Independence,let us learn the basic difference between growth and development In terms of economics. Economic Growth is a narrower concept than economic development. Let is an increase in a country’s real level of national output which can be caused by an increase in the quality of resources (by education. ), increase in the quantity of resources & Improvements in technology or In another way an increase In the value of goods and services produced by every sector of the economy. Economic Growth can be measured by an increase in a country’s GAP.
Economic development is a normative concept I. E. T applies in the context people’s sense of morality (right and wrong, good and bad). The definition of economic development given by Michael Toward Is an Increase In living standards, Improvement In self- esteem needs and freedom from oppression as well as a greater choice. The most accurate method of measuring development is Athenian Development Index which takes into account the literacy rates & life expectancy which piezoelectricity and could lead to Economic Growth.
It also leads to the creation of more opportunities In the sectors of education, healthcare, employment and the conservation of the environment. Let implies an increase in the per capita income of every citizen. From the above explanation you can infer what a country really needs. GROWTH OF INDIA: Before dealing with our problems let us cherish with some of our achievements over the years. The following graph gives therapy GAP exaggerate of India since its independence. Since 1951, India has grown as a planned economy.
The first few plans focused on growth with strengthening of the manufacturing sector emphasizing heavy industries to form the backbone of the economy. Other principal areas of planning were agriculture and social development I. . Housing and poverty alleviation. Over the years India saw a changing composition of its economic structure: agriculture which initially comprised of 60% of the GAP now comprises around 26% and services comprise a massive 75% of the GAP growing from 30% In the ass.
Landmark changes in 1991 were brought about under pressure from MIFF and World Bank when India was left with foreign exchanges to barely support two weeks imports. The new era saw massive tariff reductions, FDA cap relaxations and gradual convertibility of the current account followed by the capital account. Italianization process started In he early nineties has seen massive growth especially In the services sector. India has consistently grown at more than 6% over the last five years and in terms of sheer GAP 1 OFF Would you believe this. Yes indeed we are growing at good pace. But growth without development does not make any sense.
PROBLEMS PARALYZING INDIAN’S DEVELOPMENT: CORRUPTION: Corruption has been one of the pervasive problems affecting India. The economic reforms of 1991 reduced the red tape, bureaucracy and the License Raja that had strangled private enterprise and was blamed for the corruption and inefficiencies. Yet, a 2005 study by Transparency International (T’) India found that more than half of those surveyed had firsthand experience of paying bribe or peddling influence to get Job done in a public office. UNEMPLOYMENT: Unemployment in India is characterized by chronic underemployment or disguised unemployment.
Government schemes that target eradication of both poverty and unemployment (which in recent decades has sent millions of poor and unskilled people into urban areas in search of livelihoods) attempt to solve the problem, by providing financial assistance for setting up businesses, skill honing, setting up public sector enterprises, reservations in governments, etc. The decreased role of the public sector after liberalizing has further underlined the need for focusing on better education and has also put political pressure on further reforms.
One of the critical problems facing Indian’s economy is the sharp and growing regional variations among Indian’s different states and territories in terms of per capita income, poverty, availability of infrastructure and socio-economic development. DISTRIBUTION OF RESOURCES: Since independence, Indian’s balance of payments on its current account has been active. Since liberation’s in the sass (precipitated by a balance of payment crisis), Indian’s exports have been consistently rising, covering 80. 3% of its imports in up from 66. 2% in 1990-91. Although India is still a net importer, since 1996- 97, its overall balance of payments (I. . , including the capital account balance), has been positive, largely on account of increased foreign direct investment and deposits from non-resident Indians; until this time, the overall balance was only occasionally positive on account of external assistance and commercial borrowings. Poverty: Large numbers of Indian’s people live in abject poverty. 14. 3% of the population earned less than $1 a day in 2005 down from 33. 3% in 1990.  According to the new World Bank’s estimates on poverty based on 2005 data, India has 256 million people, 21. % of its population, down from 60% in 1981 living below the new international poverty line of $1. 25 (APP) per day. The World Bank further estimates that 13% of the global poor now reside in India. Moreover, India also has 228 million people, or 20. 6% of the population living below $2 a day, compared to 72. 2% for Sub-Sahara Africa. Had(Human Development Index) THE REAL INDICATOR: levels of social and economic development based on four criteria: Life expectancy at birth, mean years of schooling, expected years of schooling and gross national income per capita.
The HID makes it possible to track changes in development levels over time and to compare development levels in different countries. The Human Development Report 2013 released by the United Nations Development Programmer (UNDO), ranked the country at a low 136 among 186 countries on its human development index (Had). The report placed India at the near-bottom of countries which have reached ‘medium development’. With its index standing at 0. 554 for the last year, India has miles to go to meet countries like Norway (ranked number 1) which boasts of an HID of 0. 55. The following graph shows Indian’s position in HID which at precarious situation: WOMEN EMPOWERMENT IN INDIA: The United Nations Development Program’s Human Development Report ranked India 132 out of 187 countries on its gender inequality index in 2013. All countries in South Asia, with the exception of Afghanistan, the report said, were a better place for women than India. Indian’s skewed sex ratio -? 927 females for every 1,000 males – and low participation rates of women in the labor force were largely to blame, a report said.
India gets placed at a dismal 115 on a recent global survey on women empowerment out of 128 countries surveyed. India needs to make serious considerations to scale up the meter by employing measures to empower women and establish a world standard in equality among the sexes. INDIA THE NEXT SUPER POWER: So far we have discussed about various adversities the contemporary India is facing. But we are one of the best performers in current scenario. The modern Indian middle class is educated and well versed in the English language and hence at a huge advantage in dealing with the Western world.
With Indian’s attempts to assert itself in the Security Council, the potential of the nation turning into a ‘super power’ has become the talking point. Our goal of “superpower” has to be unique and not Just be a rehash of what US or Europe did. We have to redefine what superpower means. We could do the following in the pursuit of our new definition of superpower. Education 1. We have to attain 100% literacy while keeping a higher bar for counting who is a iterate. In a knowledge economy, we cannot afford to have 300 million illiterates.
The mobile phone & TV penetration has to be leveraged more. Literacy has to be a fundamental national priority. 2. Build urgency to make broadband penetration to reach every Indian. Broadband can substantially improve education reach and bring Indian’s villages to Wisped and Youth University. We have to understand that educating 1 billion people can’t be done through traditional universities. The government could sell BOSS (state owned telephony provider) and use the $bib arrest value of that to build a constellation of satellites and a network of optical fiber cables to achieve this.
Just like what we did with mobile phones, we have to leapfrog the broadband revolution. 1. Modernize the Police force. We have only 130 policemen for every KICK people. First increase that to world standards – 220/KICK people. Second, cut off politicians from using massive fraction of police force. Third, train and equip them to handle modern law enforcement. Without adequate law enforcement we cannot grow our economy. Build new cities at an aggressive rate. Our existing cities have become slums and shanties unable to take the onslaught of migrants.
We should look to build 500 new cities with 1-2 million population each. We have enough land to do that. Assuming each city requires 500 sq. Km of land, we will need KICK sq. Km (8% of India). But these new cities could hold 60-70% of our population with a relatively manageable density. The planned arbitration can put Rockefeller for the economy. Economy 1. Indian economy has to grow really fast (at 10%+ rates for the next 20 years) to leave enough wealth to be shared around. At 10% growth rate, our per-capita GAP will grow to $10000/person/year by 2030.