As indicated in the economics section of this blog, India has sustained economic growth upon liberalization of the country, but at a cost of uneven development between states. Even with my own experience in India, I learned that within-state development can be uneven as well (e.g. a thriving metropolis versus an underdeveloped hinterland). Thus, my development concerns for India will focus primarily on ensuring that both slower states and less-developed parts of high-performing states catch up for everyone’s benefit.
To start with, providing relevant education and skills to Indians will be imperative. India is in the midst of transitioning to a knowledge-based economy, with skilled workers who can drive growth and innovation. Some challenges include coordinating skill development within the government, prioritizing skill formation in both formal and informal education institutes, acknowledging the informal sector, and standardizing required skills by industry. The cost for education infrastructure is also enormous. However, the government is not alone, as both NGOs and private companies are doing their part to achieve these skill development needs.1
Furthermore, fostering more business and entrepreneurship will be important for Indian development. One key component is financing MSMEs (Micro, Small, and Medium Enterprises), a significant component of economic growth and poverty reduction. An ongoing World Bank project is focusing on increasing financial access for MSMEs, particularly in services and manufacturing. Notably, these businesses also matter to slower states as a good proportion of rural MSMEs are found there.2
Although both initiatives are crucial to India’s success, my concerns will still focus on ensuring that slower states and areas catch up to balance development across the country. Greater focus should be placed on developing skills and fostering entrepreneurship in the more underdeveloped parts of India while halting brain drain.
Footnotes