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India Scorecard: Positives & Challenges for India today - ABSLMF Blog

India Scorecard: Positives & Challenges for India today

Aug 05, 2019
6 mins | Views 7961


  • India’s GDP growth at 6.8% April 2019 [1] is one of the world’s fastest growing economies. Making India a $5 trillion [2] economy may seem possible through sustainable development & reforms.

  • 65% of the Indian population is below 35 Census 2011 [3]. India Demographics are an impetus to Domestic and Foreign Direct Investors.

  • With growing awareness of the Indian middle-class, the inflow via SIPs in the four years to FY18 were 4X higher than that in the 10 years prior Jan 2019 [4], building a domestic investment scenario.

  • Initiatives like tax reforms, procurement reforms and improved bankruptcy & solvency issues have boosted Entrepreneurial morale. India improved its place to 77 on World Bank’s “ease of doing business” list Oct 2018 [5].

  • Central and State Govts focusing on autonomous investments, Road Constructions, Irrigation Improvements and Make in India initiatives, the income multiplier effect may come into effect, suggesting increased consumption and investments.


  • Though India’s youth may be a huge asset, unemployment rate stood at 6.1% in FY2018, a four-decade high June 2019 [6]. Also, only 47% of Indian graduates are employable [7].

  • The recent NBFC crisis may suggest a critical need for restructuring economic reforms [8].

  • Rising trade wars may paint a gloomy picture for Indian Exporters and Importers. US has done away with the preferential trade treatment for India and India too has imposed tariff on 28 imported goods May 2019 [9].

  • NPA’s have the banks and investors troubled. Gross NPA stands at 9.3% as on March’19 [10] and public-sector banks are most affected.

  • The expectations from the new Finance Minister have increased, with the current fiscal deficit at 4.52% in February 2019 end, crossing the govt. expectation by a 134% April 2019 [11].


[1], April 2019


[3], Census 2011

[4], January 2019

[5], October 2018

[6], June 2019

[7], India Skills report 2019


[9], May 2019



Latest available data is provided.

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