Mira Kamdar: India on Track for 2033 Predictions

Mira KamdarSomehow, I don’t feel cheered by indications in the month since I wrote my article for the 25th anniversary edition of World Policy Journal that India seems right on track to fulfill the mixed future I predicted in India: Richer, Poorer, Hotter, Armed. On the wealth front, cellular telephone company Bharti Airtel posted a net profit increase of 27 percent, Standard & Poor’s retained its bullish outlook for future economic growth, inflation snuck down under 11 percent and the stock market roared, snapped, roared and snapped again. In comparison with the continued panicked erosion of the financial markets and economies in the West, India seems poised to survive the global financial crisis not too bruised nor too battered. It will even, along with China, emerge with a new global say in the world’s financial architecture since it’s participation in a new G7 that will rise to some as yet unclear new number is now assured.

On the poverty front, India’s minister of finance, Palaniappan Chidambaram swore that slowed economic growth would not result in job cuts. Indeed, Jet Airways first fired then rehired hundreds of young workers who were shocked that the mall stalking they’d just begun to get used to being able to pay for might come to a sudden end. Even at a slower 7 percent rate, he opined, jobs would still be created though not as many as quickly as at a higher rate of growth. Of course, that doesn’t include India’s still moribund agricultural sector where the vast majority of its people still eek out a living and where growth is at a near-stagnant 2.3 percent. India’s Ministry of Agriculture released its fall or Kharif harvest projections a couple of weeks ago: production has declined across the board in basic food crops and cotton, on which great hopes were placed, increased by only 0.5 percent. Saving a few hundred service jobs in the airline industry cannot come near to compensating for this disaster. After more than 60 years of independence, India is still stealing from its farmers to push for the industrialization and urban development that will make it feel like a developed country. The poor, in other words, continue to be sacrificed to the rich and the newly minted and eagerly consuming middle class.