Friday, June 29, 2007

India in "Wealth of the Nations"

Singapore's population of of US dollar Millionaires surged by a staggering 21.2 percent last year to 66,660 - the fastest growth rate in any nation in the world. Singapore was followed closely by India with 20.5 percent growth, Indonesia (16 percent) and Russia (15.5 percent). Along with this list we also see that Indian economy is growing with a rate of more than 9 percent. India has a ecnomically wide middle class of 300 million plus population. 12 Indian companies have figured in the latest list of “Fabulous 50” of prestigious international magazine Forbes Asia. These Indian firms are Bajaj Auto, Bhel, Infosys, ITC, Reliance Industries, ICICI Bank, HDFC Bank, L&T, Satyam Computers, Sterlite Industries, Tata Motors and Wipro. This is the second annual Fab 50 list, the best o Asia Pacific’s publicly-traded companies with revenues or market capitalization of at least $ 5 billion. According to a study conducted by the global consultancy and research major Ernst and Young, India has emerged as the second biggest foreign investor (first is the US) in the United Kingdom with nearly three-fold jump in the number of projects announced by Indian companies there in the first half of 2006. The Sensex has crossed the 13000 mark and on October 30, 2006 it closed 0.91 per cent higher at 13,024.26 points. Foreign funds have invested $6.3 billion this year in the Indian market, which has risen 38.6 per cent in 2006, as compared to last calendar year’s 42 per cent gain.

However, the other side of India's success story potrays a gloomy picture. The benefits of this growth has not trickled down to the grassroots. It has concentrated within the elite sphere and among the middle class which has spread a culture of consumerism. More than 260 million people live below the poverty line and more than 268 million people are still suffering from food insecurity. India is placed at the 48th position having 31.4 percent value in the Human Poverty Index 2004 where as Maldives and Sri Lanka secures the 17th and 36th rank in the list of 95 developing countries. In India today 34.7 percent of the population live with an income below $ 1 a day and 79.9 percent below $ 2 a day. Nearly nine out of 10 pregnant women aged between 15 and 49 years suffer from malnutrition and about half of all children (47%) under five suffer from underweight and 21 percent of the populations are undernourished.

Though, it is a proud moment for us that the market economy has helped us overcoming the "Hindu Rate of Growth", we should find ways to effectively utilise the political apparatus to make economic growth inclusive and distribute its benefits among the the poor and marginalised sections of the society. The concentration of economy among the "choosen few" will increase the gap and create a society unsustainable in the long run.

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