Sometimes, mere numbers of GDP do not manifest the true state of economic health when the unorganized sector of that nation constitute more than 90 percent. In this case, it is too difficult for the official agencies to calculate exact growth of such sectors and the unemployment rate to arrive at the final conclusion. Through this blog, “True state of Indian economy” you will get deeper insight about reality of Indian economy.
Growth powered by service sector
As per the opinions of renowned economists, a strong industrial sector is highly essential for the balanced and sustainable growth as it effectively absorbs the products of primary sector, as well as supports the variety of services.
In the same line, in the world, majority of nations mostly adopt this conventional logic before to begin economic development.
However, India is a peculiar case in which growth is largely determined by the service sector, whereas majority of people are employed in the unprofitable agriculture sector which constitutes around 15 percent in the GDP numbers.
Moreover, Indian agriculture is on the vagaries of monsoon so the losses are inevitable.
Once the rural India was abounds in cottage, and small scale industries with great pool of quality artisans, but today it is going to become a graveyard for farming community.
It is enough to prove that structural change in the rural India is yet to be started and over 70 percent people are still living on the nature driven economy for survival.
Constantly stagnating rural demand and agriculture growth
There is only one way traffic in rural India. The huge population is brutally exploited on the name of market. Profit centric multinational, as well as domestic giants are penetrating their operation in the rural ecosystem without investing theirs reasonable share in return.
On the name of higher standard of living, they are making people addicted of newly products everywhere.
Unfortunately, the entire agriculture and allied activities are the a part of unorganized sector. Hence, the true state hardly surface and government agencies and media happy to see the truth dying to protect image to beg vote and favour. Here, every successive government is responsible.
According to the government data, around 80 percent of farmers are part of small and marginal category with less than two hect. of land. Will it be possible to sustain with quality standards of living or is there need for viable alternative ?
Declining technical institutions
India is one of the largest pools of workable population in the world and deserve to materialize demographic dividend.
But, the most shocking fact is that in India in the last decade, hundreds of engineering colleges are being closed and huge number of degree holders are either jobless or doing low quality jobs.
Then, just imagine about the condition of agricultural labours and semi-skilled workers.
The condition is getting more and more worse with rapidly growing workable numbers. And, the government has hardly any idea to provide huge employment for the aspiring masses within the stipulated time.
Therefore, rhetorical speeches and emotional appeals are the best insulators to control conductivity.
Handful business houses
Democratic principles are yet to be realized in the industrial sector of worlds largest democracy as the handful of business houses have huge market power and control over the country’s resource base.
Today, attempts are being made to attracts the foreign direct investment without infusing the spirit of entrepreneurship among the young budding talent of the nation.
Apart from this, chrony capitalism is also a serious threat for newcomers. In this way, industrial sector is the undeclared monopoly of few.
Today, in the age of liberal democracy, the role of state should be like catalyst to empower genuine stakeholders to be the part of sustainable journey of true development.
At the same time, people shouldn’t forget their’s duties to avail entitled rights to live a quality life instead to sing the tragic songs.
Mere politics of power and stories of grivences will not yield desired results on the ground but on paper. For a powerful nation, contribution of every single stakeholder is essential — mass production by masses…