India is one of the world's poorest countries. A new multidimensional poverty index shows that India is much poorer than Africa in intensity and number. Multidimensional poverty index developed by the University of Oxford (to appear in the next report on human development, UNDP) shows that India is much poorer in Africa only in numbers but also in intensity. Th new poverty measure shows that 8 states in India have more poor people than the poorest 26 African countries together. The poverty rate multidimensional poverty views from different angles rather than just GDP figures. India, like any other developing country is hampered by many problems. For example, the rate of population growth in India is increasing day by day putting pressure on limited resources and leaving many Indians in absolute poverty. India is very poor in terms of education, in terms of improving the economy, infrastructure, health care, etcÉstos are some of the problems facing India today. In India today, nothing more:
1. High rates of inflation.
Driven by rising wages, property prices and inflation in food prices in India is a growing problem. Inflation is currently between 6-7%. A record 98% of Indian companies operating report almost at full capacity (2) With economic growth of 9.2% per anum tend to increase inflationary pressures, especially with supply constraints such as infrastructure. The index of wholesale prices (WPI), rose to 6.6% pa in January 2007 (1)
2. Poor education, especially among women in India.
Although India has benefited from a high% of English speakers. (Important for the industry call centers) are still high levels of illiteracy among the population. It is worse in rural areas and among women. Over 50% of indigenous women are illiterate
3. The lack of infrastructure.
Many indigenous people lack basic services have no access to running water. India public services are creaking under the pressure of bureaucracy and inefficiency. Over 40% of India fruit rots before reaching the market, which is an example of supply constraints and inefficiencies on the economy of India.
4. BOP deterioration.
Although India has accumulated a large amount of foreign currency reserves on current account deficit will deteriorate in recent months. This deterioration is the result of overheating. The aggregate supply can not meet the aggregate demand for consumers are sucking in imports. Excluding workers' remittances account deficit in India is about 5% of GDP
5. High levels of debt.
Encouraged by a housing boom the amount of loans in India has grown 30% last year. However, there are concerns about the risk of these loans. If prices are dependent on increased property could be problematic. Moreover, if inflation rises more than you can force the RBI to increase interest rates. If interest rates increase substantially the debt will face increased interest payments and, potentially, reduced consumer spending in the future
6. Inequality has increased rather than decreased.
It is expected that economic growth would help to drag the Indian poor above the poverty line. But until now, economic growth has been uneven in favor of the skilled and wealthy disproportionately. Many of India's rural poor have yet to receive any tangible benefits of economic growth in India. More than 78 million households without electricity. 33% (268million) of the population lives on less than $ 1 per day. And with the spread of television in Indian villages the poor are increasingly aware of the disparity between rich and poor. (3)
7. Large budget deficits.
India has one of the largest budget deficits in developing countries. Excluding grants amounted to nearly 8% of GDP. Although it has fallen a bit in the last year. Still allows limited scope for increasing investment in public services like health and education.
8. Rigid labor laws.
Examples of companies employing over 100 people can not fire workers without government permission. The effect of this is to prevent companies from expanding to more than 100 people. It also discourages foreign investment. Unions have an important political power base and governments often shun the fight against labor laws potentially politically sensitive.
These are just some of the problems facing India today. Life in India is more than absolute poverty with little hope of survival in the near future. A good education is the key to economic improvement but India is lacking the essential key in terms of education and therefore in terms of economic improvement. What do you think? What are some of the problems facing India today? How can India to overcome some of these problems? Who is responsible and who is to blame?
Most of the communities in the entire Indian sub-continent(such as Bengali) succumbed in ‘Culture of Poverty'(Oscar Lewis), irrespective of class or economic strata, lives in pavement or apartment. Nobody is at all feel regret ed or ashamed of the deep-rooted corruption, decaying general quality of life, worst Politico-administrative system, weak mother language, continuous absorption of common social space (mental as well as physical, both). We are becoming fathers & mothers only by self-procreation, mindlessly & blindfold(supported by some lame excuses). Piling up pressure on a society which is already saturated. Simply depriving their(the children) fundamental rights of a decent, caring society, fearless & dignified living. Do not ever look for any other positive alternative behaviour(values) to perform human way of parenthood, i.e. deliberately co-parenting children those are born out of ignorance, extreme poverty. It seems that all of us are being driven only by the very animal instinct. If the Bengali people ever be able to bring that genuine freedom (from vicious cycle of ‘poverty’) in their own life/attitude, involve themselves in ‘Production of (social) Space’ (Henri Lefebvre), initiate a movement by heart, decent & dedicated Politics will definitely come up. – Siddhartha Bandyopadhyay, 16/4, Girish Banerjee Lane, Howrah-711101, India.
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