SPOTLIGHT ON INDIAN ELECTRONICS Spotlight on Indian Electronics | Page 125

ECONOMY OF INDIA
Rural Economy
The increases in per capita income have been driven by urban growth . Given that agriculture has suffered and the rural economy is under distress , total per capita income has grown largely on the strength of the urban economy . Agricultural incomes have not grown and the rural economy is languishing . Not only are incomes lower in rural areas , but inflation is also higher .
Prime Minister Narendra Modi is going to need a big rise in economic growth and a run of good weather to have a chance of fulfilling his promise to double farmers ' incomes by 2022 . To meet the target , agriculture must grow at 15 % compared to average of below 2 % over the past four years . To achieve this , the government has launched a seven- pronged strategy including expanding irrigation , crop insurance , smarter marketing and incentives for farmers to grow new crops . The government had allocated $ 12.7bn (£ 9.15bn ) for " rural development as a whole ". They include a pledge to set up 89 projects for irrigation , doubling investments in rural roads to help farmers get produce to market , getting cooking gas to millions of poor households and funds for women entrepreneurs from underprivileged families . The government would raise spending on a massive rural employment scheme , a crop insurance programme and increasing rural access to the Internet . It would also work to ensure all the country ' s villages had electricity within two years .
Economic trends and issues
With 1.2 billion people and the world ’ s fourth-largest
have improved . India will soon have the largest and
economy , India ’ s recent growth and development has been
youngest workforce the world has ever seen . At the same
one of the most significant achievements of our times . Over
time , the country is in the midst of a massive wave of
the six and half decades since independence , the country
urbanization as some 10 million people move to towns and
has brought about a landmark agricultural revolution that
cities each year in search of jobs and opportunity . It is the
has transformed the nation from chronic dependence on
largest rural-urban migration of this century . Massive
grain imports into a global agricultural powerhouse that is
investments will be needed to create the jobs , housing , and
now a net exporter of food . Life expectancy has more than
infrastructure to meet soaring aspirations and make towns
doubled , literacy rates have quadrupled , health conditions
and cities more livable and green .
Indian economy projected to grow 7.3 % in 2016
Notwithstanding delays in domestic policy reforms , India ' s
2017 .
economy is " slowly gaining momentum " and is projected to
India ' s economy , which accounts for over 70 per cent of
grow by 7.3 per cent this year . India is expected to achieve
South Asia ' s GDP , had grown by about 7.2 per cent in
a 7.5 per cent GDP growth in 2017 and the economic
2015 .
prospects of the South Asian region will be " contingent " on the growth trajectory of India .
Regional GDP growth is expected to accelerate from 6.1 per cent in 2015 to 6.6 this year and 6.8 per cent in 2017 ,
China , which grew at about 6.9 per cent in 2015 , will
owing to robust private consumption , strengthening
continue to witness slowdown in growth , with its GDP
investment demand and gradual progress on domestic
projected to grow 6.4 per cent in 2016 and 6.5 per cent in
policy reforms .
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