India as a ‘developed’ country: where we are, and the challenges ahead
- While addressing the nation on Independence Day, Indian PM asked Indians to embrace the “Panch Pran” (five vows) by 2047 including a vow to become a developed country in the next 25 years.
What is a “developed” country?
- World Economic Situation and Prospects of the United Nations classifies countries into three broad categories:
- Developed economies,
- Economies in transition,
- Developing economies,
- The basic idea is “to reflect basic economic conditions”.
- There are 31 developed countries according to the UN in all.
- All the rest except 17 “economies in transition” are designated as “developing” countries
UN’s nomenclature is often contested, Why?
- Not accurate
- Doesn’t reflect the true picture
- Has limited analytical value.
Where does India stand?
- India is currently defined as a developing country.
- India is one of the biggest economies of the world but still far behind the US and China.
- On per capita income, India is behind even Bangladesh.
- China’s per capita income is 5.5 times that of India, and the UK’s is almost 33 times.
Challenges for India to become Developed country
- Relative Poverty in India: As per World Bank, most Indians are still relatively poor than other middle income or rich countries.
- Food Share of Consuption: Even the total consumption by rich households in India is far behind the poor households in rich countries.
Conclusion
- By 2047 at least half its citizens would join the ranks of the global middle class.
- Citizens will have access to
- Better education and health care
- Clean water and improved sanitation
- Reliable electricity,
- Safe environment, affordable housing,
- Enough discretionary income to spend on leisure pursuits.
- So, the path towards becoming a developed nation is visible and achievable.
Prelims Takeaway
- World Economic Situation and Prospects
- Poverty in India
- Human Development in India