this is where the government has to act cautiously to removing the economic differences between different sects of the people... if this is not happened and only the richer is getting richer... its not good for the country
Agree 100%. This is one of the hardest issues to deal with. Our own country confronted this same issue at the turn of the 20th century when we were an emerging economy and we find ourselves confronting it again here in the 21st Century now that we're a developed economy.
Whenever any economy emerges, there will always be a small handful of people who, for an array of reasons, achieve an extreme disproportion of the available wealth. This comes at a time when the majority of the population still lives in poverty.
The hard part is keeping the economy oriented towards a free market path without the populace revolting and thrusting everything into a communist or intensely socialist system, which in turn stifles all growth and productivity and decreases standard of living. There's no doubt that economic liberalization is the sole engine that motivated all the amazing growth we've seen in India over the past 20 years. The reason I invest in India rather than China is because of the free market sentiments India supports. Still, we agree that the government must be very deliberate and careful when it comes to enriching the standard of living for everyone- a task they must achieve- without simply taking everything away from the most productive and innovative people to provide for 'everyone'.
I heard a perfect economic comparison between present day India and China.
In China, imagine traveling along a perfectly paved six lane highway in a brand new car traveling at 80 mph. This represents their strong infrastructure. However, up ahead lies a very large bump- which represents social reform; addressing communism and human rights. No one knows what will happen when the car traveling along this perfectly paved highway hits that bump. Perhaps it simply goes over it without any trouble, perhaps the wheels fly off and the while thing crashes but eventually, it must go over that bump.
In India, imagine traveling in a well worn car on a two lane dirt road. Up ahead lies a brand new car and perfectly paved, six lane highway without ANY bumps. The challenge is arriving there without veering off course, onto another dirt road.