21 December 2011

Is India Really Developed?

Is India Really Developed?
Bangalore: India ranks 36 in the financial development report by World Economic Forum. The scores and rankings of world's leading financial systems and capital markets are based on The Financial Development Report 2011 and Financial Development Index.


But does this really mean that India is a developed country? Though ranked 36th, there are several allegations made against the country which forces us to take a deeper look into this question. Earlier this month, Jim O'Neill of Goldman Sachs used the word "Disappointment" for India. Brazil, Russia, India and China are termed the BRIC nations and among the four, India is regarded the most disappointing country. The current economic deterioration is the most important reason. India is said to have risking its own position as they are raising people's hope for FDI and their inability to lead FDI is disappointing.

India is said to have shown worst growth in terms of business as well. Corporate India showed a single digit profit growth in the last five quarters. Rising interest costs and higher prices of raw materials are the main factors behind the decline in the sales number. According to a survey done by Business Standard Research Bureau, India is set to register worst growth. The sales of 399 firms that have declared their results so far have grown 26.8 percent yearly; profit has grown five percent in spite of a 27 percent rise in income from operations as reported in a survey done by Business Standard Research Bureau. Corruption is the root problem which is affecting the business in India. Businessmen feel grabbing a contract or a permit in real estate sector is the biggest hurdle in the country. The rising inflation is also seen as major concern for worsening business standards in India.


Is India Really Developed?
Talking about corruption, India has slipped down 11 places below and is placed at 95 rank on the global corruption ranking. India scored 3.1 on a scale to 0 to 10, reveals the Transparency International's corruption perception index. 3.3 was the score last year, and anything below five is a bad news. The current Anna Hazare "hungama" in India has taken up the fight against corruption to a different altitude. Though the government is forced to come up with a strict anti-corruption law; the Lokpal Bill that stands as a synonym to anti-corruption is yet to be passed by the government.


Commenting on the Nation Food Security Bill, Shekhar Kapur tweeted, "If 75 percent Indians need subsidies just to eat, where the hyped India story is?" Going by the above information, do we really feel proud about the fact that India is among top countries or should the declining growth of the country bother us all?