The many Challenges that confront India

The Statesman 12Sep2016It is perplexing that India, a civilization that is over 5,000 years old, has to struggle to embrace modernity. Most civilizations in history have transcended or have evolved into a modern nation by contributing collectively to society’s prosperity. However, India has somehow fallen behind.

Although experts are divided on assigning set rules for categorizing countries as developed or underdeveloped or developing, it is obvious that the development of a nation normally refers to its economic development. It is here that the Gross National Per Capita Income is said to play the crucial role of the key differentiator. However, there are other factors at play as well, such as population growth, education, human rights, health, political stability, technological progress, the level of industrialization, living standards, and so on and so forth.

While India has made significant inroads in some of these factors, it falls way behind in others. At present, it bears the “developing nation” status but manages to look promising with “one of the fastest-growing nations” tag. According to the IMF’s April 2016 World Economic Outlook, India ranked fourth among the world’s fastest growing economies. Myanmar sits on the top of the pile as the fastest growing economy with a projected GDP growth rate of 8.6% compared to India’s 7.5%. Ivory Coast and Bhutan hold the second and third positions.

Key Challenges Facing India

Meanwhile, the crucial issues and constraints ailing India, which continue to hold the country back from achieving its development goals, are discussed below:

Growing Population: Since independence, India has been fighting a losing battle in curbing its population growth. As per the last census of 2011, our country’s population stood at 1.2 billion. As on date, it has crossed 1.3 billion, which marks an annual growth of 1.2%. The growth of the economy in terms of Gross National Income or Gross Domestic Product has not been able to keep pace with this rapid rise in population. India may be clocking a growth rate of 8%, but this would be negated by the ratio of the contribution of our human resource to the development of the economy. Agriculture remains the mainstay of employment for the bulk of the population and accounts for 54.6% of total employment of the workforce.

However, productivity has not increased substantially even though over the years there had been a record production of food grains at 264.4 million tonnes. The skill factor of the population and the quality of the workforce is not enough to drive the nation’s economy. The quality of the workforce should be adequate to be able to produce goods and services in an efficient manner and for optimal use of resources. The service sector should provide and contribute more income to the economy to be able to rank with the tag of “developed nation”. India’s population is just not productive enough to contribute efficiently to the economy. Population control thus remains a critical area crying for attention.

Lack of Quality Education: The pathetic state of the education system in our country is lamentable. It does not prepare the workforce for efficient production or make the students industry-ready. What India needs today is good quality education right from the primary level, which will focus more on learning rather than schooling. Meanwhile, the students should be ready for skills development and simultaneously their knowledge of science and mathematics should be expanded sufficiently to prepare them for high school. From the high school level, the system should emphasize more on enhancing the creativity and imagination as well as critical thinking and problem-solving skills of the students. In this manner, they would be adequately prepared for taking up technical studies with a focus on efficient utilization of their skills.

Healthcare Crisis: Although India has shown responsibility in containing apparent epidemics through its public health programs, it has utterly failed in providing meaningful and effective healthcare schemes. To this day, silent epidemics such as smoking or fuel-transmitted gases are killing thousands across the country. For a workforce to efficiently contribute to the production of goods and services, they should not be bogged down with worries of healthcare for themselves and their loved ones. The sorry state of healthcare in India has led to an inefficient workforce and a drain of valuable resources. Primary public healthcare exists only in name, and high-quality specialized healthcare is available to only those who can afford to pay. As such, millions of Indians are unable to access India’s inadequate medical facilities and overburdened hospitals, a crisis aggravated by the fact that India is short by nearly 500,000 doctors, with the country having just one doctor for 1,674 people.

Accessibility to quality healthcare is one factor that can immensely contribute to the efficient production of goods and services thereby enabling the nation to achieve a developed nation tag. In a capitalist economy like the United States, healthcare can be too expensive and beyond the reach of the common man. However, it has a robust insurance system which covers 85% of its population and pays a whopping 90% of its outrageous hospital expenses. In contrast, medical insurance has not been able to penetrate all strata of Indian society. A mere 20% of India’s billion-plus population is covered by health insurance, says the April 2016 report of National Sample Survey. What’s worse, the poorer households, both in urban and rural areas are either unaware or “are beyond the reach of such coverage,” the report pointed out.

