Editorial Notes

[Editorial Notes] Unlocking a hundred $50 billion economies across the country

The Economic Survey 2018-19 and the Union Budget 2019-20 have indicated the government's goal of making India a US$ 5 trillion economy by 2024-25. To achieve this goal, the economy needs to grow at high and robust rate.
By IASToppers
July 31, 2019

Contents

  • Introduction
  • Current Scenario of development in various parts of the country
  • Governments Efforts
  • Some traditional and scalable business in India
  • Suggestions to achieve $5 trillion economy in the next five years
  • Way Forward

Unlocking a hundred $50 billion economies across the country

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Introduction:

  • India aspires to be a $5 trillion economy in the next five years.
  • To realize this vision, India need to decentralize its efforts by unlocking hundreds of $50 billion economies across the country.
  • This is done by encouraging states to set targets and develop road maps to contribute to the national effort.

Unlocking a hundred $50 billion economies across the country IASToppers

Current Scenario of development in various parts of the country:

Maharashtra:

  • India has hitherto grown unevenly, with some regions contributing to the country’s gross domestic product (GDP) much more than others.
  • For Example, the gross state domestic product (GSDP) of Maharashtra is projected to be a little more than a tenth to the country’s GDP, the highest among all states.
  • Such a development model is neither environmentally sustainable nor inclusive as it puts disproportionate pressure on a fast-growing region’s infrastructure and resources.
  • This pattern of development model is repeating itself in other existing and emerging pockets of growth.

Surat:

  • The Oxford Economics predicts that all the top 10 fastest-growing cities in the world for the next 15 years are going to be in India.

top-10-fastest-growing-cities-IASToppers Unlocking a hundred $50 billion economies across the country

  • Surat tops this list and is expected to add close to $100 billion to GDP during this period.
  • However, there is absence of decent working conditions, a part of the compensation from laborers are taken back and workers have negligible opportunities to partake in the region’s growth.

Bangalore:

  • By 2035, Bengaluru city is stated to be the largest economy among Indian cities.

Bangalore-IASToppers Unlocking a hundred $50 billion economies across the country

  • However, it is currently facing its worst water crisis in history, in addition to other sustainable-development-related challenges.
  • The ‘Cities in Motion’ Index, which compares cities on indicators of competitiveness, sustainability and quality of life of inhabitants, ranks Bengaluru (highest among Indian cities) at 153rd

Chennai:

  • Chennai was ranked at 88th place in the Sustainable Cities Index, which ranks cities on the parameters of “people, planet and profit”.

Governments Efforts

  • There is a large scope for the development of Traditional sustainable and scalable business practices in India that promotes inclusive development, local infrastructure growth and reduction in migration.
  • Hence, the central government has developed its Aspirational Districts Programme, focused on human development.
  • Andhra Pradesh has introduced a new law to reserve jobs for locals in private industrial units and factories.
  • States like Karnataka, Gujarat, Madhya Pradesh and Maharashtra are considering similar initiatives.

Some traditional and scalable business in India:

  • The coir and areca tableware industries in Kerala
  • Banana and other natural fiber industries in Tamil Nadu
  • Clay product industry in Gujarat
  • Lantana furniture industry in Uttarakhand
  • The bamboo industry in Tripura and other North-Eastern states

Suggestions to achieve $5 trillion economy in the next five years:

Unlocking a hundred $50 billion economies across the country 1 IASToppers

  • A special focus should be given to the laggard states, or regions, so that inclusive development can be achieved.
  • The inward-looking model of developing only specific region needs to give way to the outward looking development
  • India need several anchors to engage resources of different magnitudes, capable of setting off development cycles within and around the region rather than focusing on a few big magnets to attract enormous human and financial resources.
  • To be sustainable, economic and human empowerment need to be coupled with political empowerment.
  • Aspirational Districts Programme of central government need to enlarge in size and scale to cater the traditional sustainable business flouring in remote corners of India.
  • Citizens need to work with governments and bureaucrats more closely to set performance targets and fix accountability in case of non-performance.

Way Forward:

  • With an inclusive and sustainable vision for growth, all Indian states can contribute to a $5 trillion economy by 2024-25.
  • A harmony between human, economic and political empowerment of citizens is the key to achieve this goal.
  • Furthermore, Indian union government has to be neutral towards whichever party is in power in the states and support all in this national endeavor.

 

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