TheGreatIndianParadox: Fourth-LargestEconomy,MillionsStillStruggle

By Shivam Malaviya Ex Cyber Crime Expert Kanpur,June18,2025

TheGreatIndianParadox: Fourth-LargestEconomy,MillionsStillStruggle

Indiahasofficiallybecometheworld'sfourth-largesteconomyin2025,withGDPreaching$4.19trillionaccordingto IMFdata.Yetthismilestonemasksatroublingrealitythatexposesfundamentalfailuresinthecurrentgovernment's approach to development.

TheNumbersDon'tAddUp

Whileofficialscelebrateeconomicrankings,thegroundrealitytellsadifferentstory.Despiteclaimsthatpovertyhas fallen below 5%, India's unemployment rate stands at 7.9%, with youth unemployment at a staggering 16%. More damning is that 7.1% of educated individuals remain unemployed—the highest rate among all education levels.

InequalityReachesColonial Levels

ThemostshockingrevelationcomesfromtheWorldInequalityLab:India's richest1%nowcontrol40.1%ofnational wealth—the highest concentration in six decades. Their income share of 22.6% hasn't been seen since 1922.

Researchersconcludethattoday's"BillionaireRaj"ismoreunequalthantheBritishcolonialera.

Thebottom50%of Indianssurviveonjust₹71,000annuallywhilethetop10,000earn₹480million—agapof2,069 times the national average. This represents a catastrophic policy failure that has created a two-tier society.

TheMalnutrition Scandal

Perhaps most shameful is India's rank of 105th out of 127 countries in the Global Hunger Index. With 35.5% of childrenstuntedand18.7%wastingaway,anestimated200millionIndiansremainmalnourished—equivalentto Brazil's entire population. Anaemia affects 57% of women and 67% of children.

Thismalnutritioncrisisalongsidespacemissionsandvanityprojectshighlightsgrosslymisplacedpriorities.

PolicyFailuresExposed

AgriculturalNeglect:Nearly45%oftheworkforcedependsonagriculture,whichcontributesonly18%toGDP, indicating massive hidden unemployment. Poor monsoons, low crop prices, and stagnant productivity reflect systematic neglect.

ManufacturingShortfall:Despitetallclaimsabout"MakeinIndia,"manufacturingremainsstuckat16-17%ofGDP, far from the 25% target, limiting job creation.

HealthcareUnderfunding:Whilebarelytaxingthewealthy,thegovernmentspendsamongtheworld'sloweston public healthcare, creating a system where quality care remains a luxury.

EmploymentCrisis:Despiteeconomicgrowth,jobcreationhasfailedspectacularly.Thelaborforceparticipationrate of 49.6% is the lowest among peer countries, with female participation at just 24.1%.

TheHuman Cost

Agricultureemploysnearlyhalfthepopulationbutreceivesminimal governmentattentioncomparedtocorporate- friendly policies. The informal sector dominates employment with low wages and no security. Meanwhile, the wealthy enjoy tax breaks while public services crumble.

CourseCorrectionNeeded

Thecurrentmodelhascreatedwhateconomistscalla"BillionaireRaj"benefitingatinyelitewhileleavinghundreds of millions behind. Real development requires:

  • EmploymentgenerationoverGDPheadlines
  • Massivehealthcareandeducationinvestmentinsteadofvanity projects
  • Progressivetaxationtoaddressextremeinequality
  • Agriculturalrevivalforthelargestworkforcesegment
  • Manufacturingfocusforqualityjobcreation

   Treatingmalnutritionasanationalemergency

Conclusion

Becomingthefourth-largesteconomymeansnothingwhenviewedagainstpersistentunemployment,colonial-level inequality, and widespread malnutrition. The true measure of progress lies in citizen welfare, not GDP figures.

Thegovernment'scelebrationringshollowwhenmillionsremainunemployeddespiteeducation,whenwealth concentration exceedsBritish coloniallevels,andwhen children suffer malnutrition while billionsare spenton prestige projects.

India stands at a crossroads: continue the current path of crony capitalism benefiting the few, or pivot toward inclusive growth that uplifts all citizens. The choice will determine whether this economic milestone becomes meaningfulprogressorremainsahollowachievementbuiltonthesufferingofthemany forthebenefitofthefew.

Thefourth-largesteconomytagismeaninglessifitcannotfeeditschildrenoremployits youth.

ShivamMalaviyaisaformerCyberCrimeExpertturnedinvestigativejournalistcoveringeconomicpolicyandsocial development. Views expressed are personal and based on publicly available data and research.

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