India’s human capital -Vaibhav Maloo


India is well placed to enter 2nd global category, but it may take some time and growth may be held back by many factors and accelerated by a few, and one of them is our human capital. In the case of India, illiteracy, health factors, complex political systems, and until recently a slow and poorly governed justice have played the role of termites gnawing at the body that is this magnificent nation that sits apart. unites on many fronts. Bollywood, cricket, ghazals, kitchens, hatred of politicians and criticism of the Indian bureaucracy all bind the nation together.

With a staggering population of 1.3 billion and a small percentage of 25.7% (according to the RBI in 2019) its population below the international poverty line (income below $ 1.90 per day), the growth is definitely a distant reality and is moving from third world status beyond the visible horizon with the status quo. It is around 6.9% according to the national poverty line according to 2019 World Bank data. What India needs is a change, a gradual introduction, and by a gradual one. , I mean realistically in a few years from these people towards a decent income and lifestyle, and efforts in this direction should be accelerated. We need these vast masses as well as the middle class to be consumers of Indian products because that is where the real prosperity lies as they are in the majority. Investing in these people is the key to India’s growth. If they can buy clothes, televisions, cars and other goods, take advantage of the boom in broadband, hospitality, and participate in the rise in teledensity, then imagine what that will do. to make the local industries that are now in demand of the rich and upper middle class or for exports. So many more local businesses will emerge and existing ones will thrive. India’s huge population can be a boon or a curse depending on what policymakers have in store for them.

By simple law of supply and demand, the cost of labor in India is very cheap, cheaper than in China as well. India pays as little as 176 INR (2.80 USD) per day as minimum wage, which equates to 4,576 INR (62 USD) per month, widely applicable to domestic workers, factory workers, miners and subordinate workers who do most of the physical work. With a population of only 61% who can read and write, this is bound to happen. This, however, is very unhealthy for the economy as the country’s average purchasing power falls low. This means that the middle class and the lower middle class are not consumers of domestic industries and goods produced here. If everyone is able to buy nationally produced goods, it is in the best global interest and will add to the national GDP figures which today is $ 1.87 trillion (2020), significantly low for a country the size of our population How is the exploitation of the poor and needy that it is possible to avoid in a country affected by corruption, poverty and illiteracy? How else can we bridge the vast divide between rich and poor in this country?

The demographic fact of population density is astronomically different between India and some countries like Australia, New Zealand, Canada and Russia among many where farmers need planes to spray insecticides and pesticides because they do not have enough manpower. There, the service industry is much more expensive and it needs labor. I really see the need to apply the simple laws of basic demand and supply across borders to this situation. Recruiting Indian labor, skilled and semi-skilled, is a huge industry in the making, as agriculture, mining, carpentry, construction, plumbing and things like that are easy skills. for many Indians. Scores of drivers, carpenters, construction workers and other skilled physical workers are being sent in the thousands to the Middle East to work in construction and infrastructure companies. It is very successful because these high income workers are reinvesting in our economy. Their basic needs are taken care of by the companies that hire them and they are paid much more for their work than most people for the same job profile in India. The reason is that they are in demand where they are sent and also a stronger currency. The labor resource is in fact the greatest strength of our country. It should be operated for both national and international needs. People are at their best when they are close to their cultures, and that goes without saying, but if it is a matter of choice and they want to go abroad, it must be facilitated. Our local force will remain large enough for domestic needs.

Indian Category B cities are seen as crucibles for real estate investment because they are doomed to thrive. I believe that the day we see these cities, which are almost all cities apart from Mumbai, Chennai, Kolkata, Delhi and Bengaluru, develop and attract business, we will know that India has arrived. The vast population of India that resides in the five major cities is due to their global and national positioning. There are of course new subways emerging in Hyderabad, Ahmedabad and others but we still have to give them time. Mumbai has a large population of 19.2 million people. We also need more cities to emerge to compete with these cities and show the development of a suburban way of life – the main consumer for national businesses today. Better airports, railways, roads, port facilities, power supply and other amenities are the need of the hour. After all, what is the difference between India and China? The reason it is preferred by global manufacturers for outsourcing work is the better infrastructure and government policies available to them than India. Otherwise Indians have a higher population, friendlier language as more people speak English and all the other ingredients are a nation’s more successful recipe.

India still has beggars and homeless people on the streets of Delhi, and slums adjoin Mumbai’s more expensive residential areas. We still see the vast population struggling with public transportation and unwarranted political obstacles to progressive industries. Towards the end of labor resources, we could certainly use agreements with other countries to secure the engagement of labor and immigration from India. It could create a paradigm shift.

Let’s take it step by step, an Indian child grows up going to schools with little computer training in the majority of suburban schools, not to mention the recent insurgency in towns and cities, but for the most part; and yet we have produced the best computer scientists and software programmers. About 20% of engineers at Microsoft, 30% at Google, and about 36% of scientists at NASA are of Indian descent. They have taken US citizenship now and are technically not Indians. As for schooling, Indian education is more rigid and difficult than most Western countries. By counting the number of days Indian students attend school or college per year, I found that it is much more than in the West.

Indian students then try IIT, IIMS, medical schools, other engineering schools for which entry is very competitive. They therefore go through a more rigorous and difficult life than their foreign counterparts. In addition, they see not so good parks, a not so automated life and an environment that is not up to standard. Getting into the best Indian institutes is tough and education is supposed to be amazing, but I feel like there is so much more emphasis on theory and so little on practice. When does all the development of a young person’s personality take place? In what area of ​​life until after university life is a person expected to have time to breathe in order to develop various important life skills. This is where the management of human capital and the exploitation of the Indian workforce comes in, with development efforts still lacking. We need comprehensive development at university and school level, not just academically.

The job market in India is not bad and people are often hired on merit. I believe that capitalism has its advantage because stakeholder gain creates a strong desire to hire the best. We Indians, however, are underpaid compared to foreign economies where wages are several times higher, sometimes 100 times for the same qualification. Take out inflation and the exchange rate difference, it’s still too high. The underlying cause for this is our population difference. In India, both supply and demand are plentiful, even among skilled people. In countries other than the subcontinent and China, labor is not that cheap. African countries and some Southeast Asian countries like the Philippines are huge exporters of human capital. A large majority of people come to work from other geographically large countries, which means that there are not enough people to meet the demand. It’s the contrary. India’s best brains go to these high-wage countries, which may seem like a deficit, but if even a small percentage come back and start a business, which happens, they create a lot of jobs to make up for that deficit. We see the most successful start-ups of foreign graduates and people who have worked in large companies. It makes the work culture stronger and the system cleaner and more work-friendly in India. We begin to attract good quality, well educated and qualified professionals the day we change our system and make it equal for all, fair and equitable.

For the less skilled workforce, we have a plethora of offers, I think. These people often come back with rich experiences or sometimes settle elsewhere, a choice that many have made. 1.3% of the US population is of Indian descent and about 9% of London is made up of Indians. There is a cultural dilemma and the issue of nationality and sense of belonging that evolves differently in these people. Despite this, human migration will continue to occur and will only increase with literacy in high density low density countries.

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