Today I read in rediff that India is the 12th largest economy in the world with GDP(gross domestic product) of $1.171 trillion as per as the World Bank 2007 report. In terms of purchasing power we are at fourth position. This data shows that India is one of the world’s fastest growing economies. But hold on, still there is high economic disparity with rich getting richer and poor getting poorer as its per capita income is very low, it is only $950 per annum which is around 40,000 rupees. Just imagine on an average Indians are earning even less than 4000 rupees per month. This is amazing figure. How we can say that India is growing? World’s GDP is $54.345 trillion. India shares only 2 % of it but we have more than 16 % of the world population. This is another concern.
In my opinion the biggest problem for Indian economy is the increasing population of country and the challenge of reducing economic and social inequality. Due to increasing population, poverty remains a serious problem. According to latest report from by Government of India, 25% of India’s population is below the poverty line.