Will India ever be a $5Trillion Economy? #CaseStudy Economics

►Some of my favourite courses on Upgrad:
#upGradnow #FFwithupGrad #Lifelonglearning
______________________________________
______________________________________
India is aiming to become a $5 Trillion Economy by 2030.
But can we achieve this goal?

I explain the analysis this brief video.

Watch till the end:)
*******
*********
Attributions:
Stock videos from Pixabay and Pexels
Logos: Wikipedia Commons

Video Editor: Shivam Shrivastava
Thumbnail: Ayushman Khare

[AkshatZayn]

►Some of my favourite courses on Upgrad:
#upGradnow #FFwithupGrad #Lifelonglearning

[akshayraj]

1. People in our country dont want to start jobs from basic or low salaries
2. Most people don't want to work seriously and wish for govt jobs
3. Some people are happy with freebies (reservation, unemployed funds or berozgari bhatta)
4. Politicians are opening lot of colleges with no focus on skills

[GauravKumar-xeoi]

UP+Bihar+Bengal have a total population of more than 40 crores. But these three states also have the most under development. These three states bring down the average in all positive social parameters. Basically in these places, out of 5-6 member of the family only father is working. Thats why per capita income is so low. I know some family where all family members started working for 7-8 thousands rupees only but the living condition of the family improved dramatically. Thus it is primarily an under-employment problem. Rather than creating good jobs, govt should make existing jobs good by improving public aminities and financial inclusion. This is what Tamil Nadu did.

There is not much industrial jobs for people with below average skill. Govt should focus on industrializing existing production method and integrating India to global value chains. Why can't OEMs be set up in UP, Bihar to produce stuffs for the whole world? Govt also need to eliminate the wastage of public finance through wasteful debts, subsidies, uncompetitive industries etc and work on to improve the quality of public services.

[gdp]

If India has to improve employment situation, it can ONLY happen through private investments and unfortunately that won't happen because of regulation overkill, multiple taxation, uncertain economic policies, system NON-COOPERATION to small entrepreneurs and political interference.

[nareshpullakandam]

Service sector investments will put us at Risk . Manufacturing chips is best decision India have ever taken since Geopolitical tensions chip shortage will put us in a spot ..Giving PLI to big corporates same is done by South Korea now you see where South Korea stands

[honeyshukla]

With all due respect Akshat, I would like to defer from your opinion and Mr. Rajan’s opinion about focusing on service sector and generate high paying jobs like IT sector did. It makes us again dependent on foreign investment and in the current direction of the world towards de-globalisation we can not rely on that. The should use our population as a leverage and create self sustainable economic environment otherwise we will be manipulated by our partners all the time. Government must focus on entrepreneurship and change the mentality from jobs to businesses.

[anko]

India's issue is that yes we have healthy service sector but manufacturing is what employs more people, if we have to reduce fragmentation in agriculture we need to move people at high pace in jobs which does not require 20 years waiting period, where skill India is needed, they can become easily equipped to work in factories, maybe not in high value addition but it will be better than having hidden unemployment due to more labour less output in farming. Service sector requires long term development in education. If you want to be in hotel management you still need to do 10+2+3 education. A doctor is made by the age of 30ish, by 22 years you will become employable for anything that is 22 years of intensive education. By then India's demographic loses out. So how do you ensure higher pay? By manufacturing growth a sector we have always lagged behind. I keep watch and our electronic manufacturing has done well post pli, will add no. The thing is service economy can come through education and innovation through startup, but still you won't need 500 million managers in a country of billion. Mass needs to move forward, low input better output industry is the key. Don't worry once you get good startups turning to decacorns you can see Indian educated in Foreign countries will also come home with better pay.

Edit: Also it is not like India does not have enough service sector oriented labour, issue with these labour is also because currently India in some instances gives less salary for similar position these individuals move abroad. So you invest and they go, can't say you can rely heavily on them for growth engine. I am not against more money coming into service sector by any means, I work as one but for greater good of India we need to increase factories and industries, the MMLogistic parks, Freight corridor, Sagarmala success is important for that. Service sector will attract money on its own, but service sector needs big empires of corporate, Start up India is helping there.

