The last two years showcased the myopic vision of the Developed Nations and ramifications of the Capitalism in the form of Subprime Crisis, Euro Crisis, Dubai and Greek Debt Defaults etc. The testing time is over and the results are out with India as one of the few resilient countries who could manage to come out of the Global recession very soon. Few of the reasons are strong Indian Banking Fundamentals, sound monetary and fiscal policy, low Trade/GDP ratio etc.
India which is the world’s second largest growing economy growing at a rate of 8-9 percent consistently attracted a lot of FDIs and FIIs as a reward of its financial stability. Infact few of the Indian Stocks are amongst the world’s top most followed stocks. The short term economic health indicators such as IIP figures also showed us a strong consolidation.
But inspite of these stalwart figures by CSO, showcasing a strong macroeconomic picture of India, the internal health of the system showcases an altogether different story. During the last year, the pendulum kept moving from Deflation to Inflation. The fluctuating Exchange Rates caused a lot of losses to both Exporting and Importing Industries. The crude oil rate regime was also a lot of concern worsening the inflation impact. Inflation is widening the wealth gap in a country.
All these are directly impacting the rural population a lot and there are suffering from a lot of malnutrition death due to their low income level. One of the reasons of their low incomes is the lack of credit available from banks due to paucity of microfinance and cooperative banks. There are nearly 40 per cent of the 1.2 billion population lives on less than $1.25 a day but the ranks of dollar millionaires have grown at 11 per cent a year over the past decade to 11500. The need of the hour is more of them, innovations from Information Technology and Researches for the betterment of rural population.
The Demographic Dividend is on the rise but is our HDI, which is one of the lowest amongst Asian countries is on rise??
There are transitory austerity measures and Rural-Employment boosting programs such as NREGA by the government but does that resolve the purpose of reducing our Geni Coefficient??
Are we taking enough proactive steps to divide the so-called “Rural-Urban divide“??
India which is the world’s second largest growing economy growing at a rate of 8-9 percent consistently attracted a lot of FDIs and FIIs as a reward of its financial stability. Infact few of the Indian Stocks are amongst the world’s top most followed stocks. The short term economic health indicators such as IIP figures also showed us a strong consolidation.
But inspite of these stalwart figures by CSO, showcasing a strong macroeconomic picture of India, the internal health of the system showcases an altogether different story. During the last year, the pendulum kept moving from Deflation to Inflation. The fluctuating Exchange Rates caused a lot of losses to both Exporting and Importing Industries. The crude oil rate regime was also a lot of concern worsening the inflation impact. Inflation is widening the wealth gap in a country.
All these are directly impacting the rural population a lot and there are suffering from a lot of malnutrition death due to their low income level. One of the reasons of their low incomes is the lack of credit available from banks due to paucity of microfinance and cooperative banks. There are nearly 40 per cent of the 1.2 billion population lives on less than $1.25 a day but the ranks of dollar millionaires have grown at 11 per cent a year over the past decade to 11500. The need of the hour is more of them, innovations from Information Technology and Researches for the betterment of rural population.
The Demographic Dividend is on the rise but is our HDI, which is one of the lowest amongst Asian countries is on rise??
There are transitory austerity measures and Rural-Employment boosting programs such as NREGA by the government but does that resolve the purpose of reducing our Geni Coefficient??
Are we taking enough proactive steps to divide the so-called “Rural-Urban divide“??
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