{"id":27236,"date":"2024-08-07T17:22:34","date_gmt":"2024-08-07T11:52:34","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=27236"},"modified":"2024-08-07T18:16:18","modified_gmt":"2024-08-07T12:46:18","slug":"developed-country-a-status-india-is-aiming","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/editorial-analysis\/07-08-2024\/developed-country-a-status-india-is-aiming","title":{"rendered":"Developed Country: A Status India is Aiming"},"content":{"rendered":"\n<p><strong>Syllabus :GS 3\/Economy&nbsp;<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-0dab4a35479cb7a88ac0f778de143bb9\" style=\"color:#015aa7\"><strong>In Context<\/strong><\/h2>\n\n\n\n<p>There\u2019s an optimistic belief that India\u2019s economic growth is inevitable .<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>But previous countries with similar growth trajectories have often failed to transition to developed status.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background has-fixed-layout\" style=\"background-color:#fff2cc\"><tbody><tr><td><strong>Do you know ?<\/strong><br>&#8211; The term \u201cdeveloped country\u201d doesn\u2019t have a single accepted definition.<br>&#8211; Developed countries have advanced technological infrastructure and diverse industrial and service sectors.&nbsp;<br>   1.Their citizens typically enjoy access to quality health care and higher education.<br>&#8211; The <strong>UNDP (United Nations Development Programme) <\/strong>has a thresholdof the 75th percentile in HDI (Human Development Index) distribution to be classified as a developed country, whereas<strong>&nbsp;<\/strong><br>&#8211; <strong>The World Bank <\/strong>classifies countries whose GNI (Gross National Income) per capita isabove $13,845 as \u201chigh-income countries\u201d.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-5f039b5ca12c0fe2796758901a3853fd\" style=\"color:#015aa7\"><strong>India\u2019s Status&nbsp;<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India&#8217;s journey towards becoming a developed nation by 2047 hinges significantly on improving its infrastructure, a cornerstone for fostering liveable, climate-resilient, and inclusive cities that drive economic growth.\n<ul class=\"wp-block-list\">\n<li>From 1991 to 2011, India\u2019s poverty rate dropped from about 50% to 20%, lifting 35 crore people out of poverty.<\/li>\n\n\n\n<li>While income inequality persists, overall living standards have improved, especially for those at the bottom of the economic pyramid.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Present Scenario :&nbsp;&nbsp;<\/strong><\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/lh7-rt.googleusercontent.com\/docsz\/AD_4nXfZOe-zfkNHB_pGzQqLG_tKPlCwUOZiSN6iSsmr2LIl-OlUoUjQT7zFZuh7-GrBazGblp6hSknH_muCOl9WbdhLbnlBuTBND3Jl858Q4MCqhVJpV7Nmv9NiCUYZDwsRtO_QAacPlwo8vWtiZo8ZkngD1cs?key=DDjfcR85ATc696KTeSWoQg\" alt=\"\" style=\"width:366px;height:auto\"\/><\/figure>\n<\/div>\n\n\n<ul class=\"wp-block-list\">\n<li>India\u2019s real GDP is projected to grow between 6.5\u20137 per cent in 2024-25. The Indian economy recovered swiftly from the pandemic, with its real GDP in FY24 being 20 per cent higher than the pre-COVID, FY20 levels.<\/li>\n\n\n\n<li><img decoding=\"async\" style=\"width: 400px;\" src=\"https:\/\/lh7-rt.googleusercontent.com\/docsz\/AD_4nXfpoLHMKW7iOSbw3rjpnffTaL0pTq6cQ4EuuVVgr0vekCEjfFfHAzCGGafb-It5iGPFYAY0bHAfwwQgfKAsxOIukBEeeg6SLRarb4-JnxEDn-htvUcn1Kbfy9vxCinhqA3GDBCYuRuehNuXHlrq-R8aKBe6?key=DDjfcR85ATc696KTeSWoQg\"><\/li>\n\n\n\n<li>The <strong>World Bank in June 2024<\/strong>&nbsp; predicted that India is set to remain the fastest-growing major economy globally, though its growth rate is expected to slow.\n<ul class=\"wp-block-list\">\n<li>It maintained the GDP growth forecast for India at 6.6 per cent for FY25.&nbsp;<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-96b437eb9c587c352fa5b10202019c3a\" style=\"color:#015aa7\"><strong>Challenges<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Agricultural Sector<\/strong>: 46% of India\u2019s labor force is in agriculture, which is low-productivity and contributes only 18% to GDP.<\/li>\n\n\n\n<li><strong>Female Labor Force Participation:<\/strong> At 37%, this is low compared to other countries like China, Vietnam, and Japan.<\/li>\n\n\n\n<li><strong>Middle-Income Trap:<\/strong> Many countries fail to progress from middle-income to high-income status.<\/li>\n\n\n\n<li>There is difficulty in leveraging surplus labour for <strong>low-end manufacturing,<\/strong> limiting growth opportunities.<\/li>\n\n\n\n<li><strong>Indian States face cost disabilities for power<\/strong>, logistics and financing, coupled with low labour productivity when compared to countries such as Bangladesh, China and Vietnam, and a compliance burden that deters new players from entering and the existing ones from expanding<\/li>\n\n\n\n<li><strong>&nbsp;India lags behind in HDI rank<\/strong> mainly because of its low life expectancy and per capita income,which can be improved with government spending in the education and health sectors.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-2068fdec3ca6527b7e72b27cdf8e17fa\" style=\"color:#015aa7\"><strong>Suggestions&nbsp;<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India\u2019s focus<strong> should be&nbsp; on Manufacturing<\/strong> and To grow, India should emulate successful models like South Korea and Vietnam by focusing on low-skilled, export-oriented manufacturing.\n<ul class=\"wp-block-list\">\n<li>Prioritize low-skilled manufacturing sectors like electronics and apparel to create large-scale employment.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>There is a need to <strong>avoid protectionism<\/strong> because large tariffs could harm industries dependent on imported components, raising prices and reducing competitiveness.<\/li>\n\n\n\n<li>The government should develop<strong> industrial clusters<\/strong> with modern infrastructure, education, healthcare, and other amenities.<\/li>\n\n\n\n<li>There is a need to maintain a <strong>market-led economy<\/strong> with minimal government interference, improve ease of doing business, and foster private enterprise.<\/li>\n\n\n\n<li><strong>Track inter-State migration<\/strong>, urbanization, female labor force participation, and the decline of agriculture\u2019s employment share to assess progress.<\/li>\n\n\n\n<li><strong>With ambitious and forward-thinking strategies,<\/strong> India can achieve its economic goals and fulfil its potential.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background has-fixed-layout\" style=\"background-color:#fff2cc\"><tbody><tr><td><strong>Mains Practice Question&nbsp;<\/strong><br><strong>[Q]<\/strong> What are the key challenges and opportunities India faces in its pursuit of becoming a developed nation?<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>Source:TH<\/strong><\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button is-style-round\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.nextias.com\/ca\/wp-content\/uploads\/2024\/08\/Daily-Editorial-Analysis-7-08-2024.pdf\">Download PDF<\/a><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>There\u2019s an optimistic belief that India\u2019s economic growth is inevitable .<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[22],"tags":[],"class_list":["post-27236","post","type-post","status-publish","format-standard","hentry","category-editorial-analysis"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/27236","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=27236"}],"version-history":[{"count":3,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/27236\/revisions"}],"predecessor-version":[{"id":27242,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/27236\/revisions\/27242"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=27236"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=27236"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=27236"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}