Indian economy is facing lot of challenges including structural challenges. Outline the structural challenges of Indian economy.

Structural challenges :  definition

 

  • Redistribution:  intrinsic limitation in terms of the effectiveness of targeting.
  • State capacity: to handle its domain of delivering on health and education remain impaired for maximum number of states.
  • Competitive federalism failed to idealised a model of delivery of essential services like health and education. Competitive populism needs a counterpart in Competent service delivery.
  • Ambivalence towards the private sector and property.
  • Legacy issue of retroactive taxation.
  • Agriculture, where the protection of intellectual property rights, for example in seeds, remains a challenge
  • Government dream of making world class airline, despite decade s of failure.
  • Fertiliser sector: easy to rehabilitate the incompetent plant rather than facilitate the exit of egregiously inefficient one.

 

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