What is the major problem in INDIA?

Which one of below is the major problem in INDIA and Why?

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sumitsehrawat said:
Some 65% of India is below 35 and 50% below 25. One of the oldest civilizations in the world is one of the youngest in this century. In 2025 the median age for India will be 31, against 39 for the US and China and 44 for Russia and the UK. There is a huge demographics dividend waiting to be tapped there: As societies everywhere begin to grey, India will be providing workers to the world. China, meanwhile, has shot itself in the foot with its one-child policy. By 2025, 15% of the population will be above 65. It has to carry what has become known as the 4:2:1 yoke on its shoulders....
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and exactly thats why i feel providing 'right kind of education' to masses is more important than taking drastic measures to reduce/control population. Education will automatically control population, will make ppl aware if their right/duties, may help in projecting/choosing right kind of politicians and may curb the corruption (to some extent)..
Again all of these problems are clubbed together and probably feed each-other.. so it is hard to point out single biggest problem!!
nevertheless this is what i feel. Education is THE word!!!

P.S. very well written post Sumit bhai!! carry on the good work... Cheers!! :):)
 
India-China

The time I was born, in year 1982, India and China had the roughly the same per capita GNP (Gross National Product). Today, China is more than double India’s. The country receives 10 times the Foreign Direct Investment (FDI) and commands 7 times India’s share in global exports. Over the years, China has built an infinitely superior infrastructure, achieved higher literacy levels, and reduced poverty. If this is a race, India has already been lapped.
Yet, statistics tend to reveal only the big picture, the macroeconomic theory. At the micro level, trends suggest that given time and commitment to reforms, India can indeed close the gap and, over the years, move ahead. Why? – India holds a huge advantage over China in terms of legal and the financial systems.

Dropping values of Total Factor Productivity (TPF) denote that the productivity of investments in China is declining, making it obvious that the true miracle is not the productivity but the ever larger volumes of capital being devoted to sustain the growth. As China’s government-led and export driven development model reaches its limit, India will most certainly steal the spotlight.

Moreover, China’s export-led manufacturing boom is largely a creation of FDI and multinationals, which tend to substitute for domestic entrepreneurship. In China, the foreign-invested companies account for more than half of China’s total exports. State-owned and collectively-owned companies contribute about one-third of exports and the rest, a small percentage, by privately owned companies. In contrast, India’s private-sector contributes more than 50% of India’s total exports, multinationals account for a third and rest is public sector undertakings. It is true that India has not attracted anywhere near the amount of FDI that flows into China year after year. But the fact that India is growing at almost the same pace as China, even after receiving just a fraction of China’s FDI, seems to suggest that this obsession with FDI merits a rethink. An economic litmus test is not whether a country attracts a lot of FDI but whether it has a business environment that nurtures entrepreneurship, supports healthy competition and is relatively free of heavy-handed political interventions. On these parameters, India has certainly fared better by making life easier for business. The lower FDI inflow has allowed India to develop a much stronger private initiative, which has spawned some world-class powerhouses and brands – Tatas, Infosys, Ranbaxy, to name a few.

contd...
 
contd...

Serious Business

** India’s roaring entrepreneurial culture has also outbid Chinese in serious business overseas.

** Indian immigrants founded more engineering and technology companies in the US than Chinese and British immigrants put together. In fact, one in every four technology companies set up by immigrants had an Indian founder.

** Indians have become the “brains of the world”, backed by excellent English and communication skills, the hordes world-class engineers and technologists produced by the country’s IITs, cultural compatibility and the complete confidence of the Western Buyers.

** China is woefully short of trained managerial personnel compared to India which has created world-class B schools. The graduates from the IIMs are the darling of the multinationals operating in China, where many of them occupy top-notch positions.

** While China remains only a distant competitor in the technology services landscape, India is trying hard to close the gap in the manufacturing arena too. In recent years, a number of multinationals including Nokia, Samsung, Ericsson, Ford and many more have set up shop in the country, encouraged by the availability of educated and experienced manpower and the policies adopted by the authorities. India should be a manufacturing destination in the coming 5 years.

** China’s manufacturing success is essentially an offshoot of country’s hardware, its bridges, ports, roads, and the like. Throughout the mid 1980s and 1990s, the country invested huge sums to build an impressive infrastructure. Infrastructure in India is abysmally poor but has more room to improve, and is upgrading rapidly.

** Traditionally, India has spent 4% of its GDP on infrastructure compared to China’s 9%. The government has unveiled plans to raise total infrastructure investment to 8% of GDP over the next five years, the bulk of this is to be financed by public-private partnerships.

** Building hard infrastructure is an easy obstacle to overcome. A far more grueling challenge is on the education front. During the 1960s and 1970s and 1980s, China invested heavily in basic eduction which put it ahead of India. However, since the 1990s, while China has curtailed its investments in education, India is trying to better its performance. India needs to invest massively in basic education, and investing in education means less resources for other things. A huge mistake China made in the 1990s was to spend too much on hard infrastructure while it did not spend enough on education. Hence, China will pay dearly for this mistake down the road.

