Sambhav-2024

• Start the answer by introducing India’s growth.
• Discuss the feasibility of India achieving economic growth with a $5 trillion economy without achieving human development.
• Conclude as per the requirement of keywords.

Introduction

India has set an ambitious target of becoming a USD 5 trillion economy, but achieving this goal without corresponding progress in human development could pose significant challenges. Economic growth is often measured by indicators such as GDP, while human development focuses on factors like health, education, and quality of life.

Body

Challenges of Economic Growth Without Human Development:

• Income Inequality:
  • Without a focus on human development, economic growth may benefit only a small segment of the population, leading to widening income inequality.
  • This could result in social unrest and political instability, as highlighted by Oxfam Inequality Report and the Ministry of Social Justice and Empowerment.
• Healthcare:
  • Economic growth alone may not improve healthcare outcomes for the population.
  • Without adequate investment in healthcare infrastructure and services, the burden of disease and mortality rates may remain high.
• Education:
  • A lack of emphasis on education can hinder long-term economic growth by limiting the availability of skilled labor and innovation.
  • The Human Capital Index released by the World Bank already paints a dismal picture.
• Quality of Life:
  • Economic growth may increase material wealth, but without corresponding improvements in quality of life indicators such as life expectancy, literacy rates, and access to clean water and sanitation, the overall well-being of the population may not improve significantly.
• Demographic Dividend:
  • Without adequate human development, India’s demographic dividend runs the risk of becoming a liability, and utilisation of 4D (diversity, demography, demand, and democracy) will remain unfulfilled.

Integrating Economic Growth with Human Development:

• Increase Ease of Business and Ease of Living to Promote Private Investments:
  • Over the last four years, the government has scrapped over 1,300 antiquated laws. It has done away with a lot of archaic procedures, rules, and regulations.
  • Through a series of reforms, India has jumped up 65 positions in the World Bank Ease of Doing Business, which must continue unabated.
• Urbanization – a Big Driver of Growth:
  • Cities account for less than 5% of the earth's land mass, but they account for over 75 % of the global GDP. So, urbanization in cities is important as they are centers of economic growth.
• Globalization for Growth:
  • India exists in a globalized and interdependent world. Like in Japan, Korea, and China, globalization has helped large sections of the population to be lifted above the poverty line.
  • India's share in global exports is less than 2%. So, India must learn the art of size and scale, of manufacturing to size of scale and to penetrating.
• Women's participation is Key:
  • India cannot grow at high rates over a 3-decade period without gender parity. In India, only 26% of the women work; the worldwide average is 48%.
  • If such a major chunk of the population is not working and women are not put into positions of power, it will be very difficult for India to grow.
• Agriculture reforms are Vital:
  • It’s difficult to grow over long periods of time without some very major structural reforms in the agriculture sector because it employs close to 60% of India.
  • Providing subsidies and assistance to farmers without ensuring better markets, without putting technology in place, without contract farming, etc. will put a drag on the economy.

Conclusion

Achieving economic growth without human development is not only challenging but also unsustainable in the long run. India must prioritize both economic growth and human development to ensure a prosperous and equitable future for all of its citizens.