According to renowned sources such as the IMF and World Bank, India is projected to become the third-largest economy by 2027. This promising news has generated excitement within the country. However, some economists have expressed concerns about India’s economy, referring to it as a “jobless growth” scenario. These economists argue that certain parameters have not been effectively utilized to achieve optimal results for the economy.
Poverty
When examining the poverty index, India stands out as one of the top two economies that have not fully utilized human resources, resulting in a significant lack of economic prosperity.
Employment
Although India aspires to become the world’s third-largest economy, a significant portion of our workforce is still engaged in agriculture. This heavy reliance on agricultural employment hinders India’s growth potential, especially when compared to the rapid advancements seen in China and the USA. Therefore, it is crucial to prioritize immediate efforts in increasing employment opportunities to achieve optimal economic outcomes.
GDP Growth Rate
Morgan Stanley predicts that India will experience a substantial economic growth and emerge as one of the top-performing economies in the upcoming year. The firm anticipates a consistent GDP growth rate of six to seven percent for India. However, there is a challenge that needs to be addressed. With a population of 1.4 billion, India must aim for a GDP growth rate of more than 10 percent in order to achieve its goal of becoming a developed country.
Demographic Dividend
With India being the most populous country in the world, the population is expected to rapidly increase over the next 20 years. If India can effectively utilize its population to increase the demographic dividend, it has the potential to significantly boost its economy. However, failure to do so may result in economic challenges. Therefore, it is crucial to focus on enhancing the skill workforce in order to achieve the best possible outcomes for the Indian economy.
Conclusion
In conclusion, while India’s projected growth to become the third-largest economy by 2027 is certainly exciting, concerns regarding a “jobless growth” scenario cannot be ignored. The country’s failure to effectively utilize human resources has led to a significant lack of economic prosperity, as highlighted by the high poverty index. Additionally, the heavy reliance on agricultural employment has hindered India’s growth potential, especially when compared to other rapidly advancing economies. Immediate efforts should be prioritized to address these issues and ensure that India’s economic growth is sustainable and inclusive.