PROBLEMS IN INDIA

Indians have always advocated for peace and currently adopt the philosophy of "chalta hai," or "let it be."
Therefore, we don't really care about anything that goes wrong, be it with the government, corruption,
roads, crimes committed by "godmen," or anything else. Activists are supposed to guide the masses and
educate society, but they rarely receive positive feedback, and those who do are typically not deserving of
it. While India needs many improvements right now, there are a few key ones that need to be addressed
right away.
These are the TOP 10 MAJOR PROBLEMS IN INDIA that I am discussing.

EDUCATION SYSTEM: The Indian educational system has occasionally been criticized for being overly
theoretical rather than practical and skill-based. Pupils study not for information acquisition but for
grades. The goal of the colonial masters' so-called modern education system, which is still in place today,
was to produce servants who could serve but not lead. The majority of people believe that the time is now
to become an employee rather than an employer.

HEALTH CARE SYSTEM: It is true that the most populous democratic nation on earth is unable to
offer adequate healthcare services to every member of its populace. India is growing as a medical tourism
destination, but the impoverished locals cannot access any of these amenities. In India, healthcare is a
neglected concern, as major Infrastructure, IT, and agriculture are areas that require attention. The
majority of the issues in rural India are caused by a lack of resources, which is a serious worry nowadays.
10% of babies die within a year of birth; 50% of all babies experience stunted growth due to malnutrition;
50% of all villagers lack access to healthcare providers. Visit both the government and private hospitals
for a day to witness firsthand how people are treated there and how much money they make. If you
simply want to see the practical illustration,

CORRUPTION: One of India's most pervasive endemics, corruption needs to be addressed swiftly and
sensibly. There are very few offices, both public and private.sector, which is not affected by this illness.
How much the economy has lost as a result of this is unknown. Even if the majority of us care, we Indians
are found wanting when it comes to taking action.

Poverty: Thirty percent of the world's impoverished reside in India, and thirty-seven percent of Indians
are below the international poverty threshold. Underweight children make about 42% of the population
under five. Most Indian impoverished people reside in villages. The poorest regions are found in West
Bengal, Rajasthan, Madhya Pradesh, Uttar Pradesh, Bihar, Jharkhand, Orissa, and Chhattisgarh. A high
percentage of illiteracy, a dearth of medical facilities, and restricted access to resources are some of the
fundamental issues in underprivileged communities.

WOMAN'S SAFETY: In India in 2013, there were 3,09,546 recorded cases of crime against women,
according to the National Crime Records Bureau (NCRB). The last five years have only seen a rise in
crimes against women. Undoubtedly, one of the main worries in our nation is safety, especially for
women. Many of the problems that women encounter on a daily basis can be resolved with the use of
technology. Numerous entrepreneurs have already made the bold decision to release goods in the form of
applications to guarantee women's safety. They make use of functions like scream alarms, safe and unsafe
locations marked on maps, GPS tracking, and methods for alerting emergency contacts. However, the
primary issue is in the men's mindset.

India's air, sound, and water pollution India is home to four of the world's five most polluted cities. Not
only is the air severely contaminated, but we are also seriously contaminating our rivers and farmland by
using enormous amounts of chemicals and plastic and disposing of rubbish carelessly. If we don’t stop
misusing natural resources before it’s too late, pollution can get out of control and ruin the ecosystem.
Planning for the best possible use of water must also come first on the list because, in the next ten years,
water pollution and waste could render our nation parched and uninhabitable.

DISPLACEMENT: In India, unemployment is the main issue. There is a solution for this issue. 92% of
people in India work in the unorganized sector. Some are engaged in menial tasks such as They get
relatively little pay for pushing a cart, etc. If young people banded together, won the government's
assistance, and established some cottage and small-scale enterprises where individuals could work for
their welfare, this problem may be resolved. For everyone on the planet, Indian kids serve as role models
because of this. Thus, if the government establishes factories, schools, and hospitals for all inhabitants,
unemployment in India will likely decline.

