How India’s Economy Is Growing At A Faster Pace Than China


India is facing an
important election year. And outside of recent tensions with
Pakistan, the economy remains a key campaign issue. India’s economy is the fastest growing
large economy in the world. It’s also a big country
with a big population. The United Nations expects India’s
current population of 1.3 billion to keep growing and
surpass China by 2024. But it’s got some big problems. A few years ago the country’s
current prime minister Narendra Modi promised to add 10 million jobs
to help boost the economy. That hasn’t really happened. The unemployment rate instead sits
at a 45 year high. And GDP per capita, which is a
measure of wealth across the country, lags behind rivals like China
by a wide margin. Can India keep growing at
such a fast pace? And if it does, at what cost? Here’s how India became the fastest
growing large economy in the world. The story of India: The modern
day economic powerhouse starts right after the country’s independence from
Great Britain in 1947. Immediately afterward India adopted
a closed economy. It was essentially
a socialist country. For years India’s economy remained stagnant
due to a number of socialist policies it copied from the
Soviet Union, like five year plans. It also nationalized major
industries like mining, insurance, telecommunications, and, eventually, most
of the banking sector. Poverty and corruption
were big problems. Overzealous regulation
stifled corruption. The country’s socialist style economy
continued to sputter until 1991. That was the
year everything changed. The Soviet Union, a major
trading partner, had collapsed. And the first Gulf War disrupted the
flow of cash coming from Indian workers in the Middle East. So when you come to about 1990
India is still a very poor country. 1991 was a watershed year
when economic reforms were launched substantially when globalization
began to happen. That year, India’s international credit rating
was downgraded to get a loan from the World Bank and IMF. The country implemented a
plan of economic reform. India would open markets up to
foreign competition, reduce the budget deficit, and eliminate restrictions on
foreign investment making it easier for entrepreneurs and Indian
businesses to get funding. And that process sort of
continued until about 2004. All the command and control systems
were dismantled; the foreign trade was opened up, and then the Indian
economy began to grow a bit faster. And particularly
starting from about 2003, the economy really took off. So if you take about 15 year
period from 2003 onwards, the economy grew almost seven and
a half percent. A big reason India’s economy took
off was because of the country’s growing I.T. sector. Following a liberalized
economy, Indian entrepreneurs quickly realized that the I.T. sector could become
a lucrative business. Private engineering schools started popping
up creating large numbers of workers eager for jobs with
lower salaries compared to U.S. I.T. workers. U.S. companies Citibank and Texas
Instruments took notice and hired some of the talent validating
the country’s new sector. By 2007, India’s I.T. sector was posting revenues of 23.5 billion. By 2018, it was bringing in 167 billion. I.T. companies are now
India’s biggest private employers. Another big reason why India’s economy kept growing at such a rapid pace lies in simple demographics. India is home to more than 1.3 billion people and much of the population is relatively young and working. Experts call it
‘the demographic dividend’. Asia’s elderly population is expected to
blow up in the coming years. India, however, is
bucking that trend. 65 percent of its population is
below the age of 35. Deloitte, the global consulting firm,
predicts India could supply more than half of Asia’s workforce
in the coming decade. India is now the sixth largest economy. The IMF predicts it could soon
overtake the United Kingdom, its former colonizer and
total GDP output. But the country is
facing a few hurdles. Job growth is a big one. India’s current Prime Minister Narendra
Modi faces criticism for not adding the 10 million jobs he
promised in his 2014 campaign. In November 2016, he suddenly announced that 500 and 1000 rupee notes would be taken out of circulation. The economy faced a severe cash
shortage and some economists argue the move cost the economy about 1.5 million jobs. Despite India’s reputation as a tech
and services hub, the country’s workforce remains largely in
the informal sector. About 81 percent of India’s workers
ply their trades in the informal economy. That means jobs like
street vendors, auto rickshaw drivers or household help paid in cash. Some economists say if India wants
to progress to a developed economy it needs the informal sector to
become better integrated with the financial sector. A lot of the economy is
actually in the informal sector. Just to give you an example: In
India, 95 percent of enterprises in India employ five or fewer people. So these are
really mom-and-pop stores. That’s about the informality
at which it operates. While India’s economy is booming, its
unemployment rate is at a 45 year high, a sign that jobs are
not being created at the same pace. Economists call this
jobless growth. It’s when the economy grows but generates
jobs at a rate below its potential. The agriculture industry is
a massive employer in India but it’s not seeing the same
kind of growth as other sectors. That could lead to putting millions
of young workers out of work. Experts say the unresolved issue of
jobless growth and failure to reskill workers could hurt the
economy in the future. Indian job problem is it has to
do with the availability of good jobs; jobs that pay reasonable wages and
this is particularly true for workers at the low end of the
visa distribution that when you look at unskilled or low skilled workers there
are not enough well-paid jobs. The World Economic Forum says India
needs to work on infrastructure development and urbanizing regions of the
country if it wants to stay on pace. Poverty also remains a big problem. 12.4 percent of the country lives
at the international poverty level surviving on less than one U.S. dollar and 90 cents a day. However the country has made progress. In between 2005 and 2016, 271
million people moved out of poverty, halving the poverty rate
to 28 percent. India’s rapidly changing demographics may
help it become an economic superpower. But it’s also
creating big obstacles. India is a big, messy democracy and
if large swaths of the population feel left out of economic growth,
it could lead to political unrest. All in all though, India’s economy
is not showing any signs of slowing down just yet.




