The Growth Story of India Essay
The term economic growth implies an increase in the nation’s real GDP, and more importantly, an increase in the nation’s per capita income. When we are analyzing a nation’s economic growth, we are basically studying as to how that economy is advancing in quantitative terms. Economic development, on the other hand, is a much more encompassing term which includes both the qualitative as well as the quantitative dimensions of economic progress. Not only does it include the aspect of economic growth, but it also considers the process by which an economy improves the economic and social well being of it’s citizens. A mere look at the figures is not enough. We have to judge the progress of an …show more content…
1991 was a landmark year for the history of Indian economy. Under the Narsimha Rao government, delicensing, reduction in trade barriers, liberalization of foreign investment policies, tariff cuts and other reforms were implemented which led to the transformation of the economy from a highly controlled one to a market friendly one. The positive impact of these policies was reflected in the growth rate, which recorded a much improved 6.5% in the year 1992-93. After this, the growth story of India has been quite a fascinating one. During 2003-2007 it averaged at a good 8.7%p.a. 2010 recorded a growth rate of 8.4%. From here on, however there has been a decline. In 2011 and 2012, the growth rate averaged at about 6.5%. The global meltdown and poor macroeconomic condition in India is the cause for the dismal 4.4% in the year 2013.
We thus see that the rise in growth rate from the early 90s to the mid 2000s has been quite rapid. But can the same be said for all round development as well? Unfortunately, the answer to this question is NO. Widening economic inequality, rising inter-state economic disparity, increasing rural-urban disproportionality are marked characteristics of the Indian economy. If we delve into