THE DIFFERENT FACETS OF EMERGING ECONOMY

The growth of Indian economy has been characterized more by hyperbole than the results for the common man and the poor. The year 2007 may be a watershed moment for the economic growth of our country with the G.D.P. projected at 9%. Keeping pace with the new age developments the past few years have seen rapid economic growth. Rapid economic growth and the existence of millions of poor people in India have exemplified our country as a land of contrasts. India is a land of collisions between the past and the present. Two decades back though the economic growth was slow, it was poor oriented. It ushered in a green revolution which led to agricultural growth and community and rural development which alleviated the problems of the poor. But the benefits of the present rapid economic growth have not percolated to the poor and the common man. The rate of decline in poverty has not kept pace with higher growth. There is no denying the fact that 60 percent of the Indian population depends on agriculture. Agriculture alone accounts for more than 20 percent contribution to G.D.P. However the budgetary allocation is grossly low when compared to the other sectors. Though the government has emphasized on increased credit facilities to the rural population engaged in farming, Banks are fighting shy to provide loans to more than 50 percent of the farmers. Bank's apathy, non remunerative prices and poor rural infrastructure like irrigation, ware housing and transport has added to the woes of the farmers. Farmers were deprived of fair prices for their produce resulting in their indebtness and large number of suicides. Ironically most of the suicides were from agricultural advanced states of Maharashtra, Karnataka, Andhra Pradesh and Punjab.

India is a land of contrasts where there are some who invest lakhs and crores of rupees on an apartment or have the right to splurge in a licentious way while others are content and happy at being able to pay Rs.25/- for a square meal. The satisfaction at the macro economic situation gets camouflaged with the stark fact that nearly 77 percent of our population earns an income of Rs.20/- per day. The inequalities in human development have an adverse impact on the lives and capabilities of the people. The two faces of India should converge for a sustainable growth and bring about a social harmony in the country. The states of Bihar, Madhya Pradesh, Gujarat, Maharashtra and U.P. have accounted for 75 percent of the country's rural poor.
Poverty can be eradicated only by significant investments in health, human resources, education, and infrastructure. Investments in social infrastructure will provide the common man and the poor with access to employment opportunities. I believe that education is the catalyst that generates human resource and it is considered as the most effective weapon to fight poverty. In the eyes of the common man there are two Indias - an India which is focusing on generation and accumulation of wealth and the other on eradicating poverty. With the economic boom and the bullish share market wealth is cornered by only a section of the population. The inequalities in human development have adversely impacted the life and capabilities of our people. The two faces of India should converge for a sustainable economic growth to create decent employment opportunities which will not only eradicate poverty but will build a strong foundation for political and social stability.

It is high time the ground realities are accepted to rectify and address the crisis. India's phenomenal growth rendered in figures in graphs and bulletins appears to be a fairy tale. The government claims that the revenue collection during the present financial year is the highest when compared to the earlier periods.

The direct tax collection during April, December 2007 of the current financial year at Rs.164 crores is a whopping 42 percent higher than what the government collected in the corresponding period last year. Corporate tax contributed Rs.98391 crores. In order to widen the tax net and broaden the tax base the government is roping in new payers besides introducing new taxes like fringe benefit tax, securities transaction tax, banking transaction tax and service tax. It is reported that the securities transaction tax at Rs.5895/- crore was 74 percent higher than last year. The government claims to have brought down Inflation to 3.5 percent which is based on wholesale Index. It is not based on a reality check. The consumer price Index and the retail price of commodities are always on the rise which has deprived the poor and the middle class people from realizing their rightful aspirations. Unfortunately channeling the revenue for development projects and ameliorating the sufferings of the poor is bogged down by political avarice and bureaucratic cupidity. This has culminated in the rise of crime and passion which is finding expression in a stressed urban and rural scenario.

In public perception substantial revenue is wasted on non developmental expenses for running bloated government machinery which has no or little value to the common man. We are a democracy and hence it is imperative that the law of equity is given its due importance to narrow or bridge the gap between the abysmally poor masses and the well to do minority.

The economic gains can be felt only if the money spent on developing projects translates into a better standard of living for the poor and the common man. The government needs to realize that evolution of democracy should be out of the free will of the people and it cannot be imposed on them. It is for the people and by the people.