Social Sector and Economic Development in India Since 1991

Despite strong growth, India lags far behind other BRIC countries in social sector achievements, spending lowest on education and health, according to a study by the Associated Chambers of Commerce and Industry of India (ASSOCHASM). Brazil, Russia, India and China are collectively known as the BRIC economies. The Assocham Eco Pulse (AEP) study showed that India public expenditure on health and education stood at five percent and 9.2 percent of gross domestic product (GDP) respectively in 2005-06 fiscal. While Brazil and Russia spent 7.9 per cent and 5.2 per cent respectively on health in fiscal 2006, India is a notch above China with public expenditure on education reaching five per cent of GDP. Surprisingly, China ranked lowest among the BRIC countries with a minimal share of 4.9 per cent of health spending. ¿India needs to keep its pace with other developing countries in its social sector development, to meet the twin objectives of rapid progress and inclusive growth. We need to invest in more quality education and health services,¿ Assocham president Sajjan Jindal said.