India is an emerging and fastest growing economy. Though not rounded, India has demonstrated higher growth rates than its developed counterparts. The idea of a country’s gross development is completely based on a multidimensional approach towards achievements. Development in economic reforms must help build capabilities to improve the health of all sections.
The quality of life depends on the policies which deal with major emerging problems and challenges of the country such as urbanization, the housing deficit, easy access to power, water, education, and healthcare.
On July 28, 2018, Amitabh Kant, CEO NITI Aayog had said, “The country needs to improve its Human Development Index (HDI) to achieve a growth of around 10 percent”.
The HDI is a measurement of assessing progress based on three basic parameters of human development, namely, health care, education and living standard.
India’s performance in HDI has been mixed, 2016 – 125 and 2017 – 131. While HDI gives a broader picture of the nation’s standard of living, 10% GDP growth needs a much holistic approach, focus, and national priorities. Considering India’s present economic strengths and weaknesses, it has to focus on three major areas other than HDI, that is infrastructure, foreign trade, and foreign investment.
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Connectivity plays a pivotal role in building a nation’s infrastructure and this helps in building productive capacity by bridging connectivity gaps. Indian road network covers 5.5 million kilometers, however, a large part of the country, about 2.7 million kilometers of the rural road network is in very dire condition.
In regards to foreign trade, the policy framework of the government named Foreign Trade Policy(FTP) 2015–2020 aimed to make India a significant partner in global trade by 2020, has resulted in a decline in India’s export and an accelerating trade deficit.
India is in need of foreign investment to maintain its infrastructure sector and boost economic growth. According to the UNCTAD report, the FDI in India has decreased to $40 billion in 2017 from $44 billion in 2016.
Professor Biswajit Dhar of Jawaharlal Nehru University (JNU) said, “the status of economy reflects the magnitude of the FDI in a country. In the past couple of years, we have seen a decline in domestic investment rate.”
The expansion is a necessary prerequisite to further economic growth. India needs to increase the quality of roads, transportation, and air and also the availability of public cold storages, ship connectivity, and the shipping port infrastructure facilities which are mostly directed toward the export market.
The government needs to take positive steps to attract foreign investors by reviving the domestic.