Comments
  1. omg look at that river at the end of the video!!! what they need its a total nuclear war with pakistan to reduce the population of those countries by half

  2. Just see the growth rate of economy of india by the date of comment and you'll make out that indian officials are makin fool of indians itself. From 7.1% to 5.8%. is it a joke.

  3. This video didn't age nicely. Fast forward to about just over a month this video was published, at the end of May 2019, and India's economy grew at a slower pace than China's. It could be a combination of the global trade war, or the unemployment. Trump also just recently said he'll end India's special trade status.

  4. The said thing in developing ‘democratic’ countries is that there is a lot of corruption and the money trickles down even worse western countries. We are seeing the gap growing higher in western democracies. Imagine this gap in developing democracies. Unfortunately in India it’s not so different. I don’t support the Chinese system but with a broken world economic system the Chinese with it’s authoritarian system was able to totally build its infrastructure from scratch in a very short time. I hope India can do the same but corruption and growing gap of rich and poor may slow down development.

  5. You make people that refused to work? With a country still control based on skin colors, you can't really make grow faster when most lighter people are controlling the country.

  6. India is not growing, the only growth is due to the huge population n transactions by the huge population. Unemployment rate has increased from 3.4 to 3.6. even engineering graduates are jobless. Because we don't have productivity. India is surviving only because of the huge tax. India is the graveyard of young minds who has lot of ideas but no support from the govt, indians don't have the courage to come out from their comfort zones. Those who have resources are migrating to other countries. Indians also has average low iq compared to other developed countries. Average iq 82,

  7. The video kept saying that the unemployment in India is at 45 year high, but never gave a percentage of unemployment. So the unemployment in India is at 6%, which is at a 45 year high. Put perspective into your numbers or don't make a video.

  8. as a South African that has had the pleasure of growing up with Indian friends, having had been invited to an Indian wedding and visited some parts … I truly can't wait to see India rise to become the worlds strongest economy and country.

  9. they say don't compare India and China. My point is India can't ever become China. China is far ahead than India and that's the reality.

  10. China statistics are sometimes fake just saying.
    People really overestimate Chinas growth.
    There are still lot of poverty in China.
    (Still they are not as bad as India though)

  11. The official poverty rate is 12.3 percent IN THE USA, based on the U.S. Census Bureau's 2017 estimates.

  12. There was no communism in India. Do not blame it but corruption, dependence from the UK, war…

  13. CNBC Just insulting the government of us .. instead say about British first ..if they were not India is the number 1 now .

  14. biggest economy from 16 century to 18 century to 93% poverty after independent
    That is what a western country can do to you!

