Daily Management Review

Six steps to transform India's economy


05/30/2017


India, one of the fastest growing economies in the world, is ready to oust Germany and become the fourth largest economy in the world by 2022, according to the IMF. By 2032, the country’s economy will grow to $ 10 trillion from the current $ 2.3 trillion.



pixabay
pixabay
Against this background, the analytical center NITI Aayog, which advises the Government of India, made recommendations on how to develop the current standard of living of the country's population. The report called Three Year Action Agenda implies complete elimination of illiteracy in India, ensuring full access to universal medical care - and not only this.

Farming

Farmers make up almost half of the country's workforce, according to NITI Aayog’s estimates. In the last few decades, they have been in an extremely distressed situation. In 2015, an unsuccessful crop situation and a high level of debt forced more than 12,000 farmers to commit suicide. Many had to leave work in the field of agriculture.

NITI proposed increasing the productivity of agriculture through the introduction of new technologies and the transition from low-income to high-income sectors of agricultural production, such as gardening, dairy products, poultry, pork, fishing and forestry.

Workforce

The unemployment rate in India ranges from 5% to 8%. At the same time, unemployment as such is not a priority issue. A more serious problem is underemployment. The work that can be performed by one employee now takes two or more employees. The vast majority of workers are employed in low-paid jobs, the report says. And if you take an example from countries such as South Korea, Japan, Singapore, China, NITI Aayog wants the government of Narendra Modi to aggressively promote domestic production under the Made in India initiative, thus creating well-paid jobs for low-skilled workers. India is ready to lure to itself a large number of industrial jobs from China, given the situation with the aging population and high labor costs for workers. 

Safer roads, improved infrastructure

Since coming to power, the government of Modi has focused on the development of infrastructure both physically and digitally. At the same time, it is necessary to remember the costs for key projects - roads, railways, ports and civil aviation. NITI Aayog says the country’s to build and strengthen rural roads, create central and state security councils that will help establish and enforce safety rules. In 2015, more than 140 thousand Indians died in car accidents.

The report assumes that the number of accidents on railways with a fatal outcome should be reduced to zero by 2019 due to creation of a special security department. The cost of aviation fuel should also be reduced so that more Indians can fly. The cost of fuel is 40% of the cost of flights.

Digital India

The thinktank also proposes to develop and strengthen digital infrastructure. The government should provide citizens with an opportunity to learn the basics of using the Internet. About 69% of Indians do not use the Internet, because they simply do not know how to do it. The center also proposed accelerating government initiatives to introduce wireless communication in millions of villages.

Regional development

NITI Aayog divided the country into four main geographic regions: the northeast, coastal areas, Himalayan states, desert and drought-prone areas. In long-abandoned north-eastern regions, NITI offers to build up infrastructure, and also to attract assistance from neighboring countries such as Myanmar. The center also sees huge potential for the development of tourism on the coasts. As for the Himalayan region, NITI Aayog proposed to increase the use of forest lands and develop livestock, fruit cultivation, and flower cultivation.

Professional skills and well-being

By 2020, India can become the youngest country in the world with an average age of 29 years, by 2030 it will have the world's largest able-bodied population of 962 million people. Nevertheless, India is struggling with the quality of schooling. In the report, the government is invited to focus on the fundamental factors of education, to assess at the national level in order to understand the level of quality of education and to suggest remedial measures, as well as to give more autonomy to higher education institutions.

NITI Aayog proposed to create an independent body to oversee various programs for the development of professional skills.

source: niti.gov.in






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