Model Answer
0 min readIntroduction
India’s economic development story is marked by impressive growth rates, yet it is also characterized by significant disparities. The ‘dichotomy of development’ refers to the co-existence of modern, high-growth sectors alongside traditional, low-productivity sectors. This is often exacerbated by ‘urban bias’, a tendency for policies and investments to favour urban areas over rural ones. This bias stems from the perception that urban areas are engines of growth, leading to a neglect of the agricultural sector and rural economies, which employ a significant portion of the population. This imbalance has profound implications for inclusive growth and social equity.
Dichotomy of Development
The dichotomy of development in India is evident in the stark contrast between its thriving IT sector, financial services, and manufacturing hubs, and the largely agrarian economy with a significant informal sector. This dualism manifests in several ways:
- Sectoral Disparities: The services sector contributes over 50% to India’s GDP (as of 2023-24), while agriculture, employing around 40% of the workforce, contributes only around 15%. This indicates a significant productivity gap.
- Regional Imbalances: States like Maharashtra, Karnataka, and Tamil Nadu have experienced rapid industrialization and economic growth, while states like Bihar, Uttar Pradesh, and Odisha lag behind.
- Income Inequality: The gap between the rich and the poor has been widening, with the top 10% of the population holding a disproportionate share of the nation’s wealth. According to Oxfam India’s ‘Survival and Resilience’ report (2024), the top 5% own over 50% of the country’s wealth.
Urban Bias in the Indian Economy
Urban bias in India has historical roots and is perpetuated through various policy choices:
- Investment in Infrastructure: Historically, a larger share of public investment has been directed towards urban infrastructure (roads, power, communication) compared to rural areas.
- Agricultural Policies: Policies like the Agricultural Produce Market Committee (APMC) Acts, while intended to protect farmers, often created inefficiencies and hindered the development of agricultural markets. The Essential Commodities Act (ECA) also sometimes led to disincentives for production.
- Industrial Licensing: Early industrial licensing policies favoured the establishment of industries in urban areas, further concentrating economic activity.
- Education and Healthcare: Access to quality education and healthcare is significantly better in urban areas, creating a virtuous cycle of development.
- Subsidies: A significant portion of subsidies, particularly those related to power and fertilizers, disproportionately benefit urban and relatively prosperous farmers.
Manifestation in India: A Comparative Look
| Feature | Rural Areas | Urban Areas |
|---|---|---|
| Infrastructure | Limited access to roads, electricity, sanitation | Well-developed infrastructure |
| Employment | Predominantly agriculture and informal sector | Diversified employment opportunities in formal sectors |
| Education | Lower literacy rates, limited access to quality education | Higher literacy rates, better educational institutions |
| Healthcare | Limited access to healthcare facilities, higher infant mortality rates | Better healthcare facilities, lower infant mortality rates |
The consequences of this dichotomy and urban bias include increased rural-urban migration, social unrest, and a widening gap in living standards. The farmer protests of 2020-21, triggered by the farm laws, are a prime example of the discontent arising from perceived neglect of the agricultural sector.
Conclusion
Addressing the dichotomy of development and urban bias requires a multi-pronged approach. This includes increased investment in rural infrastructure, promoting agricultural diversification, strengthening rural institutions, and ensuring equitable access to education and healthcare. Policies should focus on creating employment opportunities in rural areas and fostering inclusive growth that benefits all sections of society. The success of initiatives like the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) demonstrates the potential of targeted interventions to address rural poverty and inequality. A balanced and sustainable development strategy is crucial for realizing India’s full economic potential.
Answer Length
This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.