- The euphoria witnessed across the country on the occasion of the 75th Independence Day celebrations, aptly monikered as Azadi Ka Amrit Mahotsav, has seen unprecedented enthusiasm, participation, and revelry by the citizens. The credit should go to the Union Government, especially to Prime Minister Narendra Modi, for initiating the measure that has largely helped in tapping the patriotism of citizens on a never-seen-before scale. While we soak in the nationalism fervor and festivities, the Union Government should also make renewed efforts at ensuring the aspirations of the citizens are given a definite shape. An impediment in the form of the global slowdown also effectively curtailed the Indian economic outlook is stating the obvious.
PC: Drishtiias
- As such, the time has come to give further fillip to boost the economy with pragmatic reformist measures sooner than later. Given this backdrop, PM Modi’s Independence Day speech setting an ambitious target – India must become a developed country by 2047 – should push the administrative machinery to top gear in taking up the challenges. Now, developed is as elastic a term as developing, and economists can provide multiple criteria as well. Nonetheless, income and per capita income are certainly one key criterion, and the other is that non-farm employment must be far more than farm employment. Mind you, the two criteria are linked – incomes rise as the share of people in farming do down and manufacturing and services jobs multiply.
- Looking back in time will show this to be true from the beginning of the Industrial Revolution in Britain in 1760. That was the most consequential change in human society after the beginning of agriculture. Also, in every country that has become rich, farm employment has radically shrunk in commensurate with the other sectors taking off. Now, where does India stand today? As reports reveal, around 41% of the labor force remained in agriculture in 2018-19, and manufacturing employed just 12.1%. It is basic, low-paid, insecure jobs in services and real estate that absorbed some of the surplus labor struggling to get out of farms. As such, India’s route to ambitious developed country status requires people to move out of farms much faster.
PC: Vidhi Shukla
- To fructify, farming must be reformed, and manufacturing should flourish. We know the first is a political hot potato, one that even the dominant BJP had to drop. The second will require two things: Centre-state combined effort to clear projects fast all the time and the Centre to stop hiking import duties. Here, this situation is as political and untenable for the urge to show one-upmanship will ensure the matter is pulled in different directions. Apart from unreasonable import duties, the perennial challenges in the speedy dispute redressal process also pose hurdles. Did someone mention the judicial delivery system needs reforms too? If not addressed prudently now, India’s economy will get bigger, but its economic status won’t change.
