India’s position in global economy
INDIA is now the world’s most populous country with a population of 1.4 billion. India is the world’s fastest-growing economy, currently the 5th largest economy. India has surpassed the population of China, but India’s share of Global GDP is 3%, while China’s GDP is 17%.
India’s goal is to eliminate poverty by 2047, its 100th anniversary of independence. When India was very poor, more than 50 percent of the population lived in poverty, did not produce enough food and had no major industries.
India is now self-sufficient in food production, has all major industries and a strong defence production. About 15 to 20 percent of the Indian population lives in poverty now.
India’s economic growth rate has been slow since India focused on agriculture more than industrialisation and export. Japan, then Korea and then China focused on the manufacturing and export of products in a very aggressive manner and improved their economy.
India’s share of the global manufacturing supply is nominal compared to these three countries. India has become a major exporter of IT, business services, and other professional services, including human resources.
Individual income levels in India are lower than in most countries with economic growth, which results in a lower quality of life. GDP per capita in India is approximately $2800, about one-fifth of China’s level and roughly 4 percent of the US per-capita income. India needs to take drastic steps to increase its GDP growth.
India’s economic growth is predicted and it is expected that by 2050 the purchasing power of India will be 30% larger than that of the USA, and India will be the world’s third-largest economy.
India has a much younger population and therefore, India will not be facing social and fiscal pressures associated with an ageing population. India’s low female labour participation needs to be changed and more women need to join the labour force.
The Indian workforce needs to transform from a low-productivity labour workforce to high-productivity manufacturing. India needs to train its workforce to be skilled labour. India’s advancement in technology and now AI will definitely help in its faster growth.
India’s goals to eliminate poverty, increase the skilled labour force, more exports and achieve faster economic growth by 2047 are very ambitious goals. India needs continued good political leadership at the centre as well as in the states to continue its growth. India has a large population working in other countries and Malayalees make up a larger percentage of Non-Resident Indians. NRIs contribute to India’s economic growth.
India’s position in the global economy will only get better as years go by and it is predicted that India will be the world’s third largest economy by 2050 and the second largest economy by 2075, two generations from today.
