The Hindu Business Line : Making development a way of life

The economy of a nation is like a living being. Its growth must be planned on the basis of a clear understanding of the impact on society. Cultural and economic activities and people's dependence on environment should be understood properly.

Indian scientists are planning a moon mission in 2008. India is expecting foreign direct investments of $30 billion in 2006, the second largest FDI in the world. Growth is booming in the manufacturing sector. IT-ITeS exports touched $17.9 billion in 2004-05. Tourism tourism, real-estate, agri export, retail, micro economic activity, handicraft and outsourcing sectors are all booming.

The Planning Commission is hopeful of a GDP growth of 8-10 per cent. Various international agencies have prepared reports on India's tremendous FDI absorption capacity. Jeremy Sregal, Professor of Finance, Russell and Palmer, has reportedly said that China and India will corner two-thirds of the world's capital by 2050. China and India are bringing about radical changes in policy and seem set to outpace the developed nations. The question is whether the benefits of development will improve the living conditions of majority of the people in urban and rural India. The United Nation Human Development Report 2005 ranks India behind Bangladesh in human development.

POOR LIFE QUALITY

In fact, in the backdrop of growth parameters, there has been a sharp deterioration in the quality of life in the urban and rural areas. When the latter are beset with problems such as lack of potable water, electricity, marketing facility, road connectivity, transportation and health facility, many urban centres have become uninhabitable with unplanned growth, lack of sanitation, heavy traffic, air and groundwater pollution.

There has been a sharp rise in the cost of education, health, housing and other services in the urban areas, making life difficult for the salaried class.

Imagine what would happen if, as predicted by the UN, 634 million people migrate to cities by 2030. Last year, the Government allowed 100 per cent FDI in real estate and the sector has grown 30 per cent . The unplanned development of the cities will continue.

Economic planning should be based on a deeper understanding of India's vast resources and their scientific utilisation. There is a need to recognise the country's socio-cultural lifestyle, which is delicately interwoven to sustain economic activities. The boom in other countries should not sidetrack Indian planners, as the economy is complex with many sectors dependent on one another.

POLLUTED RIVERS

Indians have developed the skill to make environment-friendly biodegradable items, which have considereable potential. India's river system, which can provide livelihood, meet the irrigation and potable water needs of millions of people, is not effectively tapped due to poor planning. The Central Pollution Control Board found polluted stretches of water in 18 major rivers, which receive 50 million cubic meters of untreated sewage every year. Nearly one billion litres of untreated sewage is discharged into the Ganga every day, besides industrial effluent from leather industries. A healthy river system can provide employment to millions.

Our forests provide a variety of minor products. A transparent and integrated marketing network can improve the living conditions of millions of tribals who have the skill to collect the products from the forest. India's wildlife always generates interest among foreign tourists who are willing to spend for sightings, especially of the tiger. There is an urgent need to protect and preserve wildlife.

Short-sighted planning leads to urban chaos. Rains in Mumbai killed 400 people. The poor drainage system and the obstruction of the Mithi river were the chief causes.

The economy of a nation is like a living being. Its growth should be planned on the basis of a clear understanding of the impact on society.

Social, cultural and economic activities and people's dependence on environment should be understood properly. There is a need to rediscover how so many economic activities in India are interwoven with people's way of life.

(The author is a Pune-based freelance writer.)