Extreme Poverty: Another major roadblock that holds back India’s progress is poverty. To this day, there are villages that are devoid of any sanitation facilities or potable water. There are villages in Bundelkhand region where families have been reported to survive on grass rotis and weed sabzis on account of severe drought. The problem of drought, which is a frequent recurrence in India, has seen farmers losing their livelihood and even their lives in states like Andhra Pradesh, Maharashtra, and Jharkhand. Such tales of impoverishment can be found in abundance in the 21st Century India.

Rising Unemployment: India has more urban poor than rural, although the rate is growing in rural India. A CMIE-BSE India computation using 20-day moving average, as of August 2016, puts the rate of unemployment at 9.5%. When the statistics are split between urban and rural, the rate comes to 11.2% and 8.6%, respectively. Trading Economics — a leading global finance portal that provides information on economic indicators — projects India’s unemployment rate to go down to 4.6% by the year 2020 from the current 4.9%. It also predicts that the youth unemployment rate will move up to 13.5% in 2020 from 12.9% during the second quarter of 2016.

Income Inequality: As former Prime Minister Manmohan Singh, who has also been a leading Indian economist, famously said any economic reform should eventually strive to reduce income disparities. There is a collective failure in this field where reforms have failed to create permanent jobs or erase inequality. A recent IMF study of economic outlook of Asia points out at India saying its inequality is comparable to that of Latin American countries. The IMF has based its analysis on Gini coefficient, which is a widely-accepted tool to measure inequality. Gini coefficient for India moved northwards to 51 in 2003 from 45 in 1990 despite undertaking landmarks reforms in that decade. In contrast, similar exercises in other Asian countries like South Korea have successfully bridged the income inequality gap. The government of India’s Sixth Economic Census report released early this year noted that farmers who wanted to escape drudgery, sought employment with establishments who are themselves primitive in nature. As such, trying to find a better living remains a pipedream for many.

Rampant Corruption: The above aspects are a direct derivative of corruption. Despite many poverty alleviation programs implemented by the government, the ills of poverty have remained. The allotted funds under schemes such as midday meals or rural employment schemes have never really yielded any change in the society. During the last few years of the UPA-II regime, scores of scams were unearthed, and their beneficiaries were linked to government officials. Attempts to stop tax evasions and bribes have met with very little success. Corruption makes a handful of people wealthy and has a far-reaching adverse effect on poverty, which remain immeasurable. While corruption does exist in the developed world too, the average citizen remains somewhat insulated due to the high standard of living as well as high awareness level. For instance, in a country like India, a government official can easily hand over a job to his or her kin, but in a developed world, citizens will be quick to point out the conflict of interest clause. Most developed countries also have a very well-structured welfare economics in place, and corruptions in high places often do not disturb these structures.

Low Human Development Index: Widespread poverty, inequality, and resultant unemployment have been responsible for India’s low rate of human development. The country ranks very, very low on the United Nations Human Development Index. This index measures the value of human life based on life expectancy, schooling and also gross national income. In a highly advanced economy, human life is of immense value and is the direct result of cultural development. In the 2015 Human Development Index by UNDP, India appears at the 130th position amongst 188 nations with a score of 0.609 and is categorized under Medium Human Development. The position is an improvement over 2014, where it was ranked 135th with a score of 0.586. The increase in life expectancy at birth and gross national income per capita parameters look better than the previous years, but access to knowledge has been stagnant. This highlights the fact that basic schooling still remains a far cry. Furthermore, gender equality, which is a key parameter for earning the Developed Nation status, has hardly witnessed any meaningful progress.

(The article published in daily newspaper “The Statesman” on 12th September 2016)

142 thoughts on “The many Challenges that confront India

  1. Ganpath SINGHANIA

    Corruption in public services is the biggest bottleneck in Indias growth. Now that PM Modi has plugged that we can think of rapid development.

