The slow climb to the trillion economy peak -Indira Hirway
There has to be a focus on human capital formation and in addressing the real reasons for the economic slowdown
On Independence Day, the Prime Minister expressed confidence that India would be a $5-trillion economy in 2024, a line that has been picked up by ruling party leaders, Ministers and also senior government officers.
However, this is surprising as the impact of economic growth on major development goals — examples being improvement in education, health and overall human development/human capital formation; expansion in productive employment for all and environmentally sustainable development, etc — depends on the nature and composition of growth.
Share in wealth
The economic growth experience in India in recent decades has shown that growth has had an adverse impact on all these developmental goals. To start with, Credit Suisse, for example, has shown recently that 1% of the wealthiest in India increased their share in wealth from 40% in 2010 to more than 60% in the last five years, and the richest 10% in India own more than four times wealth than the remaining 90%. That is, if we proceed on the same growth path, a large part of the increase in wealth and GDP will be claimed by the top 10% richest population in India. In other words, the top 10% will take away the lion’s share of the $5-trillion incomes if and when we reach the target of $5-trillion economy.
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Tagged with: Access To Healthcare Agricultural Income Economic Downturn Economic Growth Economic Slowdown Economic Deceleration Farmers' Income Human Development Income Inequality Wealth Inequality Agrarian Crisis Msmes Rural Distress