1. Large Population:
- India stands second in terms of size of population next to China and our country is likely to overtake China in near future.
- Population growth rate of India is very high and this is always a hurdle to growth rate.
2. Inequality and poverty:
- There exists a huge economic disparity in the Indian economy.
- The proportion of income and assets owned by top 10% of Indians goes on increasing.
- Increase in the poverty level in the society and still a higher percentage of individuals are living Below Poverty Line [BPL].
- Asa result of unequal distribution of the rich becomes richer and poor becomes poorer.
3. Increasing Prices of Essential Goods:
- Even though there has been a constant growth in the GDP and growth opportunities in the Indian economy, there have been steady increase in the prices of essential goods.
- The continuous rise in prices erodes the purchasing power and adversely affects the poor people, whose income is not protected.
4. Weak Infrastructure:
- A gradual improvement in the infrastructural development.
- There is still a scarcity of the basic infrastructure like power, transport, storage etc.
5. Inadequate Employment generation:
- Growing youth population, there is a huge need of the employment opportunities.
- The growth in production is not accompanied by creation of job.
- The Indian economy is characterized by “ Jobless growth”.
6. Outdated technology:
- The level of technology in agriculture and small scale Industries is still outdated and obsolete.