SWOT Analysis of Indian Economy. Indian economy used to be a mixed planned economy; it has transformed into a mixed middle-income developing social market economy with government participation in indicative planning and strategic sector. India has the fifth largest economy and consumer market in the world.
Some of the main exports of the Indian economy are as follows;
- Agriculture products
- Mining and fuel products
Key statistical facts and figures about the Indian economy are as follows;
- The exports of the country in 2022-23 were 770.18 billion US dollars
- Annual revenues of the country in 2023-24 is 340 billion US dollars
- Expenses of the country in 2022-23 were 560 billion US dollars
- Debt of the country in 2023 was 3.2 trillion US dollars
Some of the top industries in the Indian economy are as follows;
- Transportation Equipment
- Food Processing
Today, we’ll discuss the swot analysis of Indian economy. It is going to focus on the internal strengths and weaknesses; external opportunities and threats to the 5th largest growing economy. Here’s the swot analysis of Indian economy as follows;
Strengths of Indian Economy
Some of the main strengths in the swot analysis of Indian economy are as follows;
India has always been an agrarian country and it has got a vast cultivated landscape. It is such a geographical competitive edge that not many Western countries have vast fertile cultivated land. The country has always utilized its fertile land productively and grown various types of crops to feed domestic and foreign people across the world. Indian food and masalas are remarkable, and the country exports them globally.
The Indian economy has got a plethora of English-speaking low-cost skilled workforce. It is something that not only domestic companies but also many foreign tech and manufacturing companies are taking advantage of it to a great extent of it. In fact, many world’s leading multinational companies outsource their production work to Indian companies to gain a cost-effective competitive edge.
According to an estimate, the Indian economy has got the world’s 3rd largest reservoir of engineers. The country has a well-established higher education system. In fact, many of the doctors in the US and UK are from India.
India has got a well-developed software and tech industry, and it contributes significantly to the country’s GDP and foreign reserve. In fact, the growth in the tech industry allowed the country to amplify its operations in various areas and fields of life.
Weaknesses of Indian Economy
Some of the main weaknesses in the swot analysis of Indian economy are as follows;
Below Poverty Line
According to an estimate, approximately a quarter of the country’s population is living below the poverty line. It is a significant number of people because the country has the 2nd largest population in the world. Various governments, semi-government, and NGOs are working to deal with the poverty crisis, but their contributions are very low.
According to an estimate, the unemployment of India in 2023 was 7.95%, very close to 8%, and it is a very high number. Approximately 18% of the country’s population is working in the agriculture industry. These statistical figures show that a lot of the country’s population is idle and not involved in any type of productive activity; it is increasing depression and stress among the masses.
When you go off the road to rural areas, mountains, and far-off villages; then you would find the very poor condition of the country’s infrastructure. Roads, buildings, hotels, restaurants, and other infrastructure are the key to the country’s growth and development; but they are very low.
When you compare the country’s natural resources and overall population, then the productivity of the Indian economy is very. It is no doubt that the country has a lot of growth potential, but it requires a lot of polishing and investment in skill and infrastructure development.
Opportunities for Indian Economy
Some of the main available opportunities in the swot analysis of Indian economy are as follows;
Private businesses are growing exponentially and they contribute significantly to the growth of the country. In fact, the growth in the private sector is attracting the attention of foreign investors to launch their businesses and branches in India. It would offer them a lot of competitive advantages like low cost, cheap labor, and English speaking workforce.
High Foreign Exchange
The tech industry is the highest growing area and it contributes significantly to the country’s foreign exchange earnings. The country should invest a lot of capital resources in the tech industry for further growth; it allows the country to multiply its earnings and revenue stream.
Forest & Wildlife
Indian forests and jungles have got unique habitats and wildlife. Unlike the rest of the world, Indian customs, traditions, and culture is protecting mother nature, its habitat, and wildlife. In fact, the country is a safe heaven for all types of wildlife and natural habitat.
As I mentioned earlier that India is an agrarian country, and it has a plethora of natural resources like fertile land and cultivated fields. The country should invest in the latest agricultural technology to amplify productivity further. It would increase the country’s revenue and profitability.
Threats to Indian Economy
Some of the main potential threats in the swot analysis of Indian economy are as follows;
When you study the statistical figures and balance sheet of the country, then you would realize that the fiscal deficit of the Indian economy is very high. It means that the country’s expenses are way beyond its earnings and revenue, and the country is under a lot of debt.
Latest regulations have increased the growth of imports, and it would further increase the country’s fiscal deficit. When the inflow of foreign products increases, it would jeopardize the Indian local and indigenous economies.
Conclusion: Indian Economy SWOT Analysis
After an in-depth study of the swot analysis of Indian economy; we have realized that the Indian economy has got a lot of growth potential with some challenges. If you are learning about the Indian economy, then you should keep in mind the abovementioned internal and external factors.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.