Caveats that come with India’s growing economy
May 25, 2016

wagesAs India stands in the sunshine with her rising GDP projections, growing investments and overall sunny outlook over a gloomy global economy, in the shadows lurks responsibility. The responsibility of sizing her social sector up to International (read Western) standards.

Taking a cue from her more stalwart neighbour China, India needs to know that with being a growing emerging market comes caveats of all kinds from afar. Looking into the growth of China and her boom from the 1990’s spurred by foreign investments, technology and capital, came the over arching western regulations to industrial production.

Chinese factories which initially ran robust on low wages suddenly had to deal with the western concept of a minimal wage scheme. Office goers got insurance and social security benefits and companies had to own up to stricter environmental laws. Papers were written on the appalling state of sanitation in China’s rural areas and education was kick started by making English learning enigmatic.

When the West invested in China, they didn’t just do so with their money, but they also poured time and energy in making her more like them. Fashion and diets changed. Holiday destinations and aspirations altered and consumer demands and family structures changed. Bringing in foreign capital meant sweeping changes for the Middle Kingdom. The resident soothsayer at Inchin Closer predicts the same. With India on the rise again, western media eyeing her for potential investments, collaborations and growth, the country will need to simultaneously pull her socks up in other aspects too. For investors don’t come in with a blind eye. They will want better security for their women, better infrastructure and cleaner air.

Below are the 5 most important areas in which we feel, India will need to develop as she gets richer –

  1. Environment: Factories will have to start polluting less, the government will need to implement stricter environmental regulations and India will need to clean her air and water especially. The swaach bharat initiative started under the present government is a step in the right direction, but needs to be implemented effectively.
  2. Education: In order to support a growing economy, the nation needs sharp minds. The current education system needs an overhaul. Skilled India is another great initiative by the current government, yet this will take time to show her merits.
  3. Bureaucracy: Red tapism is what keeps many investors at bay in India. Cutting down and simplifying India’s archaic systems would encourage many more to pour capital into the growing economy. While, a few departments are being re-jigged through technology, India has miles to go in this space.
  4. Wages: Indian wages are abysmally low as compared to international standards. The average Indian earns less than a third of the average Chinese. Increasing wages will not only attract better talent, but will also help the economy grow further.
  5. Safety: Indian women, lowers casts and minorities all need to taken better care of in India for in harmony between her people lies progress.

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