A more even distribution of income and living standards is very important for continuing economic growth – for a number of reasons. First, a more even distribution can lead to a more stable rise of the consuming middle classes, a critical driver of demand and economic growth. Second, a more even distribution is important for maintaining the social contract and political stability, both of which undergirds our high rates of economic growth. Third, a more even distribution is important for better nutrition and education among the least advantaged and, thus, for the future development of Indian manpower and human capital, another very important base for economic growth.
Indeed, Indian growth needs to be balanced between a number of competing objectives, e.g., between incomes and living standards of urban and rural residents (recognizing that people in urban areas will always tend to earn more); between the output growths of agriculture and industry (growth in agricultural incomes is especially important for the two-thirds of Indians that live in rural areas); between domestic consumption and exports (we need to fund our imports and overseas investments); and between resource exploitation and responsible stewardship of resources keeping in mind environmental degradation and climate change (e.g., India must deal with growing air pollution and faces major shortages of potable water).
It is time to refocus on a very important part of our country and economy – the rural areas of India. Most Indians live there and rural entrepreneurship will reduce the unsustainable pressures on urbanization. India not like fast urbanizing China, it is more like America which is truly found in its small rural towns. While the focus in this essay has been on rural areas, similar approaches and programs can and should be developed for urban dwellers that are among the most disadvantaged.
India needs to recognize that opportunities to create production surpluses at the household, state, and national levels are very important in the continuation of our high rates of growth. More importantly, human capital is the most important resource for any nation and is too precious to waste in India. This short essay notes that frugal, perhaps, Gandhian living combined with the widespread availability of entrepreneurial opportunities can be the way to go forward.
Indeed, Indian growth needs to be balanced between a number of competing objectives, e.g., between incomes and living standards of urban and rural residents (recognizing that people in urban areas will always tend to earn more); between the output growths of agriculture and industry (growth in agricultural incomes is especially important for the two-thirds of Indians that live in rural areas); between domestic consumption and exports (we need to fund our imports and overseas investments); and between resource exploitation and responsible stewardship of resources keeping in mind environmental degradation and climate change (e.g., India must deal with growing air pollution and faces major shortages of potable water).
It is time to refocus on a very important part of our country and economy – the rural areas of India. Most Indians live there and rural entrepreneurship will reduce the unsustainable pressures on urbanization. India not like fast urbanizing China, it is more like America which is truly found in its small rural towns. While the focus in this essay has been on rural areas, similar approaches and programs can and should be developed for urban dwellers that are among the most disadvantaged.
India needs to recognize that opportunities to create production surpluses at the household, state, and national levels are very important in the continuation of our high rates of growth. More importantly, human capital is the most important resource for any nation and is too precious to waste in India. This short essay notes that frugal, perhaps, Gandhian living combined with the widespread availability of entrepreneurial opportunities can be the way to go forward.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
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Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
IIPM Prof. Arindam Chaudhuri on Internet Hooliganism
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
