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.
The most important issues here are regulatory framework and overall investment climate, which are being addressed by the Government. Second, the most complex and challenging issue relates to development of agriculture. While over 60 per cent of the workforce is dependent on agriculture, the sector accounts for barely 20 per cent of the GDP.