What are the conflicting views about development in India?

Conflicting Views on Development in India

India’s rapid economic growth and evolving role in international affairs have sparked various opinions about the benefits and drawbacks of foreign investment and its changing global relationships. While foreign investment and stronger international relations have brought economic advantages, they also raise questions about sustainability, equity, and cultural impact.

Foreign Investment and TNCs

• Positive Impacts: Foreign investment, especially from transnational corporations (TNCs), has fueled India’s economic development by creating jobs, boosting industrial growth, and enhancing technology transfer. These investments have helped modernise telecommunications, information technology, and manufacturing sectors.
• Concerns About TNCs: Many argue that TNCs exert considerable economic and political influence, which can undermine India’s economic sovereignty. TNCs often focus on profit and may exploit workers by offering low wages and insufficient benefits. Additionally, TNCs are criticised for tax evasion practices and for competing directly with India’s local businesses, risking the survival of small and medium enterprises.
• Instability of Foreign Investment: Critics worry that TNCs could withdraw their investments at short notice, especially if economic conditions become less favourable. This creates economic uncertainty, as the withdrawal of TNCs could lead to job losses and impact India’s GDP.

Changing International Relations

• Growing Global Role: India’s stronger economic position has allowed it to play a larger role on the global stage, particularly through organisations like BRICS and the G20. This shift has opened opportunities for India to influence global decisions on trade, climate policy, and development funding, benefiting India and other emerging economies.
• Internal vs. External Priorities: While many support India’s increased international engagement, others believe India should prioritise solving domestic issues, such as poverty, health, and education, before focusing on international alliances. The government faces the challenge of balancing global ambitions with domestic needs.
• Alliance Concerns: India’s global standing may require it to align with nations that do not share its values or political goals, creating tension about the long-term impacts of these partnerships.

Persistent Poverty and Inequality

• High Poverty Levels: Although poverty rates have declined, India still has a substantial population living in poverty. According to recent data, around 22% of the population remains below the national poverty line, and over 800 million people live on less than US$2 per day.
• Income Inequality: Economic growth has not been evenly distributed, with income inequality rising recently. Many critics argue that while some regions and urban centres thrive, rural areas struggle with low incomes, inadequate healthcare, and poor infrastructure.
• Malnutrition and Health: India faces significant health challenges, with around 40% of the world’s malnourished children residing in the country. Malnutrition leads to stunted growth and weak immune systems among children, especially in poorer areas, highlighting the uneven reach of development benefits.

Urban vs. Rural Divide

• Urban Growth: Major cities like Delhi, Mumbai, and Bangalore have seen rapid economic expansion, drawing people from rural areas seeking better opportunities. However, urban centres often face housing shortages, pollution, and inadequate infrastructure to support the growing population.
• Rural Limitations: Despite urban growth, over two-thirds of India’s population lives in rural areas, where development has been slower. Many rural communities continue to rely on traditional practices, like bartering and lack access to basic services, such as clean water and healthcare. This rural-urban divide remains a significant barrier to inclusive growth.

Development Challenges and Future Outlook

India’s government recognises that sustainable, inclusive growth is essential to address these issues and has made efforts to encourage development in poorer states. However, India faces significant challenges as it continues on its growth trajectory:

• Population Growth: India’s population is expected to reach 1.5 billion by 2030, increasing pressure on resources, housing, and employment.
• Urbanisation Pressure: The urban population will increase to over 600 million by 2030, further straining urban infrastructure and services.
• Rising Energy Demand: India’s energy demand is expected to triple by 2030, creating urgency for sustainable energy solutions.

India’s development path presents opportunities and challenges as it navigates the complexities of international relations, foreign investment, and domestic socio-economic issues. Balancing growth with equity and sustainability will remain a central challenge.