India’s 70% population is dependent on agriculture for its source of income but ironically the population contributes only 20% to the GDP of the nation. India today with growth rate around 9% faces the pseudo war between urban India and rural India which has been christened as “INDIA VERSUS BHARAT” in the article. Our finance minister refers to “Inclusive Growth” in nearly every summit related to India’s economy growth.

India’s poor population which earns less than 1$ a day faces the major brunt of the divide which is easily consolidated in the term inflation. Hence, you can see RBI cracking down heavily on inflation even in the face of slowdown in the industrial growth rate. What India today needs is inclusive growth which includes nearly every section of Indian population.

Indian population needs to adopt growth percolating stories like ALID (Agriculture Lead Industrialization and Development). The decoupling between agriculture and industrial growth which is highly apparent in the present scenario has to be eliminated.  Agriculture share in India’s growth in 1950 was judged to be around 50% but today it has declined to 20% giving way to service sector which makes about 60% of the revenue.  Agriculture and manufacturing needs to be aligned to make India a more domestic consumption lead growth story. IT sector needs to explore opportunities to cater business opportunities in rural segment like agriculture etc. Manufacturing units developing equipments, fertilizers etc needs to operated in rural. Such units will help farmer to look for additional income opportunities. Opening up of BPOs in rural segment is also a good alternative. This inwards looking outlook will lead to domestic consumption lead growth which can decrease the currency risk associated with export oriented industries like IT.

Government needs to facilitate and fabricate SEZs which target facilitation of industry targeted towards agriculture. India needs to look up to China which has used ALID effectively to alleviate the conditions of poor in the country and where agriculture contributes more to GDP of the nation. I believe the Indian growth story will surely not be termed as “INDIA GROWTH STORY” or “BHARAT GROWTH STORY” but will surely be termed as “UNIFIED INDIAN GROWTH” with the adoption of inclusive growth strategies like ALID.


2 thoughts on “INDIA VERSUS BHARAT

  1. Recent comments of Narayan Murthy with regard to “Infosys looking for business opportunities in domestic arena” is a indicator of IT bellwethers realizing the need of domestic consumption lead growth which is one of the major pillars of ALID.

  2. It’s ADLI – Agricultural Development Led Industrialization. Plus, if you mean that we should be increasing the share that agriculture contributes to production (in order to match the number of workers) that is absurd. The easiest way to do that would be to kill other sectors of the economy. In fact, you could make agriculture 100% that way! But that wouldn’t help anyone. That’s moronic.

    The key to it is moving people out of their farming jobs and into manufacturing, services, and other non-agricultural (or even processing) jobs. There are clear economies of scale involved in agriculture, there is not enough room for the 610 million people (61% employment) dependent on agriculture. Look up statistics in all developed countries. Agriculture always has about the same share of employment as it does of GDP. Our countries farmers are just unproductive and inefficient – lack of capital, too many hands working a limited amount of land. In the future people should have jobs in cities, working to manufacture goods for the world. Not farming their own one acre of rice.

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