Indian Economy

 Indian Economy amidst Blame Game

India is one of the largest and fastest growing economies in the world. According to Nominal Gross Domestic Product (GDP), economy of India is the tenth-largest in the world and the third largest by Purchasing Power Parity (PPP). India ranked 141^st by Nominal GDP and 130^th by GDP (PPP) in 2012 as per analysis of Per-Capita-Income. India is the 19^th largest exporter and the 10^th largest importer in the world. Actually, the service industry forms the backbone of social and economic development of a region and India is making the highest contributions to the global output and employment. Although agriculture and manufacturing sector still improve the industrial growth in the country.

Unfortunately India comes under the poorest countries in the world. There are so many reasons behind this. The most important and reliable reasons are:

•        Large population that the country
•        Brain Drain
•      Foreign franchise which affects domestic sectors

These all reasons are basically related with the income, expenditure, consumption, growth of every individual and rate of unemployment of a country. But the question which arises here is that who is responsible for this? 

Population 

Population is affecting economy of our country. Large population means more needs. Its population, pegged by the census of India at 1.21 billion in the beginning of 2011, has been a drag on economic growth. Also the government is unable to find the schools, jobs or food productivity to match the demographic bulge. Large population affects family income too.

 





















Reducing the growth rate is our objective. Everyone desires to give education to their children. Having too many children will be counter-productive. There should be decline in population growth means India’s national income, may break out of the trend of increasing just ahead of population growth. Government will be potentially free to spend millions of dollars on welfare scheme.

  

Brain Drain

What do we mean by this? Basically, it is a slang term for a significant emigration of educated or talented individuals. Actually it causes countries to lose valuable professionals. Brain Drain is one of the worst problems, India is facing today. Indian government spends 8-10 lakhs in making an engineer and 15-20 lakhs in process of making a doctor. After education, good doctors and engineers immigrate to other countries. Expertise is lost with each emigrant and it diminishes the supply of that profession. India has the 2^nd largest pool of doctors, engineers and scientists but unfortunately most of them work for other countries.

Is it a Brain Drain or Brain gain? We all know other countries are paying us well. So, it is brain drain for us but for other countries it is brain gain as they are growing their business and maximising their profit by using our brain

 

We are responsible for uplifting it. Instead of going out in search of opportunities, we should rather create them here, at our homeland.

Foreign Franchise

How foreign or international brands affect our economy? Indian economy is in crisis. Our country like many other ASIAN countries is undergoing a severe economic crunch. Many Indian industries are closing down. If we do not take proper steps to control those, we will be in a critical situation.

More than 30,000 crore rupees of foreign exchange are being siphoned out of our country on products such as cosmetics, tea, beverages, etc, which are grown, produced and consumed here. A cold drink that costs only ½ rupee to produce is sold for Rs. 10 and major profits from these are sent abroad. This is a serious drain on Indian economy. Foreign franchise also play very important role in it. Increasing of franchise in India affects Indian economy as all profits goes to foreign country. There are more than 250 McDonalds outlet in Delhi only. More than 800 dominos in India.

India past liberalization has not only opened its doors to foreign investors but also has made it easier for them by implementing reforms in its foreign investment policies. These foreign investors eliminate the small scale/cap industries.

            These were some reasons, point and facts that show how we are affecting our economy. Also, there are other reasons also which affect the economy of our country.

Famous lines from a lok geet

  Humko mann ki shakti dena, mann vijay kare;
Dusroon ki jai se phle, khud ko jai kare

It means “O God give strength to be victorious over my mind. And give me courage to see faults in myself and to improve upon them, before looking for faults in others.”

            We always keep blaming other people, for whatever is happening to us. Why don’t we look into ourselves first! Why do we always point out faults in others; and what about those faults we ourselves are nurturing within us? I believe, if each individual works on him/her, India would be a better place; this is my vision of a better tomorrow.

                                                                                                                 

-by Vinay Chaurasia

B.A (H) Business Economics

Maharaja Agrasen College

University Of Delhi