India's Development Story

India's Development Story (1947-2024)

The Four 'L's of Change

• Luck

• Legacy

• Linkages

• Leadership

Economic Development in Pre-Colonial Period

• GDP growth rate was more than 23% before colonization.

• Colonial India was an agrarian economy.

• The average annual growth rate was around 4%.

• India had the world's largest jute manufacturing industry and the fourth-largest cotton textile industry.

• During 1800-1900, Indian exports increased five times with a 70 to 80 percent share of non-manufactured goods.

• During 1860-1914, exports were approximately 20 percent.

Problems & Challenges - Eve of Independence

• A weakened economy.

• Low living levels.

• Predominance of agriculture occupations.

• Unification of Princely States.

India’s Development Story

• Ideas are Implemented.

• Ideas are in Progress.

• Ideas are in Conflict.

• Ideas can be Anticipated.

Idea’s are Implemented

• Nation-building process (Democracy and Secularism).

• State-led development (Five Year Development Plan).

• Economy on Import substitution industrialization.

• Emphasized on AgricultureGrowth/Industrialization.

• Emphasis on Education, Science and Technology.

• Emphasis on Democratic Socialism principles (Land Reforms, CDP-1952).

• Green Revolution (1970).

• Integrated Rural Development Programme.

  → Nehru’s Visit to Bakaro Steel Plant & Hirakud Dam

Idea’s in Progress

• State Driven-Market Driven

• Economic Reforms with emphasis on LPG (Liberalization, Privatization, Globalization).

• Reforms of Major Laws (SEZ, 2004).

• Minimum Government to Maximum Governance.

• Emphasis on Single Market (GST).

• Emphasis on Infrastructure Development.

• Emphasis on Urban Cities.

• Political Reforms & Decentralization of power.

• Shift from Command Politics to Demand Politics.

• Identity politics to development politics.

The Economic Crisis 1991-92

• Current Account Deficit - CAD WAS $1.78$ BILLION

• The External Debt $83.8$ BILLION

• FOREIGN EXCHANGE RESERVES $1.2$ BILLION

• HINDU GROWTH RATE OF $5.49\%$

• INFLATION WAS AT $13.88\%$

Decentralisation - 73rd & 74th Amendment

• ADMINISTRATIVE STRUCTURE OF INDIA

  1) Government of India

  2) State Government(s)

  3) Division(s)

  4) District(s) (Zilla-Parishad)

  5) Block(s) (Tehsils)

  6) Village(s) (Gram Panchayat) OR

  5) Municipal Corporation(s) (Mahanagar-Palika)

  5) Municipality(s) (Nagar-Palika)

  5) City Council(s) (Nagar-Panchayat)

  6) Ward(s)

Government to Governance

GOOD GOVERNANCE

• Consensus-oriented

• Participatory

• Follows the rule of law

• Accountable

• Transparent

• Responsive

• Equitable and inclusive

• Effective and Efficient

GDP per capita, 1950 to 2018 (GRAPH)

• GDP per capita adjusted for price changes over time (inflation) and price differences between countries

• It is measured in international-$ in 2011 prices.

• Includes chart comparing China and India from 1950 to 2018

INDIA 75 - Where are we heading (GRAPH)

• COMPETITIVE VALUE OF THE RUPEE

• Rs. COST OF LIVING IN INDIA AMONG LOWEST IN THE WORLD

• CURRENCIES CAN BUY MORE (Switzerland, Saudi Arabia, Brazil, China, Mexico, Turkey, Malaysia, India, South Africa, Indonesia, Romania)

GDP growth rate compared to previous year (GRAPH)

• India: GDP Growth Rate from 2004 to 2014

  • Includes bar graph showing India's GDP growth rate

INDIA 75 - Where are we heading (GRAPH)

• SUSTAINING HIGH GROWTH IS DIFFICULT

• INDIA HAS DONE WELL SO FAR (COUNTRIES WITH 5% GROWTH) - Includes details of countries with 5% growth for:

  • One Decade

  • Two Decades

  • Three Decades

  • Four Decades

  • Five Decades

Our Progress So Far - INDIA COMES FULL CIRCLE 1950-2020 - (GRAPH)

• WORLD RANKINGS BY NOMINAL GDP - Includes charts of World Rankings by Nominal GDP for years: 1950, 1960, 1970, 1980, 1990, 2000, 2010, 2020

India’s Impressive Growth

• World’s 4 largest economy ($4.8$ Trillion USD), high growth rates, amongst world’s richest persons, a billion mobile phones, better services for middle class

Annual growth of GDP per capita, 2021 (GRAPH)

• This data is adjusted for inflation.

