Posted in Editorial Analysis, International relations

Analysing where India stands in the G20

 September 13, 2023  Leave a comment

Syllabus: GS 3 – Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment
Source: The Hindu -13/09/2023
Context:
India hosted its first G20 Summit this year.
So an analysis of India’s performance in recent decades across various socioeconomic metrics in comparison to its fellow G20 members is essential.

Content:

  • The G20 member nations accounting for more than 80 % of the world’s Gross Domestic Product (GDP), overseeing 75 % of global trade, and two thirds of global population.
  • The 20 members include a range of developed and developing economies, with often diverging priorities.
  • Though India’s economy and population give it prominence on this stage, it is not quite on a par with its G20 peers in many areas of development.

Population

  • Population means all the inhabitants of a country, territory, or geographic area, total or for a given sex and/or age group, at a specific point of time.
  • India is the world’s most populous country, with its population reaching 142.86 crore marginally ahead of China at 142.57 crore.
  • Around 68 % of India’s total population is between the ages of 15 and 64 years, which is considered the working population of a country.
  • In 2022, India had a dependency ratio of 47.5%, considerably lower than the developed G20 nations, according to the World Bank.

The dependency ratio is the number of dependents (younger than 14 or older than 65) as a percentage of the working-age population.  

  • Among the G20 members, India has the largest rural population at 64% of the population.
  • India and China each accounted for more than a quarter of the G20 members’ total population.

Source: https://www.google.com/amp/s/indianexpress.com/article/political-pulse/india-g20-members-8929286/lite/

Reasons for rapid population growth in India

  • Increasing industrialization and the accompanying improvement of health care and food production processes have had an impact on population growth in India
  • India lacks a coordinated basic health care and pension system that is accessible to everyone. Therefore, having as many children as possible is often the only sensible retirement provision that a family can afford.
  • Illiteracy prevalent in major parts of India is another reason for population growth. A large number of people are ignorant of family planning ideas.
  • Poverty is another reason for population growth. Many poverty stricken families think that having a large family will increase their source of income by sending children to work.

Govt initiatives to control population

  • Mission Parivar Vikas– The Government has launched Mission Parivar Vikas for substantially increasing access to contraceptives and family planning services in high fertility districts.
  • Scheme for Home delivery of contraceptives by ASHAs at doorstep of beneficiaries.
  • National Family Planning Indemnity Scheme (NFPIS) under which clients are insured in the eventualities of death, complication and failure following sterilization.

Expenditure on Health (as a percentage of GDP)

  • India has the second lowest life expectancy at birth in the G20.
  • India has the lowest expenditure on health as a percentage of its GDP at nearly 3%.
  • The US spends about 19% of its GDP on health.

Source: https://data.worldbank.org/indicator/SH.XPD.CHEX.GD.ZS

Reasons for low quality of health care in India

  • Lack of adequate spending: Government’s inadequate spending on healthcare, the gap in demand and supply, and chronic shortages are some of the concerns.
  • Disparity in the Rural-Urban healthcare system: Quality healthcare treatment can be found in the urban areas but often the person from a rural part of the country cannot access quality healthcare facilities.
  • Lack of trained and skilled resources is another concern for the healthcare system in India.
  • High out-of-pocket expenditure is another reason for inefficient healthcare system in India.

Govt initiatives

  • Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY): Ayushman Bharat PM-JAY is the largest Government funded health assurance/insurance scheme in the world.
  • Pradhan Mantri Swasthya  Suraksha  Yojana (PMSSY) to correct regional imbalances in the availability of tertiary healthcare services and to augment facilities for quality medical education in the country.

Education Expenditure (as a percentage of GDP)

  • On education expenditure, India matches countries like South Korea and Italy. But in terms of literacy rate, India is still a laggard.
  • While most G20 members are close to 100% literacy, India remains at 77% as of 2017-18.
  • Also, Poor quality education is leading to poor learning outcomes in India, ultimately pushing children out of the education system and leaving them vulnerable to child labour, abuse and violence

Source: https://data.worldbank.org/indicator/SE.XPD.TOTL.GD.ZS

Reasons for lack of quality education in India

  • Many classrooms continue to be characterized by teacher-centered rote learning.
  • Insufficient funding , lack of resources and poor infrastructure are major issues affecting quality of education.
  • Absence of well-trained and motivated teachers negatively impacts the quality of education.According to a report by the NSSO(National Sample Survey Organization), nearly one-third of the teachers in India do not have the necessary qualifications to teach.
  • Less emphasis on research-based education.

