Poverty and Unemployment: Critically Impacting Indian Growth

Preparing to be the most populated country in the world in upcoming census, India’s poor wealth distribution, government regulations, heap of bureaucratic red tapes, caste-based politics, and urban/rural disparity has been criticized and analyzed by Indian citizens as well as people outside country. Touching the population graph up-high with 1.2 billion people residing in country, providing basic amenities to each and every, seem certainly the nation’s most critical setback. With poverty dominant in almost every part of country even in states having high literacy rates, the growth has struck somewhere between poverty and unemployment. Latest India News revealed that the global economy slowed in 2012 due to ongoing fiscal tensions in Europe and the US has reduced key Asian markets by negatively impacting the business and consumer activities in the region. In current India news, people falling below poverty line are estimated to be around 38 percent of the total population. With a record low unemployment rate of 3.8 in 2011 to rise of 9.3 in 2012, Indian markets seem to have unavailable slots even for qualified professionals. Latest news India also conducted a research in which it was observed that in the current fiscal year this unemployment rate will gradually increase. Though India is a significant BRIC member and a leader on international platforms like the WTO, its role as a dominating financial market in the future is contingent upon its capacity to further open its economy and introduce ways to facilitate capital investment. India’s budget shortfall and public debt has remained the same despite of sustained period of economic growth in 2011. In recent decades, business opportunities have been introduced in India by global companies. But employing this much of population is just an imaginary virtue of Indian Government.  The spending-oriented political economy bound by a depleted revenue system and financial restrictions have always resisted growth of businesses in India. With insufficient market stress and lack of funding provided by government for improvement of businesses, Indian economy is expected to get worsen in years to come. In India news IMF projected that India’s real GDP will further decline from 7.5% in the current fiscal year, and also its consumer prices is expected to fall highly. For growth lifting of policies restricting investors and businesses to be established in India must be revised. Standing in contest with other global economies, modernizing its foundations from level zero is a necessity now. India must undergo a massive upgrade initiative concentrated on solidifying its infrastructure to meet world standards.