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Context: This year India has become the fastest growing economy in world by surpassing China. But India must overcome many of the economic, social, and political problems before it can be considered a superpower.
Core answer:
Local factors
Global factors
Conclusion The challenges inherent to the Indian economy need to be addressed by ushering structural reforms in the economy such as weeding out cost inefficiencies, reforming the taxation system, ensuring price stability and gradually building self reliance in different sectors of the economy. At the global level, India needs to diversify its trade direction away from recession prone developed economies to emerging economies which in turn will give boost to domestic employment, raise per capita GDP.
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