CHILD LABOUR: In India, this is the worst kind of societal evil. Youngsters are forced to labor in
hazardous environments, such as cracker factories, and are exploited. They receive improper treatment.
Similar to other social problems, child exploitation is prohibited by laws and regulations, but little has
been done to stop it. never been enforced in India, which is why you may still find kids and teenagers
laboring in industries and stores.

ILLITERACY: India now has the highest percentage of illiterate people among all countries, and the
country's literacy rate is significantly lower than the global average of 84%.Despite government
initiatives, India's literacy rate rose only "sluggishly," and a 1990 study projected that at the country's
existing rate of advancement, India would not achieve universal literacy until 2060.On the other hand, the
2011 census revealed a 9.2% gain in literacy from 2001 to 2011, which is less than the growth from the
preceding decade.India contains backward states like Bihar and forward-thinking states like Kerala,
which together boast 93.91% literacy rates in their state. Having a literacy rate of 68.8%.

POPULATION: With 1.3 billion people living there as of right now and counting, India is the second
most populated nation in the world. Based on available data, India accounts for around 17.31% of the
global population, meaning that one in six people on Earth reside there. By the end of 2030, India's
population is expected to have grown by 1.58%, or more than 1.53 billion people. It is a curse that hurts
society and impedes progress. India is said to have roughly 33 births each minute, 2,000 per hour, and
48,000 per day. Resources are not able to keep up with the population growth. The resources per person
will drop further with a rapidly growing population, resulting in the next two major challenges that India
faces
Small businesses in India encounter a range of challenges that can impede their growth and
success. These challenges stem from a complex interplay of economic, regulatory, social, and
infrastructural factors. Here, we'll delve into these issues in detail, highlighting the specific
problems faced by small businesses in India.

1. Limited Access to Capital:

Securing financing is often a major hurdle for small businesses in India. Traditional lending
institutions might impose stringent criteria, making it difficult for small enterprises to access the
necessary funds. Collateral requirements and high-interest rates can deter potential borrowers.

2. High Competition:
India's vibrant and diverse market is marked by intense competition, especially in sectors
dominated by both large and small players. Small businesses struggle to differentiate themselves
and attract customers in a crowded marketplace.

3. Complex Regulatory Environment:

Navigating India's intricate regulatory landscape can be overwhelming for small businesses with
limited resources. The multitude of licenses, permits, and compliance requirements, coupled with
frequent changes in regulations, pose challenges for business owners.

4. Infrastructure and Technology Constraints:

Inadequate physical infrastructure, such as unreliable power supply and transportation networks,
hampers the smooth operations of small businesses. Additionally, technological limitations
prevent many businesses from leveraging digital tools to streamline operations and reach a wider
audience.

5. Bureaucracy and Corruption:

Excessive bureaucratic red tape and corruption can increase the cost and time associated with
starting and operating a small business. Bribery and unofficial fees can add an additional
financial burden.

6. Talent Acquisition and Retention:

Small businesses often struggle to attract and retain skilled employees due to budget constraints
and the allure of larger companies offering more comprehensive benefits and growth
opportunities.

7. Limited Market Access:

Small businesses might find it challenging to access larger markets due to logistical hurdles, lack
of distribution networks, and financial constraints for advertising and marketing campaigns.

8. Fluctuations in Demand:
Economic uncertainties and changes in consumer behavior can lead to unpredictable fluctuations
in demand, affecting the revenue and stability of small businesses.
9. Lack of Business Education:
Many small business owners lack formal business education, which can result in a limited
understanding of crucial aspects such as financial management, marketing strategies, and
operational efficiency.

10. Access to Technology:

Keeping up with technological advancements can be a financial strain for small businesses.
Investing in new tools and systems might be challenging due to budget constraints.

11. Taxation Issues:

Navigating India's complex taxation system can be a challenge for small businesses. Complying
with various taxes, filing requirements, and keeping up with changes in tax laws can be
overwhelming, especially for businesses with limited resources.

12. Supply Chain Disruptions:

Small businesses reliant on specific suppliers or raw materials can be vulnerable to disruptions in
the supply chain, which can impact production and operations.

