India must avoid growing into a dystopia

Source– The post is based on the article “India must avoid growing into a dystopia” published in The Hindu on 10th February 2023.

Syllabus: GS3- Indian economy

Relevance– The focus of economic growth has been on income generation. The development of masses is often neglected.

News– The focus of economic growth has been on income generation. The development of masses, rising inequalities and employment generation is neglected.

What is the economic scenario of India?

Private investment plans during the first nine months of this year to be over 50% greater than what they were a year ago.

India it seems is on a roll as far as economic growth is concerned.

India has overtaken the United Kingdom to become the world’s fifth largest economy.

The London Based consultancy Centre for Economics And Business Research (CEBR) predicted that by 2035, India’s economy would reach $10 trillion and become the world’s third largest by 2037.

Why is the West interested in the growth of the Indian economy?

India is a democracy in the east and also the largest one in terms of population. All the countries in the West are democracies. So, they see a possible alliance of interests.

India’s growing economic size has made it attractive in a way that it was not before. Its fast growth is an investment opportunity for the surplus savings of the West. Investing money in India is likely to yield the highest returns globally.

What is the status of employment in India?

Government data show that in mid­ 2022, unemployment among urban males was much higher than it was a decade ago.

Data from the Centre For Monitoring Indian Economy show that the number of people employed in December 2022 was less than it was in 2016.

Clearly, the growth of the national economy has not generated an equal growth in employment.

What are the impacts of growth on Environment?

Uncontrolled growth will almost certainly result in ecological insecurity. .

The construction of new elevated national highways destroys agricultural land and jeopardising

livelihoods.

Plans for infrastructure aimed at religious tourism in Uttarakhand and Kerala have caused landslides and flooding. It led to suffering for their people.

What can be done to improve employment opportunities for the masses?

Employment opportunities for the mass population will arise only when there is demand for goods in the production of which they can participate.

Growth of the IT sector or of exportable manufactures will not be of much use for them. They possess low education and skills.

Increased demand for goods of mass consumption alone will lead to an expansion in the demand for these workers.

For an expansion of this demand, low inflation is essential. Only then will low ­income households have enough to demand more manufactured goods.

A concerted policy focus can create the conditions for employment generation in India. Welfarism, defined by the free or subsidised distribution of private goods, is no substitute.

What is the way forward for economic policy?

India needs growth as it has a backlog of poverty. But growth alone is not enough for improving the lives of the poorest. It is ecologically harmful.

Size is valuable only when it enhances the well being of the population.