  2. Ajay Kapoor

    Oh! My Poor INDIA. Most people look at your glass as half empty. Which economy can show growth year after year inspite of one Australia added to its population? In last 25 years, YOU have progressed from Donors’ Nightmare to G20 nation. Big middle class consumes almost every thing produced. We are neither Import based or Export based economy. 5% of Indians have buying capacity of total luxury purchased by Australian continent.Poverty has been declining over the years. Unemployment hass seen ups and downs. Income disparity is universal. Which economy has eradicated poverty? I have seen people begging in most European countries as well. Corruption is bad, we need to banish.

  3. The Lyceum

    I started reading this article but stooped soon…..again and again we cry about the growing population and let me know from yu all…what needs to be done?…you want to control population or you want to work on progress?.. when States are not responding positively to the development plan what needs to be done with that State Government?.. One high court will pass an order on making helmet compulsory but the same court will be a silent and mute spectator on government selling liquor… Government make its citizen to drink and allow them die and from that money they give all freebie… we the people are to be blamed…we allowed them to rule anyhow and they are our masters now…

  4. Rahul Moondra

    We can keep counting what we dont have, and we can keep counting what we have, difference is what we count. West has created a GDP game which might we can easily win, but the point to ponder is, is it worth winning?

  5. Makarand Deshpande

    Presently India is going through transformation phase, as every other country. Only difference is that the duration of this phase will be much more. As compared to other countries, of this population size, India’s growth will be most inclusive. When India will become a developed country, all classes will be having all the facilities, let’s hope so…

  6. Jaynarayan Tudu

    why we consider the population growth as a problem, this earth is meant to leave a live, so who ever come here let him find a way to live. I don’t think the earth/nature has shortage of resources, we have to learn how to live like a human being.

  7. R.K. Dhiman

    As per my views their is no chances to grow the Indian economy near future as there is no change on the grounds in corruptions and system.

  8. Roy Tang

    Thanks for sharing the challenges India faced. In my opinion, main progress in future depends on the drive for all people of India (both grass root citizens and the leaders in government) for the need of change as nobody living on his / her own nowadays and it is not possible to frozen the status of a country like middle ages…

  9. Riyaz Khan

    Fastest growing number of People with Obesity…
    Largest number of Malnourished…
    Max billionares
    Largest number below poverty line
    Richest houses
    No houses
    Highest in GDP
    Lowest in HDI
    Rich eat the cake
    Poor lick the box

  10. K.V. Simon

    IT saddens me deeply when I hear growing population as a problem and we must control population for the sake of prosperity . This is a devil’s lie of modernity . In the ultimate analysis people – human life with creativity , intelligence and entrepreneurial spirit is the only wealth creating asset which will convert every natural resource into a value added product or service . To look upon population as a burden is a sin . It is the inherent nature of self and selfishness that looks upon others as a liability . We have a moral responsibility to value , respect , nourish and cherish every God given life . If we have the spirit of care and share there is enough and more for everyone . Let us not turn the demographic dividend population can bring into a demographic disaster by a negative mindset . It is our own upside down policies for decades that have led to lopsided national development . Let us be humble and be grateful for every life and seek how we can develop each life to it’s full potential and deploy the same for the good of all and glory of God.

  11. Gautham Ramesh

    Chinas population will be surpassed by India in a decade or two. When we do not have adequate jobs and grains for present people how can we allow such high population growth rate.

  12. Hariharan

    Ajay and Raul’s comments are very appropriate.
    Population will become an asset if we can push the Human Development Index and Skill Development in a big way.HR ministry is one non performing ministry even till date but with a potential to change the Face of the Nation in about 10 years time.Corruption is one big issue but will be conquered soon with the political resolve emerging.
    The big question is THE CREATION OF FUTURE VISIONARY LEADERS for the Country which I am sincerely at.

