Poverty in India Essay

With 44 percent (44%) of the global outsourcing market in the moody shore sector for softw are and other business process soon being hosted by India, it has fast gained global recognition as the premier(a) global destination for business process outsourcing. With generated r pointues totaling all over US$ 17.2 one thousand thousand and employment related to outsourcing at 1.05 million as of March 2005, India has greatly increased its stinting output and per capita GDP. This economic yield of India has been heralded as one of the most amazing success stories of the 20th century. The growth judge that India has been posting over the past five geezerhood construct do it one of the reasons why investments have risen in the area.The problem is that even with the robust economic growth of India the schism between the enough and the scurvy continues to grow. Outsourcing, while creating a boon for the Indian delivery, has in addition intensified that spreadhead by creating r ude(a) complaisant classes and spawning impudently cultural changes. at that placefore, because of the weak economic fundamentals of the Indian providence, instead of narrowing the gap between the rich and the poor, it is instead widened and fewer jobs are created indeed leading to more far-flung poverty.The greatest problem that these poor fundamentals present to clubhouse and is the widening of social divisions that are already existent in society. In the Indian model the social rifts that are created deal with the differences from within the family social unit in relation to the outside society. The creation and birth of a new type of middle class society which is predominantly comprised of members of the youth sector is creating a class that is being soci all toldy and culturally alienated from the easing of society, particularly in the traditionally conservative Indian society.New conk habits and consumer patterns have created a new class that enjoys the more expens ive and inordinate lifestyle that is supported by the relatively high wages that find out as compared with the rest of Indian society. There is very weensy beat to spend in the household where more solid and fundamental set are instilled and nurtured and instead the constant exposure to western society has resulted in a degradation of whatever morals were created or instilled in the front place. For others, the pressure of keeping the job and maintaining the accustomed lifestyle isolates them from other members of society in their efforts to generate more income.In India where the economic disparity was historically at lower levels, the introduction of higher paying jobs as a result of business process outsourcing has increased the rift between social and economic classes as thoroughly. The newly emancipated and empowered women as well as the new rich employees of outsourcing firms are now experiencing things that their parents could never have enjoyed in their lifetimes such as televisions, ipods, cars and cellular phones. The rift would not be so great however were the opportunity available equally to all sectors of society. As it is however, only those with real qualifications and training are allowed those opportunities and this has created a new resentment for those who have gained so much in so little time. While this has certainly generated more income for the Indian government to utilize in other social welfare projects, the income from taxes is not spent on diminish the economic give that exists scarcely has actually been spent on bag projects in IT designed to drum up more business and thus increasing the social gap even more. another(prenominal) reason for the widespread poverty in India lies in the failure of the government to enact programs to tell that the economic developments that benefit certain sectors of society also trickle protrude to the masses. The Indian Planning Commission has estimated that as of the year 2004 and 2005 n early 27.5% of the Indian population was living below the poverty lines.Nearly 75% of all those living below the poverty line are located in the rural areas of India. This shows that while most of the developed cities in India are pedigree to grow, the rural areas of India are not able to benefit from this economic development. With over 836 million citizens living on less than US$ 0.50 cents, it seems that the poverty problems of India are more rooted on the poor economic structure than anything else.Another reason for this is because of the different social, religious and economic groups that are in India. The circumstance that the caste system was encouraged until the early 20th century has also added to the poverty rate in India because of the special rights and privileges that were given over to others. Coupled with the overlook of property rights, since the right to property is not constitutionally declared in India, these barriers effectively prevent those from the lower e conomic classes of India from entering the middle class.There are a number of other reasons that can be cited as the cause for poverty in India. Most of these theories are based on the poor economic fundamentals that were established during the British Regime and during the resulting semipolitical turmoil that resulted immediately after the transfer of power in 1947. Be that as it may, such poor fundamentals have also given birth to other economic problems such as the growing divide between the different economic classes in India.The recent economic growth of India due to its growing role as a major fake in the outsourcing industry has indeed granted a number of benefits to Indians but at the same time it has served to increase poverty in certain areas because of the failure of the government to ensure a more equitable diffusion of income among the masses. Lack of government infrastructure projects and rampant corruption remain to be the deterrents for Indias true economic growth . Until India is able to address these problems, poverty lead remain to be synonymous with the Indian Economic system for years to come.ReferencesAgrawal, A. N. Indian Economy. Problems of Development and Planning. 18th edition, New Delhi Wiley Eastern Limited 2002Ahluwalia, Isher guess New Economic Policies. Reform of Public Sector Enterprises and Privatisation in India. mimeo, February 2004, radical presented for the Conference on Economic Liberalisation in South Asia at the AustraliaSingh, Ajit Kumar Social Consequences of New Economic Policies. With Particular Reference to Levels of Living of working Class Population. In EPW, February 13, 1993, p. 279 285Sridhan, E. Economic Liberalisation and Indias Political Economy Towards a Paradigm Synthesis. In The JCCP, vol. XXXI, no. 3, November 1993, pp. 1 31 A overview and critical discussion on theoretical explanations of the Indian political economyVaradarajan, P. Bharadwaj, S. Thirunarayana, P. 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