India: The Road Ahead IMF News Video International Monetary Fund. The Indian economy is large and diverse with many prominent sectors including the industrial, agricultural and service sector. Unlike other Asian countries, India's strong service sector has been a major factor in contributing to India's growth in the recent past. The services sector, particularly the IT business, has been a major component of India's economy and has been leading the country's GDP growth. It also has a growing number of young people entering the labor force which helps in achieving a high growth potential.However, despite achieving strong growth and economic liberalization, the country is still facing some major challenges. India's economy, due to increased spending, is facing a large deficit and debt, inflation is increasing, and poverty still remains a factor to contend with. Despite the challenges, India has achieved strong growth and is an important player in the G20 and the global economy.
