Question

Discuss the current state of India in terms of its economic development. Make use of development indicators (e.g. NHDI, Gini coefficient etc.) including the current level and also the trend. (300 Words + )

Answer 1

World economies including china are facing downtick in growth rate due to sluggish demand in international market. But India economy after introducing flurry of structural reforms has posted high growth rate. India economy is being seen as the fasted growing economy in world. It has for first time surpassed Chinese economy. Demonetization impacts have already been exhausted. GST is likely to spur the growth rate more in near future.

Following are some key points related to Indian economy:

• India has secured 131^st rank HDI out of total 188 countries. It shows that India economy has failed to deliver in this front.
• Ginni Coefficient is 0.5 which suggests rising income inequality in society. Growth rate is not inclusive enough to trickle down benefits to all sections of society. It is estimated that top 1 % people accounts for 22 % wealth of country.
• Government has been successful in reining in burgeoning current account deficit which remains close to 2 %. Furthermore, inflation between 2016 and 2017 has been close to 2 %.
• Further, India is one of the largest recipient of FDI and foreign exchange reserve has crossed $ 400 billion mark. Foreign exchange reserve is historically high.
• Indian performance in ease of doing business is encouraging. India has joined the club of top 100 countries which are known for ease of doing business.

Performance of Indian economy is mix bag of successes and failures. While talking about the job creation, current government has failed to create substantial number of job opportunities. There is letup in informal and causal jobs but formal job opportunities have been dwindled substantially.