'Poverty in India Essay\r'

'With 44 percent (44%) of the spherical outsourcing market in the off-key shore sector for softw atomic number 18 and former(a) line of products process currently being hosted by India, it has prodigal gained global recognition as the premier global destination for cable process outsourcing. With generated revenues totaling over US$ 17.2 billion and employment related to outsourcing at 1.05 billion as of March 2005, India has greatly increased its sparingal output and per capita GDP. This stinting growth of India has been heralded as unitary of the around amazing success stories of the twentieth century. The growth rates that India has been posting over the retiring(a) five years have made it one of the reasons why investments have risen in the area.\r\nThe line is that even with the robust economic growth of India the snag between the profuse and the curt continues to grow. Outsourcing, while creating a boon for the Indian economy, has also intensified that por ta by creating sensitive societal classes and spawning new heathen changes. in that respectfore, because of the weak economic fundamental principle of the Indian Economy, sort of of narrowing the gap between the rich and the poor, it is kinda widened and fewer concerns are created therefrom leading to to a greater extent widespread mendi earth-closetcy.\r\nThe greatest problem that these poor fundamentals present to society however is the widening of social divisions that are already existent in society. In the Indian model the social rifts that are created necessitate with the differences from within the family unit in relation to the out of doors society. The creation and birth of a new lineament of middle class society which is predominantly comprised of members of the young sector is creating a class that is being soci solelyy and culturally alienated from the rest of society, particularly in the traditionally conservative Indian society.\r\nNew pass water hab its and consumer patterns have created a new class that enjoys the much expensive and extravagant lifestyle that is supported by the relatively high wages that receive as compared with the rest of Indian society. There is very miniscule time to spend in the household where to a greater extent(prenominal) solid and fundamental values are instilled and nurtured and instead the constant exposure to western society has resulted in a degradation of whatever morals were created or instilled in the first place. For others, the pressure of keeping the job and maintaining the accustomed lifestyle isolates them from other members of society in their efforts to generate more income.\r\nIn India where the economic distinction was historically at lower levels, the introduction of high paying jobs as a result of business process outsourcing has increased the rift between social and economic classes as well. The newly emancipated and sceptered women as well as the new rich employees of ou tsourcing firms are now experiencing things that their parents could never have enjoyed in their lifetimes such(prenominal) as televisions, ipods, cars and cellular phones. The rift would non be so great however were the opportunity available equally to all sectors of society.\r\n As it is however, tho those with real qualifications and training are allowed those opportunities and this has created a new resentment for those who have gained so much in so little time. While this has certainly generated more income for the Indian government to utilize in other social welfare projects, the income from taxes is non spent on decreasing the economic divide that exists but has genuinely been spent on basis projects in IT intentional to drum up more business and thus increasing the social gap even more.\r\n some other reason for the widespread impoverishment in India lies in the failure of the government to enact programs to ensure that the economic developments that b enefit certain sectors of society also drivel down to the masses. The Indian Planning Commission has estimated that as of the year 2004 and 2005 nearly 27.5% of the Indian population was financial support below the poverty lines.\r\nNearly 75% of all those living below the poverty line are located in the country areas of India. This shows that while most of the developed cities in India are beginning to grow, the rural areas of India are not able to benefit from this economic development. With over 836 million citizens living on less(prenominal) than US$ 0.50 cents, it seems that the poverty problems of India are more root on the poor economic structure than anything else.\r\nanother(prenominal) reason for this is because of the different social, religious and economic groups that are in India. The fact that the caste system was back up until the early 20th century has also added to the poverty rate in India because of the special rights and privileges that were abandoned to others. coupled with the lack of property rights, since the right to property is not constitutionally declared in India, these barriers effectively obstruct those from the lower economic classes of India from entering the middle class.\r\nThere are a number of other reasons that can be cited as the cause for poverty in India. Most of these theories are based on the poor economic fundamentals that were established during the British government and during the resulting political turmoil that resulted immediately after the deepen of power in 1947. Be that as it may, such poor fundamentals have also given birth to other economic problems such as the growing divide between the different economic classes in India.\r\nThe recent economic growth of India collectible to its growing role as a major player in the outsourcing industry has indeed given a number of benefits to Indians but at the alike time it has served to increase poverty in certain areas because of the failure of t he government to ensure a more equitable distribution of income among the masses. Lack of government infrastructure projects and rampant corruption remain to be the deterrents for India’s true economic growth. Until India is able to address these problems, poverty will remain to be synonymous with the Indian sparing system for years to come.\r\n \r\nReferences:\r\nAgrawal, A. N.: Indian Economy. Problems of developing and Planning. 18th edition, New Delhi: Wiley Eastern Limited 2002\r\nAhluwalia, Isher think: New Economic Policies. Reform of Public vault of heaven Enterprises and Privatisation in India. mimeo, February 2004, paper presented for the Conference on Economic relaxation method in South Asia at the Australia\r\nSingh, Ajit Kumar: affable Consequences of New Economic Policies. With Particular Reference to Levels of nutriment of Working Class Population. In: EPW, February 13, 1993, p. 279 †285\r\nSridhan, E.: Economic Liberalisation and India’s P olitical Economy: Towards a substitution class Synthesis. In: The JCCP, vol. XXXI, no. 3, November 1993, pp. 1 †31 A overview and critical discussion on divinatory explanations of the Indian political economy\r\nVaradarajan, P.; Bharadwaj, S.; Thirunarayana, P.: Executives attitudes toward consumerism and marketing †an exploration of theoretical and empirical linkages in an industrializing country. In: Journal of contrast Research, 1994, vol. 29, no 2, pp 83-100\r\n'