Showing posts with label Akhilesh Jha. Show all posts
Showing posts with label Akhilesh Jha. Show all posts

Friday, March 28, 2025

What is communalism? What are the causes for genesis and growth of communalism in India?

 Why is it in the news? 

1. Nagpur witnessed the outbreak of communal violence of mass on 17th March 2025. Members of right wing Hindu groups organised a protest in Nagpur’s Mahal area demanding the demolition of Aurangzeb Tomb at Khuldabad. They burnt an effigy of Aurangzeb wrapped in a green cloth. The rumour spread that the cloth bore Quranic verses. The misinformation was very much amplified by social media. 

2. Violence erupted. The protestors attacked police homes and vehicles. Over 60 vehicles were either torched or vandalised. More than 30 police personnels were injured. CCTV cameras were deliberately targeted by rioters. Curfew was imposed upon several areas of Nagpur. 

3. The release of the film Chhava in which Aurangzeb was depicted torturing and killing Sambhaji Maharaj, the great Maratha King triggered the immediate cause for communal riots in Nagpur. Police have taken 84 people under custody so far. It is reported that Nagpur is now returning to normalcy. 




What is communalism? 

1. It refers to the belief that people belonging to the same religious community have common political, economic and social interests, superseding the interests of other religious communities, thereby, fetching maximum benefits to the exclusion of other religious communities. Thus, communalism creates division and conflicts between different religious groups. 

Thus, communalism is a divisive ideology that gives priority to religious identity over national unity leading to religious polarisation, political manipulation to use religion for getting votes, outbreak of violence and riots, levelling minority Muslims as anti-national and majority Hindus as oppressors. It fails to separate religion from politics. Thus, it tries to conduct government on the basis of religious dogmas. In the extreme form communalism claims nationhood for the community concerned and seeks to raise it to a status of sovereign state. For example, majority Hindus clamour for Hindu Rashtra in India. 

There are three types of communalism in India. These are : 

  • Assimilative communalism, whereby the majority community imposes its culture upon minorities. 

  • Aggressive communalism, whereby majority Hindus assert its religious identity by resorting to violent methods like mob-lynching hate speeches targeting Muslims and other minority communities and reduction of political participation of minority Muslim community by not giving party tickets to stand in election. 

  • Minority Separatism, whereby minority communities demand exclusive rights or autonomy or even independence. For example, Khalistani groups in Punjab demanded a separate homeland. Similarly, different separatist groups wanted independent J & K or its merging with Pakistan. 


What are the causes for genesis and growth of communalism in India?

1. Colonial legacy - It should be noted that during the 1857 War of independence, both Muslims and Hindus fought together. This unity raised concern to the British authorities and so they tried to crush Muslim zamindars, talukdars and Muslim princes from 1860 onwards till 1900. In this period, they pampered Hindus. But when Hindus became educated and started demanding more concessions from the British Government, the Britisher tilted towards Muslims. Lord Elphinstone, a Governor of Mumbai  wrote that divide and rule was the motto of the Roman Empire, it should be ours. Similarly, Sir John Wood wrote to Lord Elgin- “ We have maintained power by playing one part against the other and we must continue to do so.”  The Britishers provoked the Nawab of Dhaka to establish the Muslim league party in 1906 to safeguard Muslims politically.  

The Britishers adopted the policy of divide and rule by providing separate electorates for Muslim in 1909, which was further extended in 1919 Act by providing separate electorates for Christians, Europeans and Sikhs. The British Government tried to further extend a separate electorate to Dalit by communal award in 1932 but this divisive ploy was foiled by Gandhiji through the Poona Pact. 

2. The partition of India between India and Pakistan further entrenched Hindu Muslim hostility. About 10 lakhs Hindus and Muslims were killed. 60 lakhs Hindus had to be rehabilitated in India. One lakh women were raped. These incidents left a permanent scar between Hindus and Muslims.

3. The personal laws based on religion further perpetuated religious division in India. The Ayodhya dispute and demolition of Babri Masjid in 1992 further politicised religious disputes, thereby, caused tension between Hindus and Muslims.  

4.In independent India, the political exploitation of different religious denominations further accentuated the religious divide. While Congress was accused of minority appeasement, BJP was accused of playing Hindutva politics and majoritarianism. Hate speeches delivered by politicians during elections further leads to consolidation of votes of different religious groups for different parties. 

