What Impact Does Our Society Have on the Indian Economy?

Our country India is currently undergoing an economic recession due to several reasons, such as the covid pandemic and the Ukraine-Russia war. This period in our economy has threatened the livelihood and jobs of millions of people countrywide. It’s important to understand how social harmony can help bring the economy back on its track.  

Strong macroeconomic strategies and fundamentals have been applied to the Indian economy since the year 1990. This has led to the economy becoming strong and resilient against the volatile consumer market globally. Globalisation has affected both Indian society and the Indian economy both. Proving to be a boon for the Indian markets and stock exchanges such as Sensex. Post the covid 19 era; the Indian economy is back on the road to recovery. The need of the hour is to work together and promote social harmony in order to work towards the growth of the Indian economy. 

Let us take a look at the impact of globalisation on the economy while considering other social factors. 

• Economic growth is hindered by social conflicts:  

As social tensions are on the rise in India, many global investors are now afraid to invest in the Indian economy, which is quite a setback for the growth of the Indian economy. The rise in social violence and the instability of public peace scares many global investors, which in turn harm the Indian economy greatly. Social and political tensions and violence have caused much delay on the path to economic recovery.  

• Indian economic ranking: 

Currently, the country of India is placed in the 6th position of the world’s top economies. As the population of India is huge, the per capita GDP of the country is extremely low when compared to other top economies of the world. The liberalisation of the Indian economy in the early 90s has changed the position of the Indian economy ranking. Factors such as globalisation have played a huge role in boosting the Indian economy. The ever-persistent poverty in the country with the addition of deep-rooted corruption is one of the primary reasons why the economy is yet to achieve its full potential.  

• Social conflicts take attention away from more pressing issues: 

Social conflicts such as religious violence often take the spotlight in a country’s news as the religious sentiments of the people are hurt. Such issues take much-needed attention away from more pressing issues such as illiteracy, unemployment, and climate change. These issues are more severe in nature and extremely deep-rooted in growing and developing countries such as India. Due to the rise in social and religious violence, the Indian economy ranking has been affected. The adverse effects of such violence can also be seen on Indian stock exchanges such as Sensex.  

• Impact of social harmony 

Social harmony is one of the most crucial factors that are ever so important for an economy to healthily sustain itself. India has been the centre of many social rights issues in addition to religious violence, which is often seen in many regions of the country. European countries such as France and Germany, which have a history of social harmony, have attracted a lot of investors globally. Such investing opportunities are being missed out on by India due to its volatile social harmony. 

Conclusion  

Religious diversity in India should be seen as a strength instead of a weakness. Such diversity means allowing all religions and cultures to thrive peacefully with each other. If India wants to make an economic comeback, it’s vital to maintain social harmony and push towards the growth of the Indian economy. Lately, due to the war in Europe, many stock exchanges and Sensex have suffered great losses. We need to learn a lesson from Europe and work towards making our country a safe and harmonious place to live in. The society which exists in a country is the unseen backbone of its economy.