subsidies and increase capital expenditure. Climate change and increased frequency of extreme weather conditions badly impacted harm productivity. It will risk the food security of country. All the problems are big hurdles in economic developments. The policy measures, suggestions and recommendations emerged from the investigations includes big investment in health and education specially of women and children, limiting family size, increasing capital expenditure, doubling, even tripling spending in R&D in new technologies such as Artificial intelligence, Block Chain, Robotics … etc., skilling youth and increasing harm productivity.