QUES . Why did human development fail to keep pace with economic development in India? UPSC 2023 GS MAINS PAPER I, 250 words, 15 Marks
भारत में मानव विकास आर्थिक विकास के साथ कदमताल करने में विफल क्यों हुआ?
HINTS:
There are two reports given below:
1 . India is set to become the third-largest economy by 2030 and is expected to be the fastest growing major economy in the next three years, S&P Global Ratings said in its report ‘Global Credit Outlook 2024: New Risks, New Playbook’ released recently.
2 . In Human Development Report of 2021-22, India ranks 132 out of 191 countries, behind Bangladesh (129) and Sri Lanka (73). India’s Human Development Index (HDI) value stood at 633 in 2021, which was lower than the world average of 0.732. India was behind the world averages in 2021 on all the four parameters of HDI. (Life expectancy at birth ; Expected years of schooling ; Mean years of schooling and
Gross national income per capita).
The above two reports tell a lot about the growth story in which human development failed to keep pace with economic development in India.
Must read: Does urbanization lead to more segregation of the poor in Indian metropolises?
Reasons for human development parameters lagging behind economic development in India
Over emphasis on GDP growth and trickle-down theory
We initially focussed on GDP growth post-independence with the presumption of the trickle-down theory. But the corruption and time it took to reach the last man was so big. It resulted in poor human development. We complemented the macro approach with the HDI based micro approach only since the 10th five-year plan.
Low expenditure on health and education
Government expenditure on health and education stands at around 2.1% and 2.9% of GDP which is very low as compared to developed nations. Health being an integral part of human development was given less importance. Also lack of quality education, inadequate infrastructure, gender gap, etc. have led to low human development in terms of education. Thus, despite near-universal enrolment in primary education, learning outcomes are dismal as reflected in the Annual Status of Education Report (ASER) Report.
Inadequate investment in skill development and vocational training
There has been inadequate investment in skill development and vocational training programs, leading to a skills gap and reduced employability for many Indians. Also, over 90 % of workers remain informally employed while contributing to about half of GDP. However, they are deprived of social security benefits limiting their ability to access quality services.
Exclusive focus on BPL line approach to identify beneficiaries
Until recently, we have continued to focus exclusively on a BPL line approach to identify beneficiaries for
many welfare schemes. This threshold has been kept quite low excluding many deserving beneficiaries.
Suresh Tendulkar committee identified 21.9% of the population as poor in 2011 compared to the Socioeconomic caste census 2011 identifying 60% of rural and 35% of urban households as poor.
Gender-based discrimination hinder development of women
Gender disparities persist in India, affecting women’s access to education, healthcare, and economic opportunities. Gender-based discrimination and cultural norms continue to hinder development of women.
People even marginally above the poverty line are excluded from beneficiary lists
Income is considered as a proxy for command over resources since access to health and education with other capabilities depends on income. If the poor earn even marginally above the poverty line they are excluded from beneficiary lists under many government schemes. This means out of pocket expenditure often increases much more than the income, reducing the total consumption capacity on nutrition. Thereby, while between 2004-05 to 2019- 20, 41.5 crore people came out of poverty in India, malnutrition levels increased in the same time period.
Caste and communal differences
India’s caste and communal differences have not led to proper social cohesion which is required for all sections of the society to progress. This has restricted opportunities and access to resources for marginalized communities. According to the latest National Family Health Survey (NFHS) key health indicators such as IMR and child mortality rates among SC/ST communities are much higher than the national average.
Urban-rural divide
The urban-rural divide has also led to low human development in the rural areas. Cities are the centres of economic growth with a 60% contribution to Indian GDP. However, rural India, home to about 70% of the population, has lagged behind in growth and access to essential services.
Rapid population growth
Rapid population growth in India strains resources and makes it challenging to improve human development indicators.
Measures to increase the pace of human development in India
Measures to improve the human development so that it can keep pace with economic development in India:
Investments in social infrastructure such as healthcare, education and skill development.
Improve access to quality social services.
Strengthen institutions, reduce corruption, and ensure transparency in government programs.
Implement progressive tax policies and social safety nets to reduce income disparities.
Creating job opportunities and promoting fair wages, especially for low-skilled and informal workers.
Thus, synchronizing economic growth with human development is a need of the hour.
External link: https://www.ihdindia.org/PDFs/Consultation-Report.pdf