** Though India as yet lags in basic education, in many other ways, its economic software is superior. For many years now, India has had a functioning and transparent capital market and an open and uncensored business press, which facilitates dissemination of news, and creditworthy information. In comparison, China’s stockmarkets have more in common with casinos than bourses.

contd...
 
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A black hole

** Apart from a robust and well-regulated capital market, India boasts an efficient and functioning banking system, far more supportive of entrepreneurial businesses than China’s.

** There is a huge black hole in China that nobody knows the dimensions of. The non-performing assets (NPAs) of the Chinese banking system are reportedly bigger than the entire Indian banking system. China’s state-owned banking sector discriminated against the private sector, engaged heavily in political lending that benefited the state-owned enterprises (SOEs), and over the years accumulated a vast amount of NPAs.

** 98% of China’s 42 million privately owned businesses have no access to bank loans.

** In the 21st century China, the party and the bureaucracy still calls the shots. India, by contrast, is governed by the rule of law and a free judiciary, even though it is far from perfect.

** India’s legal system is a source of tremendous comfort for businesses, both domestic and foreign, always wary of abuse of power by the government. China, on the other hand, is a country that will break the law whenever the Party feels like.

** And while many consider India’s democracy a bane and blame it for its economic ills, it is in fact a guarantor that India’s growth will be sustained. At least Indian government never allowed the calamitous Great Leap Forward, the disastrous Cultural Revolution, and the detrimental one-child policy.

** China’s population is rapidly ageing due to its over-zealous one-child policy, which is likely to impact its savings rate as well as consumer demand. While soon China will be facing the costs of ageing population, at the social level, it is about to suffer a huge shortage of woman as one-child policy has led to widespread infanticide of female babies. India, in comparison, is perhaps the youngest large economy.

contd...
 
The hare is not napping mid-race. But the tortoise will still win at the finish line.

contd...

Private Capital and Enterprise

** India’s democratic system is far more stable and better at accommodating change. Change – the word which worries the Chinese leadership the most.

** With growing role of private capital and enterprises, the odds are that China will make a transition to a capitalist and democratic setup, potentially a painful and costly shift. The authorities have already had a tough time stemming the mounting unrest created by the sharp income and opportunity disparities, in the first flush of liberalization and capitalism. China already has higher inequality levels than India.

** In China, the likelihood of the absorption of rural workers into the cities without upheaval seems very dubious. We don’t have that problem in India because they have already done an amazing job of absorbing the excess rural population into the cities. For Chinese authorities, it will be much more difficult to manage and contain the social unrest within a democratic setup, an art perfected by India in the last more than half a century.

** Despite the global focus on China, India is already in the race for economic leadership. It is nearing the point of economic transformation and is already closing the gap with China.

** Many Indians remember the tales about the Japanese economic miracle and the ‘Made in Japan’ labels. Japan was light years ahead of China in economic development and any speculation about the Japanese economy receding into oblivion in the next 20 years would have been dubbed a fantasy. Nonetheless, it took just about a generation for the labels to change to ‘Made in China’. The shift to ‘Made in India’ regime will happen quicker than that. The debate over India overtaking China has moved from “Will it” to “When will it”.

SUMMARY: The hare is not napping mid-race. But the tortoise will still win at the finish line.

P.S.: I hope the summary is short enough.
 
Sumit, Great posts with substantial research back up. Are you studying the two economies formally or these posts are from some article?
 
sumitsehrawat said:
There are other issues. There is a fear of terrorism and uncertainty on our borders. There is Kashmir problem, which won’t go away. The solution is so blindingly obvious that it is also unthinkable. The artificial partitions imposed by the British (with the convenience of power-seeking Indian politicians of all hues) will go. When the subcontinent doesn’t worry about borders any more, Kashmir will be one state. It will happen sooner than we think, once a generation of politicians and think-tanks, whose only reason for existence if continued enmity with China and Pakistan, are put to grass.
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Agreed Sumit , In a discussion with the Indian colleague last week we concluded that due to the current globl turmoil adn also the rgime shift in Pakistan , Kashmir would be less sort of an issue going forward.

Morever the same networks that were used against India are haunting Pakistan , so thats some good news looking forward!!!!... :)

The borders would be brought down artificailly with increased connectivity! :)
 
Pheww! Those were Big!

Sumit , i stumblded over the last couple of posts , though i read the earlier ones meticulously.

I might not be the kind to compare India and China , believe in the uniqueness of things , though you points seem valid and backed by facts. Demographic concerns are appropriate and India is superior in term of the young section.

Sunil ji at some point said that higher education might not be the best , but I would say the sharpness of the Indian mind can bridge the gap easily.

IITians , IIMians and other Engineering and B-School paas outs from India are no less ( if not better ) than people from the best of the univs and scools from all over the world.

