India's economic growth overshadowed by rising inequality and social challenges: Report

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• Dec 7, 2023 | Dhupali Das

India's economic landscape is marred by a concerning disparity between growth rates and the demand side of the economy...

Digital Desk: Despite an impressive growth ratio of 7.2% in the financial year ending March 2023, India's economic landscape is marred by a concerning disparity between growth rates and the demand side of the economy. The nation is grappling with stagnant or declining demand for goods and services, attributed to factors such as sluggish income growth, soaring inflation rates, pervasive unemployment, and alarming income and wealth inequality.

Official reports from the Centre for Monitoring Indian Economy (CMIE) reveal an unemployment rate of 3.2% for the year 2022–2023, painting a grim employment scenario. The National Statistical Office (NSO) data indicates a 5.02% inflation rate, a slight decrease from 6.83% in August 2023.

A recent report from Oxfam India on inequality further adds to the concerns, indicating that the top 5% of Indians possess over 60% of the country's wealth, exacerbating economic disparities.

India's global standing reflects these challenges, with the United Nations Sustainable Development Solutions Network ranking the nation 126th out of 150 countries in the World Happiness Index for 2023. The Human Development Index (HDI) report places India at the 132nd position out of 191 countries, underscoring the urgent need for inclusive growth.

The Global Hunger Index 2023 sheds light on another distressing aspect, ranking India 111th out of 125 countries, signaling pervasive food insecurity.

Zooming into the state of Assam, the scenario remains troubling, with the state ranking 16th in size, 15th in population, and 26th in literacy among the 28 states of India. Assam's GDP stands at 17th place (Rs 5.67 lakh crore), yet 32.07% of its population lives below the poverty line, marking it as India's sixth-poorest state.

As India navigates these economic challenges, policymakers face the formidable task of addressing the multifaceted issues affecting the demand side of the economy and ensuring more inclusive growth.