Which of the following factors is impeding economic growth in India? Poor infrastructure, it's command economy, micro lending or outsourcing
Poor infrastructure is one of the factors impeding economic growth in India. Infrastructure development, including roads, ports, and reliable power supply, is crucial for efficient movement of goods and services, attracting foreign direct investment, and fostering overall economic growth.
India does not have a command economy, but rather a mixed economy with elements of both market and government intervention. While the government plays a significant role in certain sectors, such as defense and public utilities, it has been implementing economic reforms to liberalize its economy and promote private investment.
Micro lending, also known as microfinance, is an approach aimed at providing financial services to low-income individuals or small business owners. It is not considered a factor impeding economic growth in India, but rather a strategy to address financial inclusion and reduce poverty.
Outsourcing, which involves contracting work to external third-party companies or individuals, has actually contributed to India's economic growth over the years. The country has emerged as a major outsourcing destination, particularly in the IT and business process outsourcing sectors. It has led to job creation, foreign exchange earnings, and transfer of technology and knowledge.
Therefore, among the given options, poor infrastructure is the factor impeding economic growth in India.