Signs of Economy doing well:

Signs of Economy doing well:

1. Controlled inflation: Moderate and steady inflation ensures that the cost of living does not wildly outpace wage growth.
2. Robust consumer spending: When citizens feel financially secure, they consume more goods & services, which drives further business growth.
3. High investment rates: Strong inflows of domestic and foreign investments into the infrastructure, technology and manufacturing lead to long term prosperity.
4. More and more job creation by Govt. and Private enterprises.
5. Constantly increasing exports trade year on year.
6. Lower fiscal deficit to GDP.
7. Stronger local currency.
8. Per-capita earnings increasing year on year.
9. GDP growing year on year.
10. High foreign exchange reserve.

For example, India remains one of the world’s fastest-growing major economies, projected to grow by over 6.5% annually due to robust domestic investments & consumption, digital innovation, rising workforce opportunities.

Is India economy really doing well currently?

Indian economy currently facing several challenges:

1. Global Oil and Geopolitical Shocks: Energy crisis due to USA and Iran war which has resulted into to restriction of ship movement due to block of Strait of Hormuz by Iran (more than 20% ships of oil and gas and fertilizers move thru’ this sea route) which has resulted into rise in crude price in the world eventually causing high inflation.
2. Hardly any growth in export trade. It is virtually flat or negative growth compared to the previous year.
3. Sluggish Private Investment: No foreign investments both FDI and FII. In-fact FII has been taking out their money of billions of dollars from Indian stock market as there is no incentives in India for such investments. Hardly seen any private investment in the country.
4. Rising unemployment rate amongst youth. In-fact unemployment rate is 30% plus amongst youth who are graduate and who are with higher education.
5. World Geo politics situation is also bringing lots of im-balance & uncertainty in the economy.
6. Education systems day by day is deteriorating due to paper leakages of public examination like NEET etc.
7. The Indian currency becoming weaker on a regular basis (from Rs 60/-in 2014, increased to Rs 95/- per dollar 2026)
8. The consumers are spending lesser and lesser.
9. Per capita income is one of the lowest in the world (2800 dollars per family which is lower than even Bangladesh).
10. Govt Medical systems are inadequate for low- income groups.
11. Distribution of wealth is inequal. Richer is becoming richer and poor is becoming poorer, (income inequality). Similar to K shape economy.
12. Low Job creation relative to population growth.
13. Large informal sector that is still recovering from past shocks like demonetization and pandemic lock down.
14. MSME sector which contributes 30% to GDP and 42% to manufacturing sector is still struggling to get basic facility and infrastructure like electricity, gas, lack of proper roads, lack of skill manpower, lack of adequate funds availability, High input cost, challenges from bureaucracy etc
15. India contributes 3% of Global manufacturing of Goods, where as China contributes 28% to Global manufacturing. The gap between India and China is widening year on year, in-spite of GOI trying to encourage companies with PLI and make in India scheme. This means every forth item is supplied by China to the world.
16. Over reliance on State spending (Weak Private investment/spending)
17. Persistent Agrarian distress.
18. The borrowing from IMF & Word bank or any other source have increased many fold by GOVT of India (five to six times since 2014, from about 50 lacs crore to about 250 lacs crore in 2026).