The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.
Sujoy Nandy, MBA 2015-17, Vinod Gupta School of Management, IIT Kharagpur
India has recently been described as the one eyed king by RBI chief Raghuram Rajan when India is described as a bright spot in the global economy.
What he truly meant is though we have made immense progress in various sectors like technology, healthcare, transport, finance etc. we still need to go a very long way to make us feel comfortable in the global scenario. Talking about our achievements in the fiscal fronts like inflation is down from 11% to below 5% has allowed the interest rates to come down. This has given an impetus to investments. Technology has enabled banking simpler than never before. The new platform launched allows mobile to mobile transfers between any two bank accounts in India. This public platform can be used by anybody. However again we need to educate the masses in the rural and remote areas about this new technique so that more people adopts it.
If we see the other aspects, though the percentage of English speaking people have increased, still there is high level of illiteracy among the people and specially among the women. Many people still lack the basic amenities like access to running water and other basic infrastructure. India has seen its imports grow faster than the exports which means we need to attract capital flows to finance the deficit. Inequality has risen rather than decreased. Growth has been disproportionate favouring only the rich and skilled . Agriculture employs a large number of people but this is an inefficient sector and reforms have proven slow. Monsoon still plays a big part in the economy.
Mr Rajan also added that India was nearly a decade behind China in terms of the start of the reform process. We will be able to catch up with China if proper things are done at the right time. However our economy is unique and we need to take steps which suit our climate.All this needs working very hard and improving the human and physical capital, making effective regulatory environment and good access to finance. Then only we will be stepping on the path of being a true king.