  13. Mokshagundam jayaram

    It depends on whether you are looking at half empty or half full glass. You should discuss negative points but should equally talk about the positives. The GDP figures are applied to calculate number of pointers discussed in the article. They need to use the Purchasing Power and not GDP. It looks awful to think a family of four has to live in $500 per month in India but when you know it is more than Rs 30,000 a month, we know it is a good pay to live comfortably if not luxuriously! Corruption at the Federal level has gone down drastically with the Modi Government. Ease of doing business has drastically improved. Things are moving in the right direction and hopefully five years from now it will be a different India story. .

  14. Zainab Shahab

    I feel Indian Youth needs to step up and create a difference. Three things that has a potential to change India’s future is unity,awareness and honesty. Believe it that if we manage to attain even 70% of these then major issues will be resolved.India so badly needs a Work breakdown structure plan.

  15. Amarnath Venkatarama

    Dr.Gupta iam appalled that you have not made a mention of 300yrs of British Rule anywhere in your article and the amount of economic ruin it caused to a nation like India.India and Indians were prosperous before plunderers came and ruined our society. We are in the process of rebuilding and it will happen with speed.

  16. Murlidharan Balakrishna

    OMG 69 years passed and still we have same problem.Thanks to British Raj as they killed many Indians if not imagine the population now and problem we have . isn’t it ?

  17. Nitika OKeeffe

    Social disparity exists in every nation and India is no different. India’s disparity is a little more pronounced due to the size of the population, lack of natural resources and corruption at every level. There is no easy answer to the plaguing problems. Population control is a start but Hum do hamare do campaign didn’t quite work as intended!

  18. Indira Sastry

    Reservations is spreading in India like a plague since years, those who really need to benefit are not getting any benefit. India was an agricultural economy, agriculture was a major contributor of GDP. Now agriculture is no longer a biggest contributor .
    Inflation is high, adulterated food, no quality control mechanism . pollution and traffic.
    Basic infrastructure is not their in many places. No balance regional development , where ever minister in ruling party has land he/she will develop that place. Our country land:people ratio :- land is limited people are more .


    There WERE challenges in the past for Indian leaders & people to solve.
    Not many people recognize this HARD fact :
    India has CROSSED THE THRESHOLD of Challenges into the domain of CRISIS.
    Time has run out : India is Facing CRISES on multitude of fRONTS now.
    Ironically, this number is growing.
    Extremely BAD OMEN for Indian democracy.

  20. Andrea Neal

    In my IB class we were just discussing India and how their economy is growing rapidly. Our discussion was mostly about the increase in media attention it’s getting with cable companies. Glad I came across this article.. showing the negatives that still need to be discussed within a developing country. Lots of work to be done!

  21. Harish Iyer

    And what is the point in recounting a laundry list of India’s problems without any effort at analysis or thoughts on mitigation? Maybe the author felt compelled to list down our “challenges” lest we forget them while binge-shopping on the latest online portal to open up.

  22. Harminder S Soni

    Whatever –we count or don’t—we compare or don’t–if we are unable to see the plight of a very large number,there goes the ‘wrong counting’

  23. R.K. Dhiman

    As per Dr. Sunil Gupta blogs it is true that India is fail to achieve the result on the mostly all the front of development which can be achieved far more than that.
    After a long time of freedom we are unable to control the corruption ,unemployment, and also unable to improve the education, health and other services which is the right of a citizen of any freedom country.
    We can achieve all these things with the help of education only, but our policies for education is to earn the money only as all the institute handed over to private players who only want to grow their economy on the name of education and the same is happen in the field of health also.
    My personnel experience in India each and everything is different for a common man and businessman and politicians.
    I am unable to understand the laws which should be equal to every citizens of a country ,change their parameters according to the position of a citizen to citizen. If this type of major inequality will be adopted by the government then no body will develop this country.

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  25. Vivek Murugesan

    Developing an Ethical civic society should be of top priority of the nation. Education system should focus on teaching values along with the skills. It will touch the core of the issues like corruption.

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  27. Girish SINGHANIA

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  29. Paresh mehta

    The structure of education is so outdated that imagining a rich society is a foolishness. MBAs are learning same old lessons, engineers are in excess, there is no research or innovation.