[mastkalandar]

I actually dont agree with dr rajan here. The small and medium sector by defination would not be able to set up chip manufacturing ecosystem. Its only the big corporates from around the world who have the cash and credibility to invest huge sums. So ofcourse PLI would target them to insentivise them to set up the manufacturing eco system. And once the eco system starts to take ground, the small and medium scale industries can act as the primary suppliers of material and services.

Dr Rajan is saying, we should forget about making it easier for manufacturing. How else is unemployment going to get solved? Does the service sector have the room to absorb the people to solve the problem?

If we want to shift people from agriculture to other sectors in large numbers, a competitive manufacturing sector is the only solution.

In the service sector, the private sector has the cash and size to grow on its own with little support from the government, but the capital has to go into developing critical real infrastructure like power, rail, road, water, internet to make manufacturing easy and profitable.

[prabhatjha]

But sir what about the revision that IMF did and said India indeed will become 5 trillion economy till 26-27!!? Isn't that's what their current stance is!!?

[ssd]

Only investor content creator who doesn’t do boot licking of government. Very logical topics he picks and excellent perspective🚀🚀

[nakulkhanna]

You have missed one very imp point - inr loses around 4% of value per year
So $5 trillion figures is higher as inr depreciates

[AA-zold]

India would have to first reduce its wellfare schemes both legislatively and via judiciary. These wellfare schemes are usually used to attract vote banks which would otherwise be usefull to our R&D domain and defence. For that we as citizens would have to boycott governments that use schemes like "free money for unemployed", "free electricity for so and so". We all know such political agendas are harmful to out country

[sumanpaulchowdhury]

By basis of math it will surly reach one day, but don't compare China's policies with India. We have street protests and in China nobody can protest against any sort of govt decisions. It's easy for a homogenous govt system to achieve things easily but no so in a non-homogenous political system and over and above this worldwide economic downfall, it's dragging us down more powerfully. But at the end of the day, what can we do?? If you are bullish invest in the India story. If you are not, then invest in US markets, as you are doing. If you want, vote in the opposition to the power, and hope for a more brighter future, if you think a mixed bag govt will be more equipped to disinvestment and economic progress.
By the way, are you still investing in cryptos? And how much of your portfolio?

[samadtan]

Unemplyment problem is never the issue. The issue is that people are not skillfull over here. Many people can't even speak fluent english. Communication is always been the main problem in the country.
Recession is good for your future if you are skilled and have soft skills. You can easily get 20-22 lpa if you have a btech degree with skills and a better communicator. You know how time is managed by action I mean not verbally.

[santoshkumarch]

SL. Pak. Bangladesh. UK. Ukraine & Russia. Germany. USA.
Finally China all are facing big time Geo - Political- Inflation- Supply Chain- Pandemic issue's. The only and the best alternative is 🇮🇳

[thepratikkulkarni]

Yea it will become in 2027
And I am investing more and more in India, mainly consumer based stocks
Bajaj finserv
Bajaj finance
Dmart
Polycab
Asian paints
HuL
Nestle
Page industries
Honeywell
Apple (US stock)

[manu.g]

A bill was bought that can introduce cooperative farming but you can't to do anything good in India.

[srtejas]

Real GDP growth again is debatable considering the base year because consumption basket changes every 1-2 decades in a economy like that of india. If you see carefully china keeps its base year at 2015 after growth in consumption of high-end products and digital services. RBI has also suggested to revise the base year to 2016 due to change in consumption basket after the jio-internet boom and some other changes in the consumption basket

[VCArtLesson]

India will be 48tr economy by 2050. Every citizens need to support the country for better economic growth. Only prime minister can't do it alone.. this is duty of every citizens

[vishnunaik]

The way gov is treating Cryptocurency in india ..its ridiculous 😬.Even cryptocurency can contribute in countries financial progress