{"id":252698,"date":"2023-07-19T21:07:17","date_gmt":"2023-07-19T15:37:17","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=252698"},"modified":"2023-08-31T12:02:41","modified_gmt":"2023-08-31T06:32:41","slug":"a-roadmap-to-eliminate-poverty-in-india","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/a-roadmap-to-eliminate-poverty-in-india\/","title":{"rendered":"A roadmap to eliminate poverty in India"},"content":{"rendered":"\n

Source:<\/strong> The post is based on the article \u201cA roadmap to eliminate poverty in India<\/strong>\u201d published in \u201cThe Indian Express\u201d on 19th July 2023.<\/p>\n

Syllabus:<\/strong> GS 3- Indian Economy and issues relating to planning, mobilisation of resources, growth development and employment.<\/p>\n

News:<\/strong> This article outlines India’s path to achieving a 7% growth rate. It emphasises domestic investments, technological adaptation, managing global challenges, environmental balance, and the potential of a basic income system.<\/p>\n

What is the current and future growth status of India?<\/strong><\/h2>\n

Current growth status of India:<\/strong><\/p>\n

Per capita income:<\/strong> India’s per capita income was $2,379 in 2022-23.<\/p>\n

Investment rate:<\/strong> The Gross Fixed Capital Formation rate in 2022-23 stood at 29.2% of GDP.<\/p>\n

Global position:<\/strong> India is the world’s fifth-largest economy, yet 149th out of 194 in per capita terms.<\/p>\n

Trade Concerns:<\/strong> Developed nations are retreating from the free trade model, potentially impacting India’s global trade prospects.<\/p>\n

Future growth prospects for India:<\/strong><\/p>\n

Targeted growth:<\/strong> India aims for a 6-7% continuous annual growth.<\/p>\n

Technological adaptation:<\/strong> Emphasis on integrating Artificial Intelligence in industries, though job creation remains a concern.<\/p>\n

Environmental responsibility:<\/strong> Aiming for a more sustainable growth rate considering environmental constraints.<\/p>\n

Basic income:<\/strong> Plans to introduce a basic income for financial security, potentially reducing other subsidies.<\/p>\n

What are the threats to India’s future growth?<\/strong><\/h2>\n

Global tensions:<\/strong> The Ukraine-Russia conflict has impacted the overall global peace climate. Prolonged tensions can hinder international collaboration and growth prospects.<\/p>\n

Trade barriers:<\/strong> Developed countries, which once championed the free trade model, are now imposing restrictions on imports. Such barriers can harm India’s emerging ability to compete in global markets.<\/p>\n

Technological disruptions:<\/strong> While India is poised to integrate Artificial Intelligence, it may boost productivity but not necessarily jobs. Given India’s populous nature, AI’s potential job-reducing ramifications can be a significant threat.<\/p>\n

Environmental commitments:<\/strong> Addressing environmental concerns, like pollution reduction, can influence the overall output. Achieving a growth rate beyond 6-7% might be challenging when factoring in sustainable goals.<\/p>\n

Developed countries’ stance:<\/strong> Historically industrialized countries have a significant carbon footprint. If these nations push developing countries like India to bear the brunt of pollution reduction, it could strain India’s growth.<\/p>\n

Job market elasticity:<\/strong> With modern technology integration, India may face a lower employment elasticity concerning output, implying that even if the economy grows, it might not translate to proportional job growth.<\/p>\n

Resource constraints:<\/strong> Achieving the desired Gross Fixed Capital Formation rate of 30-32% may be challenged if domestic and foreign investments don’t match expectations, given the 29.2% rate of 2022-23.<\/p>\n

What should be done?<\/strong><\/h2>\n

Enhance investment rate:<\/strong> Target a Gross Fixed Capital Formation rate between 30-32% of GDP. With the current rate at 29.2% for 2022-23, focused efforts can bridge the gap.<\/p>\n

Prioritize key sectors:<\/strong> Allocate resources to agriculture, manufacturing, and exports. This can build on existing strengths and open avenues for global trade.<\/p>\n

Harness technological evolution:<\/strong> Embrace Artificial Intelligence and its applications. While ensuring its integration, prepare the workforce for potential changes in job dynamics.<\/p>\n

Review trade strategies:<\/strong> Given the changing stance of developed countries on trade, India should re-evaluate its global trade partnerships and navigate barriers.<\/p>\n

Sustainable growth:<\/strong> While aiming for a 6-7% growth, integrate environmental sustainability measures. Balancing growth with environmental responsibility is crucial.<\/p>\n

Education & skill development:<\/strong> Reform the education system to equip students with skills relevant to evolving industries, especially in tech domains.<\/p>\n

Promote domestic investments:<\/strong> While welcoming foreign investments, especially in emerging tech sectors, prioritize and incentivize internal investments for more sustained growth.<\/p>\n

Implement basic income:<\/strong> Explore introducing a basic income structure. Such a system can provide financial security, possibly leading to more consistent consumer spending and reduced reliance on other subsidies.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article \u201cA roadmap to eliminate poverty in India\u201d published in \u201cThe Indian Express\u201d on 19th July 2023. Syllabus: GS 3- Indian Economy and issues relating to planning, mobilisation of resources, growth development and employment. News: This article outlines India’s path to achieving a 7% growth rate. It emphasises… Continue reading A roadmap to eliminate poverty in India<\/span><\/a><\/p>\n","protected":false},"author":10320,"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":[216,8184],"class_list":["post-252698","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-indian-economy","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/252698","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\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=252698"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/252698\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=252698"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=252698"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=252698"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}