13. Access to Markets and Exporting:

Expanding beyond local markets is hindered by regulatory barriers, lack of export infrastructure,
and challenges related to understanding foreign markets and consumer preferences.

14. Healthcare and Social Security:

Providing healthcare benefits and social security to employees can be financially burdensome for
small businesses, impacting their ability to compete with larger corporations.

15. Seasonal Nature of Business:

Many small businesses in India operate in sectors with high seasonality, leading to revenue
fluctuations throughout the year. This can pose challenges for maintaining consistent cash flow.

In conclusion, small businesses in India confront a multitude of challenges that can hinder their
growth and sustainability. Addressing these issues requires a combination of supportive policies,
streamlined regulatory processes, enhanced access to financing, and investments in infrastructure
and technology. As India's economic landscape continues to evolve, finding effective solutions to
these challenges becomes crucial for fostering a thriving environment for small businesses.
MOST COMMON PROBLEM FACED BY STUDENTS IN INDIA
Career Problems
Due to a lack of proper support and motivation, students face a lot of career-related problems.
The below report shows the major areas in which students are facing a problem:

Major Problems faced by students

LACK OF PROPER MENTORSHIP/GUIDANCE
Due to the absence of a proper guide and professional mentorship, students end up making wrong
career decisions in life. Inadequately trained teachers can have a huge impact on students’
performance, as achievement depends largely on the quality of instruction. Mentors can help new
teachers improve teaching skills, increase resiliency, enhance communication skills, and boost
self-confidence
The below chart shows the need for a mentorship for students: -

More than 75%students feel the need for correct career guidance
LACK OF SKILLS
Lack of relevant industrial skills does not make them job-ready. According to the India Skills
Report 2015, it was established that India lacks in the development of skills. Of all the students
applying for roles in the labour market, a mere 1/3rd of the number had the appropriate skills to
match the requirement of the employers.
The skills which students generally lack are shown in the below graph:

Skills students need to develop to become industry-ready

LACK OF AWARENESS
A recent survey on career option awareness among 10,000 Indian students has revealed that a
staggering 93% of the students aged 14 to 21 were aware of just seven career options though there
are more than 250 different types of job options available only in India.
Around 85% of students are concerned about which option to choose for higher education and
92% don’t get any career-related guidance from their schools.

COLLEGE FEES AND STUDENT LOAN

According to a recent report, the total non-performing assets (NPAs) in the education sector
registered an increase from Rs 2,615 crores in March 2013 to Rs 6,336 crores in December 2016.
That is, Indian banks saw a 142% increase in student loan defaults during a period of just over
three years. In percentage terms, the share of NPAs increased from 5.40% to 8.76%. Students are
being pressurized to pay heavy education fees irrespective of their financial condition, which
makes a lot of students deprived of proper education.
EXAM PRESSURE ON STUDENTS
This is the common problem that appears to every student throughout their student life.
Nevertheless, how well or worse your preparation is, you feel like always in stress and in a
constant phase of struggle with studies.
This stress due to exam’s tension causes many side effects to the body like when one continuously
starts, facing stress and anxiety.
HIGH EXPECTATION OF FAMILY AND SOCIETY
During, the entire student life you feel consistent pressure. Expectations from family and society
to perform well, pressure from teachers and, peer pressure. A lot more stays there to haunt you
throughout your academic life.
Parents invest a large sum of money during your college life and they expect you to do something
great within and after college.
This high expectation passes onto the students when they realize that their education is
draining a lot of money.
FAILURE OF INDIAN EDUCATION SYSTEM
Knowledge is considered the most powerful weapon. It can either break or make a system. But
what makes knowledge even more powerful is what you do with it. Indian students seem to lack
this concept; however, it isn’t really their fault. The Indian education system is designed to
psych a child’s mind, to study just to prepare and pass exams. It has conditioned many of them to
believe that extracurricular activities aren’t important and that getting good grades is what,
preparing for college is all about!
 PROBLEMS OF INDIAN YOUTH
It is not enough to say that the youth or the young generation is the future of the country, rather
this should become a reality, and it will only become so when the youth would be enough
empowered and strengthened. the government and the society is quite hopeful with regard to the
capacities of the Indian youth since they have the best suitable potential that can facilitate the
growth and progress for the country but both the government and the society should analyse that
whether the youth are properly developed or not, is the youth getting the sufficient opportunities
and facilitates from their sides? According to the surveys and demographic statistics; Indian
youth constitutes of more than 50% who are under 25 years, 30% who are of the age 10-25 years
and apparently 40% who are of the age 16-30 years thus, with having such a high magnitude the
participation of the youth just cannot be neglected in the process of development of India. And it
becomes a high-priority for the government to look forward to the development of the youth at
first.
Particularly in the Indian scenario the Indian youth can be classified into two big groups of
individuals or categories: 1. Educated and Developed group of Youth, 2. Illiterate and
Undeveloped group of Youth. Our society and country at large struggling from various social,
political and economic issues and these issues have also affected the conditions of the Indian
youth immensely. If we believe that the progress of the country lies in the hands of the youth
then we cannot ignore their own problems, ignoring the issues of the youth is just like giving rise
to other problems instead of minimizing them. And also we cannot neglect the undeveloped
section of the youth and make the developed section of the same; wholly responsible for the
growth of the country. thus focussing upon both of the sections of the youth is must and, see the
irony that not even a single but both of the sections of the young generations are facing various
problems in the present time which hinder their own growth, progress and improvement.
Following are the various problems that the Indian youth are facing today:

PROBLEMS OF EDUCATED INDIAN YOUTH

Jobs: the foremost problem that our youth faces is the lack of better jobs and that too in the
public sectors. A huge number of youth gets graduated every year but the number of jobs is
comparatively less. Since jobs in public sector provide better facilities, perks and incentives and
prestige most of the young people want to avail government jobs. And the jobs which are
available in the government sector; demand for working experience of many years, many
competitive levels are attached with them and are very high profile jobs. Only a post graduate
student or a Ph.D. scholar or an experienced person can aspire to grab those jobs, and thus
graduates have to look into the private sector which is even though full of jobs but also invite
with many other issues.
Corruption: corruption has eaten up all the moral values of the human beings today, it has
immensely affected the youth since it also gulps the good opportunities of their progress. The
opportunities, facilities, jobs, authority, growth, or even the education can be bought by simply
bribing some of the corrupted administrators/bureaucrats/officers.
Educational issues: higher education in India is still very complex, not easily approachable
and involves long process; that is why a large number of young individuals do not prefer to study
after graduation since they want to become independent right after passing out their colleges. A
very less number of youth want to get involve in research studies and higher education
particularly those who have sheer patience and want to grab the most prestigious jobs after
completing the studies.
Increasing Competition: comparatively in public sector the factor of competition is
increasing day by day, there is a whole lot of elimination done in the competitive exams than the
selection. May it be NET/JRF, UPSC, SSC, IT competitive exams, a huge number of young
individuals is eliminated and only a less number of them is selected; that creates a lot of
frustration, dejection and disappointment among the youth. Moreover, Reservation issues are
also faced along with the aforesaid issues, because the people applying in General Category feel
more insecure as compared to the people of Reserved Category.
Mental Pressure: frustration of grabbing a good job, settling in a permanent career, lack of
opportunities somewhere create a mental pressure for the young people, they become insecure
and perplexed about their growth and success.
Lack of Opportunities: in the Indian scenario much of the attention and weightage is given to
education and less attention to extra-curricular activities. It is believed that only through
education one can settle his/her career but the youth of today is multitalented and have different
aspirations. Education is an indispensible factor that cannot be ignored but if the person has the
strong interest in sports, dance, writing, singing, painting, etc., then there is nothing wrong to
choose those as the career streams. And that is where the youth faces a lack of opportunities, our
government provides numerous of opportunities in educational sector but the aforesaid streams
still need a whole lot of development so that the individual, parents and families see some sort of
permanency in those.
 PROBLEMS OF ILLETERATE INDIAN YOUTH