5. Socio-economic disparity - According to Sachar Committee Report 2006, Muslims are very much lagging behind in education, employment and political representation. There is acute unemployment and resulting frustration among Muslim youths who are easy prey to radicalisation by extremists groups. Because of the fear of the Hindu majority, Muslims live in segregated areas in cities. The ghettoization tendency among Muslims further reinforces complete segregation from Hindu majority. 

6. Fake news in social media often leads to sensationalism causing Hindu Muslim conflicts. 

7. Weak law enforcement and delayed justice are causes for frequent communal riots in India. 

8. Large scale conversion activities taking place among Hindus by Christian missionaries and Muslim theologians further fuel communal sentiments among Hindus. 

9. Subversion of secularism by a few political parties also encourages communalism. 

10. Hindutva philosophy also ignited communalism in India so much so that this philosophy brands both Muslims and Christians as foreigners, thereby, accentuating societal divisions. 

     

How to mitigate communalism in India? 

1. Strengthening secularism 

2. Equal treatment of all religions by the state

3. No conversion from one religion to another should be allowed in normal situations by missionaries and Muslim theologians. There must be a stoppage of proselytising activities.   

4. Promoting interfaith education and communal harmony in schools

5. Highlighting shared cultural heritage of India in the school syllabus

6. Banning political parties that promote religious hatred

7. Electoral reforms to discourage identity politics

8. Ensuring equitable development of all communities

9. Encouraging interactions among communities through cultural programmes

10. Strict enforcement of anti-communal violence laws

11. Speedy trial of cases relating to communal violence

12. A mechanism should be developed to counter fake news

13. Strict penalties for hate speech 

14. Setting up of peace committees in the riot torn areas to bring normalcy. 


Way Forward

1. Focus should be on inclusive growth of all religious denominations.

2. Encouragement to secular values among the younger generation.

3. Promotion of interfaith dialogue. 

4. Stress upon India’s diversity as a strength rather than a weakness.

5. Adequate political participation of minorities in proportion of their population.



Conclusion

1. Communalism is a cancer to the Indian body politic and a threat to national integration.

2. Combating communalism requires proactive policing, strong social institutions, inclusive growth, proportional representation of all religious communities and collective societal efforts.

3. It should be noted that both religious and linguistic diversities are not hindrances to national integration and a cause for the outbreak of communalism. Communalism thrives when religious differences are politicised by different political parties for garnering votes. 

4. Communalism and democracy cannot thrive together. Hence it is necessary to curb communalism in order to strengthen democracy in India. 


Sunday, March 2, 2025

Problems of national integration of India after Independence

 Why is it in the news?

The Union Government imposed President’s rule upon Manipur on 13th February after the Chief Minister resigned. The state has been witnessing intense clashes between majority Meitai and minority Kuki communities since 2023, when the court  suggested that economic benefits and job quotas granted to kukis should also be extended to Meitai communities. It should be noted that more than 250 people died and 60 thousand people have been displaced. After the President’s rule, the state government extended the armed forces special powers Act (AFSPA) for an additional six months to tackle the unrest in Manipur. The ongoing classes between the two communities has led to the growing mistrust among them. The displaced population are living in adequate condition and so it is required that Manipur achieves long lasting peace. The violence between Meitai and Zo-Kuki tribal communities erupted because both the communities wanted to scramble major resources of the state. The continued violence between the two ethnic communities for more than two years is a reflection of the weak status of national integration in India. 




What is National Integration ?

1.National integration refers to the process of bringing together people from different political, social, cultural, religious, linguistic backgrounds within a nation to create a sense of unity, a feeling of oneness and collective identity. It promotes harmony and cooperation among citizens. 

2. It fosters unity while respecting diversity. It encourages coexistence and preserves cultural plurality. It is opposed to assimilation which stands for absorption of one culture into another, thereby, reducing diversity. It is a process where a minority group adopts the culture of the dominant group, thereby losing its own original identity. Thus, assimilation stands for homogenisation. It may be voluntary or forced. It stands for one country, one religion, one language, one culture and one ideology. For example, in the Islamic state of the medieval period, people of other religious denominations were converted into Islam. Those who were left to pursue their religion were called Zimmies, that is, protected people, second class citizens. 

