6 Challenges That India Economy Needs To Overcome Immediately

# Global economy and Liquidity crisis

Investors are not feeling confident enough to take risks in the face of Global Economic crisis. RBI, however, insists that to bring back economic equilibrium and to keep inflation under control, investment is an utter necessity.

The diminishing Indian foreign currency reserves due to global economic crisis leads to liquidity crisis which in turn triggers inflation. Other factors propelling inflation are minimum support price and steady increment.

#Corruption and Black money

The foreign banks are loaded with Indian black money and have cost a lot to the economy during the last decade. According to Global Financial Integrity, a Washington-based research organization, India stands at 8th position among the countries to root out most illegal funds.

The black money is acting like a termite, weakening the economy. Some large international private sector banks does not follow the regulations laid down by central banks and cash in a lot of black money in gold and other assets.

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