Answer

High economic growth in India does not necessarily lead to improved social indicators such as health, education, and nutrition. Despite a growing GDP, the country still grapples with issues like hunger, malnutrition, and unequal access to services. The 2024 Global Hunger Index (GHI) ranks India 105th out of 127 countries, highlighting a gap between economic success and social progress.

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High Economic Growth and Poor Social Indicators

• Income Inequality: Despite economic growth, wealth is unevenly distributed, leading to inadequate improvements in health and education for marginalised groups.
  For example: According to the National Sample Survey, the top 10% of India’s population holds over 77% of the total national wealth, exacerbating inequality.
• Undernutrition and Hunger: High GDP growth has not eradicated hunger, as evidenced by India’s poor ranking in the GHI.
  For example: 13.7% of India’s population remains undernourished, highlighting the disconnect between economic growth and nutritional improvements.
• Poor Health Outcomes: Investments in healthcare remain insufficient compared to GDP growth, resulting in poor health indicators.
  For example: India’s health expenditure is only 2.1% of GDP, leading to inadequate health services for the poor.
• Education Disparities: Economic growth has not translated into equitable education opportunities, particularly in rural areas.
  For example: The Annual Status of Education Report (ASER) shows that only 73% of children in rural areas can read at the level expected for their age.
• Access to Clean Water and Sanitation: Despite growth, access to clean water and sanitation remains limited, affecting public health.
  For example: According to NITI Aayog, around 600 million people face high to extreme water stress, despite economic progress.
• Unemployment and Jobless Growth: Economic growth in India has not resulted in job creation, leaving many without employment opportunities.
  For example: The Periodic Labour Force Survey (PLFS) reported an unemployment rate of 3.2% in 2024
• Gender Inequality: Women’s participation in the workforce remains low, even with economic growth.
• For example: World Bank reports that the female labour force participation rate in India was 32.7% in 2023

Positives of Economic Growth and Social Development

• Reduction in Poverty: Economic growth has led to a reduction in overall poverty levels in India, improving living standards for many.
  For example: The World Bank reported that the poverty rate in India dropped to 9.4% in 2023, from 22.5% in 2011-12.
• Improvement in Infrastructure: Economic growth has facilitated investments in infrastructure, leading to better connectivity and social services.
  For example: The Pradhan Mantri Gram Sadak Yojana (PMGSY) has improved rural road connectivity, enhancing access to education and healthcare.
• Increased Social Spending: Higher revenues from economic growth have enabled increased public spending on welfare programs.
  For example: The government increased its budget for the Mahatma Gandhi National Rural Employment Guarantee Act to enhance rural livelihood opportunities.
• Technological Advancements: Growth has encouraged digital adoption, improving access to education and health services.
  For instance: The Digital India initiative has expanded e-health and e-education services, benefiting rural populations.
• Financial Inclusion: Growth has enabled greater financial inclusion, leading to better access to financial services.
  For example: Over 460 million Jan Dhan accounts have been opened, providing banking access to the unbanked population.

Negatives of Economic Growth and Social Development

• Persistent Hunger and Malnutrition: Despite growth, hunger and malnutrition remain prevalent, as highlighted by the GHI.
  For example: India’s child wasting rate is the highest globally at 18.7%, reflecting poor nutritional outcomes.
• Widening Inequality: Economic growth has exacerbated income and regional inequalities, limiting social progress.
  For instance: States like Bihar and Uttar Pradesh continue to lag behind in health and education indicators compared to wealthier states.
• Inadequate Health Infrastructure: Growth has not adequately improved healthcare infrastructure, especially in rural areas.
  For example: The doctor-to-patient ratio in rural India remains well below WHO standards, impacting healthcare delivery.
• Environmental Degradation: Rapid economic growth has led to environmental damage, affecting health and livelihoods.
  For instance: Air pollution in cities like Delhi has reached hazardous levels, contributing to respiratory diseases.
• Neglect of Agriculture: Economic policies favouring industrial growth have led to the neglect of agriculture, affecting food security.

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Way Ahead

• Focus on Inclusive Growth: Policies should aim at inclusive growth that benefits all sections of society, especially the marginalised.
  For example: Expanding schemes like PM-KISAN to cover more farmers can ensure that economic growth reaches rural households.
• Increased Public Health Investment: Higher investment in public health infrastructure is essential to improve social indicators.
  For instance: Increasing healthcare spending to 3% of GDP can help achieve universal health coverage.
• Strengthening Social Safety Nets: Expanding social safety nets like PDS and MGNREGA will ensure food and income security.
  For instance: Enhancing PDS coverage can help combat malnutrition and food insecurity effectively.
• Education Reforms: Investing in quality education, especially in rural areas, will enhance human capital development.
  For instance: Improving teacher training programs under Samagra Shiksha can lead to better educational outcomes.
• Addressing Gender Inequality: Promoting women’s participation in the workforce through targeted interventions is crucial.
  For instance: Expanding the scope of Skill India to include more women can boost female labour force participation.

The 2024 Global Hunger Index underscores that economic growth alone is insufficient to improve social indicators in India. To achieve true development, it is essential to bridge the gap between economic success and social well-being through inclusive policies, better social infrastructure, and targeted interventions that address the needs of the marginalised.

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