Economy
India has never faced huge economic problems even in times of recessions; therefore, there has never been a slump in employment, showing that the economic backbone of India is stronger than some of the developed countries in the world. (Careesma. 2012. para 1) India is preferred over other developing nations by most global companies due to the fact that India’s economy is growing steadily and would be on par with some of the developed countries in a few years’ time. Due to the companies’ preference to set up branches in India, there is also a sharp increase in the number of jobs provided, which is great news for fresh graduates and professionals looking for better and higher-paying jobs. However, one problem that India faces economically is that there is significant inequality in wealth and income and such problems cannot be solved in the short term. (Careesma. 2012. para 2)
Resources
India’s per capita endowment of critical resources such as cultivable land, water, petroleum reserves, timber etc. is relatively low despite the fact that India possesses a wide range of minerals and other natural resources. India has an advantage in industrial development as its diversity of resources, especially minerals, exceeds most other countries in the world. Domestically supplied minerals play an important role in India’s manufacturing industry and are a source of modest export revenues as well. (Frank Raymond Allchin. 2015.)
Poverty
Even though India has a GDP growth rate of about 9%, poverty is still a huge problem in India, especially in rural areas where 70% of the 1.2 billion population live in. The gap between the rich and the poor is extremely large where the rich gets richer and the poor gets poorer due to unequal distribution of wealth. The rich get more economic opportunities despite being very wealthy while the poor do not have such opportunities, resulting in them to be caught in the viscous cycle of poverty (the poor will then always be poor). Most of the money are used to develop cities, but majority of the population lives in the countryside thus rural India has always been overlooked. High population growth rate is one of the main reason of poverty. (Kaur. 2013) This is because when there is a large number of population, there is more mouth to feed and this causes a strain on resources in India since the limited amount of resources available is not able to sustain the large population.
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There is also the issue of the "forgotten poor", where a large portion of the population are not included on the official poverty count, specifically the Dalits, women and minority ethnic tribes. These groups are insignificant in the society is they do not contribute much to the economy thus it is more beneficial for politicians to disclose huge reductions in poverty by easily not including them in a census. It is effortless to pretend that they don't exist, but it does not improve the economy and situation of the country as a whole. (Poverty Org. 2013)
The India government is aware that to become a fully developed nation, the issue on poverty needs to be solved. Many anti-poverty policies have been implemented since the 1950s, bringing poverty down from 60% to 35% between the 70s and early 90s. However, about 300 million people still live in severe poverty and lack basic services like education, health, water, sanitation and electricity. (Times Of India. 2015) Thus, even more needs to be done to lift people out of the vicious cycle of poverty
The India government is aware that to become a fully developed nation, the issue on poverty needs to be solved. Many anti-poverty policies have been implemented since the 1950s, bringing poverty down from 60% to 35% between the 70s and early 90s. However, about 300 million people still live in severe poverty and lack basic services like education, health, water, sanitation and electricity. (Times Of India. 2015) Thus, even more needs to be done to lift people out of the vicious cycle of poverty