Monday, 23 September 2013


- From Dr.DD’s News Granary 

Rural to Urban Shift - Can India Adopt this Recipe for Prosperity?

Many Indian leaders talk of getting 80% of Indians into cities! Is it Possible? The shift from agriculture to urban industry and manufacturing is how Europe, the US and more recently China enhanced their productivity and created Capital for broader investments to modernize their economies. But we cannot Xerox the European or Chinese Model into India. Why?

We have 52% GDP coming from Services, 28% manufacturing, 20% by agriculture. 20% of GDP is coming from 80% of the rural Population in India.
The manufacturing sector of India was giving 25% of GDP in 1989, today at 28% only - abysmal growth there.

In spite of high GDP growth in India, the jobs at manufacturing sector were only shrinking. Only fewer jobs are available for manufacturing sector in India. The so called informal sector in urban areas could only take contract labor or the jobs to people of a scavenger and such low end jobs to people from rural areas. One cannot make a permanent shift based in these jobs of an unsustainable nature.

The construction boom can give temporary shelter, but it is not permanent. The so called job guarantee subsidy for rural folk is not enforcing them; they are only creating an unproductive vote bank. Do not give charity but empower them, that is the need of the hour.

We have to teach the rural folk How to Fish? And not donate the fish as the dish for the day!

We have to admit this - We need to empower the rural folk; develop the rural areas with their core agriculture strength – More productive & diverse agriculture are the keys - not the shifting from rural to urban – Any take?                                                                                                                                                                               

More to Follow…

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