GDP Rates in State Domestic Products Across Plan Periods (GRAPH-2)

• States/Union Territories - Includes table of GDP rates for States across plan periods (Eight, Ninth, Tenth, Eleventh Plan)

Policies Related to Economic Development

• Monetary and Fiscal Policy ($4.85$, March 2024)

• Foreign Direct Investment (US$70.9$ billion for the financial year 2022 to 2023)

• Easy Doing Business (134 in 2014 to 63 in 2021)

• Urban Development Programmes (100 Smart City)

• Diversification of Economy (Industry, Agriculture, Service)

• Make in India Programme

• Start-up and Innovation, Mudra Yojana (SMES)

• GST (One Nation-One Tax Policy)

Strengthened Supply Chain (Infrastructure Development)

URBAN DEVELOPMENT PARADOX:

While urban areas have witnessed significant growth and investment, challenges like housing scarcity and pollution persist, highlighting the need for sustainable urban planning strategies.

Right Based Approach - 2004-2014

• Right to Information Act-2005

• Right to work Act (MGNREGA)-2005

• Right to Forest Act-2006

• Right to Education Act-2009

• Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2012

• Right to Food Security Act-2013

• Right to Land, Resettlement and Rehabilitation Act-2013

• Indian Companies Act-2013

• Prohibition of Manual Scavengers Act-2013

Idea’s in Conflict

• Social Divisive System (Caste, Religion)

• Labour Reforms

• Educational Reforms

• Displacement

• Disaster

• Disparity

• Decline

Labour Issues and Need For Reforms in India

Educational Reform

Pressure or Perfection

• The NCRB 2023 report added, “The incidence of student suicides continues to surpass both population growth rates and overall suicide trends. Over the last decade, while the population of 0-24-year-olds reduced from 582 million to 581 million, the number of student suicides increased from 6,654 to 13,044.”

• The report reveals that Maharashtra, Tamil Nadu, and Madhya Pradesh have the highest rates of student suicides, representing one-third of the total incidents nationwide.

• The report also highlighted a significant rise in student suicides, showing a 50 per cent increase in male suicides and a 61 per cent increase in female suicides over the last ten years.

Dominant vision of 'development'

• Violence against nature, communities, and cultures …

Displacement

Impact on Livelihood through Displacement

• The natural rights of the tribals on forest land and forests are being progressively appropriated by Indian corporations and MNCs, thus causing serious disadvantage to both income and employment of tribals.

• As s result of globalization and liberalization, a systematic process of exploitation of tribal communities has been unleashed.

• Forced displacement in the name of Development

• In many places tribals have been displaced irrespective of their protest, to meet the requirements of MNCs

• Question comes here : Development for whom? At what cost? Who should pay that cost?

• Since Independence around 60-65 million people have been displaced in India due to development project, Majority are SC and STs ( IDMC, 2018)

• Results of Forced Displacement: Joblessness, Homelessness, Social Exclusion, Marginalization, Food Insecurity,Loss of Culture and tradition

Left-wing extremism (GRAPH)-MAP

• Includes details from 2015 data from South Asia Terrorism Portal (Number of LWE districts, Worst affected LWE districts, LWE districts to be taken off, Number of LWE areas, Police station wise LWE areas to be taken off)

Urban Development and Displacement

• Various Causes of Urban Displacement:

  (i)Urban Economic growth

  (ii) Environmental improvements

  (iii) Slum Upgrading

  (iv) Bourgeois Environmentalism

• Magnitude of Displacement:

  • 90,000-Mumbai, Mumbai Metro, Navi Mumbai Airport (2004-05)

  • 77,000-Kolkata,Salt Lake City, New Town ship (2004-05)

  • 300,000-Delhi, Riverfront, Common Wealth Game (2010)

  • 35,000-Ahemdabad, Sabarmati Riverfront project (2005-06)

  • 19,000-Bangalore Metro project (2009-10)

  • 27,000-Hyderbad, MMTS Rail project, New Airport (2003-06)

Disaster

• ‘Development’ has destroyed India’s environment & livelihoods

  • 50% forest destroyed in last 200 years

  • 70% waterbodies polluted or drained out

  • 40% mangroves destroyed

  • Nearly 10% wildlife threatened with extinction

  • Many lakes and cities drowning in garbage

  • Disastrous impacts on ecosystem-dependent people (60-70% of India’s population)

POLLUTION, WATER, LAND STRESS

AIR POLLUTION:-

• “14 OF THE WORLD’S 20 MOST POLLUTED CITIES – IN INDIA”, “caused the deaths of 1.2 million people in India in 2017”

$29.32$of India's Land area under Severe Degradation/ Undergoing desertification

CLIMATE CRISIS: In 12 days, August 2019, 1,000 extreme rain events; Forest fires increased 158% in 6 years; Heat waves in India to increase 3-4 times.

