India faces multiple economic challenges, including:

1. Unemployment & Underemployment: Youth unemployment is high, especially among skilled graduates.
2. Agrarian Crisis: Insecure farm incomes, small landholdings, low productivity.
3. Income Inequality: Despite growth, income gaps remain significant.
4. NPAs in Banking: High non-performing assets hurt credit flow.
5. Infrastructure Deficit: Transport, power, and digital gaps hinder growth.
6. Fiscal Deficit & Inflation: COVID impact widened deficit.
7. Environmental Sustainability: Pollution, climate risks, and energy transition.
8. Urban-Rural Divide: Migration strains cities, underdeveloped rural areas.

GST is India’s biggest indirect tax reform, launched in 2017.

✅ **Simplifies taxation** by merging VAT, excise, service tax, etc.
✅ **Boosts compliance** with a unified digital system.
✅ **Facilitates inter-state trade** via IGST.
✅ **Enhances transparency** with e-way bills, invoice matching.
✅ **Promotes federal cooperation** through GST Council.

Challenges: Complex rate slabs, delayed refunds, tech issues for MSMEs.

Digital India (launched 2015) focuses on digital empowerment, transparency, and access to public services.

✅ **Broadband infrastructure** via BharatNet.
✅ **Mobile connectivity expansion** in remote areas.
✅ **e-Governance platforms**: UMANG, DigiLocker, e-SHRAM.
✅ **e-Kranti services**: Telemedicine, digital education.
✅ **Boost to manufacturing** under PLI & Make in India.
✅ **UPI, Jan Dhan & Aadhaar** enabled financial inclusion.

Challenges: Cybersecurity, digital divide, last-mile access.

NITI Aayog (est. 2015) is a policy think tank replacing the Planning Commission.

✅ Promotes cooperative federalism.
✅ Drives long-term vision & reforms.
✅ Tracks SDG progress.
✅ Runs flagship programs: Atal Innovation Mission, Health Index, Aspirational Districts.

Gati Shakti (launched 2021) is a master plan for integrated infrastructure.

✅ Coordinates road, rail, ports, airports via digital platform.
✅ Reduces logistics cost and project delays.
✅ Boosts industrial corridors, exports, and investment ease.

MGNREGA (2005) guarantees 100 days of paid employment per rural household annually.

✅ Alleviates rural poverty and distress.
✅ Builds local infrastructure (roads, ponds, irrigation).
✅ Empowers women (50%+ participation).
✅ Direct Benefit Transfers ensure transparency.
✅ Challenges: delayed wages, asset relevance, monitoring gaps.

PMJDY (2014) is a flagship financial inclusion mission.

✅ Opened 450M+ zero-balance bank accounts.
✅ Enabled DBT (Direct Benefit Transfer) of subsidies.
✅ Included accident & life insurance coverage.
✅ Linked with UPI, Aadhaar, RuPay.

Challenges: dormant accounts, digital literacy, rural banking infrastructure.

The Aspirational Districts Programme (ADP) targets 112 backward districts for fast development in:

✅ Health & Nutrition
✅ Education
✅ Agriculture & water resources
✅ Financial inclusion

Uses real-time monitoring and competition to drive change.

✅ Low learning outcomes in government schools.
✅ High dropout rates and teacher shortages.
✅ Lack of digital infrastructure in rural areas.

NEP 2020 reforms:
- Focus on foundational literacy.
- Vocational training from Class 6.
- Flexibility in subject choices and assessments.