HU:301A

ENGINEERING
ECONOMICS
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Submitted By- SHUBH GOEL(2K21/EN/43)

INTRODUCTION

Economics is the social science that studies how individuals, businesses, governments,
and societies allocate their limited resources to satisfy their wants and needs. It is often
described as the study of how people make choices to maximize their well-being or
utility in the face of scarcity.

INDIAN ECONOMY AND PROBLEMS FACED IN

INDIAN ECONOMY:
As of my last knowledge update in January 2022, the Indian economy faced several challenges.
While I cannot provide the most up-to-date information, I can highlight two prominent
problems and potential solutions that were relevant at that time. Please note that the economic
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situation in India may have evolved since then, and it is essential to consult the latest sources
for the most current information.

Problem 1: Unemployment

Unemployment was a significant issue in India, particularly among the youth. The problem of
joblessness can be attributed to various factors, including a growing population, limited
employment opportunities, and a lack of skills among the workforce.

Solution:

a. Skill Development: Invest in comprehensive skill development programs to equip the

workforce with the skills needed for available and emerging job opportunities.

b. Labor Market Reforms: Introduce labor market reforms to make it easier for businesses to hire
and fire employees, which can encourage job creation.

c. Entrepreneurship Support: Encourage entrepreneurship by providing financial and regulatory

support to small and medium-sized enterprises (SMEs), which are often major job providers.

d. Infrastructure Development: Invest in infrastructure projects that can generate jobs in

construction and related sectors.

Problem 2: Income Inequality

Income inequality has been a persistent issue in India, with a significant wealth gap between
the rich and poor. This can lead to social unrest and hinder overall economic growth.

Solution:

a. Progressive Taxation: Implement progressive taxation policies to ensure that the wealthy pay
a higher percentage of their income in taxes, which can be used for social welfare programs and
poverty alleviation.
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b. Social Safety Nets: Strengthen social safety nets like food distribution programs and direct
cash transfers to help the most vulnerable populations.

c. Education and Healthcare: Invest in accessible and quality education and healthcare services
to bridge the gap between the rich and poor in terms of access to essential services.

d. Employment Generation: Focus on policies that encourage job creation and provide
opportunities for people to improve their economic well-being.

It's important to note that the Indian economy is complex, and these problems often have
multiple interrelated causes and solutions. Furthermore, the economic landscape can change
over time due to various factors, including government policies, global economic trends, and
unforeseen events, such as the COVID-19 pandemic. Therefore, it's crucial to consider the most
recent data and expert opinions when assessing the current state of the Indian economy and its
challenges.