{"id":219488,"date":"2022-12-22T19:33:17","date_gmt":"2022-12-22T14:03:17","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=219488"},"modified":"2022-12-22T19:33:17","modified_gmt":"2022-12-22T14:03:17","slug":"with-india-crossing-chinas-population-next-year-how-we-can-create-mass-prosperity","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/with-india-crossing-chinas-population-next-year-how-we-can-create-mass-prosperity\/","title":{"rendered":"With India crossing China\u2019s population next year, how we can create mass prosperity"},"content":{"rendered":"\n

Source<\/span><\/b>: The post is based on the article <\/span>\u201cWith India crossing China\u2019s population next year, how we can create mass prosperity\u201d <\/span><\/b>published in<\/span> The Indian Express <\/span><\/b>on <\/span>22nd December 2022<\/span><\/b>.<\/span>\u00a0<\/span><\/p>\n

Syllabus: <\/span><\/b>GS3- Indian economy and employment<\/span>\u00a0<\/span><\/p>\n

Relevance<\/span><\/b>: Issues related to the growth and development of economy<\/span>\u00a0<\/span><\/p>\n

News: <\/span><\/b>The article explains the need for investing in human capital and formal jobs for the prosperity of the large Indian population.<\/span>\u00a0<\/span><\/p>\n

According to estimates, sometime in April 2023, India\u2019s population will exceed the population of China.<\/span>\u00a0<\/span><\/p>\n

Why India should focus on human capital and formal jobs?<\/span><\/b>\u00a0<\/span><\/h5>\n

A strong case for <\/span>human capital-driven productivity<\/span><\/b> is India’s <\/span>software employment<\/span><\/b>. A meagre 0.8% of workers generate 8% of GDP. <\/span>\u00a0<\/span><\/p>\n

The <\/span>remittances<\/span><\/b> from India’s overseas population crossed $100 billion last year. A <\/span>World Bank<\/span><\/b> report suggests that the <\/span>qualitative shift<\/span><\/b> during the previous five years from <\/span>low-skilled, informal employment in Gulf countries to high-skilled formal jobs in high-income countries<\/span><\/b> is significant.\u00a0<\/span>\u00a0<\/span><\/p>\n

Last year, the US replaced the UAE as the single biggest source country with 23% of remittances.<\/span><\/p>\n

Why are monetary and fiscal policies not solutions for resolving all growth-related challenges?<\/span><\/b>\u00a0<\/span><\/p>\n

Monetary policy is cannot resolve growth challenges as <\/span>credit availability<\/span><\/b> is a bigger problem in India than credit cost. If <\/span>fiscal deficits<\/span><\/b> could make countries rich, no country would be poor. <\/span>Global experiences<\/span><\/b> suggest where governments spend money and how this spending is financed matters more than how much is spent. <\/span>\u00a0<\/span><\/p>\n

Covid made enormous <\/span>fiscal and monetary policy demands<\/span><\/b>. Western central banks are struggling to shrink their balance sheets. Rich-country borrowing rates have risen by 300% plus and inflation hurts the poor the most.\u00a0<\/span>\u00a0<\/span><\/p>\n

So, India avoided these fiscal and monetary policy excesses.<\/span>\u00a0<\/span><\/p>\n

What should be the focus area of the budget for generating human capital?<\/span><\/b>\u00a0<\/span><\/h5>\n

The Finance Bill must target<\/span> productivity and continuity<\/span><\/b> by legislating <\/span>human capital and formal job reforms<\/span><\/b> previously proposed. The government should\u00a0<\/span><\/p>\n

a)<\/strong> Reduce the implementation timeline for the powerful <\/span>National Education Policy 2020 <\/span><\/b>from 15 years to five years, b)<\/strong> A<\/span>bolish <\/span>separate licensing requirements<\/span><\/b> for online degrees and freely allow all the 1,000-plus accredited universities to launch online learning, c)<\/strong><\/span>\u00a0<\/span>Notify the <\/span>four labour codes<\/span><\/b> for all central-list industries while appointing a tripartite committee to converge them into one labour code by the next budget, d) <\/strong><\/span>Continue <\/span>EODB reform<\/span><\/b>s by designating every enterprise\u2019s PAN number as its <\/span>Universal Enterprise Number, <\/span><\/b>e)<\/strong> Explode manufacturing employment by abolishing the <\/span>Factories Act<\/span><\/b> and requiring all employers to comply under each state\u2019s <\/span>Shops and Establishment Act, f) <\/span><\/b>R<\/span>educe the gap between documented salary and in hand salary by making employees\u2019 provident fund contributions optional but raising employer PF contributions from the current 12% to 13%.\u00a0<\/span>\u00a0<\/span><\/p>\n

What is the difference between the Indian and Chinese scenarios?<\/span><\/b>\u00a0<\/span><\/h5>\n

India and China\u2019s per capita GDP was equal in 1991. It is now five times higher for China. Unlike when China started serious reform in 1978, India today faces a more <\/span>unfavourable global context<\/span><\/b> of growth, exports, and manufacturing.\u00a0<\/span>\u00a0<\/span><\/p>\n

China\u2019s reforms were faster and crisper without the <\/span>fixed costs of democracy<\/span><\/b>. But this deficit led to their unchallenged policies of <\/span>Cultural Revolution, one-child norm, and zero-Covid<\/span><\/b>. India\u2019s democracy is a strength. It reflects India\u2019s ability to r<\/strong><\/span>econcile diverse aspirations<\/span><\/b>.<\/span>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article \u201cWith India crossing China\u2019s population next year, how we can create mass prosperity\u201d published in The Indian Express on 22nd December 2022.\u00a0 Syllabus: GS3- Indian economy and employment\u00a0 Relevance: Issues related to the growth and development of economy\u00a0 News: The article explains the need for investing in… Continue reading With India crossing China\u2019s population next year, how we can create mass prosperity<\/span><\/a><\/p>\n","protected":false},"author":10311,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,10500],"class_list":["post-219488","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-indian-express","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":1700806236,"cached_date":1704909515},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/219488","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10311"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=219488"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/219488\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=219488"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=219488"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=219488"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}