India is yet to reach in the league of Developed Nations

Presented By:Nikita Talukdar

MBA 1st -A

Meaning of a “Developed Country”

• A developed country, industrialized country, or "more economically developed country" , is a country that has a highly developed economy and advanced technological infrastructure relative to other less industrialized nations. Most commonly, the criteria for evaluating the degree of economic development are gross domestic product(GDP), gross national product(GNP), the per capita income, level of industrialization, employment, amount of widespread infrastructure and general standard of living etc.

• India is one of the fastest developing countries in the world. But the speed of the development is not as good when compared to the other developed. There are many other reasons behind the lack in the development criteria of India such as:

1. Over Population 2. Poor literacy rates 3. Poverty 4. Unemployment 5. Inequality 6. Corruption 7. Innovation 8. Human Development

POPULATION• One of the pressing problems, which India is currently

facing, is its total population size and growth. • India holds the 2nd rank in the population after China. It

is predicted to exceed 1.63 billion by 2050, which would overtake China’s estimated population of 1.44 billion. • There will be a lot of necessity for the resources to be

shared among the people of the country.• The major fact is that there should be resources available

for the same to be distributed among the people.• Population size, therefore, is a significant issue for India

to address in order to ensure its prosperity and security on a national level.

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ILLITERACY

• India currently has the largest illiterate population. The current literacy rate of India is 74.04%. Literacy in India is a key for socio-economic progress.• There is a wide gender disparity in the literacy rate in

India: effective literacy rates (age 7 and above) in 2011 were 82.14% for men and 65.46% for women• The low female literacy rate has had a dramatically

negative impact on family planning and population stabillisation efforts in India• It is due to illiteracy that a common person is not able to

exercise his or her rights and lead a dignified life

• Due to their inability to interpret the government's development schemes, the illiterate people miss the chance of being benefited by them. These schemes thus fail to produce tangible results. Illiteracy leads to ignorance, which in turn, leads to superstition. • Though, the Overall literacy has gone up due to scheme

like Sarva Shiksha Abhiyan and higher enrolment in schools in the 10 years. Prior to this, many did not have a chance to enter a school, especially in remote areas. • Illiteracy is the major milestone in the path of

development of India.

POVERTY• India suffers from substantial poverty. In 2012, the Indian

government stated 21.9% of its population is below its official poverty limit.• Poverty leads to the downfall of the economy and is an

obstacle in the way of the development of a nation.• A country cannot prosper without its economical and

human resources. • The corruption in the country in turn leads to poverty

which ultimately results in the downfall of an economic power. • The growth of population also eventually leads to the

great problem of poverty

• High population growth rate is one of major reasons of poverty in India. This further leads to high level of illiteracy, poor health care facilities and lack of access to financial resources• Also, high population growth affects the per capita

income and makes per capita income even lower.• Ever increasing prices of even basic commodities is

another reason of poverty. A person below the poverty line finds it difficult to survive. • Caste system and unequal distribution of income and

resources is another reason of poverty in India.

UNEMPLOYMENT

• Unemployment means a person willing to work but unable to find a qualified job. It is one of the serious problem is of India.• Due to unemployment we are wasting our country’s

human resource.• According to the Global Employment Trends 2014 the

unemployment rate has raised to 3.8%, last year it was 3.7%. • The International Labour Organisation (ILO) has said in

the recent report that India has shown rise in the unemployment in the last two years.

• The problem of unemployment is rising but still many industries are facing the problem of skilled candidate for their company. There is a boom of software companies, Outsourcing companies in India, but still facing the problem of unemployment.

CORRUPTION• Corruption is widespread in India. India is ranked 85 out

of a 174 countries in Transparency International's Corruption Perceptions Index.• Not only does corruption in India worsen poverty, it also

drags the whole country’s development down by stealing its resources.• Government is taking so many initiatives for poor's, but

due to corruption these are not reaching to them. • Yet, India’s been developing and it’s become important to

polish its image especially to reassure investors of the stability of the Indian market because corruption also affects investment and market stability by increasing uncertainty.

INEQUALITY

• For a developed country it is necessary that the resources should be equally shared among the people of the country. In this case because of the drastic increase in the population the resources are not shared properly.• Since the resources are not shared properly among the

people. Every section of society is not able to enjoy the facilities and providing of government equally.• According to the Organisation for Co-operation and

Economic Development, the doubling of income inequality has made India one of the worst performers in the category of emerging economies.

INNOVATION

• Innovation is the factor which economists believe would be the driver of future growth. • The level of innovation in a country is determined by the

level of research and development (R&D) taking place as well as the recognition of that R&D by filing patents on time. • In the global list of countries ranked according to the

filing of patents, India ranked 7th with 43,955 patents in 2012. • However, 78% of these patents were filed by NRIs which

means that only 22% of the patents were indigenous.

• It is because of the low level of research and development in the country. • While countries like Japan and South Korea spends

3.67% and 4.36% of their GDP respectively, the R and D expenditure in India is less than 1%.

HUMAN DEVELOPMENT

• Since GDP is not the sole criteria of per capita of income. Realising this fact, the United National Development Programme has started releasing the Human Development Index (HDI), which is a composite index of development measured on the basis of per capita GDP (the economic indicator), life expectancy (health indicator) and gross enrolment ratio (indicator of literacy). • In the Human Development Report (HDR) of 2014, India

was ranked 135 among 187 countries that were ranked on the basis of HDI.• As per the HDI, India is a medium development country.

PER CAPITA GDP• Though GDP is not accepted as the sole indicator of

development but everyone agrees that it is one of the most important criteria to check the level of economic development in a country.• India has displaced Japan to become the world's third

biggest economy in terms of purchasing power parity (PPP), according to a World Bank report.• According to the World Bank, the rank in per capita

income GDP of India in year 2015 is 127.There is no denying of fact that India had to miles to go to put its foot in the league of developed countries on the basis of GDP per capita.

• India's share in World GDP in terms of PPP was 6.4% in 2011 compared with China's 14.9% and the US' 17.1%, the latest ICP showed. The survey covered 199 economies• Despite high inflation in India in recent years, prices in

the country are still well below those in advanced economies, explaining the higher ranking for India on the PPP measure. • But according to the International Monetary Fund

(IMF), India's economy is 12th largest and only about a third of Japan's in terms of absolute unadjusted dollars.

CONCLUSION

• The critical challenges India faces today can only be overcome through communication and cooperative initiatives between the people of India and the current political administration. Once both parties recognize that these critical problems of population, corruption, and literacy rates need to be addressed, only then can India truly begin to successfully develop. If these issues go unaddressed, India might encounter severe consequences that can result in potential and permanent damage to India’s chance of becoming a developed nation.

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