What is the SWOT analysis of Indian economy?

Answer 1

Strengths

Huge pool of labour force

High percentage of cultivable land

Diversified nature of the economy

Huge English speaking population, availability of skilled manpower

Stable economy, does not get affected by external changes

Extensive higher education system, third largest reservoir of engineers

High growth rate of economy

Rapid growth of IT and BPO sector bringing valuable foreign exchange

Abundance of Natural Resources

Weakness

Very high percentage of workforce involved in agriculture which contributes only 23% of GDP

Arround a quarter of a population below the poverty line

High unemployment rate

Stark inequality in prevailing socio economic conditions

Poor infrastructural facilities

Low productivity

Huge population leading to scarcity of resources

Low level of mechanization

Red tapism, bureaucracy

Low literacy rates

Unequal distribution of wealth

Rural-urban divide, leading to inequality in living standards

Opportunities

Scope for entry of private firms in various sectors for business

Inflow of Foreign Direct Investment is likely to increase in many sectors

Huge foreign exchange earning prospect in IT and ITES sector

Investment in R&D, engineering design

Area of biotechnology

Huge population of Indian Diaspora in foreign countries (NRIs)

Area of Infrastructure

Huge domestic market: Opportunity for MNCs for sales

Huge matural gas deposits found in India, natural gas as a fuel has tremendous opportunities

Vast forest area and diverse wildlife

Huge agricultural resources, fishing, plantation crops, livestock

Threats

Global economy recession/slowdown

High fiscal deficit

Threat of government intervention in some states

Volatility in crude oil prices across the world

Growing Import bill

Population explosion, rate of growth of pobulation still high

Agriculture excessively dependent on monsoons