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Shvoong Home>Social Sciences>Economics>OUR ECONOMY AND WE, THE INDIANS Summary

OUR ECONOMY AND WE, THE INDIANS

Article Summary   by:NavalLanga     Original Author: Naval Langa
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OUR ECONOMY AND WE, THE INDIANS With reform policies showing the signs of succeeding, the economic growth of more than 9%, and GDP crossing $1 trillion mark of the GDP— we, the Indians have reasons to rejoice. The Gross Domestic Product (GDP) is the total of market value of all the final goods and services produced in a year. Increase in our GDP is due to the augment in production of manufactured goods (10.9%). That enabled us to bring in a record $17 billion of equities this year. The massive incoming flow of investments is the global vote of confidence in our economic health. These are green areas of Indian economy resulting in two simultaneous incidences: the sensex crosses 20K mark, and Mukesh Ambani becomes the richest man of the world. Let us examine how this, the cloudburst like happenings, affects the common man residing at the corner of the street. Naturally the increase in GDP would enhance per capita income of the Indians in general. But such a higher average of income has little value if it fails to positively affect the ‘income distribution pattern’ prevailing in society. Recent boom has helped our industrialists and big service providers. These entrepreneurs owned under-utilised production capacities; their factories had spare capacity of labour; they enjoyed benefit of bulk purchases; and they used all these factors in furthering their managerial gains, the profit. The top brass of servicemen have got their share, too, in the form of higher pay and perquisites. Ironically the major portion of population, labourers and villagers mainly, remained out of the purview of recent economic benefits. The present boom is a fairy tale for them. India’s farm sector lagged in growth (around 3% only); hence the rural flock comprising almost two third of the population now earns less than their urban counterparts living in the industrialised pockets
Published: November 21, 2007   
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