Juvenile Crimes: due to illiteracy the youngster are found to be involved in crimes especially
the small children under the 15 years get involve in stealing, bluffing, looting and sometimes
even murders.
Drug Addiction: drug/substance abuse and addiction is most commonly found among the
illiterate and undeveloped youth, they at a very young age start smoking and drinking alcohol.
There is no one to stop and guide them, the parents are themselves illiterate thus they do not feel
guilty nor they punish their children for involving in bad company and unethical activities.
Beggary: most of the illiterate people face the vicious cycle of poverty, they have no work to
do, and they also do not have enough dignity to work at their own thus they find a simple way of
begging for earning a livelihood. Beggary in India has increased in the recent years.
Poverty: poverty becomes a cycle for the illiterate youth, they are poor because they have no
education, that leads to joblessness, unethical activities, and finally back to poverty.
Trodden Lives: life of the youth that is undeveloped and illiterate is completely messed up
there is no progress, no improvement and thus life seems a bundle of burden. The living
conditions are very poor, lifestyle has no definition, and then how can one expect such a part of
the youth to become helpful in the process of development of the country?
The above mentioned factors certainly prove that Education is the crux of this whole
phenomenon. And to fulfil the dream of becoming a developed country the every single young
individual should become educated, in fact the government must set this as its highest priority
and should pledge to make our India; an Illiteracy free nation. Besides this, the problems of the
undeveloped youth should be dealt with seriousness and at first; they are the ones who need the
desperate attention and focus of the government. In fact the educated youth can help the
government in this big task; they also can participate in uplifting the undeveloped youth by
volunteering in the different plans and strategies. The process of development of the country can
only be attained in the state of equilibrium and this balance can be obtained only when the issues
of the youth are better and properly resolved.
 Problems faced by an Indian middle class family
Before understanding the problems of an Indian middle-class family we should first understand
what is a middle-class family.
A middle-class family is a social group that consists of ordinary people who usually have good
jobs and are neither rich nor very poor.

Following are the problems faced by middle-class family:

Monetary Problem: This is one of the most common problems a middle-class man has to
deal with. With the slumping economy and the ever-increasing costs of everything from
groceries to petrol, how can one expect something different? With a modest salary that can
hardly even cover electricity bills and taxes, the middle-class man faces roadblocks every step of
the way because there’s just no money left, no money to save, and no money to buy anything.
Interest rates on loans are going through the ceiling; insurance premiums had never before been
so costly; so now the middle-class man finds himself knee-deep in debts, mortgages and loans.
Quality Education: Along with everything today, education to has caught up in terms of
cost. A decent education for their kids is something all parents think about. But maybe the
middle-class man cannot even afford to think about it. Most children who go to esteemed
colleges and universities think renowned private schools, tuition, coaching classes, etc all are a
must. Also, there are additional expenses in terms of mandatory picnics, Industrial Visits, fees
for other annual programs etc. But most middle-class children have to do with Government
schools and maybe no tuition unless it’s very cheap. Sometimes even with an excellent academic
record, the best colleges are out of reach without a scholarship due to financial constraints. In
severe situations, parents even have to sell off their assets such as jewellery for their children’s
education
Health-related and Medical Problems: Most middle-class people don’t have
medical insurance. Not every doctor is kind, not every clinic is going to waive charges. What
happens then if an unfortunate accident takes place or if someone has a medical condition and
the treatment costs are way beyond their means? What happens is that they don’t go to the best
hospitals and clinics, they don’t get the best treatments and operations, and they’re not in the best
hands. Can you even imagine the risks attached to situations like that? Can you deal with it if
you can’t get the best treatment for your sick child? That’s what a common man faces every day.
Catching up with technology: The pressure of coping up with the latest technology is
also a new issue faced by a middle-class family. People having jobs should necessarily have a
smartphone and laptop as it becomes their part of work. Also, parents who manage to educate
their children in good school face difficulties like e-learning for which tablet or smartphone is
necessary. I am not against technology or school policies but all these surely have an adverse
monetary effect on Indian Middle-class family. There are still things like hi-fi laptops, pads,
Smart television sets, microwaves, ovens etc which they cannot afford.
Attention deficit and Tension is always a companion: No one takes notice of an
average, middle-class family. A middle-class family person is overlooked, ignored, sometimes
even spoken to and treated badly. Even if they have a million buck solution to a world-
threatening problem, their opinion will not be asked.
Also, Tension is always on their mind. All the above-listed problems not only keeps the adults
of the family but also the children. The expectation to work hard and earn more always tenses
the adults whereas the expectation of socializing and pressure of fulfilling their parents dreams
tenses the children of a middle-class family.
Can’t Afford to dream: The last point brought something to my mind. I’m not talking
here about the dreams that we see when we’re up in seventh heaven. Nah, the dreams I speak of
are the ones all of us have about our future: our ambitions, our goals, what and where we want to
be someday. A middle-class man can’t do that because if he does, there will be a lot of
disappointments, heartbreaks and ego-bruising things to deal with and again their practical life
and difficulties bring them back to earth.
Challenges Facing the IT Industry in India

