TheGreatIndianParadox: Fourth-LargestEconomy,MillionsStillStruggle
By Shivam Malaviya Ex Cyber Crime Expert Kanpur,June18,2025

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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