The Indian economy is likely to remain the fastest-growing major one in coming years, but most independent economists and policy experts polled by Reuters are not confident it will make any significant difference in narrowing the evident economic inequality.
Despite over 8% economic growth in the last fiscal year and a booming stock market in Mumbai, one of the most expensive markets in the world, New Delhi still has to distribute free grains to more than 800 million of its 1.4 billion people.
This implies the deprivation among the lower classes in India. It is not about what or how much the government provides, but the fact that more than 800 million people are still in a state of hunger highlights the economic inequality present here.
Reetika Khera, a development economist at the Indian Institute of Technology in New Delhi, stated: “Acknowledging that it is a problem will be a good first step … Currently, reduction of economic inequality is not a policy objective of decision-makers”.
“Inequality is not something that will go away on its own … it needs proactive government interventions”
Nagpurnanand Prabhala, a finance professor at Johns Hopkins University, said: “I don’t think the inequality metrics are meaningful for India. The key issue is not inequality but how the bottom of the pyramid fares economically. This is not a function of how the top does”.
India has the second-highest number of billionaires in Asia but has tens of millions who depend on the government’s 100 days minimum guaranteed wage employment programme, digging wells, building roads, and filling potholes for about 4 USD/ a day.
Not only in the lack of material wealth, but even the minimum necessity of having a job to earn an income for oneself, and more significantly, to care for one’s family and community, is the luxury for the people in India.
Parikshit Ghosh, a professor at the Delhi School of Economics, said: “Of the multiple factors behind this, perhaps the most important is the failure to invest seriously in education”.
India spends about 3% GDP for public education, half of the 6% recommended by the government’s National Education Policy.
You can see how important education is to a country. Having a strong educational foundation for all citizens is a footstep to sustainable and equitable economic growth for a country.
Investing in intellectual knowledge will always be a profitable investment. Studying and accumulating systematic, in-depth, and practical knowledge will help you become wiser and more developed in all aspects. This is also the key to opening the door to a prosperous and happy life.
According the Investing.com
By. Pham Thanh Bien