Disparity

• South vs North - BOOK

• State’s share of national GDP (GRAPH)

  • All figures in percentage %

  • India is presently on track to become the 3rd-largest economy by 2030

  • Includes percentage of states share of national GDP

Socio-economic impacts: growing inequities

• Richest - 10% & they earn 57% of national income

• The middle class is also relatively poor, with an average wealth of only Rs 723,930

• Includes depiction of Wealth Distribution in India

Disparity - Monthly Income of Farmers in India

• Includes chart of Monthly Income of Farmers in India by state.

• OVERALL INDIA - Rs. 10218

Business, Politics & Media Nexus

Politics, Business and Media Nexus

The new age of Crony Capitalism

INDIA 75 - OUR PROGRESS SO FAR (GRAPH)

Idea’s Can be Anticipated

• Deepening Democracy

• Decentralization (Globalisation to Localisation)

• Diversification of Economy (Juggad to Innovation, Digitalisation )

• Demographic Dividend

Democracy with Development

• Direct democracy / swaraj (local to national): power in hands of people: gram sabhas, urban area sabhas, adivasi assemblies, etc.

• Recognising traditional governance institutions, with necessary modifications

• Delegated/representative democracy, with mechanisms of accountability (right to recall, public audit, reporting back…)

SOCIO-CULTURAL DEMOCRACY

Culture / knowledge

• Respecting language/cultural diversity (e.g. education in mother tongue)

• Recognising multiple knowledge systems (e.g. amchi & allopathy)

• Integrating them in educational and R&D institutions (e.g. DDS Krishi Vigyan Kendra)

• Encouraging knowledge commons, rather than privatisation (e.g. open source technologies & software)

• Recognising ‘ordinary’ people as innovators(e.g. Honeybee network)

SUSTAINING RELATIONSHIP WITH/IN NATURE

• Eco Democracy/ Recognising humans as part of nature

• Respecting rest of nature (ethical / spiritual / rights)

• Conservation, sustainable use

• SUSTAINING RELATIONSHIP WITH/IN NATURE

Gram swaraj & rural revitalisation: Outmigration is not inevitable

• Ralegan Siddhi & Hivare Bazaar (Maharashtra), Kuthambakkam (TN),Kudumbashree (Kerala)

• Can India achieve rural revival to stem out migration?

Self-governance & conservation: Mendha-Lekha (Maharashtra)

• All decisions by consensus in gram sabha (village assembly)

• “Our government in Mumbai and Delhi, we are the government in our village”

• 2013: all private farmland converted to village commons

Dalit women farmers of Deccan Development Society (Telangana)

• Organic agriculture, seed diversity, land rights: anna swaraj

• Seeds, water, media as the commons, not privatised

• Run Krishi Vigyan Kendra with agricultural scientists

• Transformation in nutrition/food security, & in gender, caste, class relations

• Dalit women farmers of Deccan Development Society (Telangana)

Kudumbashree, Kerala: dignified livelihoods, empowerment of women, rapid COVID response

Diversification of Economy

• Localisation of economy

• Self-reliance for basic needs

• Economy of caring & sharing

• Re-commoning nature, knowledge, technology

• Beyond GDP: real indicators of well-being & happiness

Juggad to Innovation

Kachchh / Ladakh - Water self-sufficiency in low rainfall regions in face of climate change

From Villain to Hero of 21st Century

• India has 112 million working-age people between the ages of 20 and 24, compared to China’s 94 million.

• In the absence of government jobs, this demographic dividend is accelerating the country’s startup culture.

• As of August 29, 2022, India had emerged as the world's third-largest startup ecosystem.

• Over 77,000 DPIIT-recognized startups spread throughout 656 districts.

• These startups are simultaneously enabling more jobs than large companies or enterprises in the same industry.

INDIANS WHO GAVE UP THEIR CITIZENSHIP FOR

• Includes List of top countries where Indians are giving up their citizenship.

Transformation Towards Justice, Equity, Sustainability - VALUES

• Ecological resilience & wisdom (rights of nature, conservation)

• Radical democracy / swaraj (direct citizens’ power, accountablerepresentative institutions, borderless world)

• Economic democracy: Earthshastra (producer sovereignty, localised self-reliance, caring/sharing, commons; wealth redistribution)

• Social justice & wellbeing (justice, equity of genders, ethnicities, castes…)

• Culture & knowledge diversity (new learning, knowledge commons, celebrating creativity, spiritual / ethical deepening)