In contrast National integration promotes unity in diversity whereby different religions, cultures, languages, ideologies coexist. 

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Problems of National integration after independence ? 

1.Partition, communal riots and problems of rehabilitation - India became independent in 1947 but it was also divided between two countries of India and Pakistan on the basis of two nations theory. The partition triggered communal riots in the country. Atleast, 10 lakh people were killed, 60 lakh people were uprooted. More than 20 lakh people were injured, maimed and  mutilated. More than one lakh women were raped. The communal riots broke out in different parts of the country. Majority of Muslims were cleansed from eastern Punjab under India. Similarly, the majority of Hindus and Sikhs were cleansed from western Punjab under Pakistan. 

2. Merger of Princely states - There were 562 princely states on the eve of Independence of India. These princely states were given the option to choose either India or Pakistan or to become independent. All princely states except Junagarh, Hyderabad and Jammu & Kashmir chose to merge either with Pakistan or India. Junagarh was a princely state situated in Kathiawar region of the present day Gujarat. Its king was a Muslim Nawab while more than 90% of its people were Hindus. The Nawab opted to merge with Pakistan. Hyderabad was a princely state in which the majority of people speaking Telugu, Marathi and Kannada were living but it was headed by a Muslim Nawab. It took the stand to remain independent. On the other hand, Jammu & Kashmir had more than 75% Muslims but it was headed by a Hindu King called Harisingh. He made a stand still treaty with Pakistan and wanted that India should also sign a stand still treaty with him. Thus, he wanted to remain an independent king. He contended that the state of Jammu & Kashmir should be provided neutrality by both India and Pakistan.  


3.Prevalence of feudalism - The Britishers perpetuated feudalism in India by invoking permanent settlement in Bengal Presidency, Northern Madras presidency and Banaras. The Ryotwari system prevailed in the both Bombay and Madras presidency. The Mahalwari system was prevalent in the provinces of Agra, Awadh and Punjab.  On the eve of independence, more than 70% of the lands belonged to zamindars, merchants, traders, contractors and high government officials. While the maximum benefits from agriculture were accrued  by these elements, the maximum burden of more than 60% of the produce were exacted from  peasants,marginal farmers and sharecroppers. 

4. Reorganisation of administration - Because of the partition, the administration was also bifurcated on religious lines. And so it was incumbent to reorganise administration on an All India basis to control subversive elements.  

5. Demands of states on linguistic basis - There was clamour to reorganise states on linguistic basis. 

6. Formation of the constitution of India - The first sitting of the constituent assembly was held on 9th December 1946 in the undivided India. The mounting task for the constitution makers was to make the constitution which stood for all religious, linguistic, regional, ethnic, caste and creed groups.

7. Economic disparities - There were huge disparities between people. The wealth was concentrated in a few hands while 94% of the people were facing starvation. 

8. Caste and social division - Society was fragmented on the basis of caste and religion. High caste hindus treated scheduled castes and scheduled tribes as untouchables. 

9. Food scarcity - Because of the partition, there was acute food scarcity in India . Fertile lands of Punjab producing rice,wheat, cotton and jute went to Pakistan.  

10. Political instability on account of secessionist forces active in North East and communist in Telangana. - The entire north eastern states were on the boil. Nagas, Mizos, Kukis were bent upon seceding from India. 

11. Low agricultural and industrial growth - There was a near absence of change in the technological and production base of Indian agriculture. Indian peasants continued to use the primitive implements. They had been used for centuries. The use of inorganic fertilisers was virtually unknown. As of 1938-39, only 11% of all cropped land was under improved seeds, their use being largely confined to non-food cash crops. There was hardly any investment in terracing, flood control, drainage and desalination of soil. By the 1940s only 27% of the total cultivated area was irrigated. There was a decline in per capita agricultural production by 14% between 1901 and 1941. The fall in per capita food grains was over 24%. 

