A world of languages, numerous religions, thousands of deities and so much more – Indian Economy is a cocoon of diversified culture. It is a pool of many phases, components and aspects. It is one of the fastest growing economies in the world. In terms of purchasing power of the people, it is world’s third economy.
The diversity, rich culture and heritage, thoughts and upbringing of the economy make it furthermore gigantic. Nevertheless, it can broadly be divided into three categories:
- Colonial Era:
This, the pre British period, was regarded as one of the best times that Indian economy has witnessed in the history. Trade was at its peak. All the states were self-sufficient in terms of economy and production. People had good purchasing supremacy. Trade relations kept on blooming further and during this time, the Britishers also entered the Indian Territory. A few decades of happiness and financial prowess eventually took a 360 degree twirl with the British entrants.
- British Rule:
Indian economy suffered a lot of stabs. During this time, more than trade there was plundering everywhere. And when the freedom fights started, things went worst and economy was at its deepest echelon.
- Post Independence:
Post colonial rule, Indian economy had to stand again on its own. But, there was already a lot of damage that had been done. It was not easy to control and manage the economy. But the government took measures to bring back the phase of stable economy. And during that time, five year plans were formed to stabilize and start the reinforcement work on the war-footing note. During this period, green revolution, white revolution and also industries were supported by the government. Even post independence, Indian economy has been through numerous impediments. However, Indian economy recuperated with every passing year. And what we see, (flyovers, metro rails, IT companies, malls, better schools, better hospitals and many more) is a result of meticulous hard work that has gone behind building today’s modern India.
India’s Current Economy Sate:
It’s been 66 years post independence and India has come a long way since then, though the journey was more of a rollercoaster ride. India has been through a series of social, political and economical changes since independence. From completely agricultural based economy, India is gradually shifting its equilibrium on to the shoulders of industries and IT sectors too. This is making Indian economy stronger and bigger. The best part is in case if there is a downfall in any one sector, economy will not crash completely as other sectors will give much need support at least to stand if not run.
Hurdles Being Faced By the Indian Economy:
Indian economy is huge, it is vast and diversified. Thus, not making it easy to take all the sectors together and move in the same path. There are numerous challenges before Indian economy. If India has to become one of the strongest and stable economies then it has to cater to the imminent challenges.
- Population: India is the most populated country just after China and if the trend continues, then, within few years we will outgrow China too. This is not a good sign as along with the rising population, we will need more resources to live – food, clothing and shelter to the entire population. Though, population is a human resource but an explosion of human resource is also not good. This will reduce the cost of labour with a fierce competition to find jobs. The result? Salaries decreasing drastically and the purchasing power going very low.
- Poverty: Along with the population, another monster on the rise is poverty. One of the root causes of poverty is, growing population; which, once controlled, it is half battle won.
- Unemployment: Population and poverty is giving rise to unemployment too. Though another reason of unemployment is excessive use of technology but, can we remove technology from our lives? In fact, there is a need to increase more job opportunities for the young generation. In order to bring the Indian economy at its zenith pint, we need to address these challenges at the earliest.
- Rural and Urban gap: It is said that India lives in villages and this holds true even today, because still 70% of population is in villages. Unfortunately, this 70% generates only 30% of the annual income of India. This difference is growing day by day. Unless this difference is curbed, it is tricky for Indian economy to flourish in all directions.
- Inequitable growth: States like, Gujarat, Maharashtra and some southern states have done actually well in many areas of economic development, whereas states like Bihar, Jharkhand, and Chhattisgarh are still trying their best to contribute in overall strengthening of Indian economy.
- Tax Reforms: It is said that the rich are becoming richer and the poor, poorer – this shows a failure in the country’s economic development. This can be curbed, if proper and effective tax policies are implemented. There is a dire need to bring tax reforms at the earliest.
- FDI Support: Indian policies have been made more liberal in last few years but that is still not enough to withstand the world’s growth rate. Indian government has to take added measures to make sure the Foreign Direct Investment is effortless. As this will help India to become more reliable in terms of making ports, airports and highways to boost the development.
- Infrastructure growth: Another challenge that Indian economy is facing is poor infrastructural growth. With the growing population demand, we have to increase the infrastructural growth too. This will not only be a positive movement for economy but will also generate numerous job opportunities.
The economy that we see today is not prêt-à-porter. It has been through a series of twists, turns and turmoil in the past to emerge the way it is today. India has witnessed diverse rulers and governments too – exploited by few and uplifted by a handful. This is where the importance of financial planning and insurance comes into picture.
What is Insurance?
Going by the definition, Insurance is a contract to pay compensation in case of any loss, damage or theft; only after the insurer has made periodic premium payments. In insurance, there are two parties;
- Insurance company (one who collects premium and pays compensation in lieu of any damage or loss)
- Insurer (one who pays the premium amount regularly and gets the benefit or compensation)
Before you go perplexed with the Economy Disasters and hurdles; go for a life insurance.
Life insurance gives you and your family financial stability to deal with any aftermath of any unforeseen unfortunate situation. There can hardly be any reason for not taking a life insurance policy.