Challenges, opportunities of being world’s third largest economy

India is going to have its hands full of opportunities and challenges as it progresses towards being the world’s third largest economy in the next five-six years and then being a developed nation by 2047. It is our common aspiration that India as a developed nation must be different from the existing lot of advanced nations. It should be much more inclusive, responsive, caring and tolerant, since our diversities are a complex proposition and call for humane handling. Since liberalization in 1991, India has moved forward at a much faster pace economically but has also left behind a trail of financial inequalities, which are quite monstrous and fraught with repercussions.

The per capita income, which is generally taken as a measurement of the people’s financial empowerment, has significantly shot up in the past 15 years. However, the inclusivity in income distribution is of paramount importance without which growth sustainability cannot be guaranteed. For inclusivity in income share at the grassroots level, we need to ensure adequate share to all in employment opportunities, health and education facilities, training, and coaching programmes. Otherwise, we will become a developed nation but won’t have much for the masses to cheer about since the majority of resources and facilities will remain confined to a minuscule percentage of people. The tone of the story will certainly change but not its plot and ground realities.

The best tool to bridge socio-economic gaps is ensuring a wholesome access to quality educational facilities to all and at all levels – from primary, secondary to tertiary level. From hostel to coaching facilities, students from weaker sections of society such as OBCs, SCs, STs, women and other poor should be accommodated on priority or at least in consonance with affirmative policies of the country. Recently, there were viral posts on social media platforms, pointing to alleged discrimination against OBC students in the allotment of hostel seats in the prestigious Banaras Hindu University (BHU), Varanasi. Such things must not happen. When certain groups face unequal access to quality education, it perpetuates systemic inequalities and stifles social mobility as well.

Moreover, our marginalized students may experience lower self-esteem, poor academic performance, and limited opportunities, leading to a cycle of poverty and diminished life prospects. At the same time, a discriminatory education system hinders the development of a diverse and inclusive society, affecting creativity and innovation that arises from embracing different perspectives and talents. Over time, such disparities can exacerbate social tensions, widen the gap between the privileged and disadvantaged, and hinder the progress of a nation in the global arena. It is crucial to address and rectify these disparities to build a fairer, more equitable and prosperous society for all.

Similarly, uneven distribution of gainful opportunities among masses has a devastating impact on the well being of the society as a whole. It leads to a host of negative consequences that undermine social cohesion, economic growth, and overall prosperity. When only a small segment of the population has access to lucrative opportunities, it widens income inequality, leading to a concentration of wealth in the hands of a few. This creates a sense of frustration, resentment, and disillusionment among those who are left behind, breeding social unrest and discontent. Moreover, unequal access to job opportunities affects social mobility and also provides a cushion to intergenerational poverty. Many skilled individuals from disadvantaged backgrounds might be unable to contribute fully to society, leading to a waste of human capital. In the long run, this can negatively impact a nation's economic growth and competitiveness.

Furthermore, the lack of diverse voices and perspectives in decision-making processes lead to policy biases and blind spots, further perpetuating the disparities. Societies that do not adopt diversity and inclusivity often miss out on the richness of ideas and solutions that arise from a broader range of experiences and viewpoints. Providing equal access to education, training, healthcare, and employment opportunities can empower individuals and create a more level playing field, leading to a stronger, more resilient society where everyone can contribute and benefit from shared prosperity. Inclusive policies and measures to address systemic barriers are crucial to breaking down the walls that act as obstacles for social progress.

During Amrit Kaal – that is the next 25 years of Independent India – there should be zero tolerance with regard to imparting quality education in all streams to different social groups, with a special attention to the students from traditionally marginalized sections of society. It is necessary not only to sustain the magnitude of the economic prowess but also to guarantee a shared prosperity. As of now, India is not well placed so far as the challenge of income disparities is concerned. The State of Inequality in India Report, released on May 18, 2022 by Dr Bibek Debroy, Chairman, Economic Advisory Council to the Prime Minister (EAC-PM), says the share of the top one per cent accounts for 6-7 per cent of the total incomes earned, while the top 10 per cent accounts for one-third of all incomes earned.

According to Oxfam India’s report titled 'Survival of the Richest: The India Story' released in April 2023, just five per cent of Indians own more than 60 per cent of the country’s wealth, while the bottom 50 per cent of the population possess only three per cent of the wealth. The report also claims that between 2012 and 2021, as much as 40 per cent of the wealth created in India went to just one per cent of the population and only a mere three per cent of the wealth went to the bottom 50 per cent, while the total number of billionaires went up from 102 in 2020 to 166 in 2022. The combined wealth of India’s 100 richest has touched $660 billion or Rs 54.12 lakh crore, an amount that could fund the entire Union Budget for more than 18 months.

Thus, the task before us as a nation is simple – we will have to ensure that the poor become rich. It won’t be healthy for the nation at all if a miniscule percentage of people among us continue to lord over national resources, opportunities and facilities at the cost of happiness and prosperity of 100 crore plus people of the country. The orientation of development policies need to be revisited.

(The writer is a senior journalist, author and columnist. The views expressed are strictly his personal)