There are a couple of points I would lay down in the course of taking the discussion and the thoughts shared by Sumit forward:

1) Young and restless India : I do not see this as something not so good , infact this is where I feel we would ultimately excel , the journey might not be smooth but the destination to me looks very nice! I am pretty sure that at some point of time , the degree holders and unemployed with all the new vehicles of social networking and other means of faster communications will opt for entrepreneurship. And in the mood of the growth atmosphere that we are experiencing these days in India ( Global Financial turmoil will affect India but cannot get our growth rate to be less than 7 % ( which is pretty decent) ) , and the entrepreneurs of NRI-Indians coming back to India and contributing in India , we will see this thing blosom and we will shoot off from the "take-off" stage in economic growth to the actual boom!
To substantiate , in my company , the team I am working with is consisting of 22 people and 5 are Indians and we are exploring possiblilities of an Indian office in next couple of years , and I am sure that either that would be an eventuality or at least 2 of 5 would return back to India.
No body is worried about coming back and working in India. Thats a positive sign , is not it ?
:)


2) I whole heartedly agree to Sumit's remark of " is the remarkable characteristic amongst Indians to deny success " ! I am contemplating for past few days that we all lack in acknowledging the things that we have at hand and instead always keep cribbing on what we dont! Gratitude is something that we have been lacking!
And specifically I would refer to those that have the means! If we have gratitude , we can bound our greeds!
We all must try and develop gratitude towards life at large, towards ourselves , towards people in general! :)
Ofcourse that does not suggest we stop working , instead i would see that as a stage of consolidation and then marching ahead in full vigour savoring what we have achieved!
Media , western media has not helped , I have talked 4-5 people into believeing that India is no more the hunger stricken country with all tradition and people here in German ( some of them ) cannot believe that we have those shopping malls , quality products , vibrating markets and else which is disheartening to know! :(


I do hypothesise a entrepreneurial revotlution for India in some 5 years with the youth driving all the things , I can sense necessary things falling in place. Ofcourse we must try and be a part of it big time , the least we can do is to encourage people to break the narrow thinking and mentality and ultimately lure them into thinking for all , thinking big :)
 
atishmohan said:
Dear Nishant

Ans: I think population is a sheer problem in India.

Why: Chota Parivaar sukhi parivaar...
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Even i think Population is the major problem but also there is fault from our side too means from General public, we don't want to take any pain and let the things going the way they are running.
 
Dear Nishant

I dont have kids...I am not married yet...I am not a problem to India...Jokes apart..I think rest options of your poll might help us to get rid from this problem.

Education: More educated people -> more awareness -> less population and power(politics) is in good hands.

Politicians: Honest people ->less corruption -> less illigal immigrants

Police: Honest people -> Strict Rule -> Diverts Illegal things from community

Now come to the point..I am educated, i wont have more than one kid in my family and thats for sure.
I am educated, i am not going to vote a dishonest person but its very hard to find one of those.

With police i cant force them to get honest.

The other thing which i am doing and will be trying to do is to get more involvement in some community work to assist people in getting education who cant.

Cheers
 
i feel population is biggest problem
when you try to solve out one problem you always consider the present no of people but as population is moving faster then clicking second so your solution fails as soon as it is in working condition.
this problem got one solution only control :rock:rock
 
A very balanced answer!

We should look at problems with a view to reach the solution.

Nice post and views Atish!

atishmohan said:
Dear Nishant

I dont have kids...I am not married yet...I am not a problem to India...Jokes apart..I think rest options of your poll might help us to get rid from this problem.

Education: More educated people -> more awareness -> less population and power(politics) is in good hands.

Politicians: Honest people ->less corruption -> less illigal immigrants

Police: Honest people -> Strict Rule -> Diverts Illegal things from community

Now come to the point..I am educated, i wont have more than one kid in my family and thats for sure.
I am educated, i am not going to vote a dishonest person but its very hard to find one of those.

With police i cant force them to get honest.

The other thing which i am doing and will be trying to do is to get more involvement in some community work to assist people in getting education who cant.

Cheers
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mukeshkumar007 said:
I think the major problem in India is Public itself.
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I second Mukesh's thought.

Public is the major problem in India including me. Public forms population(another problem). Public is police...public is politician. And our public doesn't want to change it's thoughts towards good side even if they are educated(another problem). Hence, education is not the only means of making one's mind rational. We need a training on attitude handling.

Public doesn't help public for their rights! Public doesn't complain of bad policing. And even if they complain, public(aka police) doesn't take any action. Same thing is true of another faction of public aka politicians.

Navin
 
I concur with Navin Bhaisaab & Mukesh.

strongly believe lack of civic sense in public is the biggest prob.

itsnavin said:
I second Mukesh's thought.

Public is the major problem in India including me. Public forms population(another problem). Public is police...public is politician. And our public doesn't want to change it's thoughts towards good side even if they are educated(another problem). Hence, education is not the only means of making one's mind rational. We need a training on attitude handling.

Public doesn't help public for their rights! Public doesn't complain of bad policing. And even if they complain, public(aka police) doesn't take any action. Same thing is true of another faction of public aka politicians.

Navin
Click to expand...
 
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