During British rule, Indian handicrafts and artisanal industries virtually collapsed on account of free trade imposed on India. Although modern industries developed in the second half of the 19th century but in terms of production and employment, the industrial development was stunted and paltry compared with that of the developed countries. The share of modern industries in national income at the end of the British rule was only 7.5%. There was a virtual absence of capital goods and machine industries. In 1950, India met about 90% of its needs for machine tools through imports. For want of industrial growth, most of the artisans crowded into agriculture as tenants sharecroppers and agricultural labourers. Moreover, industries were concentrated only in a few regions. This led to wide regional disparities in income. 

12. Poor infrastructure - Although Britishers developed roads and railways to connect different parts of the country, it was meant to take away raw materials from hinterland and to send them to ports for exports. The railways also spread manufactured goods from Britain in the hinterland of India. Major parts of India were devoid of better infrastructure and so there was less connectivity. 

13. Low level of literacy- On the eve of independence, only 18% people were literate. The female literacy rate was only 8%. If we bifurcate region wise, the illiteracy went more than 90% in the backward states of Bihar, UP, Odisha.  

14. An independent foreign policy to safeguard sovereignty and territorial integrity - After the end of the Second World War in 1945, the world was divided into two warring camps, one led by the US and other led by the Soviet Union. The cold war ensued between both camps. Both camps wanted India on their side. But India wanted to safeguard its independence and so it did not  oblige either of the camps. It pursued the policy of non-alignment in order to take decisions in international affairs on the basis of merit. 


What measures were taken to solve it ?

1. The Government of India took stern action against the elements who perpetuated communal violence in India. Within two years, the government could control communal violence. Hooligans were brought to book. Bad elements were sternly dealt with. 

2. About 60 lakh refugees were rehabilitated in different parts of India. They were provided necessary accommodation. 

3. The princely state of Junagarh was merged with the Union by invoking plebiscite. Hyderabad was merged with India through police action. Jammu & Kashmir was annexed with India when Maharaja Harisingh signed over the annexation of Jammu & Kashmir with the Indian Union on 26th October 1947. All Princely States were provided a privy purse for their upkeep. However, the privy purse was abolished by Indira Gandhi in 1969.

4.India dismantled the prevalence of feudalism by the abolition of Zamindari Act, 1951. The security of tenure of peasants was provided. Ceilings of lands were invoked. More than 60 lakh hectares of surplus land were distributed among landless labourers and marginal farmers. 

5. After independence, the administration was reorganised. All India services like Indian Administrative Service (IAS), Indian Police Service (IPS) and later Indian Forest Service (IFS) were created. In addition, several central services and provincial services were created to make the administration effective and efficient. 

6. States were created on the basis of language. Andhra Pradesh was carved out from Madras Province in 1953 for Telugu speaking people. The State Reorganisation Commission headed by Justice Fazal Ali in 1956 recommended the reorganisation of provinces on the basis of language. It created 14 provinces and 6 Union Territories. Thus, Madhya Pradesh was created for Hindi speaking people by carving out  Mahakoshal, Madhya Bharat, Rewa and Bundelkhand. Bombay province was divided into Marathi speaking Maharashtra and Gujarati speaking Gujarat states. In 1963, a separate state of Nagaland was carved out from the state of Assam  to appease Nagas. In 1966, Punjab was divided into Haryana and Punjab on the basis of language.  Similarly, on the basis of ethnicity, Meghalaya, Manipur, Mizoram, Tripura were created. 

7. Constituent assembly made the constitution of India which professed secularism, socialism, democracy and sovereign republic. Secularism was meant to promote religious harmony among people. Under article 25 of our constitution, every citizen of our country was given the right to promote, profess and propagate their religions. No religious teachings can be done in the government institutions or institutions added by the government. It prohibits the use of state funds for religious purposes. The government cannot impose taxes for promoting any particular religion. It allows religious denominations to manage  their own religious affairs. Moreover, in the case of Kesavananda Bharati vs Union of India (1973), the Supreme Court held secularism as the basic structure of the constitution. Socialism meant for reduction of concentration of wealth and provision for the equitable distribution of the wealth under article 39 B and C. However, government failed to tackle the concentration of wealth so much so that top 1% people have 22% of the national income and 44% of the national wealth of India. 

8. The government launched Five year plans to promote all round development of the economy, to reduce income disparity, to promote growth in the economy by boosting agricultural, industrial and infrastructural growth. In 1991, the government opened the economy because of the crisis of foreign exchange. It reduced tariffs from 80% to 25% on imported goods. Public sector undertakings were disinvested. Foreign Direct Investments were invited. All these efforts led to higher growth in the economy. 

