Change in consumption pattern in India since the 1950s due to the effects of liberalization, globalization and demographics changes
Since 1950 the global economy has nearly quintupled. The American Dream has become a model for most developing nations. With the critical rise in Indian population the consumption increases significantly. It’s an assertion of this research project that consumption pattern will change whether by design or by default.
The one billion consumers in affluent nations are being joined by one billion new consumers in developing and transitional nations. Although these new consumers do not yet have the spending capacity of the established consumers, they have enough discretionary income to consume in far more expansive manner than the bulk of their fellow citizens. A good number can even buy cars; in 1997, more motor vehicles were sold in Asia than in Western Europe and North America combined. With potentially twice as many new consumers in the next ten years, the global community should be interested in the new consumers. This raises several fundamental questions: * Can the new consumers be enabled to engage in enhanced consumption in a manner consistent with sustainable development? * What can they learn from the mistakes and positive experiences of the long time affluent nations in order to keep their environmental impacts at acceptable levels? * How far can the established, affluent consumers be persuaded to adopt more sustainable lifestyles which could serve as models for the new consumers? Moderation in the growth rate has come with some good news, with the country’s per capita income expecting to more than double over the last seven years to Rs38,084 in 2008-09, reflecting improvement in the living standards of an average Indian. Per capita income, according to advance estimates for national income, is expected to grow by 14.4% during the fiscal 2009, the highest growth rate recorded in a single year in the last decade. The country’s per capita income, which is an important indicator of economic development of a nation, was Rs18,885 during 2002-03.
Consumption Pattern In India
n 15 August 1947, India woke to a new daylight of sovereignty: finally we were masters of our own vocation after some two hundred myriad years of British rule; the job of nation building was now in our own hands. The leaders of independent India had to decide, among other things, the type of economic system most suitable for our nation, a system which would promote the welfare of all rather than a few. India would be a ‘socialist’ society with a strong public sector but also with private property and democracy; the government would ‘plan’ for the economy with the private sector being encouraged to be part of the plan effort. The ‘Industrial Policy Resolution’ of 1948 and the Directive Principles of the Indian Constitution reflected this outlook. In 1950, the Planning Commission was set up with the Prime Minister as its Chairperson. The era of five year plans had begun. To increase the production of goods and services the producers have to adopt new technology. For example, a farmer can increase the output on the farm by using new seed varieties instead of using the old ones. Similarly, a factory can increase output by using a new type of machine. However, modernization does not refer only to the use of a new technology but also to changes in the social outlook such as the recognition that women should have the same rights as men. ________________ The economic reforms of India can be divided into mainly two segments- * Post-Independence Era
* Post Liberalization Era
A PLAN spells out how the resources of a nation should be put to use. It should have some general goals as well as specific objectives which are to be achieved within a specified period of time; in India plans are of five years duration and are called five...
Citations: * Per capita income data from Live mint- The World Street journal Feb 9 09
* The Unequal Effects of Liberalization: Theory and Evidence from India by Philippe Aghion of Harvard University, Robin Burgess of London School of Economics, Stephen J. Redding of London School of Economics, Fabrizio Zilibotti of Institute for Empirical Research in Economics, University of Zurich
* India in Transition: Freeing the Economy. Oxford University Press, Delhi.
* The Indian Economy: Problems and Prospects. Penguin, Delhi.
* Consumption and Demand report Tushar Shah and O.P. Singh from Banaras Hindu University, Varanasi
* Indian Economy by SK Mishra & VK Puri
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