Benefit Of Economic Growth Essay

One of the benefits of economic growth in India is the people living in India have higher average incomes. This empowers consumers in India to enjoy more goods and services and also enjoy better living standards. Thus, the increase in consumptions will increase the standard of living of the people in India. Next, economic growth in India leads to lower unemployment as the employment opportunities arise. This is because with higher output, increasing production and positive economic growth, firms internal requirement for workers gradually increases, they tend to employ more workers. Therefore, increasing the productivity and creating more employment in India. Furthermore, lower government borrowing is the benefit of economic growth in India. This is due to the increase in tax revenues for the government in India, which make them stronger, so there is less need for the government to spend money on benefits such as unemployment benefit for the people in India. The higher tax revenues for the government in India because of their economic growth has helped to reduce government borrowing. Hence, economic growth in India also plays a role in reducing debt to GDP

We can see a growing national output, but also rising income and wealth inequality in society. There will also be regional differences in the distribution of growing income and spending. Higher rates of economic growth in India have often resulted in increased inequality because growth can benefit a small part of society more than others. For instance, those people in India with assets and wealth will see a proportionally bigger rise in the market value of rents and their wealth. Those unskilled people in India without wealth may benefit much less from India’s economic growth. As the saying goes, the rich get richer while the poor get