Today, India fares among the fastest growing nations in the world and has secured the 12th slot, in the terms of the size of its economy, as per the market exchange rates. However, it falls behind even its peers among the BRIC (Brazil, Russia, India, and China) countries. According to the World Trade Organization (WTO), India stands 142nd in the terms of per capita income (adjusted for inflation) of USD 940, in 2007.
Nevertheless, rapid industrialization and spurt in the services industry has helped India increase its income in the last couple of years. According to the national income estimates released in February 2009, the per capita income in the current fiscal year is expected to rise by 5.6%, taking inflation and population growth into account. Expectations that are more futuristic were revealed in the June 2009 report of the Emerging Markets Forum, sponsored by the Washington based Centennial Group. As per the report, the Indian economy is expected to grow by an average of 9.5% and is likely to surpass that of the US by the year 2039! The Forum estimates Indian per capita income (adjusted for inflation) to exceed $22,000 over the next thirty years.
Looking at the regional distributions, Karnataka leads in the terms of per capita income growth of 9.3%. As many as 17 states, including Bihar, out of total 28, have a growth rate much lower than the average of 8.4%. This is a clear indicator of the serious disparity in the distribution of wealth in India. This is mostly explained by the lower industrial penetration, high population density, and the lack of educational facilities. Unless, the State Governments rise to the occasion, the great Indian success story is likely to remain confined to less than half of the country.
No comments:
Post a Comment