India as a developed nation: The Call for a Self-Reliant India

 

India as a developed nation:  The Call for a Self-Reliant India

Why Has India Been a Developing Country?

Despite over seven decades of independence, India continues to be classified as a developing nation. Here’s why:

1. Colonial Aftermath (Post-1947 Start from Scratch) : When India gained independence in 1947, it inherited a crippled economy:

• GDP contribution to the world had fallen to less than 4% from 24% in 1700 (Utsa Patnaik, Economic Historian).
• Literacy rate was just 12% in 1947.
• Industrial and agricultural infrastructure was poorly developed.

2. High Population Growth: India’s population exploded from 340 million (1947) to 1.4+ billion (2024), putting immense pressure on jobs, healthcare, and housing.

• Over 65% of India’s population is below 35, but unemployment among youth remains high, at 7.45% in 2023 (CMIE).

3. Agriculture-Heavy Workforce: Even today, over 43% of India’s workers depend on agriculture, though the sector contributes only 16% to GDP (Economic Survey 2023), leading to low productivity and income.

4. Poverty and Inequality: 228 million people live in poverty (NITI Aayog, 2023).

• Top 10% own 77% of wealth (Oxfam India, 2023).
  This inequality limits equitable development.

5. Human Development Challenges:India ranks 132 out of 191 countries on the UN Human Development Index (HDI 2023).

• Health spending is below 2.1% of GDP.
• Malnutrition remains a concern — 35.5% of children under 5 are stunted (NFHS-5).

6. Infrastructure & Bureaucracy Gaps : Lack of rural connectivity, sanitation, and digital access hold back growth.

• Bureaucratic delays, corruption, and policy execution gaps affect progress.
• For instance, despite reforms, India still ranks 40th in Global Innovation Index 2023, not matching its startup potential.

India’s Growth Compared to Other Nations — A Statistical Snapshot

While India has made remarkable progress since independence, its pace of development has been slower compared to several nations that were once at a similar or even worse starting point. Here's a comparison:

1. India vs. China

Starting Point (1950s):

• Both nations had agrarian economies, widespread poverty, and low literacy.

Progress by 2024:

Indicator	India	China
GDP (Nominal, 2024)	$3.7 trillion (5th rank)	$17.5 trillion (2nd rank)
Per Capita Income	~$2,700	~$12,700
Poverty Rate	~15% (Multidimensional, 2023)	<1% (World Bank, 2023)
Literacy Rate	~77%	~97%
HDI Rank (2023)	132	79

 Key Factors:

• China focused early on infrastructure, manufacturing, and exports.
• India’s democratic structure delayed consensus on reforms until 1991 liberalization.

 2. India vs. South Korea

Starting Point (1950s):

• Both countries had low GDP, post-war or colonial disruption, and agrarian setups.

Progress by 2024:

Indicator	India	South Korea
GDP (Nominal, 2024)	$3.7 trillion	$1.8 trillion
Per Capita Income	~$2,700	~$34,000
HDI Rank (2023)	132	19
Internet Penetration	~67%	~97%

 Key Factors:

• South Korea invested heavily in education, R&D, and technology.
• Strong government-industry collaboration accelerated export-led growth.

 3. India vs. Brazil

Similarities:

• Large population, emerging economy status, democracy, rich in resources.

Progress by 2024:

Indicator	India	Brazil
GDP (Nominal, 2024)	$3.7 trillion	$2.1 trillion
Per Capita Income	~$2,700	~$9,800
HDI Rank (2023)	132	89
Urban Population (%)	35%	87%

 Key Factors:

• Brazil urbanized faster, but India has a stronger digital economy push.

 Why Has India Grown Slower Than Other Nations?

Despite being one of the world's fastest-growing economies in recent years, India has lagged behind several peer nations in terms of per capita income, industrialization, human development, and infrastructure. Below are the key reasons:

1. Late Economic Liberalization

• India opened its economy only in 1991, while China started reforms in 1978 and South Korea embraced export-led industrialization in the 1960s.
• As a result, by 2024:
• India’s GDP per capita: ~$2,700
• China’s GDP per capita: ~$12,700
• South Korea’s GDP per capita: ~$34,000
  (Source: IMF World Economic Outlook, 2024)

2. Overdependence on Agriculture

• As of 2023, 43% of India’s workforce is employed in agriculture, contributing only 16% to GDP.
• In contrast:
• China’s agricultural workforce: ~25%
• South Korea’s agricultural workforce: <5%
  (Source: World Bank, 2023)

This creates underemployment and low productivity in India’s rural economy.

 3. Low Investment in Human Capital

• Public health spending in India is just 2.1% of GDP, and education spending is around 2.9%.
• Compare this to:
• South Korea’s education spending: ~5.1% of GDP
• China’s health spending: ~3.6% of GDP
  (Source: WHO & UNESCO, 2023)

Poor access to quality education and healthcare limits India's human development.

4. Infrastructure Deficit

• Logistics cost in India is ~13–14% of GDP, vs. 8% in China and 6–7% in OECD countries.
• Electricity access, transport connectivity, and digital infrastructure are improving but still inconsistent across states.
  (Source: NITI Aayog Logistics Report 2023)

5. Bureaucratic Inefficiencies & Red Tape

• India ranked 132 out of 190 in Contract Enforcement (Doing Business Index 2020, World Bank).
• Business licensing, land acquisition, and policy delays often discourage investments compared to China’s centralized and quicker decision-making system.

