GDP Growth vs. Per Capita Reality
- India is set to become the 4th largest economy by 2025, overtaking Japan, as per IMF projections.
- However, absolute GDP figures do not reflect income distribution, living standards, or development.
- GDP per capita (a better measure of individual prosperity) is 12 times lower in India than in Japan, and 9 times lower than in Poland, despite India’s much larger GDP.
Relevance : GS 3(Indian Economy)
Structural Transformation of the Workforce
- India (2023): ~45% of the workforce still in agriculture — a sign of underdevelopment.
- Poland and Japan: Less than 10% in agriculture; high proportion in industry and services.
- Lack of structural transformation hampers productivity and income growth in India.
Quality of Employment
- Share of wage/salaried workers:
- India: 23.9%
- Japan: 91%
- Poland: 80.1%
- Low formal employment in India points to widespread informality, job insecurity, and lack of social protection.
Education Indicators
- Gross enrolment rate in tertiary (college) education:
- India: 32.7%
- Japan: ~65%
- Poland: ~75%
- Lower higher education participation in India limits skilled workforce development and social mobility.
Health Indicators
- Life Expectancy (2023):
- India: 72 years
- Japan: 84 years
- Poland: 78.5 years
- Infant Mortality Rate (IMR, per 1,000 live births):
- India: 24.5
- Japan and Poland: <5
- India’s relatively poorer health outcomes reflect underinvestment in healthcare and service delivery gaps.
Human Development Index (HDI)
- India (2023): HDI of 0.685 → Medium Human Development
- Poland and Japan: HDI > 0.9 → Very High Human Development
- HDI captures the multi-dimensional gaps India still faces despite economic size.
Conclusion
- India’s economic rise is impressive in scale but masks deeper developmental challenges.
- A larger economy does not guarantee improved well-being unless growth is inclusive, employment-generating, and human-capital focused.
- For meaningful progress, India must address inequality, education, healthcare, and job formalisation.
