Prof M K Bhat
As the robust economic growth of 8.2 % in Q2,higher than six consecutive quarters, was published,a flood of misinformation was unleashed by Modi baiters. The problem with the gang is that they can’t appreciate anything good taking place in the country and above all how a ChaiWala dare to put economy on right track without their intellectual prowess. The height of things was that in one podcastan economist put economy at stage where it was before one-decade, termed growth as jobless and revived the 70year old ghost of Vakil Brahmanand v/s Mahalanbois model to address the growing income inequality in the country. The social media is veering around the strategy of top- down v/s bottom- up approach towards economic growth of the country. It is worth to point out here that top-down approach was adopted by Pt.Nehru by applying Mahalanbois model in 2nd five- year plan and it resulted in inequal distribution of income in the country. The top-down approach stressed on heavy industrialisation and capital goods while as bottom up prioritised on production of essential consumer goods particularly through agriculture sector.
Economic theories are subject to the approval of Political decision of the rulers in the country.The top-down approach was adopted with an intention that prosperity will trickle down and encompass the whole nation within its ambit. This approach also gave politicians enough scope to showcase their achievements to public and win elections. The trickle down did not take place as desired so patches of prosperity came into existence with masses remaining far behind in the race.The subsequent governments with left or right ideology simply followed the approach with minor adaptations here and there and the result is the creation of India and Bharat within the same geographical area. The former is quite ready to catch with the prosperous nations of the world and the latter is still struggling for its survival. Contrary to this whether the bottom-up approach with agriculture as the pivot could have attained the high growth rate or not is debatable but harmonious development would have been there, a few enjoying and the majority falling behind perhaps would not have taken place.However, it may be said to credit of the Modi regime that it has lessened the income disparity gap through its various social service schemes. Things are visible and get reflected by the electoral victory of NDA election after election.
The debate has got more heat ever since PM Modi gave target of Viksit Bharat by 2047.Sceptics crib growth as jobless, favouring a few industrialists and project income inequality to promote their narrative. The fact is that India at present is the fastest growing economy in the world.It is already fourth largest economy and may soon attain its third position before 2028 provided growth rate continues to remain at a higher level. The fallacy of economic growth due to a few industrialists is busted by the increase in per capita income and as per IMF world economic outlook(April 2025) GDP nominal per capita of India for 2025 is projected at $2878 at current prices while as in 2014 it stood at approximately $1631.The per capita income of the country in nominal terms doubled since 2014-15, when Narendra Modi came to power and at constant prices the per capita income increased by 35 percent from 2014-15 to 2022-23.This proves that economy has performed better under the leadership of Chaiwallah than the economist prime minister. However sordid story of our growth trajectory becomes evident when we compare the life style of India with the developed countries. However, we shall not ignore that the high growth rate provides us a chance to invest on social development and thereby helps us to attain better life for ourselves.
Extreme poverty(share of population living on less than $2.15 per day) dropped to 2.3% in 2022-23 from 16.2%in 2011-12, as per world Bank,further 171 million people were lifted out of extreme poverty in the last decade. This is a remarkable achievement in one decade for a country of India’s size, diversity and talks of economic progress being shared more evenly across population. Here the present government deserves kudos for its consistent policy focus on reducing poverty,expanding financial access and delivering welfare support to those who need it the most. This was possible because of certain key initiatives taken by Modi government,namely:
PM Jan Dhan Yojana: financial inclusion has not only reduced corruption but it has come up as a major push for social equity of the country. There were 55.69 crore people with Jan Dhan accounts on June 25, 2025. It gave them direct access to government benefits and formal banking services,thereby reduced the scope of money lender and middle man in government benefits.Secondly, 142 crore Aadhar cards have been issued in the country till July 3, 2025.These cards ensured the benefits reach to the right person. Thirdly,the Ayushman Bharat scheme provides health coverage up toRs 5lakh per family per year.Upto July 3, 2025 41.34 crore Ayushman cards were issued empanelling 32000 hospitals in the country. Besides, this the government launched Ayushman Vay Vandana scheme to extend this coverage to all citizens aged 70 and above, irrespective of their income.Fourthly Pradhan Mantri Garib Kalyan Anna Yojana.Food security has contributed a lot as social security to the vulnerable sections of society.The scheme offered free food to 80.67 crore people in Dec. 2024.Fifthly, there are certain schemes for developing entrepreneur qualities in weaker sections of society mention can be made of ,Stand up India; under this scheme loans between Rs 10 lakh and Rs 1 crore are provided to SC/ST and women entrepreneurs for setting greenfield enterprises As of july3, 2025 more than 2.75 lakh applications have been sanctioned with total funding of RS 62 807.46 crore. PM Vishwakarma Yojana provides collateral freeloans, tool kits, digital training and marketing support to traditional artisans and crafts men and as of July 3, 2025, 29.95 lakh individuals had registered under this scheme.
There is no denying of the fact that economic growth without improvement in the life of masses carries no weight but it is worth to point out that Modi government through its social schemes has gone a long way in mitigating the social inequality but yet too much remains to be done.
(The author is Professor Emeritus (M.A.I.T) Guru Gobind Singh Indraprastha University, Delhi)
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