By Business Insider staff|Written March 03, 2018 08:58:29India has a huge opportunity to create more jobs and improve the quality of life for people living in the state, but a new report by the Centre for Economics and Business Research has highlighted some challenges in the country’s transition to a more modern economy.
India’s GDP growth rate has slowed since the first quarter of 2019 and is currently at 6.3%, according to a new study by the institute.
India’s unemployment rate stood at 9.2% in the first three months of 2019.
The institute, in a report titled ‘India’s Economy, Change and the Future of the Indian People’ released on Tuesday, highlighted some key areas for improvement in India’s economy:India’s current account deficit – which is the difference between the value of the currency in circulation and its purchasing power parity – stood at $1.35 trillion in the second quarter of 2020, the latest figures available.
India is facing a deficit of $1 trillion.
The Reserve Bank of India’s (RBI) inflation forecast is around 2%.
India is also facing the potential of a financial crisis, which could impact its economy.
The report also noted that India’s trade deficit stood at almost $100 billion in the fourth quarter of 2018.
The Institute of International Economics said the report shows that the economic transition in India is far from complete.
“In terms of economic growth, the main driver of the current account is the slowdown in the Indian economy, which will be reversed in the coming years,” said Amit Gupta, who authored the report.
“India has already taken steps to address some of these issues, but there is still a long way to go.”
In the short term, the report said, the government should focus on ensuring that economic reforms are not only for the sake of growth, but also to achieve long-term growth.
India has been a net importer of goods since the second half of the 20th century.
The country imports about $300 billion worth of goods every year, according to the World Bank, but has an annual trade deficit of nearly $1 billion.
The current account gap has also been rising due to a lack of infrastructure and a shortage of people.
The number of Indian nationals in the United States has more than doubled in the last 20 years to about 1.1 million people.
In terms and dollar terms, the country has an average trade surplus of $2.9 trillion with the United Kingdom, according the IMF.
The United States and Canada have also had large trade surpluses in recent years, but India has been among the world’s biggest net importers of goods, with annual trade deficits of more than $100 trillion, according IMF data.
The country is also an exporter of capital goods, like machinery and parts, but the country also relies heavily on imports for manufacturing.
India must ensure that the country is able to attract investment and create jobs, the institute said.