Lack of financial resources:
The Indian economy faced several key challenges at the time of independence, and one of the most significant was the lack of financial resources. This can be attributed to various factors:

1. British Exploitation:
During the colonial period, India's wealth was systematically drained by the British through policies such as heavy taxation, trade imbalances, and exploitative economic practices. This severely depleted the country's financial resources.

2. Disruption due to Partition:
The partition of India in 1947 resulted in significant economic turmoil, as large-scale migration, communal violence, and the displacement of people disrupted trade, agriculture, and industrial production. The newly formed Indian government had to allocate substantial resources for relief and rehabilitation efforts.

3. Infrastructure Deficiencies:
At the time of independence, India had a limited infrastructure, with inadequate transportation, communication, and power networks. This hindered economic development and required significant investments to improve infrastructure facilities.

4. Lack of Industrialization:
India's economy was primarily agrarian, with a limited industrial base. The country heavily relied on imports for manufactured goods, resulting in a trade deficit. The lack of a strong industrial sector meant that India was unable to generate sufficient employment opportunities and increase productivity.

5. Inefficient Financial Institutions:
The financial institutions in India were underdeveloped and lacked the necessary expertise and resources to support economic growth. The banking system was largely controlled by foreign banks, which further limited access to credit and capital for domestic industries and businesses.

6. Scarce Foreign Exchange Reserves:
India had meager foreign exchange reserves at the time of independence, making it difficult to meet the requirements of imports and foreign debt repayments. This posed a significant challenge in terms of managing trade deficits and maintaining economic stability.

Overall, the lack of financial resources presented a major challenge to the Indian economy at the time of independence. The government had to prioritize resource allocation and make strategic investments to address these challenges and lay the foundation for economic growth and development.