Three main problems faced by indian economy and possible solutions to overcome them

India economy, an emerging economy, has witnessed unprecedented levels of economic expansion since 2000 and has managed its growth despite the prevailing impact of global financial crisis. Many reforms and measures have been taken since 90s which helped Indian economy to come on in leaps and bounds. Today it is enjoying enormous position and status in the Global economy and has enough powers to indulge in global matters. Apart from the story of its progress, there are still many problems and challenges which are becoming obstacles to sustain its growth.

Challenges before Indian economy:

• Maintaining fiscal discipline
• Orientation of public expenditure towards sectors in which India is faring badly such as health and education.
• Introduction of reforms in labour laws to generate more employment opportunities for the growing population of India.
• Reorganization of agricultural sector, introduction of new technology, reducing agriculture's dependence on monsoon by developing means of irrigation.
• Introduction of financial reforms including privatization of some public sector banks.

Problems faced by Indian economy:

Population explosion: This monster is eating up into the success of India. According to 2001 census of India, population of India in 2001 was 1,028,610,328, growing at a rate of 2.11% approx. Such a vast population puts lots of stress on economic infrastructure of the nation. Overpopulation puts pressure on the resources available and the pollution management techniques. In basic terms, the average standard of living is directly related to the resources available. The India’s current population is already estimated to be unsustainable at today's rates of consumption and pollution, and another billion people over the next half-century will only exacerbate the problem.

Solution:

There is a need to spread the family planning programmes  and People should should have access to family planning service

reforming tax laws in a way that encourages couples to have no more than one or two children. 

Need to empower women in developing countries economically, socially, and legally in a manner that results in them having an equal say (with their husbands) in reproductive decisions

modifying school curricula to include information on population levels and implications for the future;

Poverty:  The 61st round of NSS estimates state that 27.5 per cent people in the country were living below the poverty line (BPL) with the rural area poverty at 28.3 per cent and urban areas at 25.7 per cent, the new methodology adopted by Suresh Tendulkar committee has raised the all-India poverty headcount ratio to 37.2 per cent of the population — with the rural area poverty at a sharper 41.8 per cent and urban area poverty at 25.7 per cent.  This poverty level is imposing restrictions in the growth so this needs to be tackled.

the poverty ridden families include the unemployed, the landless, the agricultural and casual labourers, the tribals and the disabled or the physically challenged.

Solution:

Govt has taken efforts to develop the heavy industries and green revolution which would lead to rapid economic development. 

cottage and small scale industries were encouraged which employ more people than machines.

Income distribution measures were introduced to reduce the gap between the rich and the poor.(a)taxing the rich and the middle classes (b)on the luxuary commodities .(c)reducing the prices on essential goods to lower income group.

Unemployment has been considered as the biggest factor in bringing poverty. Government needs to come up with various employment programmes like MNREGA.  

Many POVERTY ALLEVIATION PROGRAMMES like National Rural Livelihood Mission, PRIME MINISTER ROZGAR YOJANA(PMRY) AND SWARNAJAYANTI SHAHARI ROJGAR YOJANA etc have been launched with the aim of eliminating poverty.

Illiteracy: Education makes a person worthwhile in the society and gives him the enough skills to earn his own bread. Literacy should be spread to the every corner of the country. Govt has also come up with female literacy programmes. 

• Rural urban divide: It is said that India lies in villages, even today when there is lots of talk going about migration to cities, 70% of the Indian population still lives in villages. There is a very stark difference in pace of rural and urban growth. 

This problem can be solved by developing infrastructure, roads connecting rural to urban India and Also unless there isn't a balanced development Indian economy cannot grow. 

For more clarification, read this article