India is also facing a widening income gap. Economists say the only way to tackle the mammoth problem, is with inclusive development. That's been on the government's agenda for 5 years, but without result. For our special series on income, our India correspondent Shweta Bajaj brings us this report.
For a nation to be large in size brings strengths but also it has its share of weaknesses. India is not different. Far flung areas, large population and difficult terrain makes matters even more complex. India is one national bearing the brunt of all this. Scattered development and industrialization means income gaps that are not only massive but also widening.
That's India's reality.Despite its two third of population living below poverty line,the nation is expanding rapidly. This only indicates the opportunity being missed. Unlike other nations, more than 70 percent of India's growth comes from domestic consumer spending.And that means tapping potential of by bridging income gaps is essential for the nation.Even more so now. ThouhIndia's economic growth created wealth for many in Indian cities.Its given rise to a new consumer class, waiting to spend their salaries in swanky malls.But this has only created inequality which has led to resentment. Naxal attacks and unrest is a common sight today in under developed parts of India. And this internal security situation has only made matters worse.
India stood at 134th position in the UN Human Development Index in 1984. More than 2 decades later, India's stood at the same 134th position in 2007. Despite being in top four nations with highest number of billionaires, a massive 836 milllion people in India live on less than 50 cents a day. And this is a issue that the nation neeeds to tackle head-on.