Question

Which of the following is a major challenge currently faced by the Indian economy?

• A. High rate of population growth
• B. Poverty and unemployment
• C. Excessive dependence on foreign aid
• D. All of the above

Hint:

Major challenges of the Indian economy include:
• Population growth
• Poverty
• Unemployment
• Regional imbalance
• Human capital development Always remember that economic development involves solving multiple challenges simultaneously.

Answer 1

The Correct Option is D

Concept: Despite significant economic progress, the Indian economy continues to face several developmental challenges. Economic growth alone is not sufficient unless it is accompanied by improvements in employment, living standards and social welfare.

Step 1: Study the problem of population growth.
India has one of the largest populations in the world. Rapid population growth creates pressure on:
• Natural resources
• Education facilities
• Healthcare services
• Employment opportunities
• Housing and infrastructure Therefore population growth remains a significant challenge.

Step 2: Understand poverty and unemployment.
Although poverty has declined over time, a considerable section of the population still faces economic hardship. Major concerns include:
• Lack of adequate income
• Underemployment
• Seasonal unemployment
• Educated unemployment These issues affect economic and social development.

Step 3: Examine dependence on foreign resources.
Developing economies often require:
• Foreign capital
• Foreign technology
• International assistance Excessive dependence on external sources may create economic vulnerabilities. Therefore reducing dependence and strengthening self-reliance remains an important objective.

Step 4: Draw the final conclusion.
All the factors listed in the question represent important economic challenges. Therefore, \[ \boxed{\text{All of the above}} \] Hence the correct answer is \[ \boxed{\text{Option (D)}} \]