The growth of India is not just a number, it can be seen in the crowded streets, the constant
construction, the passion of its people, and its ever evolving culture. There is constant transformation and tradition living side by side across the nation of India.
There are many aspects of India’s economy that are thriving, but the country has had some
challenges in its developing years. When businesses can't grow because of too much risk in
hiring new employees as cost of labor is a high expense, were is there to grow for businesses? In regards to the question I pose, it was
interesting to hear a testimony of our tour guide in Bangalore saying, that because of the United
States, people can now get let go from their jobs in India, where as before, the legal regulation was too troublesome around firing someone to let go of hired labor. Our tour guide had grown up knowing an economy in which once you were hired, it was very hard to get fired and companies never made lay-offs or labor cuts. Your career was secure and permanent. As the world has seen American culture spread to all of its edges, India began to be influenced by American or western culture and began to model its hire and fire laws more similar to ours. When I heard our tour guide's thoughts about it, I couldn't help but think that, in the United States, that is
merely called competition. We seem to thrive off of the idea that we must always push people
harder. We must ensure maximum productivity through competition. If you don't preform in your job, you will just lose it and someone else will take it. This made me wonder if our way of motivating people through competition or fear of losing what they have to someone else is the better or worse or just different. The differences in India’s
business and economy from what I was accustomed to kept piling up. However, to me, different didn't mean worse
until we had the chance to speak with the researches at ORF. ORF opened my eyes to the
extreme difference in perspectives between rich and poor in India and to be quite frank, they were astounding.
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Oberoi, Bangalore |
The economy of India is showing exponential growth, but there is still poverty that we
don't even come close to in the United States. As the ORF economist stated, there isn’t a chance
of change until the government isn't running the banks. I seem to recall an overarching theme of our class study; things in India happen very slowly. If this is the case, will India’s immense
growth rate come to an abrupt end, and is this growth rate really a facade that will end in falsified growth? The idea that it would take a long time for banks to be privatized, meaning businesses
could actually expand by getting bank loans and hiring more employees, makes me wonder. These questions I will be answered in time.
Until then, I cant help but to wonder if this will end badly for India, as it makes me think that the
gap between rich and poor cannot close. There will be more people entering the work force, but
not actual business growth as businesses stay at an average size of 10 people. What I mean by this is more Indian businesses will open, but what makes an economy thrive is not just having people in the workforce, but having companies that are revenue generating for the economy. If every business is a small business and more are opening each day, but they can't grow, on paper, the numbers look good. i.e. lower unemployment rates. However, small businesses aren't what drives revenue and boosts true economic growth and global success. Many Indian people see India as a major player in the global economy or feel as if India is close to that level. However, for India to truly compete and contribute to the global economy the way China, EU, US, and other nations are, they must build big business and not just small business. Allowing banks to become public is the first step in expanding India into real economic success and not just a facade of increased employment.
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