SWOT Analysis of

Indian Economy

.
Strengths

1. High pool of labour force.

2. High percentage of cultivated
land.
3. Diversified nature of the
economy.
.

4. Huge English speaking

population, availability of skilled
manpower.
5.Stably economy, does not get
affected by external changes.
.

6.Extensive higher education

system, third largest
reservoir engineers.
7. High growth rate of
economy.
.

8. Rapid growth of IT and

BPO sector bringing
valuable foreign exchange.
9. Abundance of natural
resources.
.
 10. Fast growing services sector, which is an
index of a maturing economy.
 11. One of the most widespread banking
networks in the developing world.
 12. Widespread transport system; the
Railways have shown that under good
management they can perform fairly
efficiently;
.
 13. India has become one of the most
favored destinations for outsourcing activities.
 14.The new sectors such as pharmaceuticals,
nanotechnology, biotechnology,
telecommunication, aviation, manufacturing,
shipbuilding, and tourism would experience
very high rate of growth
Weakness :
 1.Very high percentage of workface
involved in agriculture which
contributes only 23% of GDP.
 2. Around a quarter of a population
below the poverty line.
 3. High unemployment rate.
 4. Poor infrastructure facilities.
.
5. Low productivity.
6. Huge population leading to
scarcity of resource
7. Red tapism, bureaucracy.
.
8. Low literacy rates.
9. unequal distribution of
wealth.
10. Rural-Urban divide, leading
to inequality in living standards.
Opportunities :
 1. Scope for entry of private firms in
various sectors for business.
 2. Inflow of Foreign Direct
investment is likely to increase in
many sectors.
 3. Huge foreign exchange earning
prospect in IT and ITES sector.
.
 4. Investment in R&D, engineering
design.
 5. Area of biotechnology.
 6.Huge population of indians in
foreign countries (NRI’s).
 7.Huge domestic market :
Opportunities for MNC’s for sales.
.
8. Huge natural gas deposits found
in india, natural gas as a fuel has
tremendous opportunities.
9. Huge agricultural resources,
fishing, plantation crops, livestock.
Threats :
1. High fiscal deficit.
2. Threat of government
intervention in some states.
3. Volatility in crude oil prices
across the world.
4. Growing import bill.
.

5. Population explosion, rate

of growth of population still
high.
6. Agriculture excessively
dependent on monsoons.