SWOT ANALYSIS OF INDIAN ECONOMY

BYANSHUMAN MODA

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INTRODUCTIONTO

INDIAN ECONOMYThe economy of India is the eleventh largest economy in the world by nominal GDP and the fourth largest by purchasing power parity (PPP).

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Huge pool of labour force .High percentage of cultivable land .Diversified nature of the economy. 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 exchangeAbundance of natural resources .

S=STRENGTHS

W=WEAKNESSVERY HIGH PERCENTAGE OF WORKFORCE INVOLVED IN AGRICULTURE WHICH CONTRIBUTES ONLY 23% OF GDPHIGH UNEMPLOYMENT RATE POOR INFRASTRUCTURAL FACILITIES LOW PRODUCTIVITY HUGE POPULATION LEADING TO SCARCITY OF RESOURCESLOW LEVEL OF MECHANIZATION RED TAPISM, BUREAUCRACY LOW LITERACY RATESUNEQUAL DISTRIBUTION OF WEALTH RURAL-URBAN DIVIDE, LEADING TO INEQUALITY IN LIVING STANDARDS

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 .

. Huge population of Indian Diaspora in foreign countries (NRIs) .

Opportunity for MNCs for sales. Huge natural 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

O=OPPORTUNITIES

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 POPULATION STILL HIGH .AGRICULTURE EXCESSIVELY DEPENDENT ON MONSOONS.

T=THREATS