Development in India and Europe – What is the future

Development is basically an economic concept that has positive connotation, it involves the
application of certain economic and technical measures to utilize available resources to
instigate economic growth and improve people’s quality of life.
India is poised to become a powerful economic growth engine, it has one of the fastest-
growing economies in the world, the third largest start-up ecosystem and tech services, digital
and manufacturing sectors on track to become the global powerhouses. But there are also so
many challenges that are faced by the Indian economy during such as, Poverty,
unemployment etc. But The 2023-24 Budget has not just maintained but increased the
government’s focus on capital spending. This, the government says, will boost India’s long-
term growth potential. The time horizon the government has chosen is until 2047, when India
will complete 100 years of independence.
On the other hand, Europe is a developed country but after a strong first half of the year, the
EU economy has now entered a much more challenging phase. The shocks unleashed by
Russia's war of aggression against Ukraine are denting global demand and reinforcing global
inflationary pressures. The EU is among the most exposed advanced economies, due to its
geographical proximity to the war and heavy reliance on gas imports from Russia. The energy
crisis is eroding households' purchasing power and weighing on production. Economic
sentiment has fallen markedly. As a result, although growth in 2022 is set to be better than
previously forecast, the outlook for 2023 is significantly weaker for growth and higher for
inflation compared to the European Commission's Summer interim Forecast.
In short the paper comprises of various steps taken by the governments of both the countries
for the development of country and also the challenges or barriers to the development of
economies of India and Europe