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Indian Economy

Notes The two major problems which persist in the calculation of national income are:
Most of the data is not from the current year.
Even if current data are available then values are under-reported.

Obstacles in High Growth of National Income of India

It is essential to note that even if the Indian economy grows faster than the BRIC nations and G
6, the advantages of the growth would not be consistently distributed. India’s progress in education
cannot be termed as satisfactory. In terms of higher education it has attained tremendous success,
but its unsatisfactory performance in primary education and secondary education has been a
major obstacle to growth. Likewise, you must take into consideration that India’s healthcare
system is in a less than desirable state. Governments’ expenditure on public health has not been
up to the needed levels.

Figure 2.1: Growth of National Income

Sector 1950-1980 1980-2005
GDP Total 3.5 5.6
GDP Per capita 1.4 3.6

Source: http://www.tradechakra.com/indian-economy/national-income.html

Figure 2.2: Composition of National Income Sector Wise
(in per cent)
Year Primary Secondary Tertiary Total GDP
1950-51 59 13 28 100
1980-81 42 22 36 100
2002-03 24 24 52 100

Source: http://www.tradechakra.com/indian-economy/national-income.html

Caselet No Square Pegs in Round Holes

ndia’s strength lies in its demographics which will determine everything that a country
does. More than 50% of India’s population is under 25. Dr Narendra Jadhav, a principal
Iadvisor to the RBI and a former advisor to the executive director at the IMF, says “India
has a great potential to become an economic super power because of its growing young
population.” A young population coupled with the second largest English -speaking
population in the world will give India an advantage over China. But this young population
though dynamic and rearing to go are also a restless lot looking around for newer
opportunities. Hence, attracting and placing the right people with the right skills in the
right position by identifying the essential skills, interest, aptitude, attitude and behaviours
is the first step to developing a knowledgeable and committed workforce. The contribution
made by the knowledge driven quality professionals with relevant industry-oriented
skills will tip the global scales in the country’s favour and establish it as a “superpower”
in the market.

Source: http://thealps.co.in/the-role-of-hr-in-making-india-an-economic-super-power/

14 LOVELY PROFESSIONAL UNIVERSITY