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.