Blog of India » Economic disparities

Rural India Yet To Get Access to Formal Sources of Credit

neha — Sat, 28 Nov 2009 15:43:31 +0000

India has been shining bright on the world map however, the conditions in the rural areas of the country can still only be described as abysmal. While people in the urban areas enjoy world class facilities, almost 73% of rural India is yet to get access to formal avenues of financial credit. As a result of this, even today many in the rural parts of the country still fall prey to the archaic money lending system where the interest rates are extremely unreasonable.

Banks continue to play an increasingly vital role in paving India’s path to becoming an Asian superpower. However, there needs to be presence of these formal sources of credit in the rural parts of the country so that the poor are able to free themselves from the vicious circle of interest and repayment of the principal.

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Economic Disparities: The New Economy

The Syntax Systems — Sat, 21 Nov 2009 22:49:39 +0000

The success of the Emerging Economies has brought the spotlight on India, as a global economic growth engine, along with China. India registered a robust GDP growth rate (adjusted for inflation) of 9.35%, 9.67% and 9.06% in 2005, 2006, and 2007 respectively. India continued to grow amidst the global meltdown and achieved a growth of 7.08%. Unlike China’s manufacturing prowess, India has written its success story in the terms of knowledge service – an attribute of the developed economies – that sets the stage for a long and sustained growth. The question that often pops up however, is whether this growth is ‘real?’

India’s achievements in the knowledge sector have remained limited to a fragment of the economy. According to a finding, in 2006, out the total working population of 400 million, only 1.3 million of the workforce was employed in the new economy services. Rest of the employed class remains unskilled or semi-skilled, which leads to their much lower income levels, as compared to the new-age workers. This makes the income levels highly skewed in the favor of the skilled employees employed in the IT-ITES and business process industries.

Similarly, India is also plagued by the regional economic imbalance. Bihar, Madhya Pradesh, Rajasthan, and Uttar Pradesh are abbreviated as BIMARU states, which refers to their tight economic situations and less than optimum growth. South Indian TAKK (Tamil Nadu, Andhra Pradesh, Karnataka, and Kerala) states, on the other hand, are known for their roaring economies, driven on the back of the knowledge services boom. Therefore, so far Indian growth and economic success is being savored only by some parts of it, making it a curious case of rags and riches!

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Reduce Socio-Economic Disparities In Healthcare

Nitima — Tue, 10 Nov 2009 12:48:47 +0000

As the country is progressing towards 2010, there is an increase in debates related to public health care option. The ruling party sees it as the only way to reduce the huge economic disparity in our healthcare system. A recent study, done by an independent media house, states that greater number of people are ready to support public health system that the last few months. People at all socio economic levels want to give health their first priority and are willing to give a monthly amount in favour of it.

The respondents to this survey, which was published in a leading national weekly, voiced strong concern about class-based disparities and urged government to intervene and resolve the issue on immediate basis.

On the flipside, over sixty five percent of the respondents believed the racially-based disparities (primarily between Hindu-Muslims and Christians) were a result of selfish interests of those few people who believe in breaking the country into pieces to live in peace. As a result, there are many communities, that can afford better healthcare for itself choose to remain in shambles and depend on local hakims to treat their children for any shortcoming in health.

This habit led people to sideline themselves from the benefits of the main economy and chose to protest when the country moved ahead. They have created racially-based disparities and are more resistant to government-based solutions and do not extend much support of policy proposals aiming to eliminate health and other disparities.

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