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Swot Analysis of Indian Economy

In: Business and Management

Submitted By baba8183
Words 878
Pages 4
Strengths 

Huge pool of labour force:- A decomposition of labour force share of the service sector into sub-sector in india show that
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...

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