In this article, we will discuss India Lagged in Economic Transformation. So, let’s get started.
India Lagged in Economic Transformation
- The Three Parameters:
- The divergent outcomes in structural transformation between countries in the global South, particularly India, China and SouthEast Asia, is due to their focus on “Land Equity”, “Access to Education” and “Access to Entrepreneurship”.
- Focus on Education:
- Chinese and other East Asian countries invested in basic education and gradually shifted towards higher education.
- Focus on Low End Jobs:
- South East Asia and China captured low end manufacturing jobs, India largely concentrated in high end technology jobs.
- Focus on Human Capital:
- In China, rural entrepreneurship was able to grow out of the traditional agricultural sector on a massive scale due to its investment in human capital.
- It also resulted in diversification into urban enterprises by agrarian capitalists.
- China taking over India in manufacturing is due to this neglect in human capital formation.
- Their success in manufacturing is a direct outcome of the investment in human capital.
- British Colonial Intervention:
- The biggest challenge India as a nation faced was intervention by Britishers which amplified caste based and racial differences.
- This intervention is one of the major factors why Indian couldn’t cope up with the pace of economic transformation when compared to its neighbours.