A career in filmmaking in India, like in any other part of the world, can be very rewarding but
also comes with a huge set of challenges that only the bravest and most driven people in the
world can keep up with and not give up till they achieve. Here are some common pitfalls and
struggles that individuals may face when pursuing a career in filmmaking in India

1.Limited Resources:

Independent filmmakers often struggle with limited budgets and resources. Funding can be a
significant challenge, and filmmakers may need to be creative in finding ways to finance their
projects

2.Competition:

The Indian film industry is highly competitive, with many aspiring filmmakers vying for limited
opportunities. Breaking into the industry can be challenging, especially without established
connections

3.Industry Nepotism:

The film industry in India, like in many places, has faced criticism for favouring individuals with
industry connections or family ties. Breaking into the industry may be more challenging for
those without established connections

4.Creative Control:

Filmmakers may face challenges in maintaining creative control over their projects, especially if
they are working within the constraints of commercial expectations or dealing with producers
who want significant input into the creative process.

5.Distribution Challenges:

Getting a film noticed and distributed can be a hurdle, particularly for independent filmmakers.
Securing a favourable distribution deal and reaching a wide audience can be a complex process.

6.Technical Challenges:

Staying updated with the latest filmmaking technologies and techniques can be demanding.
Access to state-of-the-art equipment and training opportunities may be limited for independent
filmmakers.
7.Market Trends:

Filmmakers may need to navigate changing market trends and audience preferences. Staying
relevant and adapting to the evolving tastes of the audience can be crucial for success.

8.Long Hours and Stress:

The film industry is known for its demanding schedules, long working hours, and high-stress
environments. Filmmakers may need to cope with intense pressure during the production
process.

9.Lack of Institutional Support:

While there are film schools and institutions in India that provide training in filmmaking, not
everyone has access to such education. Some aspiring filmmakers may lack the necessary formal
training and support.

10.Cultural and Regional Challenges:

India is diverse in terms of languages, cultures, and regions. Filmmakers may face challenges in
navigating this diversity and creating content that resonates with different audiences.

