Biggest problems India is facing today.!

Tuesday, 3 July 2012 6 comments

India is one of the poorest countries in the world. The poverty in India isn't just psycological poverty. The poverty in India isn't just emotional poverty. The poverty in India isn't just social poverty. The poverty in India isn't just religious and cultural poverty. The poverty in India is an absolute poverty. The poverty in India involves poverty in every aspect of life.

India is a very poor country and we all know that. However, not so many of us knew how extreme the poverty level was in India. Now it is very clear how extreme the poverty level is in India today. Now it is very clear how poor some Indians are. Now it is very clear how people continue to die from absolute poverty and hunger in India despite numerous efforts to help fight poverty in the world. 

A new multidimensional poverty Index shows that India is far poorer than Africa in both intensity and in number.
The Multidimensional Poverty Index developed by Oxford University (which will appear in the upcoming UNDP human development report) shows that India is far poorer than Africa not just in number but also in intensity. 
The new poverty measure shows that 8 states out of the 29 states in India have more poor people than 26 poorest African countries combined.
The Multidimensional poverty index views poverty from several different angles instead of just GDP figures. 

India like any other developing country is crippled by so many problems. For example, India's population growth rate is increasing by the day putting pressure on the limited resources and leaving many Indians in absolute poverty. 

India is very poor in terms of education, in terms of economic improvement, infrastructure, heath care, etc. Here are some of the problems facing India today. In today's India, there is nothing but:


High inflation rates continue to drag the entire Indian economy down the poverty pit. Here is something I found online while searching. 

" ...Inflation in India is an increasing problem. Inflation is currently between 6-7%. A record 98% of Indian firms report operating close to full capacity With economic growth of 9.2% per anum. Inflationary pressures are likely to increase especially with supply side constraints such as infrastructure. The wholesale-price index (WPI) rose to an annual 6.6% in January 2007". 

With these high inflation rates, India cannot experience any major growth even in the future.


Just like some poor countries in Africa, high illiteracy rates continue to tear India into pieces. Majority of females in India today cannot even read and write which is very sad. Here is what I found online: 

"Illiteracy in India is worse in rural areas and amongst women. Over 50% of Indian women are illiterates." 

In other words, more than 50% of females above age 15 in India today cannot even read and write. very similar to countries like Niger in Sub-Saharan Africa.

Basic sanitation appears to be a major problem in almost all developing countries and India is no exception. Considering the population explosion and the high social pressures on the few available amenities in India today, this major problem seems worse in certain parts of India than even in Africa's top 10 poorest countries. This is what I found online:

"...Many Indians lack basic amenities like access to running water. Indian public services are creaking under the strain of bureaucracy and inefficiency. Over 40% of Indian fruits rot before they reach the market; this is one example of the supply constraints and inefficiencies facing the Indian economy".

Although India has built up large amounts of foreign currency reserves, the current account deficit has deteriorated in recent months. This deterioration is a result of the overheating of the economy. Aggregate Supply cannot meet Aggregate demand so consumers are sucking in imports. Excluding workers remittances. India’s current account deficit is approaching 5% of GDP


High debt problems also appears to be a major problem in almost all developing countries in the world today and India is no exception.

"...Buoyed by a property boom the amount of lending in India has grown by 30% in the past year. However there are concerns about the risk of such loans. If they are dependent on rising property prices it could be problematic. Furthermore if inflation increases further it may force the RBI to increase interest rates."
If interest rates rise substantially it will leave those indebted facing rising interest payments and potentially reducing consumer spending in the future


Racism and inequality continue to destroy India just like in most other developing countries. The rich gets richer while the poor gets poorer in almost all poor countries and that is exactly what is going on right now in India. The few wealthy in the society control almost everything. 

"...It is hoped that economic growth would help drag the Indian poor above the poverty line. However, so far economic growth has been highly uneven benefiting the skilled and wealthy disproportionately. Many of India’s rural poor are yet to receive any tangible benefit from the India’s economic growth. More than 78 million homes do not have electricity. At least 33% (268million) of the population live on less than $1 per day. Furthermore with the spread of television in Indian villages the poor are increasingly aware of the disparity between rich and poor." 


India has one of the largest budget deficits in the developing world. Excluding subsidies it amounts to nearly 8% of GDP. Although it has fallen a little in the past year. It still allows little scope for increasing investment in public services like health and education.


Unnecessary rules and regulations is major problem in almost all developing countries. The few lobbyists in the society work very hard to make these unnecessary rules and regulations so they can benefit from people's hardwork. here is what I found online:
"...As an example, Firms employing more than 100 people cannot fire workers without government permission. The effect of this is to discourage firms from expanding to over 100 people. It also discourages foreign investment. Trades Unions have an important political power base and governments often shy away from tackling potentially politically sensitive labor laws."

These are just a few of the problems facing India today. Life in certain parts of India is nothing but absolute poverty with little hope for survival in the near future. Good education is the key to economic improvement yet India is lacking this essential key. Overpopulation destroys yet India's population continue exploding. 

what do you think? what are some of the problems facing India today? How can India overcome some of these problems? Who is responsible?

I have used the sources: World bank, Indiatimes, NYtimes, CNN.


  • Anonymous said...

    stop copying other people's contents. that is plagiarism/stealing. if you don't stop I will report your blog to the blogger team to get it deleted.

  • Amal Rafeeq said...

    Hey man!!! I have written that i used websites of those sources and yeah copied!! To make people aware!! I don't said this article is written by me!!

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