According to a most recent article by national crime records bureau the amount of suicides by debt ridden farmers in the year 2007 alone is nearly 17, 000. Their suicides seem to be inevitable in this globalized era. The reasons lie in both domestic and non-domestic factors. One of the main domestic factors is mounting debts. The non domestic factors are dumping of Chinese cotton and textiles into India's shop and also competition from many other brands from abroad.
Regional imbalances in development, poverty, unemployment, under nutrition, malnutrition, etc are still the major problems in India. The Kpo (knowledge process outsourcing) and Bpo (business process outsourcing) are helping only the English speaking and computer literates. But in rural India there are many uneducated and unskilled youth who are struggling to find a quarterly livelihood source. Thus the opponents of globalization say that the globalization era has not been helping them much to enhance their revenue and thus the quality of life. Hence the gap between the rich and the poor seems to be widening further. The rural school drop outs have been migrating to the cities to work in the services sector like stressful building works, restaurants and hotels etc leaving behind their families in their villages.
Trickle Up Poverty
The new economic procedure involves three aspects like liberalization, Privatization, and Globalization. Globalization means having minimum possible restrictions in economic relations with other countries. This includes the free movement of labor, capital, goods, ideas, technology, etc. The foreign direct investments as invested by Pepsi, Coca Cola, banking companies, and foreign institutional investments through stock exchanges are some examples for investments.
One of the former objectives of the government is to sell out the proportion of people depending on former activities like agriculture, forestry, poultry, etc and to increase its dependence on secondary and tertiary activities. The secondary activities are connected to manufacturing industrial sector. The tertiary economic activities are the services sector.
The new economic procedure is responsible for increase in the Gdp increase rate as well as its offering to the world Gdp.
India's offering to the world's Gdp has risen to 2% in 2007 when compared to 0. 9% in 1980. This increase is generally contributed by services sector as the industrial increase rate in India has been declining in the modern years.
The macroeconomic indicators are:
1. Economic increase rate: 8%,
2. Full employment, the present unemployment rate in India is nearby 7. 1%,
3. Equilibrium of payments, as on 5th december'08 the foreign exchange resources stood at 5. 857 billion,
4. Price stability, the present inflation rate in India is about 6. 3%.
In India nearly 65% of people still depends on agriculture and allied activities like poultry, dairying, etc for their livelihood. The government should make more and good efforts to enhance the employment avenues for the unemployed while the agricultural lean season. The rural uneducated and unskilled seem to be enjoying only the wide satellite television channel network, cheap cell phones, and other goods in this globalized era. But the urban rich seems to be very profited by the new economic policy.
Infrastructure facilities like electricity, transportation, communication, credit, marketing, irrigation, education, and health facilities are yet to reach the poorest of the poor. Roughly 30% of 115 crore Indians is still living below the poverty line. This proportion of the people can neither afford high-priced infrastructure nor is happy with the available communal infrastructural facilities in their villages and some urban areas.
The Globalization procedure has been flourishing so far in the economic improvement of the nation but the regional imbalances, inter personal variations in development, and other gaps have to be taken care of further to achieve the constitutional goal of transforming Indian society into an egalitarian society.
New Economic procedure
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