Flawed Priorities

It is widely accepted that GDP growth cannot be a measure of a country’s development. Measuring development is very complex but there are certain accepted measures, one of them being Human Development Index (HDI). Human development Index combines three dimensions – A long and healthy life (Life expectancy at birth), Education Index (mean years of schooling and expected years of schooling), a decent standard of living (per capita GNI). India is ranked 134/187 in this index. Iraq, Syria, Palestine, Iran, Sri Lanka and Thailand are some of the countries that are ranked above India in this index.

If we look closely at the HDI of various states in India the findings are more shameful. If Uttar Pradesh and Bihar were independent countries, they would be ranked 5^th and 12^th in terms of population respectively & 148/187 and 161/187 respectively in HDI’s. Eight of India’s least developed states (BIMAROU states +Assam) constitute 47.62 % of India’s population with their combined HDI lying in the low HDI zone. I can safely say that India is an under-developed country.

India is a socialist country as mentioned in our constitution. It can be argued that the policies India have adopted since 1990s have been of capitalist nature but in truth those steps were means and not the end. The end was to generate sufficient income for the country, boost employment, and increase revenues of the government which could be utilized for development. Distributive justice is important component of socialism whereby government undertakes measures to tax the rich and spend on welfare of the poor.

But Indian spending priorities are flawed. While the ultra rich drive their SUVs on government subsidized Diesel, the government keeps financing the losses of Air India which has no utility for the poor. Spending Billions on enriching the infrastructure of metropolis and comparatively well off states has lead to more migration and unplanned urbanization which has created greater problems. Most of the developmental subjects (health, education etc) are in the state list but governments of the poor states have very less funds at their disposal. Further, expenditure from central quota is based on discretion of the central ministries which are mostly politically motivated.

In recent years, India has increased its defense spending. India has become a donor to some under-developed countries. India also organized the CWG games to showcase itself to the world. It can be argued that these spendings are of strategic concern. But the truth is – India chose these ahead of other pressing needs.

One half of India booms and other is under-developed. The priorities of the Indian development story are flawed.