Essay on india's growth after 73 years of freedom
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While some have a high opinion of India’s growth story since its independence, some others think the country’s performance in the seven decades has been abysmal. It’s arguably true that the Five-Year Plans did target specific sectors in order to quicken the pace of development, yet the outcome hasn’t been on expected lines. And, the country is taking its own sweet time to catch up with the developed world. All efforts are frustrated by lopsided strategies and inept implementation of policies.
The Two Phases of Economy
An independent India was bequeathed a shattered economy, widespread illiteracy and shocking poverty.
Contemporary economists divide the history of India’s economic growth into two phases – first 45 years after independence and almost three decades of free market economy. The years preceding the economic liberalisation were mainly marked by instances wherein economic development got stagnated due to a lack of meaningful policies.
The economic reforms came to India’s rescue with the launching of a policy of liberalisation and privatisation. A flexible industrial licensing policy and a relaxed FDI policy started getting positive responses from international investors. Among the major factors that drove India’s economic growth following the economic reforms of 1991 were increased FDI, adoption of information technology and an increased domestic consumption.
Service Sector Growth
A major development in the nation’s services sector has been visible in the telecom and information technology sectors. A trend that started some two decades back is now well in its prime. Several multinational firms continue to outsource their tele services and IT services to India, resulting in the growth of ITES, BPO and KPO companies. The acquisition of expertise in information technology has led to the generation of thousands of new jobs, which in turn increased domestic consumption and naturally, more foreign direct investments happened to meet the demands.
Presently, the services sector employs 31% of the Indian workforce and this process of development started back in the 1980s. In the 60s, the sector employed only 4.5% of the working population. According to the Central Statistical Organization, the services sector accounted for around 54% of Indian GDP in 2018 and the figure continues to grow.
Growth of Agriculture Sector
Since 1950s, the progress in agriculture has been somewhat steady. The sector grew at about 1 percent per annum in the first half of the 20th century. During the post-Independence era, the growth rate nudged about 2.6 percent per annum. Expansion of farming area and introduction of high-yielding varieties of crops were the major factors of growth in agricultural production. The sector could manage to end dependency on imported food grains. It has progressed both in terms of yield and structural changes.
Consistent investment in research, land reforms, expansion of scope for credit facilities, and improvement in rural infrastructure were some other determining factors that brought about an agricultural revolution in the country. The country has also grown strong in the agri-biotech sector. The Rabobank report reveals that the agri-biotech sector has been growing at 30 percent since the last few years. The country is also likely to become a major producer of genetically modified/engineered crops.
Progress in Education Sector
Pulling itself out from widespread illiteracy, India has managed to bring its education system at par with the global standard. The number of schools witnessed a dramatic increase during the post-independence era. The Parliament made elementary education a fundamental right for children in the age group of 6-14 years by passing the 86th amendment to the Constitution in 2002. At independence, India’s literacy rate was a paltry 12.2 % which increased to 74.04% as per 2011 census.
The Government launched the Sarva Siksha Abhiyan in 2001 to ensure education for the children from 6 to 14 years. Prior to that, it had launched an effective initiative – Sponsored District Education Programme, which increased the number of schools across the country. In a bid to attract children to schools, especially in the rural areas, the government also started implementing the mid-day meals programme in 1995.