  30. Kiran Patil

    Until today we have blamed our failure on British occupation. After 6 decades of independence politicians should ensure that India can call itself a developed country.

  31. Kalpana Naghnoor

    We need sincere, robust, inspirational leaders to take the country forward on all accounts. This is the only factor missing in our nation.

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  33. Nadeem mishra

    Rich is getting richer and poor becoming poorer with such high corruption. Tenders are given through bribes, teachers do not go to school, sweepers don’t clean road.

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  35. Dr Manmohan Shukla

    Thank you for bringing to fore the issues which have been puzzling the nation with no solution close by. Immediately after achieving independence in 1947, the Indian leadership erred in all these, thinking they would be taken care of automatically with passage of time. Most of the issues were linked with communal angle like associating the population issue with one religious community..! But that was an incorrect path adopted. No disincentive was associated with increasing the size of the family at home.

    Standard of education is on the fast downward track. Whenever a child is born in any European country, entire nation is worried for its upfront care and upbringing. In India, we attach no value whether they die or live or go to school or beaten over the road or sexually abused or get lost in human trafficking. They are not safe even at home and there is no system to look after their welfare. Schools are there but there is no roof. If there is roof, no one knows when it will fall over the children. School teachers, particularly of the primary schools who undertake a tender responsibility of formative years of a child who is stepping out to learn the worldly affairs, are the cheapest community who can be put to any kind of menial jobs where they are frequently maltreated and abused. With no respect attached, their wages are strikingly as low as that of a peon. It is not considered a career like it is of engineer or that of a doctor. As a result, no self-respecting, intelligent boy wants to waste his life as a teacher. Whereas, in my opinion, the cream should be attracted by giving this community best of the pay packets, best of the standards and best of the service conditions who would be efficient enough to take a tender care of a small child. For, a robust well-designed recruitment and selection system should be instituted. Like 5 days SSB done for armed forces to select officers with requisite qualities. Why can’t we do it? We are not doing it because we do not have will to do it. It is not going to prove costlier as our child will be at safe hands and in return, we would go high in human development index. If good, responsible, morally high persons would man the posts of teachers, they would be able to inculcate good habits, high moral values and discipline, that will make our children good humans, good citizens, honest and responsible who would keep concern for their fellow humans. First ever step to contain corruption and inequality.

    Healthcare is in shamble you have rightly said. No doctor wants to stay in rural areas, instead, wants to mint money in a city. Government healthcare system is highly questionable where getting right or timely treatment is a big question mark. Once go to private run hospital or a private medical practitioner, the patient is virtually caught in a medical bureaucracy web where he would go on being sent from one doctor to the other and from one lab to the other, with no sign of improvement, emptying his pocket at the end, coming back home to lie in a dark corner of the home and wait painfully for sure death. A big black money is with doctors who give no receipt of fee paid by the patient. Can’t we impose a mandatory ban on private practice of the doctors. They should work either in government or in groups, rendering service to the society.

    It does not mean that we don’t have good doctors but they are small in number and have done and are doing remarkable in the society. But how many of them are recognized? National awards and Rajya Sabha nominations go to low morale actors who come drunk in the stadium and fight with duty bound security man, who fight and run in the streets, who are income tax defaulters and who keep choosing woman and wine as their birth right, and cricketers who possess all or either of these qualities.

    An interesting note, I had seen a few days back. The government in China is forcing the people to take care of the aged parents. In India, the system and the government, both are asking the government servants to not to take care. Surprised…? I will tell you. If your parents’ monthly income is anyway more than Rs 3500/- per month, the parents are not entitled to be dependent on the government servant son/daughter. A little more than Rs 100/- per day/-. Is it possible for a person with spouse having this much income would be able to survive? And medical treatment which is so dear in India. So not only not to be dependent but better to be left to die on the road…!

    Corruption and population explosion are giving rise to all time high poverty and inequility. Sooner the better, the government should start working on the issues, aiming at the earliest for negative population growth.

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