Govt initiatives

  • DIKSHA: Digital Infrastructure for Knowledge Sharing was initiated in 2017 with the dream of ‘One Nation, One Digital Platform.’ DIKSHA is a national platform for grades 1 to 12 and can be operated through a web portal or mobile app. It includes e-content respective to the curriculum with the assignments and courses for educators as well.
  • E-Pathshala: This initiative focuses not only on students but also teachers and parents. E-Pathshala can be accessed through a web portal or mobile app for the E-textbooks with contents in English, Sanskrit, Urdu, and Hindi.
  • Samagra Shiksha:The major objectives of the Scheme are provision of quality education and enhancing learning outcomes of students; Bridging Social and Gender Gaps in School Education; Ensuring equity and inclusion at all levels of school education; Ensuring minimum standards in schooling provisions; Promoting Vocationalisation of education etc.
  • SWAYAM (Study Webs of Active –Learning for Young Aspiring Minds) : SWAYAM is a programme initiated by Government of India and designed to achieve the three cardinal principles of Education Policy viz., access, equity and quality

Share of population with Internet access(%)

  • Internet access in India has seen a significant increase over the years. As of 2022, the internet penetration rate in India is more than 45 percent.
  • In terms of global ranking, India is the second largest online market in the world, just behind China.However, the internet penetration in the country is still below the worldwide average.

Source:https://data.worldbank.org/indicator/IT.NET.USER.ZS

Reasons for low Internet access in India

  • Financial Struggles of Telecom Industry: The telecom industry’s financial difficulties have slowed necessary expenditures and infrastructure upgrades.
  • Spectrum Allotment: India’s spectrum per operator is low compared to other countries, implying a poor spectrum per customer.
  • Lack of Infrastructure : Many undeveloped and poorly developed areas, especially low-income ones, lack the necessary cables or fibers.
  • Digital Divide: Many villages in India still do not have mobile or internet connectivity
  • Challenges such as lack of awareness and a tangible gender gap still persist in India.

Govt initiatives

  • BharatNet: It is one of the biggest rural telecom projects in the world, implemented in a phased manner to all Gram Panchayats in the country for providing non-discriminatory access to broadband connectivity to all the telecom service providers.
  • Digital India: It is a campaign launched by the Government of India to ensure that the Government’s services are made available to citizens electronically through improved online infrastructure and by increasing Internet connectivity or making the country digitally empowered in the field of technology.

Labour Force Participation Rate (LFPR)

  • Labour force participation rate is defined as the section of the working population in the age group of 15-64 in the economy currently employed or seeking employment.
  • People who are still undergoing studies, housewives and persons above the age of 64 are not reckoned in the labour force.
  • One reason for low LPR is that the employment rate among women is abysmally low.

Source:https://data.worldbank.org/indicator/SL.TLF.CACT.NE.ZS

Reasons for Low  female LFPR

  • Violence against women: Violence against women at the workplace is another reason for low women LFPR.
  • Household Work: A large number of women in India are exclusively involved within their own homes because of the Patriarchal mindset of the society. They have little time for additional jobs.
  • Lack of Job Opportunities: There may be a lack of job opportunities suitable for women’s skills and qualifications.
  • Lack of Education and Skills: Women may lack the necessary education or skills required for certain jobs.
  • Cultural and Social Norms: In many parts of India, cultural and social norms may discourage or restrict women from participating in the workforce.
  • Measurement Issues: The Economic Survey 2022-23 highlights measurement issues in calculating LFPR for women. The survey design and content can make a significant difference to final LFPR estimates.

Govt Initiatives

  • Skill India: This initiative aims to train over 40 crore people in India in different skill. It includes various initiatives like “National Skill Development Mission”, “National Policy for Skill Development and Entrepreneurship, 2015”, “Pradhan Mantri Kaushal Vikas Yojana (PMKVY)” and the “Skill Loan scheme”.
  • Make in India: This initiative aims to facilitate investment, foster innovation, enhance skill development, protect intellectual property and build best in class manufacturing infrastructure.
  • Women Industrial Training Institutes (ITIs): The government is providing training to women through a network of Women ITIs, National Vocational Training Institutes and Regional Vocational Training Institutes.
  • Maternity Benefit Act: This act provides for paid maternity leave from and provisions for mandatory crèche facility in establishments having 50 or more employees.

Conclusion

India’s rapid economic growth, coupled with its commitment to sustainable development and inclusive governance, positions it as a significant player within the G20. But, it is crucial for India to enhance its socio-economic indicators through the execution of sound and effective policies.

Reference

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