SWOT Analysis of Indian Economy

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Strengths

1. High pool of labour force.

2. High percentage of cultivated land.

3. Diversified nature of the economy.

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4. Huge English speaking population, availability of skilled manpower.

5.Stably economy, does not get affected by external changes.

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6.Extensive higher education system, third largest reservoir engineers.

7. High growth rate of economy.

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8. Rapid growth of IT and BPO sector bringing valuable foreign exchange.

9. Abundance of natural resources.

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10. Fast growing services sector, which is an index of a maturing economy.

11. One of the most widespread banking networks in the developing world.

12. Widespread transport system; the Railways have shown that under good management they can perform fairly efficiently;

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13. India has become one of the most favored destinations for outsourcing activities.

14.The new sectors such as pharmaceuticals, nanotechnology, biotechnology, telecommunication, aviation, manufacturing, shipbuilding, and tourism would experience very high rate of growth

Weakness :

1.Very high percentage of workface involved in agriculture which contributes only 23% of GDP.

2. Around a quarter of a population below the poverty line.

3. High unemployment rate.4. Poor infrastructure facilities.

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5. Low productivity.6. Huge population leading to

scarcity of resource7. Red tapism, bureaucracy.

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8. Low literacy rates.9. unequal distribution of

wealth.10. Rural-Urban divide, leading

to inequality in living standards.

Opportunities :

1. Scope for entry of private firms in various sectors for business.

2. Inflow of Foreign Direct investment is likely to increase in many sectors.

3. Huge foreign exchange earning prospect in IT and ITES sector.

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4. Investment in R&D, engineering design.

5. Area of biotechnology.6.Huge population of indians in

foreign countries (NRI’s).7.Huge domestic market :

Opportunities for MNC’s for sales.

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8. Huge natural gas deposits found in india, natural gas as a fuel has tremendous opportunities.

9. Huge agricultural resources, fishing, plantation crops, livestock.

Threats :

1. High fiscal deficit.2. Threat of government

intervention in some states.3. Volatility in crude oil prices

across the world.4. Growing import bill.

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5. Population explosion, rate of growth of population still high.

6. Agriculture excessively dependent on monsoons.