Why is unemployment not falling in India?
India an important partner in global cooperation
With a population of more than 1.3 billion, India is the largest parliamentary democracy in the world. Despite many challenges, the country has managed to remain largely stable politically since it was founded in 1947 and to achieve success in fighting poverty.
According to the 2019 Global Multidimensional Poverty Index (MPI), the proportion of poor people in India decreased from 55 percent to 28 percent between 2006 and 2016. The MPI is published by the UN Development Program (UNDP) and the Oxford Poverty and Human Development Initiative (OPHI). It measures poverty on the basis of various indicators from the areas of education, health and standard of living. The living conditions of more than 270 million Indians have therefore improved significantly during the period mentioned.
However, a growing and affluent middle and upper class still faces many millions of people who have to get by on less than the equivalent of US $ 1.90 a day. Eradicating poverty while protecting natural resources is the greatest challenge for the country's politics, economy and society.
India occupies a key role in solving global challenges, for example in climate protection and in achieving the global development goals of the 2030 Agenda (access the encyclopedia for the term) *. The country is therefore one of the so-called global development partners of German development cooperation.
The focus of the German-Indian cooperation lies in the areas of renewable energies and energy efficiency, sustainable urban development as well as environmental and resource protection. The focus of the cooperation is the promotion of climate protection.
Focus on economic policy internal link
Since independence from Great Britain in 1947, India has been a republic with parliamentary democracy and a functioning separation of powers. The country has a vibrant civil society with a large number of non-governmental organizations.
Extreme wealth, extreme poverty Internal link
India is a country of extreme contrasts: you can find booming centers like Mumbai, Delhi or Bangalore and a growing number of billionaires, but at the same time also millions of people who live in extreme poverty.
Significant improvement in business climate Interner Link
India has seen stable economic growth over the past 20 years. In 2018 the economy grew by 6.8 percent, for 2019 and 2020 the International Monetary Fund (IMF) expects slightly weaker values of around six percent.
Natural resources are heavily used internal link
The rapid economic development, the heavy consumption of raw materials and the high population density of India are increasingly polluting the environment. India is the world's third largest emitter of greenhouse gases.
German development cooperation with India
German-Indian development cooperation is a demanding dialogue between equal partners. It runs very trustingly and successfully.
The Federal Republic of Germany cooperates with global development partners such as India with a focus on structure-building programs: The projects build on Indian efforts and reform programs. They show model solutions and qualify the partners involved to continue and expand the project independently.
The federal government promised India the record sum of 1.614 billion euros in 2019. Of this, 1.595 billion euros are accounted for by financial cooperation (access the lexicon entry for the term) *. The majority of these funds are granted as loans at near-market conditions and are repaid by India with interest.
The following priorities were agreed by the two governments:
- Renewable energies and energy efficiency
- Sustainable urban development
- Environmental and resource protection
Germany is also involved in the special initiative "ONE WORLD without Hunger" in India and supports, among other things, a green innovation center as well as measures for soil protection, food security and the improvement of sustainability in cotton production.
In order to create employment opportunities for the young population and to increase the competitiveness of the middle class, India is also being supported in the development of a practice-oriented dual vocational training system. To this end, two declarations of intent were signed in the course of German-Indian government consultations in November 2019. Companies in the private sector are also closely involved; a corresponding agreement has been concluded with Siemens India, for example.
Influence on the global climateInternal link
There is a large gap between supply and demand in India's energy supply: energy consumption is increasing inexorably, but most existing power plants are outdated and inefficient and emit too many greenhouse gases and other pollutants. On the one hand, the population - especially in rural areas - is severely undersupplied and economic development is also being slowed down considerably by the lack of electricity. On the other hand, India is already causing the third largest carbon dioxide emissions in the world after China and the USA. As a result, Indian economic and environmental policy has a direct influence on the development of the global climate.
Ensure care for poor people
Around a third of the Indian population lives in cities, a quarter of them in poor conditions in slums. The urban population is currently growing by 2.3 percent annually - it is estimated that it will increase by more than 140 million people over the next 15 years. But even now the Indian cities are not in a position to provide sufficient infrastructure.
Protect ecosystems, adapt to climate changeInternal link
The protection of the soil, the water and the air as well as the preservation of biodiversity on the Indian subcontinent are tasks of national and global importance. So far, however, the Indian government has only managed to counteract the high environmental pollution and cushion the consequences of climate change.
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