Spatial and Temporal Dynamics of Development Challenges in India
Abstract
India‟s economic growth with a dynamic micro and macro environment both inits domestic and international dimension has been a challenge for policy makers. India‟seconomic development is directly correlated and has been accelerated as a result ofexpansion of exports, emergence of new industries, innovations in some high- techfields, increased investment in information technology and increased share of servicessector etc. India has poised to be a global super power in the twenty first century bybeing less affected from the global financial crisis. India has strived and tried to prove itspresence worldwide but still due to some important developmental challenges and someinbuilt problems have hampered the growth trajectory of Indian economy in the past.The challenges are : continuous unbalanced composition of public expenditures, overregulation of markets, unbalanced growth in select sectors, rising prices, natural resourcedegradation, distorted incentives, poor infrastructure, deterioration of irrigation source,weak cost effectiveness of research and extension, and crowding out productivityenhancinginvestments etc. have hampered the growth trajectory of Indian economy inthe past. Some strong points which have saved and sustained the Indian economy tillnow are: daunting infrastructure, fiscal consolidation, financial system reform, and laborregulation etc. Although, these reforms have been able to save the Indian economy fromdrooping yet they have not helped in accelerated the development. Combining reformswith inclusive growth is required to carry ambitious sustained growth forward.
The Paper is based on the secondary data from various published national andinternational sources. Coverage of the paper will be for the period of 1990 to 2011.Thispaper attempts to explore challenges, to understand the roots of the challenges in thepast, to give insight into future problems and lastly to give the solutions to thedevelopment problems in hand in the context of global economic recession.
Key words: Development, Challenges, India, Economy