6. Income Inequality and Poverty

• India’s Gini Index (income inequality measure): 35.7
• China’s: 38.2, but with much higher per capita income.
• Multidimensional Poverty: India has ~15% of its population under it (NITI Aayog, 2023), vs. <1% in China.

Despite economic growth, wealth remains concentrated, and poverty persists in pockets, slowing inclusive development.

7. Political Fragmentation and Populist Policies

• Unlike South Korea or China, India’s multi-party democracy often leads to fragmented policy implementation and frequent policy reversals at state or central levels.
• Populist schemes sometimes replace long-term investments in industry or infrastructure.

India’s growth has been constrained not by lack of talent or potential, but by structural limitations, delayed reforms, and uneven development focus. However, with bold reforms, digital innovation, and emphasis on Aatma Nirbhar Bharat (Self-Reliant India), the country is poised for a leap in the coming decades.

 

Visionary Paths to Make India a Developed Nation

Transforming India into a developed nation is not a distant dream—it is an achievable goal with strategic action, innovation, and inclusive growth. Here are the most practical and visionary ways India can embrace to reach that milestone:

 1. Investing Heavily in Human Capital

“The destiny of India is now being shaped in her classrooms.” — Dr. Kothari Commission (1966)

To build a knowledge-driven economy, universal access to quality education and skill training is vital:

• Increase public expenditure on education from the current 2.9% to at least 6% of GDP as recommended by the National Education Policy (NEP 2020).
• Focus on AI, data science, green tech, and future skills through upgraded higher education and skilling programs like Skill India and PMKVY.
• Improve teacher quality, infrastructure, and rural school access.

2. Strengthening Health Infrastructure

“No country can grow sustainably if its people are unhealthy.” — Dr. Devi Shetty, Narayana Health

India must:

• Raise healthcare investment to 3% of GDP, focusing on rural hospitals, disease prevention, and primary health centers.
• Expand Ayushman Bharat, currently covering 500 million poor citizens, to include preventive care.
• Foster public-private partnerships in medical innovation and affordable diagnostics.

3. Boosting Manufacturing and MSMEs

“India must become the factory of the world.” — Ratan Tata, Industrialist

Key actions:

• Strengthen Make in India, focusing on high-value sectors like electronics, defense, and semiconductors.
• Empower MSMEs, which contribute 30% to GDP and 40% of exports, by easing credit, digital adoption, and market access.
• Build modern industrial zones and supply chains with logistics parks and smart infrastructure.

4. Accelerating Digital Transformation

“India’s digital revolution is unlike any the world has seen.” — Nandan Nilekani, Infosys Co-founder

India already leads in:

• UPI digital payments with over 10 billion transactions monthly (NPCI, 2024).
• Expanding Digital India to cover rural connectivity, e-governance, and AI-driven public services.
• Encourage startups and innovation via programs like Startup India and Digital Bharat.

5. Creating Green and Sustainable Development

“India must lead the green revolution of the 21st century.” — Dr. R.A. Mashelkar, Former DG, CSIR

Steps to take:

• Meet and exceed Net Zero carbon goal by 2070 with large-scale solar, wind, and EV production.
• Support green hydrogen, water conservation, and afforestation.
• Train youth in green jobs — a market estimated to add 50 million new jobs by 2040 (UNEP).

6. Reducing Inequality and Ensuring Inclusive Growth

“No society can surely be flourishing and happy, of which the far greater part of the members are poor and miserable.” — Adam Smith

India must:

• Expand social safety nets, job-linked welfare, and nutrition programs like PM Poshan.
• Focus on regional development — uplift backward states and rural areas.
• Empower women and marginalized communities through education, ownership rights, and entrepreneurship.

7. Good Governance and Decentralization

“Minimum government, maximum governance” — Narendra Modi, Prime Minister of India

• Reform bureaucratic systems for speed and accountability.
• Encourage cooperative federalism where states are equal partners in growth.
• Promote transparent digital platforms, reduce corruption, and simplify compliance for businesses.

The India We Envision

A developed India would be one where:

• Every child is educated.
• Every citizen has access to health and dignity.
• Innovation drives the economy.
• India is a global leader in technology, green energy, and inclusive prosperity.

With the youngest population, a growing digital economy, and strong democratic foundations, India is not far from reaching developed status—provided visionary action follows bold intent.

 Conclusion: The Road to a Developed, Self-Reliant India

India’s journey from a newly independent nation in 1947 to the fifth-largest economy in the world is both inspiring and instructive. Yet, the label of a developing country still persists—not due to a lack of ambition or resources, but because of structural barriers, uneven growth, and delayed reforms. The comparisons with China, South Korea, and Brazil show that while India has made remarkable progress, it has the potential to achieve far more, and faster.

But now, the momentum is shifting.

India stands at a historic crossroads—with its young population, rising innovation ecosystem, global digital leadership, and renewed national confidence. The vision of a developed India is no longer just a dream—it is a visible destination, provided we walk the path with determination.

The key lies in investing in people, modernizing infrastructure, supporting industries and MSMEs, and ensuring inclusive development for all. The idea of Aatma Nirbhar Bharat is not about isolation, but about building inner strength—where India can produce, innovate, and lead, while collaborating globally on equal terms.

Every citizen, student, policymaker, and entrepreneur has a role to play. Development is not the responsibility of the government alone—it is a collective mission. If we align our education, enterprise, ethics, and energy toward a shared national goal, India can not only become a developed country but also a model for sustainable and equitable growth in the 21st century.

Let us not ask when India will become developed—let us ask how soon we can make it happen, together.

 

 

 

By

T.Raghu

Assistant Professor of English

SR University, Warangal

Contact: raghuresearch2023@gmail.com