Impact of Overpopulation on Indian Economy

The Indian economy lies in the heart of its working and development. So, it is vital to have a clear conception of how the Indian economy works. What are the prospects of the Indian economy, what does the foreign trade look like, what is the GDP growth, what are the challenges faced by India’s economy, and so on? To identify the challenges, shortcomings, and problems of the Indian economy, it gets easier to pinpoint where India is lacking and where it should improve. One of these challenges faced by the Indian economy lies in the fact that the country is intensely overpopulated. And to overcome the effects of overpopulation in the Indian economy today, we shall also discuss the concept of a 5 trillion economy – the guide and rescue to this problem. 

Overpopulation and economy

The effect of overpopulation is serious enough on the environment, and on top of that, overpopulation also affects the economy of a country. India is the second most overpopulated country after China, and the reputation is deadly. 

The exploitation of natural sources 

The more people, the more the usage. It is basic knowledge for all that we all living beings are dependent on the earth and its various sources to live, eat, breathe and exist. So, what happens is that with more and more lives in India, the usage of natural sources also increases. The natural means are exploited, exhausted, and sucked out to get our comfort and fulfill our needs. Nature, plantations, agriculture, and the environment do not heal or take birth so frequently as humans. Thus with a crowded population and their needs, the farms, plants, trees, energies, and environment are degraded. Agriculture is finding it hard to provide for all and produce for all.

Per-capita income

India’s income rate gets viciously affected by overpopulation. Not only does the income drop, but it also fails to recover from the failure. Here are a few effects that overpopulation has on India’s economic ranking–

1. The population forces great pressure on India’s lands
2. The cost of consumption increases to meet the economic failure and shortage of supplies
3. The creation of more and more families means more consumption and less production, as the high rate of newborns and children never adds but only subtracts 

Employment

This is the most common and basic problem which takes place due to overpopulation in India. The number of jobs, employment sources, and scope of expansion in different sectors are not able to keep pace with the country’s overpopulation or increase in numbers. The country is finding it impossible to expand jobs for so many people and such a large crowd. The rapid growth in population leads to a decrease in incomes, profits, production, and resources. The government is failing to provide for all. As a result, there is a good amount of the population who are living off the minimum and below the poverty line. 

5 trillion economy

India’s size or growth in the economy is measured by the annual GDP. India’s GDP depends on the total monetary value of all the goods produced in a whole year and then compared to what is gained. In 2014, India’s GDP was $1.85 trillion, and the Indian economy today is $2.7 trillion, which makes India the sixth-largest economy in the world.

Although the nominal GDP of India does not make its people the 6th richest, to find where the Indian economy stands, one should comprehend their per-capita income annually. 

Of the 5 trillion economies, it is targeted and hoped for by the government that India would reach the 5.33 trillion mark in 2024. For that to happen, India needs its GDP to grow consistently by 12% – 8% GDP growth with 4% inflation.

But reaching the 5 trillion is not that easy, as, in the year 2018, India was only able to make growth by 6.8%, and in 2019, just by 7%. So, for India to achieve the 5 trillion economies, it needs to move rapidly in the economic aspect.

Conclusion

The impact of overpopulation is huge on the Indian economy. The pressure it puts on the economy is getting worse over the years. With time, if the population is not controlled, then India will soon fall in its overall ranking. The economy is every country’s strength, and India, for one, should never succumb to challenges like overpopulation.