3 Economic questions

This study will focus on the economic standards of India and the factors that have lead India to have a wealth and poor population at the same time. India over the last couple of year, it has experienced an increased per capita income due to its increased work force. Also, India has been known as one of the countries with a large population languishing over poverty.

India has been experiencing an increase in its economic growth rate over the last four years. In the fiscal year 2014 - 2015 the country had a 7.4% economic increase compared to a 6.9% increase in the fiscal year 2013 - 2014. The country is projecting an economic increase in the fiscal year 2015- 2016 of 7.5%. India was listed the 19th largest merchandise in the year 2013 and with a large export of services which saw India in the 6th position worldwide. The country is not only in the top service export list but also in the import list it was ranked 7th importing merchandise of worthy of $616.7 billion in a total.

In fact, this increase in India’s economic growth has been due to an increased output and high performance of two industries that are the agriculture industry and manufacturing industries. These industries the largest India’s economic growth shareholders and their performance influence the country’s economic growth rate in every fiscal year (Maddison, 2013).

Moreover, India has been among the best known manufacturing industry in the world. This has in turn led the government to allow investors in the country to invest in the sector. The fast growing and large population has provided force labor to the upcoming industries (Maddison, 2013). A large percentage of India’s population is comprised of poor citizens who in turn provide cheap labor to the industries, hence low input which gives the companies large marginal profits.

In addition, the large Indian population has also been a target for the manufacturing industries whose final products are consumed locally in the country before they are exported to other countries. India’s large population has been in the service that also has contributed to the county’s economic growth (Maddison, 2013). The service sector offers services like the tourism, heath care; telecommunication and trade travel services between other many services. These statistics shows that India has been experiencing an increase in its economy.

Furthermore, India is one of the countries that are known to poses both a rich group of individuals and at the same time a large population in poverty. The number of poor in India is reducing significantly over the past four years. Though there are different methods to measure poverty a conclusion has been achieved that India has a large population living under the poverty line. India’s population has been increasing yearly at a rate of 1.8 million people (Krishna, 2006). This has led to their population reaching 1.28 billion people. According to a research curried out by the world food programme or WFP shows that in India, in every minute 51 births are realized. There are several factors that has led to high poverty levels in India, these factors are high population growth, corruption, unequal distribution of resources, gender inequality, and literacy levels.

The high population in India is among the key factors that lead to its large poverty line. This population growth has been propagated by the early girl’s marriages and polygamous practices that are practiced in the country. The Hindu and the Muslim community make the greatest percentage of the Indian population, these two communities strike hard to preserve the polygamous marriage practice. This practice has led to unplanned child birth, the parents bare more children than they can cater. This is the leading cause of children who are uneducated and who cannot access quality medical attention and basic needs.

According to Krishna (2006), the country has under a corrupt government over a large period of time. The government fund allocation to its citizens like food and infrastructure has been pocketed by the leaders in the high ranks of leadership hence the common citizen’s lack the basic resources. With very poor loads network, the citizens cannot transport their farm produce to the market. This has led to a decline in agriculture sector which is the source of food and income for the citizens. When citizens are forced to buy food stuff from the market the amount that should have gone to other sectors as the education sector is wasted. The children lack basic education hence cannot secure good jobs in the country, this leads to the vicious cycle of poverty among generations.

Unequal distribution of resources in the country has deprived many citizens the access to quality services. The rural Indian areas have been neglected since the pre-colonial times. Centralization of resources in the urban areas has given rise to the neglection of the people living in the rural areas hence the best resources are placed in the urban areas only. The poor have continued to live in poverty (Nandy, Irving, Gordon, Subramanian, & Smith, 2005).

Gender inequality is where the community works in favor or one gender while exploiting the other. The Indian community has discriminated the girl child a move that has left the women vulnerable to exploitation by the men (Krishna, 2006). Girls in the Indian community are not educated and this has left them to be married by the learned men who have all the power over their wives even to abuse them. The reason why polygamous marriage has been widely practiced in the Indian society is due to women having no power refuse been married a second wife. Also, the women have no money to sustain themselves so they must bow down for the men to feed them. High literacy levels among the ladies have also led to high population growth for the women are not educated in the ways to avoid unwanted pregnancies.

In the end, according to Broadman, (2007), the perfect country to compare with the Indian economy is the China. This is because like in India the country has experienced a series of poverty levels since their independence. Also, China has a large population of around 1.357 billion people. Resource distribution has been poor in China due to corrupt governance. India’s economic growth rate is good and generally the country is performing better. The country has been experiencing an increase in economic growth over the last four years but much need to be done to reduce the poverty level so has to realize a fully increased population growth.

Reference

Krishna, A. (2006). Pathways out of and into poverty in 36 villages of Andhra Pradesh, India. World Development, 34(2), 271-288.

Nandy, S., Irving, M., Gordon, D., Subramanian, S. V., & Smith, G. D. (2005). Poverty, child undernutrition and morbidity: new evidence from India. Bulletin of the World Health Organization, 83(3), 210-216.

Maddison, A. (2013). Class structure and economic growth: India and Pakistan since the Moghuls. Routledge.

Broadman, H. G. (2007). Africa's silk road: China and India's new economic frontier. World Bank Publications.