$ 5 trillion economy, but for whom?

Recently, images of live GDP (Gross Domestic Product) figures surfaced on the internet, claiming that India's GDP had reached the $4 trillion mark. This news kindled hopes among plenty of Indians that the formidable $5 trillion mark was not too distant, and that we could achieve the status of a $5 trillion economy by 2024-25. However, it is essential to reflect on whether this tag or label is sufficient. Does this milestone satisfy our economic aspirations and, more specifically, the well-being of our people?

While the $5 trillion mark may serve as a benchmark for measuring our country's economic strength, it falls short of representing our broader development aspirations and challenges. According to a 2021 report by Oxfam, a glaring disparity in wealth distribution exists in the nation. Only 1% of the population owns around 41% of the total wealth, while the bottom 50% possesses a meager 3%. In the present landscape, the pursuit of a $5 trillion economic milestone is directed by resource-rich power brokers, poised to take charge. Ironically, it is the less resource-endowed citizens who are financing the endeavor for the envisioned $5 trillion economy. Approximately 64% of the overall Goods and Services Tax (GST) revenue is derived from the bottom 50% of the population, with the top 10% contributing only 3% to the GST. This wealth disparity extends to the labor market, where the current capacity of skill development programs stands at only 3.1 million. This poses a critical issue, considering that 90% of jobs in India are skill-based, in stark contrast to the current figure of only a 6% trained workforce in the country. 

Let's shift the focus to happiness, the ultimate pursuit for us all. In this regard, India ranks 125 out of 146 countries, a position worse than even war-torn Russia and Ukraine. Surprisingly, India lags behind Iraq, a nation ridden with anti-government protests, as well as Bangladesh, a small Asian delta nation, and economically challenged neighbors like Sri Lanka and Pakistan. If this information does not prompt introspection, consider another fact-check: India ranks 111 out of a total of 125 countries in the Global Hunger Index (GHI) 2023. Furthermore, India's preparedness for Sustainable Development Goals (SDGs) continues to decline, with a ranking of 121 out of 163 countries. India grapples with significant hurdles in achieving 11 out of the 17 SDGs.

Switching gears to per capita income, a measure of a country's average prosperity calculated by dividing the national income by the population size. This parameter is considered a lot more representative than the GDP for it represents the well-being of the average Indian than showing those absolute figures. Here, India stands at $2,610. In comparison, Japan, the fourth-largest economy in terms of GDP, has a per capita income of $33,950.

The reality depicted above paints a stark picture of the vulnerability our people face. A poignant truth emerges: even as we anticipate providing free food grains to 80 crore Indians in 2028 to alleviate hunger, one cannot help but question the essence of achieving those economic milestones. What significance do these triumphs hold if vast segments of our population must endure the pain of empty stomachs as they lay down to sleep?

With the Lok Sabha elections just around the corner, the “third largest economy” and “$ 5 trillion” tag have got so much limelight (all because of sheer politicization), up to an extent that it overshadows the true state of affairs. We, Indians, lag on plenty of development parameters but we only shun that, sometimes saying that it is the Western narrative or just a mirage and asserting that our true success is in our GDP numbers. Amidst all this, we have overlooked a fundamental question,” Okay, my country boasts of some trillion dollars, but are my people happy, do they earn enough to feed themselves, leave aside paying for education or a safe shelter?” 

Shifting our gears back to the labor force, we must realize that swathes of our people are not yet trained for the technical tsunami that our country witnesses. Hence, they are bound to fall into a financial collapse and social withdrawal. This would perpetuate our problem even further. 

We must realize that the onus of nation-building and wealth creation should not lie on just a few individuals, moreover, the ones who possess only a small fraction of the resources. Critical steps need to be taken to uphold every person in the country. 

This underscores a crucial realization: economic growth alone may not capture the overall well-being of the population. A balanced approach that addresses social, environmental, and governance aspects is essential for sustainable development. It is high time to revise the way we evaluate progress. Shouldn't we shift our focus from merely increasing the size of the economic pie to actively monitoring its distribution?

References

• The Top 10 Largest Economies In The World In 2023. (n.d.). Forbes India.  https://www.forbesindia.com/article/explainers/top-10-largest-economies-in-the-world/86159/1#:~:text=Which%20are%20the%20top%205

• The World Bank. (2021). GDP per Capita (current US$) | Data. Worldbank.org. https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?locations=IN

• Chandra, J. (2022, October 14). India ranks 107th out of 121 countries on Global Hunger Index. The Hindu. https://www.thehindu.com/news/national/india-ranks-107-out-of-121-countries-on-global-hunger-index/article66010797.ece

• “Everyone’s jumping on a screenshot”: No, India is not a $4 trillion economy yet. (2023, November 20). Business Today. https://www.businesstoday.in/latest/economy/story/everyones-jumping-on-a-screenshot-no-india-is-not-a-4-trillion-economy-yet-406382-2023-11-20

• Livemint. (2023, March 20). India’s rank in happiness survey lower than war-torn Ukraine, Russia. Here’s why. Mint. https://www.livemint.com/news/world/indias-rank-in-happiness-survey-lower-than-war-torn-ukraine-russia-here-s-why-11679308341835.html

• Richest 1% Indians own more than 40% of country’s wealth: Report. (2023, January 16). Mint. https://www.livemint.com/news/india/richest-1-indians-own-more-than-40-of-country-s-wealth-report-11673830307891.html‌

• India’s poorest 50 per cent pay two-thirds of GST: Oxfam. (n.d.). The New Indian Express. Retrieved December 7, 2023, from https://www.newindianexpress.com/business/2023/jan/16/indias-poorest-50-per-cent-pay-two-thirds-of-gst-oxfam-2538312.html‌

• ABOUT THE GLOBAL HUNGER INDEX. (n.d.). https://www.globalhungerindex.org/pdf/en/2023/India.pdf‌

• Pandey, K. (2022, June 6). India’s SDG preparedness ranking continues to decline: Report. Www.downtoearth.org.in. https://www.downtoearth.org.in/news/governance/india-s-sdg-preparedness-ranking-continues-to-decline-report-83158