9.An effort was made to bridge the gap of social division by making untouchability an offence. In 1955, the government made a Civil Protection Act whereby untouchability in any form was made a punishable Act. Later on, in 1989, the government enacted Scheduled Caste Scheduled Tribes Prevention of Atrocities Act whereby both these vulnerable communities were empowered. Residential schools were opened for the education of the children of SCs/STs. Scholarships were provided. To bring them into the mainstream, they were provided 15% and 7.5% reservation respectively in government jobs. Similarly, 84 seats were reserved for SCs and 47 seats were reserved for STs in the Lok Sabha. Similar reservations were provided in state assemblies. 

10.The government took steps to tackle food scarcity in India arising out of partition. It made a treaty with the US under PL 480 whereby cheap foods were imported from the US to feed the masses. In addition, the government launched the Green Revolution in the state of Punjab, Haryana and Western UP by introducing high yielding varieties of seeds, massive use of fertilisers and pesticides, provisions of irrigation, mechanisation of farming, consolidation of holdings , provisions of markets for the sale of agricultural produce and minimum support price. These measures transformed a food deficit India into a food exporting one.  

11. By the mix of military action and peace talks, the secessionist forces in the north east were subdued. Similarly, communists in Telangana were brought into the mainstream by participating in parliamentary elections. They shunned violence.  

12.In the First Five Year Plan, the focus was on the growth of agriculture. Agricultural sector grew by 4%. In the Second Plan, the emphasis was upon heavy industries. India established steel plants at Bokaro, Bhilai, Durgapur, Rourkela and Salem. Now it is the second largest steel producing country in the world after China. 

13.The government launched Sarv Shiksha Abhiyan (Universalisation of Education) in 2001. Earlier, the National Literacy Mission was launched in 1988 to achieve 75% literacy. The Mid day meal scheme was launched in 1995 which provided free lunches in school to improve enrollment and nutritions. The government enacted the right to education as a fundamental right for children aged between 6 to 14 years. In 2015, Beti Bachao Beti Padhao was launched to focus upon improving girl child education. The national education policy 2020 aimed at mother tongue education, vocational training and digital learning. Digital India education initiative was launched in 2015 to promote online education and digital literacy. Efforts of the government bore fruit. Literacy rates increased from 18.3% in 1951 to 77.7% in 2022. The female literacy of 8.9% in 1951 went to 70% in 2022. Gross enrollment ratio in primary education is now over 95% . However, there is a regional disparity in the literacy rate. While Kerala has the highest literacy rate of 96%, Bihar has only 61.8%. There is a gender gap in female literacy while male literacy is 84%, female literacy is 70%. Moreover, dropout rates are very much prevalent in SCs/STs students in secondary and higher secondary schools. 

14. The government initiated non-alignment in matters relating to foreign affairs. It did not align with either of the blocks and embarked upon an independent policy based upon merit. The basis of India’s foreign policy is Panchsheel which comprises mutual respect for territorial integrity and sovereignty, non-aggression, non-interference in internal affairs, equality and mutual benefit and peaceful coexistence. India stands for multipolar world order instead of aligning with one block. It supports multilateralism through the UN, WTO, BRICS, G-20, SCO and QUAD. In short, India aims to become a dominant power in the 21st century. 


Conclusion

1. Primordial loyalties like caste based social hierarchy, religious divisions, regional disparities, linguistic chauvinism , ethnic strife, and stiff competition among sects are stumbling blocks to national integration. In spite of the government efforts, the caste system did not weaken. While the vertical caste system dismantled, horizontal caste solidarity is on the rise. Different Plans and NITI Ayog so far failed to curb regional disparities so much so that the per capita income of Bihar is ten times less than that of Goa. While, southern and western states have progressed at fast speed, the northern and eastern states like Bihar, UP, Jharkhand, Odisha, Madhya Pradesh and North Eastern states are lagging far behind. The government has been successful by carving out linguistic states but still there are certain pockets in India which clamour again for separate states on the basis of language. Moreover, Southern states are dead against the imposition of Hindi and three language formulas. The ethnic striving is still on the rise. An example is the ongoing violence between Meitei and Kuki tribes. Similarly, Bodos are at loggerheads with Assamese. 

