At a time when the government proclaims record-breaking economic growth, a staggering 80 crore Indians rely on free grain—5 kg of rice and 5 kg of wheat—to sustain their daily two meals. Simultaneously, the recent Union Budget has generously raised the income tax exemption limit to ₹12 lakh, a policy move aimed at the middle and upper-middle class. This stark contrast exposes the deep fault lines in India’s economic narrative—one that thrives on statistical optimism while much of the population struggles for basic sustenance.
A Nation of Two Realities
India’s economy has been lauded as the world’s fastest-growing, with GDP figures projected to remain robust. The government highlights infrastructural development, digital expansion, and global investments as signs of prosperity. However, these macroeconomic numbers often mask the grim microeconomic realities of millions who still depend on government ration schemes for survival.
The Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) extends food security to a significant portion of the population, but its very existence questions the ‘economic success’ narrative. If the economy is indeed thriving, why do 80 crore Indians—more than half the country—require free food? Conversely, the tax exemption up to ₹12 lakh benefits a demographic that is nowhere near the bottom of the economic ladder. The gap between those who can now save on taxes and those who cannot afford food widens, revealing a policy framework that caters more to aspirational growth than to equitable distribution.
Growth for Whom?
The government’s stance is clear: economic growth is trickling down. Yet, ground realities present a different picture. Rural wages remain stagnant, unemployment remains a pressing issue, and inflation has only made essential commodities dearer.
Tax reforms like raising exemptions undeniably benefit salaried individuals, but they do little to uplift those who are structurally excluded from the workforce. Meanwhile, welfare measures such as food distribution act as a safety net but do not create long-term economic mobility. The paradox here is that India’s growth seems to be benefiting those who are already secure while sustaining those in need at a subsistence level without pathways to economic upliftment.
Political Calculations at Play
The government’s economic decisions must also be understood in the context of electoral politics. Welfare schemes like PMGKAY ensure a strong voter base among the lower economic strata, while tax relaxations cater to the urban, professional class—two critical segments of the electorate. The contradiction is not accidental; it is a calculated balancing act designed to retain political favor across different sections of society.
However, sustaining such a model is not feasible in the long run. If over half the population remains dependent on subsidized food while another segment enjoys financial leniency, the economic divide will only grow wider. A genuinely robust economy should reduce dependence on welfare schemes by creating employment opportunities and increasing disposable income across all social strata.
A Call for Inclusive Growth
Economic growth should not be an abstract statistic; it must translate into improved living standards across the board. India needs a two-pronged approach—one that strengthens welfare initiatives in the short term while implementing structural reforms to create sustainable livelihoods in the long run.
If India is to truly emerge as an economic powerhouse, it must address the stark inequalities embedded in its development model. The narrative of a ‘rising India’ must ensure that no citizen is left dependent on ration schemes while another enjoys generous tax breaks. Only then can growth be called truly inclusive.