INDIA as an economy is growing – and so is its powerful club of billionaires. A global wealth survey has said India now has the world’s six largest ‘population’ of ultra-high net-worth individuals and that their number would rise by 51 per cent from 207 now to 313 in another five years’ time. The rich here have a gala time. They’re making money here and spending lavishly, but mostly abroad. This is one side of India. On the other side is pathetic – with over 30 per cent of the people living in ‘poor’ conditions. Governmental claims are that the poverty rate has been reduced from 23 per cent of the population to 16 per cent. As per some estimates, some 60 per cent of the people live with an income of less than Rs 300 a day. Extreme poverty is a reality, mainly linked to the backward and underdeveloped regions like tribal homelands set closer to the forests. Urbanization has helped reduce poverty levels, as work is easily available in cities. The food security scheme introduced by the UPA government too helped reduce poverty through provisions for free or subsidized rations.
Admittedly, the nation’s economy remained in good shape for the past two decades when the GDP rates fluctuated between six per cent and nine per cent, its height being during the Manmohan Singh dispensation. While neighbours like Sri Lanka and Pakistan have seen a near-collapse of their economies, India stood its ground. This was thanks mainly to the economic reforms the Narasimha Rao-Manmohan Singh governments introduced since the early 1990, which did away with the Socialistic concepts and liberalized the national economy. The Narendra Modi era since 2014 saw the GDP growth reducing but, despite the Covid-19 and other adversities, it retains a decent 6.5 per cent level. Singh’s claim that economic growth would have a trickle-down effect — meaning the gains of the rich would percolate down to the poor and empower them too – has not been proven to be true. Millions of the poor remain almost where they were 20 years ago. The rich who make big money either through business or through their professions as in the case of senior lawyers and specialized doctors prefer to spend their money holidaying abroad. Politicians and bureaucrats who make big money through foul means deposit them in tax havens abroad or amass property for them in exotic locations.
Yet, economic growth for a nation benefits all in ways big or small. The recent IMF report downgrading India from being the fourth largest economy to the sixth largest is more in technical terms. At the same time, it also exposed the big claims by the Modi government that it’s set on raising the Indian economy’s status to the world’s third top slot – next only to those of the US and China. We have a long way to go to reach such goals. This involves hard work on the ground. India’s strong point today is the large bulk of its youth population. Effective use of their energies is a guarantee to India becoming an economic superpower in future.
