{"id":50935,"date":"2019-08-06T11:04:21","date_gmt":"2019-08-06T05:34:21","guid":{"rendered":"https:\/\/blogadmin.forumias.com\/?page_id=50935"},"modified":"2019-08-06T11:04:28","modified_gmt":"2019-08-06T05:34:28","slug":"answered-despite-of-various-reforms-since-independence-india-has-not-been-able-to-achieve-a-sustained-desired-economic-growth-discuss","status":"publish","type":"page","link":"https:\/\/forumias.com\/blog\/answered-despite-of-various-reforms-since-independence-india-has-not-been-able-to-achieve-a-sustained-desired-economic-growth-discuss\/","title":{"rendered":"[Answered] \u201cDespite of various reforms since independence, India has not been able to achieve a sustained desired economic growth.\u201d Discuss."},"content":{"rendered":"\n
Demand of the question<\/strong>
Introduction.<\/strong> Contextual Introduction.
Body. <\/strong>Reason of less economic growth.
Conclusion. <\/strong>Way forward. <\/td><\/tr><\/tbody><\/table>\n\n\n\n

India\u2019s economic reforms began in 1991 after facing severe balance of payments crisis. The reforms initiated in 1991 were different precisely because they recognised the need for a system change, involving liberalisation of government controls, a larger role for the private sector and greater integration with the world economy.<\/p>\n\n\n\n

Why India have not achieved\nsustained high growth:<\/strong><\/p>\n\n\n\n

  1. Slow infrastructure development:<\/strong> Almost all indicators scored poorly\nin India\u2019s infrastructure as compared to countries such as China. Due to slow\ninfrastructure development India has not been able to achieve a sustained\nhigher growth. <\/li>
  2. Energy supply:<\/strong> Power shortage is one of the\nbiggest constraints for growth. Due to lack of cheap sustained energy to\nindustrial and agricultural sector, India has not been able to achieve high\ngrowth.<\/li>
  3. Failure to raise labour-intensive\nmanufacturing:<\/strong> In\nthe post reform period, the share of manufacturing in total employment remained\nstagnant at 11-12%. In 2010, India accounted for 1.4% of the world\nmanufacturing exports against China\u2019s share of a 15%. Reforms since 1991 have\nnot been comprehensive enough to remove the bias towards capital and\nskill-intensive industries. <\/li>
  4. Sluggish progress in education and\nskill levels of workers: <\/strong>Not taking advantage of demographic dividend is one of the failures.\nEven in 2009-10, around 52% of total workers were either illiterate or had been\neducated only up to primary level. Overall, 10% of the workforce in the age\ngroup of 15-59 years received some form of vocational training. Vast majority\nof workers have non-formal vocational training. There are huge challenges in\nraising education and skills of workers.<\/li>
  5. Slow social sector development: <\/strong>Although there have been\nachievements in social sector during the reform period, the progress has been\nvery slow. The rate of decline in poverty for India stood at around 0.97% per\nannum; inequality increased; poverty reduction was slower. India has failed to\nshow progress in social indicators or the Millennium Development Goals\nincluding environment. This led to limited Human Resources available for\nindustry.<\/li>
  6. Governance failure:<\/strong> Reforms were expected to improve\ngovernance at various levels. However, there are new problems in governance and\npersistence of old problems including corruption. Without overhaul of the\ncountry\u2019s administrative structure corruption cannot be reduced.<\/li>
  7. Inadequate public investment: <\/strong>Inadequate public investment in the\npost-reform period had an adverse impact on the economy in one respect. Due to\ntarget to contain fiscal deficit, government expenditure was less. It led to\nserious under-investment in critical infrastructure sectors such as electric\npower generation, roads, railways and ports.<\/li>
  8. Less tax revenues:<\/strong> Tax revenues actually declined as a\npercentage of GDP in the first 3 years of the reforms. This decline in the tax revenue\nwas due to serious weaknesses in the tax system despite extensive reform of\nboth direct and indirect taxes undertaken as part of the reform programme.\nCustoms revenues declined steadily as a percentage of GDP in the initial years\nand then stabilised at a lower level. <\/li>
  9. Non expansion of private sector:<\/strong> These shortfalls would not have\nmattered if capacity in the private sector had expanded, but this did not\nhappen. The end result was that total investment in infrastructure development\nwas less than it should have been, leading to large infrastructure gaps.<\/li><\/ol>\n\n\n\n

    These inadequacies come in the way of achieving sustained higher economic growth in the post reform years as investment in infrastructure was not expanded. These limited the growth of India and led to lesser economic growth than what India could achieve over years.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Demand of the question Introduction. Contextual Introduction. Body. Reason of less economic growth. Conclusion. Way forward. India\u2019s economic reforms began in 1991 after facing severe balance of payments crisis. The reforms initiated in 1991 were different precisely because they recognised the need for a system change, involving liberalisation of government controls, a larger role for… Continue reading [Answered] \u201cDespite of various reforms since independence, India has not been able to achieve a sustained desired economic growth.\u201d Discuss.<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":49132,"parent":0,"menu_order":0,"comment_status":"open","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-50935","page","type-page","status-publish","has-post-thumbnail","hentry","entry"],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/50935","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=50935"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/50935\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/49132"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=50935"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}