Page 460 - SSB Interview: The Complete Guide, Second Edition

million in 2007. Public campaigns, provision of meals in school and other
incentives have proven successful in increasing attendance rates in schools in
some states.

In 2009–10, remittances from Indian migrants overseas stood at `2,50,000
crore ($49.88 billion), the highest in the world, but their share in FDI
rd
remained low at around 1%. India ranked 133 on the Ease of Doing
th
th
Business Index 2010, behind countries such as China (89 ), Pakistan (85 ),
th
and Nigeria (125 ).

Economic Trends and Issues

In the revised 2007 figures, based on increased and sustaining growth and
more inflows into foreign direct investment, Goldman Sachs predicts that

“from 2007 to 2020, India’s GDP per capita in $ terms will quadruple”, and
that the Indian economy will surpass the United States by 2043. In spite of
the high growth rate, the report stated that India would continue to remain a

low-income country for decades to come but could be a “motor for the world
economy” if it fulfils its growth potential.

Agriculture

Slow agricultural growth is a concern for policymakers as some two-thirds of

India’s people depend on rural employment for a living. Current agricultural
practices are neither economically nor environmentally sustainable and
India’s yields for many agricultural commodities are low. Poorly maintained

irrigation systems and an almost universal lack of good extension services are
among the factors responsible. Farmers’ access to markets is hampered by
poor roads, rudimentary market infrastructure and excessive regulation.

Population

India’s population is growing faster than its ability to produce rice and wheat.
The low productivity in India is a result of several factors. According to the
World Bank, India’s large agricultural subsidies are hampering productivity-
enhancing investment. While overregulation of agriculture has increased

costs, price risks and uncertainty, governmental intervention in labour, land