There are many challenges for India in 2020, prime among them being a growing population, urbanisation and poverty alleviation (Dec. 2). Equally important is ensuring jobs to 12 million people entering the workforce every year. Manufacturing has performed poorly and most employment is in the unorganised sector. Education levels need to be improved by establishing world-class universities. India also needs to meet the targets of the Millennium Development Goals.
The Great Depression of 1929 showed that a system of competitive production often leads to a production race accompanied by inequalities, which lead to a nullification of demand-driven factors. The greater participation of the state in developing a sustainable domestic demand — where both production and consumption can be maintained — is inevitable before we can gauge GDP growth and wealth generation parameters in the long term.
Md Adil Ashraf,