2. Religious divisions between Hindus and Muslims are on the rise. Mob lynching of Muslim religious community has become the frequent occurrences . Political participation of minority communities and specially Muslims are on the wane because of the rise of Hindutva ideology. 

2.Different sects have no love lost among them. So Shia, Sunni, Ahmadiya, Barelvi, Deobandi, Bohras are jockeying for power and prestige within their religious denominations. Similarly, Vaishnavas Shaivas, Shaktas, Smarths and Nathpanthis are trying to get upper hand in power, pelf and prestige within the Hindu religion. It is therefore imperative that religious harmony and ethos of secularism are strengthened. Regional imbalances are reduced. Cultural tolerance and multilingualism are promoted. Awareness programmes should be launched to combat fake news propaganda, hate speech, rumours meant to divide the society. Stringent actions should be taken against hooligans and bad elements who are bent upon perpetuating disinformation in the society.  


Wednesday, February 26, 2025

How can India overtake China in Economic development?

 



Why is it in the news ?

1.The Union Budget 2025-26, comprises total expenditure of 50.65 Lakh crore. The capital expenditure  constitutes 11.21 lakh crore, while revenue expenditure includes 39.44 lakh crore. The revenue expenditure encompasses the operational expenses of the government including salaries, subsidies, interest payment and other routine expenditures. These are consumption expenditures of the government. In the 2025-26 budget, the government extended the threshold tax free income to 12 lakh. In addition, the salaried class would get 75 thousand standard deductions. Thus, those individuals who are earning 12 lakh 75 thousand annually would get a tax benefit of 80 thousand. Similarly, those who are earning 24 lakh, they will get the tax benefit of 1 lakh 10 thousand. These tax rebates on personal income tax are intended to boost private consumption and increase the disposable income of 30 million individuals to create demands in the economy. In the process, the government lost 1 lakh crore rupees as tax revenue. 

2.There are four sources of expenditures that increase demand in the economy. These are private consumption, private investment, government expenditure for consumption and investment and finally net exports of goods and services. It is to be noted that compared to investment the multiplier effect rising from increased consumption is much weaker. For example, if income increases, the consumption also increases but it is not sure that the more the increase in consumption would lead to increases in income. Thus, it is imperative that our approach should be on investment led growth rather than on consumption led growth. 

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Status of the economies of India and China between 1960 to  2023

1.According to the World Bank, in 1964, the GDP of China was $59 billion followed by $56 billion of India. In 2023, India’s GDP was $3.5 trillion, while Chinese GDP went to $17 trillion. Between 1960 to 1980, the per capita income of India was bigger than that of China, while India had $271 per capita income, China had only $194 per capita income. 

India is set to achieve an addition of  $383 billion in 2025 in its GDP while China in spite of the low growth of 4.5% is to add $1.26 trillion dollar to its GDP during the same period because of the big scale of its economy. It is expected by the IMF that by 2029. The GDP of China would cross $24.6 trillion while India would achieve $6.3 trillion, thereby, the Chinese economy becoming almost 4 times larger than the Indian economy.  In the early 90s, the per capita income of India and China were almost the same, the average per capita income of Indian and Chinese was 1.5% of the average income of an American. In 2023, the per capita income of China has grown 5 times as high as Indians. In PPP terms, it was 2.4 times more for Chinese. So, GDP per capita in 2023 was $2481 for average Indians and $12614 for average Chinese.


How China surpassed India ahead? 


1.China came under communist rule in 1949. It patterned its economy on the Soviet model. It laid stress upon heavy industries and collectivisation under the central command. After getting independence  in 1947, India embarked upon a mixed economy whereby the public sector enterprises were to achieve the commanding heights of the economy. The economy was regulated so much so that license-permit-quota raj pervaded all the economic activities. This stifled the growth of the economy. Most of the public sector enterprises started incurring losses in 1980’s. 

