Projected to grow at 7%, India has the potential to be the world's fastest-growing economy over the next decade till 2024, far outpacing China that could slow to 4.3%, says an influential study by Harvard's Centre for International Development (CID) on the basis of the 2014 trade data, the latest available.
Helmed by Prof Ricardo Hausmann, who heads the CID and leads research for the 'Atlas of Economic Complexity', the study presents an optimistic picture for India based on increasing sophistication of its industry, ability to adapt to changing global demand and variety in exports.
"India has made important gains in productive capabilities, allowing it to diversify its exports into more complex products, including pharmaceuticals and even electronics," Prof Hausmann says in a press release.
Hausmann notes that India's recent gains in complexity of its economy along with an ability to continue improving will drive higher incomes. "This will position India to lead global economic growth over the coming decade," he says. Arguing that gains in economic complexity have historically translated into higher incomes, Hausmann says China has already realised these benefits and has doubled per capita income in less than a decade.
Along with growth projections, the CID released new country rankings in the 2014 economic complexity index, which incorporates data stretching back to 1962, that places India at the 42nd spot but notes an improvement by five positions.
The rankings continue to see Japan, Germany and Switzerland leading the table while the UK, the US and France (10th, 13th and 16th) have all slipped. Oil economies like Venezuela have slipped the fastest, supporting the notion that a surfeit of mineral wealth can be a curse as it makes governments lethargic and encourages rentierism.
Southeast Asia and sub-Saharan Africa have the top gainers clocking fast per capita growth. This includes China that has climbed an impressive 16 positions to 17th even though its long-term prospects are dimmer and South Korea at 4th having gained 11 positions.
The Harvard study recognises that knowhow, which enriches a community's complexity, is often supplied by migrants. "Immigration policy must confront the fact that many of the firms that help diversify a country and drive its growth are started by immigrants and foreign firms," Hausmann says.
Researchers argue economic complexity is remarkably accurate in explaining differences in income levels and predicting growth trajectories. "Sustained growth is fundamentally human driven. The greater the diversity of productive knowhow in a pla- ce, the more complex products it can make, which underpins income gains," says Timothy Cheston, a CID team member.
The CID projections are bullish on east Africa, with Uganda, Tanzania and Kenya in the top 10, all predicted to grow at least 5.5% annually. The growth forecast is also favourable for south Asian countries like the Philippines, Indonesia and Vietnam that could grow above global averages.
The forecast for advanced economies is more muted with the US expected to grow at 2.8% with higher growth in the UK and Spain but lower in Germany and Italy.
So what is impact on ppl lives still millions homeless and toiletless
China has built millions of homes and cities for its citizens great service to Chinese
So what is impact on ppl lives still millions homeless and toiletless
China has built millions of homes and cities for its citizens great service to Chinese
every week about 150 villages are coming out of darkness
and government is distributing LED bulbs to replace all 770 million to save India 20000 mega watt electricity to provide it to people those who have never seen electricity since independence
Banks open 19.21 crore accounts under Pradhan Mantri Jan Dhan Yojana in one year
Dheeraj Tiwari, ET BureauDec 15, 2015, 06.39PM IST
(In a statement, the ministry)
Banks have opened 19.21 crore accounts under the government's ambitious financial inclusion scheme,Pradhan Mantri Jan Dhan Yojana (PMJDY) with deposit of more than Rs 26,819 crore, finance minsitry has said.
In a statement, the ministry noted that Rupay cards have been issued to 16.51 crore customers and two lakh accounts are opened every day.
PMJDY, which entails a life insurance cover of Rs 30,000 and an accidental insurance cover of Rs 1 lakh has also benefited the subscribers as 1,336 claims of life cover and 333 claims of accident insurance cover have been paid till November 2015.
The ministry in its statement noted that zero balance accounts in PMJDY have declined from 76 per cent in September 2014 to 36.50 per cent in November 2015.
"Till June 2015, more than Rs 4,273 crore have been routed through these accounts towards payment of wages under MNREGA and transfer of cooking gas subsidy amounting to Rs 17,446 crore has been done through Jan Dhan accounts till July 2015," the finance ministry said.
The ministry said that under Mudra Yojana, banks have disbursed Rs 45,948.28 crore as on November 2015 which has benefited 66 lakh borrowers. The government has set a target of Rs 1.22 lakh crore for loans to be given by banks to promote new entrepreneurs under the Pradhan Mantri Mudra Yojana (PMMY) which will seek to "fund the unfunded".
The ministry said that the three schemes under the drive billed as 'Jandhan to Jansuraksha' or people's money to public security, has also performed well. The government last year launched three social security programmes - the Pradhan Mantri Suraksha Bima Yojana (PMSBY), the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and the Atal Pension Yojana (APY) - to bring the excluded under the fold of formal financial services.
"As on November 2015, the gross enrolment under PMSBY is 9.16 crore, while that under PMJJBY is 2.86 crore," the finance ministry said in its statement adding that 10.35 lakh subscribers have enrolled in the pension scheme.
PMJJBY is a one year life insurance scheme, annually renewable offering coverage of Rs 2 lakh for death due to any reason and is available to people in the age group of 18 to 50 years, while PMSBY is a one year personal accident insurance scheme, annually renewable offering coverage of Rs 2lakh for death or permanent total disability and Rs 1 lakh for permanent partial disability due to an accident.