Despite these challenges, many filmmakers in India and around the world have successfully
overcome obstacles to create impactful and meaningful cinema. Building a network, continuous
learning, perseverance, and a passion for storytelling are crucial elements for navigating a career
in filmmaking. This is where the Kinosphere app comes in. Its gives you a network and support
community and a platform to find talented yet affordable partnerships to create the magic you
wish to.
 The IT Industry in India
Over the last three decades, the IT industry in India has seen significant growth. It accounted for
8% of the total GDP (Gross Domestic Product) of the country in 2012-2013 and jumped up to
9.5% in 2014-2015. This growth has made IT the fifth largest industry in India.
Overall, the IT industry in India employed around 4 million people in 2017, up 170k from the
previous year. Much of the employment is concentrated at the large firms. For example, Tata
Consultancy Services (TCS) employs over 275k people, and Infosys employs 156k.
Despite the recent growth of the IT industry in India, there are signs the growth is slowing.
According to the National Association of Software and Services Companies (NASSCOM), the
IT sector in India only grew by 5% in 2018. Furthermore, hiring rates have decreased by around
40% in the last three years.
This slow down is being felt by even the leading IT companies, who are starting to lay off
employees. For instance, Wipro has dropped 600 employees, Cognizant has cut at least 6,000
jobs, Tata Teleservices fired 500-600 employees, and Aircel handed pink slips to more than 700
employees.
But why is this happening? What is dragging down the pace of growth in India’s IT industry?
Below are the top 5 challenges facing the IT Industry in India:
1. H1-B Visas
The H1-B visa is a program that allows companies based in the US to temporarily employ highly
skilled professions from other countries. This year, the Trump administration changed the policy
of issuing H1-B visas. Unfortunately, the new procedure makes it difficult for companies to
prove that the H1-B worker comes with specific and non-speculative qualifying assignments in a
certain occupation.
According to the USCIS (US Citizenship and Immigration Services), nearly 75% of H1-B visa
holders are Indian citizens.
The new H1-B policy is negatively impacting the IT industry in India and people looking to find
jobs in the US. There are several small and medium enterprises in India that rely on the US
market and H1-B visa.
Also, the new policy states that the minimum salary of an H1-B visa holder should be a
minimum of $130,000. Given this high salary, understandably, a lot of companies in the US now
opt to hire Americans.

2. Economic Slowdown
The IT Industry in India draws most of its clients from Western countries like the US, the UK,
Spain, and Canada. In the last few years, these Western countries have faced slowing economic
growth, which has hurt the growth of the IT industry in India.
To add oil to the fire, there has always been a biasing relationship between the dollar and the
rupee. The increasing value of the dollar against the rupee has further strained the industry.
3. Data protection and privacy rules
The new data protection and privacy rules enforced by other countries are preventing Indian
companies to serve in those countries. For example, the European Union’s GDPR (General Data
Protection Regulation) law that became effective in May 2018.
GDPR is applicable to all the companies that operate in the EU or have their customers in the
region – any company that deals with the personal data of European customers need to comply
with GDPR rules.
Since not all the IT companies in India can comply with GDPR and other data protection rules,
many had to stop serving EU customers. As mentioned above, most of the clients of the Indian
IT industry are from Western countries, and many clients are choosing development options
closer to home.

GDPR is preventing some India tech companies from working with European clients.
4. Domestic Challenges
Today, traditional business models have become outdated. It is the era of digital transformation,
where companies around the world are embracing modern technologies like cloud computing,
artificial intelligence (AI), the Internet of Things (IoT), and blockchain. These technologies help
them reduce costs, accelerate time to market, save time and increase employee productivity.
However, Indian organizations are slow in adopting these technologies. They are still stuck with
the traditional models. This is because of the lack of skilled employees, conventional
infrastructure, as well as restrictive regulations.
In India, more than 400,000 students graduate every year. Yet, only 20% of them get
employment. This is because the universities and colleges are focused on providing degrees
rather than enhancing student skills. This has created a gap between the supply and demand.
IT companies are not finding the right talent that can go along their digital transformation
journey.
Further, this study suggests that Indian IT companies will have to cut jobs because they are not
adopting modern technologies. Furthermore, a report from McKinsey and Company reveals that
50% of the workforce in the IT industry could be irrelevant over the next few years.
5. Negative reputation around the world
India’s IT giant, TCS was slammed by a penalty of $420 million by the US court in April 2016.
The US-based company Epic Systems had accused TCS of stealing trade secrets, confidential
information and data that belonged to Epic.
Infosys paid a penalty of $1 million for violating the visa and immigration rules in the US. The
company was accused of employing foreign workers in New York without paying taxes and
wages.TCS and Infosys are the pillars of the IT industry in India. Such incidents negatively
impact the image of the Indian IT industry in the global market.
Conclusion
These are the major challenges faced by the IT industry in India. These challenges have become
barriers to the growth of leading IT companies in the country and jobs are being lost.
But these challenges can be overcome! Not much can be done about policy changes in the US
and Europe, but much can be done. First, IT companies need to embrace digital technologies to
keep up with competition around the globe. Second, universities need to teach students skills.
Third, IT giants need to set an example and improve India’s reputation in the global market.