India’s economic landscape is a paradox of rapid GDP growth and persistent economic inequality, as highlighted by a recent Reuters poll. Despite the nation’s impressive economic expansion, stark inequality remains a pressing issue that experts believe will not be easily resolved. The poll conducted between May 15 and June 18 revealed that the majority of economists and policy experts are skeptical about significant reductions in economic inequality over the next five years. This skepticism stems from the fact that despite the booming economy, over 800 million people in India still rely on free food grain distribution, showcasing the stark wealth disparity within the country.
Prime Minister Narendra Modi, embarking on his third term, faces the challenge of addressing rising economic inequality and high youth unemployment, factors that played a significant role in his party’s recent electoral setbacks. While India boasts a fast-growing economy, income inequality persists at alarming levels, leading experts to emphasize the need for proactive government interventions to tackle this issue.
Notably, experts point out that the quality of India’s economic growth over the past decade has not been inclusive, with a significant portion of the population still struggling to benefit from the country’s economic success. However, despite these challenges, the experts surveyed believe that India will continue to maintain a solid GDP growth rate in the coming years. Amid these projections, concerns about unemployment emerge as a key economic challenge for the government, with the unemployment rate on the rise.
Experts stress the importance of investing in skills development, job creation, and inclusive growth to drive sustainable economic progress in the country. While the government has introduced initiatives like subsidised grain distribution and focused on improving workforce skills, a holistic approach that addresses the root causes of inequality and unemployment is crucial for India’s long-term economic well-being. As India strives to become a developed economy by 2047, enhancing opportunities for all segments of society will be essential in ensuring a more equitable and prosperous future for the nation.
