Until recently, India presented a dismal picture of having the largest number of people living in extreme poverty. Recent research goes against it. It shows that the number of Indians living below $1.90 per day is falling rapidly. It is encouraging that the living standards of a large number of Indians is improving. Policy makers in Delhi should learn from domestic and global experiences. Poverty has been plummeting since 1991. Urban growth has been responsible to an extent in bringing down rural poverty. Economic growth has of course been the prime factor behind this development. It curtails poverty in two ways. Growth increases the purchasing power of a large number of people in India. Besides, the Indian government garners additional revenue coming from growth enabling it to make strategic interventions. That also expands the extent of India’s social safety nets.
Add to this the benefit of globalisation, which has diminished economic inequality among different countries particularly in the last decade. Fall in poverty levels in China and India has contributed to that. It helps India create the best living standards for its people as possible in the circumstances. However, economic growth is the prime mover. Globalisation has been under attack from time to time. The emphasis in India has to be on economic growth at home. Take the cattle trade which needs a boost. Laws restricting cattle trade and slaughter hinder business prospects. China has achieved great success in this manner. Forty years ago China was very poor but now it has made great strides tapping every available opportunity. Finally, India’s education policy and the need for key reforms in this area is the engine for economic growth in India. Education Policy needs a complete overhaul.
India has produced several generations of engineers, business managers, economists et al who have left the country to add value to western universities and financial markets. There has to be a policy of pay-back by such people who have received quality education subsidized by the state and the tax payer’s money. However, it is time that this country too create the space for research and academic excellence where the best brains can flourish.