The Union Budget for 2007-08 has been tabled in the Parliament and finance minister, P Chidambaram has promised that India will see more rapid growth in future. The lifestyle is booming in the cities where people are experiencing the change in life style. But the biggest question is that is this applicable when we talk about the rural part of the Country.
The biggest worry of the time that growth is not failing to trickle down to the poor of the country. What about their lifestyle? Rising inflation is hitting common people hard. Analysts are saying that the people should accept Inflation as it can be said the by-product of the economy boom.
The poor people of India are not getting the essence of the economy boom but price rise of essential commodities are hitting their pockets hard.
D K Joshi, principal economist, CRISIL said:
It’s rather like if the US government focused its growth strategy on making New York brokers wealthier. There are millions in call centres that benefit from growth. But India’s population is massive and a huge chunk of the population is not benefiting.
After the budget the question came in the thoughts that the rural sector accounts for two-thirds of India but is growing at less than 1/3rd of the pace of the growth rate of overall economy. What are steps the government has taken for the welfare for the rural India? Urban India is shining; Rural India is still lagging behind.
President Abdul Kalam had said on the opening of the budget session that government is committed to ‘inclusive development’. The government has introduced several measures for India’s 260 million poor from guarantee jobs for rural poor to food subsidies. Many of the funds do not reach their target because of poor implementation, lack of developmental will power and corruption.
The gap between rural India and urban India is widening and some times it shows some reflections too. It was reflected in the 2004 Lok Sabha election when rural India had rejected the NDA’s claim of India Shining despite of good progress of Indian economy.