Economic Development Of India Essay

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India is one of the few Third World countries that have managed to achieve substantial economic growth. A country that was once an example of underdevelopment is now seen as a potential future economic power. India has nowadays some of the biggest megalopolis is the world, has developed an enormous service sector and its cheap labor as well as their stable democratic record provide an incentive for foreign investment in the country. However, this economic growth is not correlated with the improvement in human conditions. More the half of the Indian population still lives on less than two dollars per day. It is fair to say that the Indian economic development has benefitted some people, however it is only a small part of the population who has …show more content…

The economic development of India has its roots in the policies and mindset taken by people like Jawaharlal Nehru and other founding fathers of the country. However, the most important change began in the 80’s under the governments of prime ministers like Indira and Rajiv Gandhi, who introduced pro-business reforms as well as they liberalized access for domestic firms to capital imports and relaxed industrial licensing. These reforms provided an incentive for both domestic and foreign firms to begin investing in the country in a way that due to the previous impediments of government licensing had been impossible before. Moreover, in the 90’s India dismantled its barriers to foreign trade and liberalized the inward foreign investment. With these reforms, came the growth of the telecommunications and the finance sector. The government also decentralized, which in turn meant that individual states had more autonomy in the way that they were ruled. The result of this was an unequal development amongst the states. We can see this in the differences in development when comparing Indian states like Kerala, with an HDI of 0.79, and Chhattisgarh, which shows an HDI of 0.36. These discrepancies in levels of development had led to an exodus of people, from less developed areas to the areas that have been benefitted by …show more content…

Corruption in the Indian government runs from the highest officials to the lowest sectors of government. At the end of 2010 120 out of the 520 members of parliament had been accused of committing crimes, and 40 of these being accused of serious crimes. Numbers like these help to exemplify the type of people who are currently running India. One of the main problems when it comes to politicians, as it is in most Third World Countries, is that people see politics not as a way of making the country better, but an easy way of getting rich. However, corruption in India happens even at the lowest levels of society. A study done in 2005 by Transparency International found that 62% of Indians had had to pay bribes or make use of connections in order to get state jobs or get other government provided commodities. The problem that arises from these practices is that Rentierism has been institutionalized in India and now government officials see the taxation of the public office as their right, instead of a corrupt practice. This has led to the civil society getting used to corruption and accepting it as part of their daily lives. However, India pays a high price due to corruption. It is estimated that corruption has a cost for India of over $50 Billion a year. If this money was

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