It was Just yesterday that we were discussing the Indian economy’s current situation in our college lecture. I really didn’t know I’ll get to pen down my knowledge of the same so soon. As a recent leading daily stated, India ranks fourth in terms of economies with growth potential. An amazingly encouraging fact! Equally ironic is the fact that India still continues to be a part of the ‘developing brigade for decades now. What exactly do we do climb the ‘developed’ bandwagon?
India, despite all glorious statistics and rankings, today is a part of the league of third world nations. Do cite a ere clear definition of global economies; first world countries are the developed capitalist countries where we place US, Russia. Second world countries are the socialist economies, China being the best example of the same. Third world countries are the developing and the least developed nations of the world. India is a part of this list with African, Asian, Latin American nations falling in queue too.
Through this article I’ll first throw light on the major challenges that keep India in the Third world league and simultaneously talk about the constructive that can overturn our years’ Eng efforts of waving the ‘developed’ flag. Indian economy today is very close to witnessing the prosperous ‘demographic dividend’ phase. As per its economic interpretation, ‘Demographic dividend’ is the period when a country has huge young population. In this phase the working population increases, consequently a country’s performing potential increases and the dependency ratio falls.
But what is important for any economy is to ensure if it is ready for this phase? In order to reap the benefits of demographic dividend, we need o create a lot of sustainable working opportunities so that we can harness the maximum of our young population. I personally believe that we hold a lot of human resource; however the point to be improved on is their effective centralization. The classical ‘providing Jobs’ approach should be supplemented by encouraging young minds to come up with stats ups and breed free thinkers who do not remain Job seekers for the rest of their lives but emerge as Job providers to the international market.
We have people. A lot of them at that. We have to harness. After talking about the quantity of human resource, (where we are naturally on favorable grounds) I take my discussion to the quality of human resource. And the best example to explain could be the India-China comparison. Both these nations started their growth Journey almost simultaneously. They climbed the ladder aping each other’s moves at a lot of time in history. Both faced economic crises, both came up with reforms. Both moved towards industrialization. Both are among the most populous nations of the world.
Why, then, is china one step forward today? Here is why. Because the overall growth in China’s GAP was marked by development of human resource in the background. The socialist leaders made a lot of investment in human resource development in the spheres of education, health, amenities, etc. And this is what India omitted. My second constructive on why we still are a third world country is the fact that we as a country did not invest in human resource development. I nave always believed that countrymen denned a country.
We need to focus on improving the Human Development Index (HID) and invest in human source to ensure long run sustained development as in the case of China. Talking beyond human resource, it is our falling international worthiness that stops us from developing economically. With rupee falling, with elections indicating political instability, international investors do not see India as a very prosperous or safe investment destination. Our falling credibility, I believe, is an urgent concern that is holding back our development. FED, in spite of all arguments and hassles has still not been practically implemented.
FED could have been a major factor in our growth story, is set weak because of political and economic instability. Also we need to improve our weak executive front and strengthen international relations to emerge stronger politically and economically in the international sphere. The service sector contribution to GAP needs not only to be sustained but strengthened. India indeed is on the threshold of being developed. We need to use the wisdom and experience of developed countries to paint a better picture for ourselves. We have come a long way. But yes! We have a long way to go.