Hargovind Sachdev
You cannot create prosperity by law. Sustained thrift, industry, application, and intelligence are the things that ever do, or ever will, create prosperity.” -Theodore Roosevelt, President of the USA.
Human capital
India has become the most populous country in the world. The United Nations data shows that India has surpassed China, with 142.86 crore people. China has a population of 142.57 crores. At Independence in 1947, India’s population was only 35 crores which has grown by over 100 crores people since 1950.
The number of people in China has come down since 1960 because of a “one-child policy” amid overpopulation fears. China started letting couples have three children in 2021. As per the UN data, the global population will have hit 804 crores by mid-2023. Africa, the world’s second-largest continent, is also growing fast in people, which will be 390 crores by 2100 from the present 140 crores. Over the past decade, eight nations with over one crore inhabitants in Europe saw their people shrink. Japan is also declining due to its ageing population, losing more than thirty lac inhabitants between 2011 and 2021. The UN has projected that the number of people on the planet will decline in the 2090s after peaking at 1040 crores.
China converted its population into a performing asset to become the second-largest economy in the world. It shall overtake the US economy by 2050, as per present trends. Is there a relation between the number of inhabitants and a nation’s GDP? Watching China’s growth, the response is yes, but watching Africa’s growth, the answer is no.
How will India’s increasing population affect its prosperity? Where does India stand in terms of population becoming a tool for prosperity? Can India replicate China in the enrichment? Will the most populous India become the most prosperous nation?
The following factors contribute to a country’s prosperity:-
Economic policies and institutions: Countries with stable and efficient economic policies and institutions are more prosperous. Prudent policies encourage trade, investment, and entrepreneurship to ensure property rights, enforce contracts, and provide a stable financial system.
Natural resources: Access to natural resources, such as minerals, oil, and fertile land, forms a critical factor in a country’s prosperity. However, natural resources alone do not guarantee prosperity. Governments also need the infrastructure and institutions to manage and benefit from their help effectively.
Human capital: A country’s prosperity depends on its workforce’s skills, knowledge, and abilities. Education, training, and healthcare are essential factors in developing human capital.
Innovation and technology: Countries that innovate and develop new technologies are more prosperous. Investing in research and development and having institutions and policies that support innovation ushers prosperity.
Political stability and good governance: Countries with stable political systems and good management are more prosperous. A fair and effective legal system, low levels of corruption, and a government accountable to its citizens strengthen a nation.
Infrastructure: A well-developed infrastructure, including transportation, communication, and energy systems, contribute to a country’s prosperity. Ease of doing business to operate and access goods and services lubricates the economy.
Overall, a combination of these factors contributes to a country’s prosperity. Further, people should work hard and smart to generate a higher return per hour of labour spent. Every single contribution adds value to the GDP.
After becoming the most populous, India is a fit case to become the most prosperous nation due to its young population, robust education system, functioning judiciary, abundant natural resources, agile human capital, strong institutions, evolving infrastructure, a massive pool of scientists and technological innovators, a well-regulated responsive financial system and political stability.
India presently ranks as the fifth largest economy at a GDP of $ 3.18 trillion, behind the US, China, Japan and Germany. Country-wise GDP figures are the United States: $23.00 trillion, China: $17.73 trillion, Japan: $4.94 trillion, and Germany: $4.22 trillion.
From the perspective of individual contribution, barely 33 crore people in the US create productivity of $ 23.00 trillion compared to the productivity of $ 3.18 trillion jointly done by 141 crore Indians. The ratio is improving, but sincere efforts are needed to catch up with the prosperous nations.
Rightly said,””Every person who contributes to prosperity prospers in turn.”– Earl Nightingale.
