Unlocking India's Economic Potential: Challenges and Solutions The source explains why India, despite its large population and rapid economic growth, faces significant challenges in becoming a global superpower. Three key structural issues are identified as hindering India's progress. Firstly, insufficient domestic savings prevent the capital formation necessary for infrastructure and industrial development, unlike other rapidly growing economies. Secondly, India has prioritised capital-intensive industries over labour-intensive manufacturing, missing opportunities to leverage its vast young workforce and create widespread employment, a strategy successfully employed by nations like China and Bangladesh. Finally, the source argues that India's focus on IT outsourcing has created a "trap" rather than fostering true innovation and industrialisation, leading to a brain drain of talent and a lack of domestic technological advancement. These issues, if unaddressed, threaten India's long-term economic potential as its demographic advantage begins to wane.