The opinions expressed in this blog are those of the writer and do not represent the views of the World Economic Forum.

Mythili Bhusnurmath is Consulting Editor for the Economic Times

Time for a reality check

Seldom has the World Economic Forum’s India Economic Summit been held against the backdrop of such raised expectations. Cynics might call it hubris; except that in the corridors of power in India’s capital city, Delhi, there aren’t too many of them to be found – the country is riding high on the back of an unprecedented 8 % plus GDP growth for the fourth successive year and plays host to more than 600 business, political and civil society leaders from 30 countries at the Forum’s 22nd Economic Summit.

Expectations are sky-high. Not only in India but in the world at large; or so it would seem,   judging by  the unprecedented numbers attending this year’s Summit. ‘The interest in India is huge’, says Rahul Bajaj, Chairman, Bajaj Auto Ltd, who has been associated with the Forum’s India Summits right from inception and has missed only one to date. ‘For the first time, overseas delegates greatly outnumber Indian delegates,’ he said.

Almost on cue, the main theme for the Summit is ‘Meeting New Expectations’. Even more fittingly, Sonia Gandhi, Chairperson, United Progressive Alliance (UPA) and President, Indian National Congress, the main political party in India’s 14-party coalition government and the person widely believed to call the shots in the UPA, will discuss this theme. To her credit, Mrs Gandhi is about the only senior Indian leader who has tried to tone down the hubris. Mid November she chided those talking of India becoming a super-power and called for fresh emphasis on the things that really matter – health and education – in a country so poor.

Unfortunately, successive governments have often paid greater heed to issues like gaining a permanent seat on the UN Security Council than to basic livelihood concerns.   India’s human development indicators in many areas are comparable to Sub-Saharan Africa; child mortality is unconscionably high as is illiteracy and poverty.

And though the country has made significant strides – poverty levels are roughly 35%, down from close to 60% in the 1970s, (by the World bank’s $ 1 a day definition of poverty, though precise numbers are the subject of never-ending debate) – the benefits of this rapid growth are yet to trickle down to the masses.

More than 60% of India’s population is still dependent on agriculture. And with the share of agriculture in GDP steadily shrinking – it is now less than 20% – scenes of abject poverty and deprivation are not uncommon just a few hundred miles outside the bright lights of the country’s tree-lined capital.   

This year’s Summit, therefore, offers a much-needed realty check. And with some luck will, perhaps, throw up some suggestions as well on how to ensure the rapid growth continues but with more equity – the human face of reforms, as India’s Prime Minister, Dr Manmohan Singh, is fond of saying.