Human Capital

When India attained independence, the economy was in shambles after centuries of occupation and colonization. There was a difference of opinion amongst the leading luminaries of the day as to how to develop the Indian Economy. Nehru, ever the romantic and influenced by the Western Society, argued for massive industrialization and urbanization in the hope of the Economy achieving what he called the 'wuthering heights'. Gandhiji, more pragmatic and a realist, identified that India's power lies in its people and in villages. He wanted Indian Economy to be a collection of thousands of mini self sustainable village level vibrant economies.

Nehru's opinion prevailed, mainly because Gandhiji died within a few months of India attaining independence. The tragedy of modern India was that it became a question of choosing either of the two economic development models, whereas it was quite logical to have followed a twin system of development incorporating the salient features of both.

Today, the rural economy is in shambles, the cities are splitting at the seam due to massive migration of rural population to the urban areas and sadly the human capital, that Gandhiji identified, is living in foreign countries, working with high productivity and thereby contributing the foreign nations economic growth, rather than India's.

It is not still too late. India can and should create enough opportunities that shall enable the overseas Indians to return to the home country and contribute to the economic growth of the country. These NRI's - whether they are workers or managerial cadre- have lots of skill sets, know global practices and are exposed to the best in the international markets. They will bring with them considerable value.

What triggered this thought was the sight of hordes of Indians getting down from a bus and walking to their workplace in Shuwaikh this morning while I was driving.