OPINION Vol.1, No.1 June 2013 - National Defence University

anking 206 in the world. Industrial production growth rate have been 4.8% ranking 69 th in the world. A
high level of public debt (63%) limits the ability of the authorities to produce public services.
Despite second wave of economic liberalization in Oct 2012, a whole range of regulations still
create a stifling environment for most businesses in India. In addition, the Indian agricultural sector, which
accounts for around 15 percent of the country’s GDP and employs about 50% of its workforce, is constant
cause for worry. Swings in food prices, a heavy burden on India’s poor and farmers, has the potential to
throw the economy into disarray at any time. India produces more food than is needed for internal
consumption, but is nevertheless a net importer of food. This is due to lack of access to local markets, and
a huge waste of food.
Besides, with a desired GDP growth rate of at least 7 to 8 percent, the energy requirements of India
are expected to grow at 5.6-6.4 percent per annum over the next few years 34 . This implies a four-fold
increase in India’s energy requirement over the next 25 years and India faces significant challenges to meet
this. Similarly, International Energy Agency predicts that by 2020, 327 GW of power generation capacity
will be needed, which would imply an addition of 16 GW per year.
Social Front
Corruption. It has long been a serious problem in India. Pervasive, major, and high-level
corruption and iniquity is identified as a central obstacle to India’s economic and social
development. It is seen as a key cause of a steep decline in foreign investment. Long list of mega
scams have left the Indian government largely paralyzed and unable to effectively govern to date.
The most notorious cases include, the government’s sale of broadband licenses at far below market
prices 35 , Coal Gate Scam involving Indian Premier and Tata Truck Scam involving Indian Army 36 .
General Disappointment. Indian public did have some reasonable economic expectations; the ones
set by the Indian government itself through number of economic reforms that were supposed to
create a new social contract for the country. Under new initiatives; the resulting growth should have
benefit everyone as it would have expanded the country’s tax base and led to a boost in government
revenues. In turn, those funds could be spent on health care, education, and improved infrastructure
for the poor. But unfortunately, Indian social contract has not panned out as planned.
Poverty and Other Social Indicators. Despite impressive economic growth, India continues to
fare poorly in human development measures; the U.N.’s 2012 Human Development Index ranked
India 127 th among 169 countries. Nearly 380 million Indians still live on less than a dollar a day.
Market reforms have focused on creating private wealth rather than expanding access to healthcare
and education. Despite India’s growing economy, 2.5 million 37 Indian children die annually. In the
countryside where 70 per cent of India’s population lives, according to official reports, about, 0.25
million farmers committed suicide in last 13 years 38 .
Caste Discrimination. India’s stratified caste system is as oppressive social division as apartheid
was in South Africa. Barring a few exceptions, the lowest of the low castes, now called Dalits, could
still be described as the ‘wretched of the earth.’
Communal Factor. Hindus have a preponderant majority (around 81 per cent) and the religious
minorities are not in a position to pose a threat to majority rule or its economic power. The religious
minorities have been the victims of a raw deal as they have suffered loss of life, dignity and property
in the scores of mass riots triggered by Hindu fanatics, apart from facing the ordeal of enduring
discrimination, segregation and suppression.
Fissiparous Tendencies. Most of the Indian states have some regional movement or demands:
Telangana, Vidarbha, Bodoland, Gorkhaland, Khalistan and a host of identical movements represent
local caste and class interests which are politically neglected. Though Indian government is
successful in handling a number of separatist movements and freedom struggles yet some of them
still pose a serious threat including Kashmir, Naxalite Movement and Assam.
Military Build-up
It is a crucial variable in international power politics. Thus when one refers to a ‘Rising India,’ one
cannot overlook the military aspect of its development. However, behind the facade of India’s growing
military power lies the hard reality that its indigenous defence production has virtually been a non-starter.
The hollowness of India’s development is best illustrated by its continuing dependence on import of arms,
notably from Russia and now increasingly from the western camp.
OPINION Vol.1 No.1 38 June 2013