Economic Growth and Development in India
The economy is the system of goods and money used by a given society. Growth means getting bigger. Development means becoming more advanced or complex.
Economic growth and development can mean an economy that becomes advanced, larger, diverse, profitable, and expand into new regions/horizons.
Economic Growth and Development in India: When the Britishers left, our country was economically backward. The self-sufficient village economy based on cottage industries and old handicraft items were losing demand because of the introduction of industrial products.
With the decline of cottage and handicraft industries, the traditional economic base of Indian society was in bad shape. On the other hand, there was insufficiency in the field of industrial society as well. As a result majority, population in our country remained undeveloped and poverty-stricken.
At the time of Independence, the economy of our country was poor. The Indian Government had to plan for balanced economic growth and development of a huge country. The removal of poverty, illiteracy and industrial and technological underdevelopment was the most important challenges before the state.
The Constitution in the chapter Directive Principles of State Policy laid down the methods for securing economic development and economic justice. The state shall direct its policy towards securing the following:
- Providing adequate means of livelihood.
- Distributing the ownership of material resources of the community for common good.
- The prevention of concentration of wealth.
- Securing equal pay for equal work for both men and women.
- Securing of all the workers reasonable wages and a decent standard of life.
- Raise the standard of living and to improve public heath.
- State shall try to promote cottage industries.
The Government of India has undertaken several initiatives aiming economic growth and development. For the industrial and technological development of the country, the Constitution provides for setting up of a Planning Commission* to frame plans and programs for the rapid economic development of the country. Community development Projects, National Extension Services were launched. A chain of scientific laboratories, agricultural Research Institutions, Technical Institutions, a gigantic public sector of economy, were created. Means of transport and communication system such as railways, airways, waterways have developed.
During the last few decades, India has made good economic progress in the field of Information Technology, Infrastructure, Agriculture, and other sectors. At present India is considered a major developing country with an average GDP growth rate of around 7 percent. In terms of nominal GDP, India is ranked seventh in the world.
During the last quarter of year 2014, India surprised the world by becoming the world’s fastest growing major economy. (Source: wikipedia)
But in spite of all this progress, it cannot be said that the problem of national integration, social issues, poverty, inflation, income disparity, etc. has been solved. Industrialization is confined to few states and cities, and a bulk of rural areas unaffected by industrialization. The society has been divided into two classes:
- A section of people who are below poverty line, and
- Another section of people who have taken the advantages of all the developments.
The extremes of poverty are a hindrance in the process of national integration. Without a balanced economic growth and development, national unity cannot be achieved.
Inflation is another factor that has affected the economic growth of our country. Inflation happens when the currency becomes less able to purchase goods due to rising prices. High inflation is usually bad for an economy. However, low or moderate level of inflation is often considered healthy for economic development.
Conclusion: Economic growth and development is essential for best utilization of resources, economic welfare, and sustainability. Economic growth ought to improve citizens’ living standards. Bigger economies grow in a sustainable way and have more global influence.
*Note: In 2014, the planning commission was dissolved. On 1st January, 2015, NITI Aayog was formed in place of Planning commission.