Placing too much emphasis on GDP

No matter what measures are adopted, certain challenges are bound to be faced, in the effort of a developing country such as India. Though outgrown by India in terms of economy size, the per capita income of Japan is close to 12 times that of India. Among the important steps to be taken in the future are addressing the unequal wealth distribution, enunciating progressive policies on land reforms, creation of safety nets to nullify the impact of growth-oriented economic policies on the resource poor, enlightened labour policies and balancing the need, for the adoption of automation and technological advancements to save labour costs, by creating opportunities for those displaced on account thereof

BVR Subrahmanyam, CEO, NITI Aayog, recently claimed that India’s economy is now the largest fourth largest globally, surpassing that of Japan. Prime Minister Modi made a statement to the same effect a little later which, some experts claim, lacks logic, although it is true. The per capita income of Japan, for instance, is close to 12 times that of India. Also the comparatively higher performance of India is largely on account of the size of its population and, according to them, not on account of any groundbreaking reforms undertaken by the government.

Quite apart from the overall robustness which the Indian economy displays, and its impressive performance in terms of growth rate, there are several causes for concern. Concern caused by issues such as inequity in terms of the distribution of the benefits of development over regions, sectors, and sections of the population, the persisting wealth and income inequalities, the unhealthy contribution to the total goods and services by the bottom 50% of the population, the tax burden on the poor gender inequality, the child – wasting rate, food security and nutrition, lack of adequate access to healthcare and primary education. And India’s extremely disappointing ranking in international measures, such as the Global Hunger Index (GHI) and the Human Development Index (HDI). India’s child wasting rate, for instance, is the highest in the world, at 18.7. And its score in GHI is 28.7, considered serious. Likewise, its position in HDI 130 out of 193 countries, is extremely disappointing, in spite of a moderate improvement in recent times. Similarly, India was ranked 127 out of 146 countries in the Global Gender Gap report a couple of years ago. Also, according to the State of Food Security and Nutrition in the World report 2023, close to 74% of the population cannot afford a healthy diet, with 39% short of a nutrient – adequate one. And healthcare remains a luxury with the majority, close to 63 million people, being pushed into poverty on account of high costs. And the World Inequality Report of 2022 showed that India is among the most unequal countries in the world, with the top 10% and top 1% of the population holding 57% and 22% of the total national income, respectively, and the share of the bottom half going down to 13%. Another matter of grave concern is the fact that India’s rank in the Chandler Good Governance Index, an annual index that measures the capabilities and effectiveness of governments around the world, is 49 out of 104 countries looked at.

Among the important steps to be taken in the future are addressing the unequal wealth distribution, enunciating progressive policies on land reforms, creation of safety nets to nullify the impact of growth-oriented economic policies on the resource poor, enlightened labour policies and balancing the need, for the adoption of automation and technological advancements to save labour costs, by creating opportunities for those displaced on account thereof. Other measures include enforcing the constitutional guarantee of equality, progressive taxation measures (taking away from Paul to pay Peter, in other words), inclusive governance (meaning greater citizen participation, promoting transparency, and reducing corruption, apart from empowering local governments and involving marginalised communities in decision-making processes), engaging the corporate sector through measures such as the extant Corporate Social Responsibility (CSR) requirement and increasing the reach of basic necessities to a universal audience through high-quality public funded services, especially in areas such as public health and education, social security benefits and employment guarantee schemes.

Some other suggested measures include women empowerment and the provision of a greater voice to civil society groups, particularly those traditionally suppressed. Embracing emerging technological advancements to create new opportunities for all, whose benefits are shared across different sections of society is another such recommended step. Such a range of measures is also in alliance with the aspirations of the Sustainable Development Goal (SDG) 10 of the United Nations.

Notable among the many forward looking and welfare-oriented programmes undertaken by the Government of India from time to time, in order to improve the overall situation, are the Prime Minister’s Rural Employment Guarantee programme, the Deendayal Upadhyaya Grameen Kaushalya Yojana, the Samagra Shiksha Scheme, the National Health Mission, the Swachh Bharat Mission, the Pradhan Mantri Jeevan Jyoti Bima Yojana and the Mission Ayushman, among others.

No matter what measures are adopted, certain challenges are bound to be faced, in the effort of a developing country such as India, on its journey towards a future of rapid growth and sustainable development. Important among those are the danger of trade and supply chain, suffering on account of international conflict, market volatility caused by uncertain international political and economic developments inflation, inability to contain fiscal deficit and reduced investor confidence on account of external threats.

Borge Brende, President of the World Economic Forum, recently commended India and predicted that it will reach its goal of being a $10 trillion economy in the coming ten years. It is felt by experts, however, that thee exclusive emphasis on economic growth alone is an increase in concern and there is an urgent need for policy interventions and heightened government actions to ensure balanced and inclusive growth.

The name Japan incidentally, derives from the word Nihon (or Nippon), originating from two Chinese characters, meaning ‘sun origin.’ The country also is referred to as the ‘’ Land of the rising sun’, on account of its geographical position, making it the first to see the sunrise. Somewhat on the lines on Britain once being called the ‘Empire in which the sun never sets’, as its coverage was so vast that there was always a portion of it experiencing daylight.

It is a matter of immense gratification and pride for India that, following the tsunami, earthquake and nuclear leak in 2011, Japan sought the assistance of India, and that the team sent in response, of the National Disaster Response Force, performed its task exceptionally well and earned the appreciation of the local national governments in that country. For quite some time now, development activities in India have also received support from the Government of Japan and other organisations. The Japanese International Cooperation Agency (JICA) has, for instance, been a key partner for India, collaborating on various projects across sector such as poverty elevation, infrastructure development and investment promotion.

The collaboration and cooperation between the two great countries has proved a boon to both partners. To borrow the spirit of one of the couplets of the legendary Mirza Ghalib, so inspiring is the enthusiasm that the bonds of good friendship bring with them, that even the greatest power on earth need not be feared any more.

One needs, however, to guard against making hasty comparisons between them, which are fraught with the potential for serious misunderstanding.

(The writer was formerly Chief Secretary, Government of

Andhra Pradesh)