Economic diversity in india all causes
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Explanation:here are many ways to slice up Indian society. You can know an Indian’s state, language, religion, community, and many other elements of their identity.
However, you won’t get very far in India until you understand the monumental economic diversity of India. Being able to classify the economic background of someone can often be one of the best ways to know how to interact with them and which rules apply to them. People from different economic strata lead completely different lives, have completely different experiences, and represent completely different people groups in India.
Talking about these differences takes a certain amount of sensitivity. In 2002, the Strategic Foresight Group published a report that divides the Indian economy into 3 sections: Business Class economy (2% of the population), Bike economy (15%), and Bullock cart economy (83%). The report talks about the different states of India and which states represent which economies.
These terms give a useful starting place for understanding this issue, but 1.) Things have changed since 2002, and 2.) These terms work much better for individuals than entire states.
Below are four strata of the Indian economy, using terms that are both immediately understandable and as accurate as possible when you are trying to fit 1.2 billion people into four neat categories. Unlike other distinctions, these categories are much more about individual mindset than about specific income levels. In fact, the different groups may overlap each other if seen on a wealth distribution scale. Most people you know will probably fall in between categories or are moving from one to another.
1.) Majority Indians – These are the 65% of the country (or more), who under the new definitions of the government (Rs. 62 in expenses per day in cities, Rs. 50 in villages) are considered in poverty. In US dollars, that is surviving on spending $1 per day. In this category, we’ve made the unfortunate, but conceptually necessary move of lumping together the urban poor and villagers, although their lives can be extremely different. Upon Majority Indians’ backs India has been built, fed, and housed.
Unfortunately, they tend to blend into the scenery of most of our experiences in India – the slums that become part of the everyday commute, the countless villages you will never visit, the mass of people who form the foundation for the Indian economy.
About this, economist and Nobel laureate Amartya Sen comments:
“There is, for example, nothing false about Indian poverty, nor about the fact – remarkable to others – that Indians have learned to live normal lives while taking little notice of the surrounding misery.” Argumentative Indian, 127.
2.) Classic Indians – If an Indian ever tells you they came from a “middle class” family, this is what they are talking about. Father was a government worker/bank employee. Mother was a school teacher/homemaker. They save most of their money, live in joint families, and try to send their son to study engineering. They can be auto rickshaw drivers all the way to mid-level managers in family owned Indian companies. As the name says, these people make up the classic version of what most westerners think of when they picture the stereotypical Indian.
3.) New Indians – This is a phenomenon and a class that has emerged over the last 20-30 years. They work for multinationals or started their own companies in the tech boom of the 1990s. Their purchasing power has drastically increased compared to their families. They move around India where their work takes them, but also may have other aspirations of really making it big and working abroad. These people have family and cousins living and working in Europe, the Gulf, or the US, and can reasonably save up for a visit every few years. They can also potentially afford to send their children abroad for higher studies if they wish. This class of Indian is the face of the New India and the one that India wants the world to remember.
India is a land of diversity. Even in the economic sphere we find diversity and variation.All people do not have uniform income and economic standard. Over 65% of people in India are suffering from poverty who do not even get two square meals a day. There are middle classes who work hard and save money for future generation. A new economic class has evolved who work in Multinational Companies and earn huge income. Finally, we can also find wealthy and rich people who have traditionally owned industries and land. They also enter politics and gain power.Thus, economic diversity in India has different shades with people of diverse incomes.