Way forward – challenges and strengths There are, undoubtedly, many challenges for the Indian economy, but it is useful to focus on more urgent of these. First, the poor state of the physical infrastructure, both in terms of quantity and quality is considered by many to be the most critical hindrance for India’s progress.
A number of policy institutions, particularly central banks, have enhanced their analysis of systemic risks in recent years – many of the systemic vulnerabilities that caused or enhanced the current turmoil had in fact been identified – but policy mechanisms to effectively translate these analyses into policy action have been lacking.