2.In 1978, Deng-Xiao-Ping initiated economic reforms in China whereby foreign companies and firms were permitted to operate in China. Thus, the Chinese economy opened up. China was converted from a socialist controlled economy to socialist market economy. Huge amount of foreign direct investment came into China. By 1994 nearly $100 billion reached China as FDI and it was 18% of the total fixed investment. This foreign money built factories, created jobs, linked China to international markets and led to important transfers of technology. Economic liberalisation boosted exports. The export rose to 19% a year during 1981-94. Strong export growth in turn fuelled productivity growth in domestic industries. Thus, strong productive growth spurred by market oriented reforms was the leading cause of China’s unprecedented economic performances. 

The productivity of the agriculture sector further increased. For example, the yield of rice was 7.15 tons per hectare, wheat was 5.91 tons per hectare, cotton was 2154 tons per hectare against India’s 4.12 tons per hectare for rice, 3.56 tons per hectare for wheat, 499 kg per hectare for cotton. 

3. De-collectivisation was started whereby farmers were given autonomy to sell their produce in the market. Special economic zones were created to boost exports. This zone enjoyed tax breaks, less regulation, better infrastructure, and huge foreign direct investment flowed into China.

4.In 1991, India opened its economy. License-permit- quota raj ended. The policy of liberalisation and privatisation started. An effort was made to integrate the Indian economy with the global economy. Custom duties were reduced from 80% to 25% on goods and services imported from foreign countries. China focused upon export led growth. There was less hurdle to pursue economic reforms on account of one party rule. 

5.On the other hand India suffered because of bureaucratic hurdles, coalition governments and different parties pulling in different directions.  

The export-led growth supported by huge amounts of foreign direct investments made China a world factory. This is why manufacturing constitutes 30% of the GDP of China. India could not advance in the manufacturing sector like China in spite of its efforts to Make in India initiative and production linked initiatives. Manufacturing only constitutes 17% to the GDP of India. It not only creates jobs but also facilitates the transfer of technology, boosts exports, raises the standard of living and absorbs skilled and semi skilled labourers on a huge scale. 

6.China has over 44.3% saving rates of GDP in 2023. This higher saving rate allowed China to invest in businesses, industries, agriculture and  infrastructure. Compared to China, the gross savings rates of India as of March 2023 was 30.2% of GDP. Infrastructure in India also lagged behind China. This puts a high cost on logistics in India. 

7.This abrupt rise in the per capita income of the Chinese became possible because of huge investments. For example, in 1992, investment as a share of GDP was 39.1% in China, in India, it was 27.4%. 

8. By 2014, the investment rate rose to 45% to GDP in China but for India it was only 31.3%. In 2023, the investment rates were 42.3 % and 30.8% respectively for China and India. 

9. In contrast in 2023, consumption as a share of GDP was 60.3% in India compared to 39.1% in China. This is because the shares of government investments and consumption expenditure are relatively low. Moreover, India has always had a deficit in trade, having more imports of goods and services than exports, thereby causing reduction in domestic demands. Economic growth led by consumption is not only slower than investment led growth but it also aggravates inequalities  causing joblessness among people. 

10. According to the International Labour Organisation, China has consistently maintained a high labour force participation rate at 73%, in contrast to India’s 50% in 2022. Low labour participation is on account of decreased female labour participation in India which accounted for 24% in 2022. 

11. While India has always had a deficit trade whereby India imports more than it exports. India exported $770 billion and  imported $890 billion in 2022-23, China exported $1.2 trillion and imported $950 billion. Thus, it always has a surplus trade. 

12.The twin deficits of current account and fiscal makes imports costlier, weakens the value of rupee and thus, creates less demand in the Indian economy. 



What are ways out? What measures India can adopt to overtake the Chinese economy in the coming years?

1. Increasing investments in the economy. 

2. Reducing rate of consumption. 

3. Boosting exports 

4. Enhancing female labour force participation

5. Generating employment opportunity in manufacturing

6.Strengthening infrastructure to reduce the cost of logistics.

7. Fostering regional and international cooperation by expanding market access  not only domestically but in the international arena.

8. Emphasising education and skill development. 

9. Encouraging private businesses to invest more in the economy. 



Conclusion

India has vast potential to become the world power and surpass China in economic growth if it harnesses the cheap abundant labour force, incomes of  the rising middle class, transfer of technology , improves domestic institutional investments, increases wages and enhances competitiveness of the goods and services in the foreign market. To sum up, huge investments, not consumptions would lead India to make it a superpower and would surpass China in coming years.


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