An Evaluation of India’s Economic Growth

 

India’s economic growth is good in the midst of sustainable development. Though politically there might be some loopholes, but the nation has been able to reach to the level of US, China and then on the third position leaving Japan at her back, as per the data available with this writer. That means India’s growth rate is 8.2% of GDP in the financial year ending 2023-2024. As per the current trend of growth is concerned, the growth momentum is rapid, which will continued to remain positive for long. The data which has been given by me are all taken up from my systems. Hope there should not be any confusion among my readers.

While evaluating about India’s economic growth, this writer evince from close quarters, our mind strikes about political influence in different industries. These are all based around this vast nation. Pivot of India’s economic growth, stands mainly due to infrastructural growth, agricultural growth, and strong domestic demand plus emphasize upon growth of reforms along with capital expenditure. My elite online readers of India and Bangladesh might wonder what could be the key reasons for India’s economic growth. Among all the reasons, some of the common ones are stated as such, public investment, household investment along with growth of manufacturing sector. As per the data available, during the last financial year 2023-2024, there has been growth of 9.9% till March 31, 2024.

India’s growth momentum has begun from the year 1995, during the tenure of Dr Manmohan Singh as Prime Minister of this vast nation. Dr Manmohan Singh being a person from the field seemed to my mind an appropriate person to glaring heights. But merely Dr Singh being a globally reputed economist. His efforts were no doubt adulatory. But the moot point which throngs my mind is that in true sense of the term is Indian economic growth sense positive trends. As per my perception goes by I feel quite a sizeable portion of Indian populaces, Indian economic growth is till date limited within a segment part of our populations. Poorer sections of Indian populaces are still in the midst of wanton poverty. From the statistical point of view, it is found that around 456 million people are living in wanton poverty. From the percentage perspective we find that approximate 15% of the citizens are in utter poverty.

My respected online readers might develop a pejorative impressions about me. This is because if I broadly highlight about poverty stricken citizens then is there any harm into it? We must always aim to accept the hardcore truth behind my statement. So that our efforts should be initiated to tide over the crisis thereby heralding a new India for the entire citizens.

As per areas of economic growth I am trying to highlight the common features. Among all let me highlight some of the features which are stated as such, increase in employment, increase in tax collections, increase in basic consumption, encouragement in investment to boost up economic growth, reduction of phobias of unemployment, development of infrastructure in manufacturing sectors as well as in sectors to generate probabilities of employment, optimum utilization of natural resources, emphasize upon research and development wings and healthy global economic conditions. Apart from the above features, we have to emphasize upon sound human capital.

As per human capital is concerned, it is extremely important to develop country’s economy. India has vast numbers of human capital. For the cognizance of many of my readers it is found that India, despite her advancement in science, technology and economy, still we have not succeeded in proper utilization of human capital based in different parts of this vast nation.

Before I delve into details about Human Capital in India. Let me state briefly what the said term is referred to in common man’s parlance. Thus the said term has been referred to as such different types and temperaments of humanity who are involved in various kinds of skilled and unskilled work in different parts of the nation. This reflects glaringly that if Human Capital in India is not properly utilized then how we can expect economic growth. If we involve ourselves about Human Capital more deeply then we could explore the followings about the above. These are communication skills, academic background, technical skills, creative bent of mind, and experiences in various branches of academic disciplines, ability to solve critical issues, sound health and tenacity for self-development.

Areas on which Indian economic growth is seriously dependent upon are stated as such, improving the literacy rates, resources should be equally distributed, development of agriculture, animal husbandry and dairy products, auto components, automobile, aviation and finally bio-technology.

We are already aware of that for India’s economic development, it should be purely done on an apolitical approach. So far we find political approach, but is not acceptable by the vast numbers of Indian citizens.

Apart from the above we are well aware of about the key areas of economic growth. These are stated as such, increase in physical capital goods, improvement in technology, growth of the labor force and proper exploitation of human capital.

I have already highlighted about Human Capital. Hence not throwing any light about the issue. But our planning body should not neglect about it. In India, there is a planning body. Named as Niti Ayog. This body prepare the strategy of our economic progress which is likely to take shape in the upcoming days of our life. As in India has 29 states and 9 union   territories, henceforth it is the humble responsibility of Niti Ayog to frame our economic and scientific strategy in such a manner that should cater to the vast numbers of 143 crores populaces in this vast nation.

On the basis of my above surmise it is found that economic growth in India stands of as paramount importance. Otherwise how can we develop our nation from a macro point of view? It needs a proper and organized team work.

During the financial year 2023-2024, we find that Indian exports amounted to record US $ 778 billion, which was slightly previous F.Y 2022-2023 US $ 776. During the previous financial year India has been able to export goods to 115 nations against the plan to export to 238 nations.

During the current financial year 2024-2025, we find that till August 2024, exports reached to US $ 65 billion. However imports by India amounted to US $ 80 billion. Despite all the odds we can aspire that it was not at all disappointing. But from August 5, 2024, when the traumatic Bangladesh coup took place, Indian economy slumped badly. From Bangladesh, there are lot of citizens from that nation visit Indian cities like Kolkata, New Delhi, Mumbai, Chennai and Bangalore every year. As per statistical data available with me, I find that an approximately 4.50 lakhs Bangladeshi citizens visit India (as 2023 data) for treatment purpose. But as per current political stalemate going on in Bangladesh, during the current financial year Indian economy dipped in badly.

The reason behind is that both India and Bangladesh are located so closely, hence former is suffering badly. Politically India is badly suffering along with economically. Though very recently India exported 108 tons of onions to Bangladesh. Bangladesh also exported Hilsa fish to India, meaning Indian states of West Bengal. As because at present there is a festive euphoria going on in WB. That is why the availability of Hilsa fish is deeply relevant. At present bilateral trade between India and Bangladesh stands at $ 14.01 billion. If the current political stalemate is overcome then economic cooperation between the two closer and cordial nations are expected to accelerate further.

Now coming to other aspects, Indian economy is on the verge of development. Other areas in which India is prospering economically are Information Technology, renewable energy, healthcare, manufacturing sectors, space technology, artificial intelligence (limited within fragmented section of Indians), electric vehicles, agriculture, pharmaceutical trade and defense mechanisms.

Summation of my above discourse, it can be interpreted as such. That India is without trace of doubt progressing fast economically. But this growth has not reached to the fullest heart of Indians across this vast nation. What is most dearly relevant is the economic growth which India is achieving should be equitably distributed among all sections of Indians. Otherwise if there is discrimination among the citizens, then we might not expect micro development.


Sujayendra Das is a columnist
based in Kolkata, India.