  15. These deracinated Indian origin and foreign media people are pontificating in such a pompous manner on India's economy as if they know it all.

  16. 1. India & China R not rivals
    2. Video only have "Old Delhi" & Railway station footages. If they are talking about economy they need to show thighs like IT parks or south Mumbai's skylines. & A Video on cntry without Taj Mehal.?

  17. India has already made more than 10 million jobs. This CNBC is western propaganda to make bias about India. Also note that India now has third largest pool of entrepreneurs.. and manufacturing sector has grown a lot .. India is second largest smartphone maker now.. also Indian railways started selling train 18 and metro coaches to foreign nations.. thanks to Modi . For startup India and make in India initiative..

  18. What the meaning of GREAT britian..nothing great lol.,you are just cheaters and looters..
    U should ashamed of that

  19. Like China, India should execute all corrupt politicians. Secondly only educated people should run the country. All criminals must be banned from holding political power .INDIA will surely3be a super power.

  20. India is the last chance of the Philippines. We did too much to US, we acted late on china and now i don't see government efforts for India. With over one billion population, tech literate people and English proficient, India is bound to be the next super power both economically and in military. I hope efforts would be made before they became super power so we won't look mendicants again running to super power countries for help!

  21. What did the guy at 1:55 say? I couldn't hear him over that damn bookshelf my god man prop it up with something

  22. Chinese economy progress due to careful economic planning by the communist regime.Today china managed to alleviate all Thier people from economic hardship.the secret they started manufacture semi processed manufacturing goods from all around the world.India producing 2 million graduates a year and have all the infrastructure but India cannot do the same why?..Every successful graduates dream is run to Europe or America to be a white man slave.

  23. China and The Great Country India were, are and will be different.

    No comparison but temporary competition.

  24. All the people crying out loud about socialist democracies not working should take a look at Scandinavia. No economic model can be called a success or failure due to it not working for a particular country. What didn't work for the Soviet block is working for China (albeit with heavy modifications that were necessary for a global economy). India is a very complex economy, far more complex than most people can comprehend. It's also deeply religious and conservative. It's eastern culture is often at odds with the western ideals of democracy. It is difficult to bring people out of millennia old mindset. They're doing all they can to find a way to incorporate their eastern culture with the western models of democracy. This is also the challenge being faced by all eastern democracies. Some like Singapore have found their status quo quickly because they're tiny. India will take a lot more time.

  25. I know India should learn many things from China too but the western media shouldn't always portray only the negative side of India… We have also progressed very much

  26. China :- we are making one belt one road in order to make china centre of global trade
    Indians:- stop buying Chinese firecrackers and bring down their economy ,🤣🤣🤣🤣🤣🤣🤣

  27. Indians need to become a data driven society from hoping for miracles to happen society. Here’s some data – FDI inflow into India is 1.5% of GDP whereas FDI inflow into Vietnam is 6% of GDP. Now go look at the ease of doing business rankings and correlate those with these nations’ rankings. And cha-Ching, the story is clear. All ASEAN countries’ contract enforcement scores are much much superior to the abysmal score in India. India is not going anywhere unless it fixes its fundamentals and getting its basics right. Modi is not a miracle maker. Aggressive reforms and execution is what can make India catch up to the likes of Vietnam, Malaysia etc in manufacturing. I don’t think Modi will do it as we saw from the lackluster budget. It is still very very complicated to invest money and do business in India. If you poll the NRIs to see if they will invest in Indian businesses, hardly 10% would say yes. Technology based businesses which don’t need much land, labor, or supply chains will do ok. Any businesses that require contract enforcement will not attract FDI in India. As simple as that.

  28. Only reason it’s growing is because of British and american companies paying for dirt cheap labour

  29. When PVNR and MMS were busy setting the nation on the right path, Moody kaka was giving haazri in his chaddi to local Shakha.

  30. The government is spending a lot of public money into unnecessary things.Just concentrate on spending it on health and education which ought to cause a great revolution in the country.We could become a superpower in not more than 5years.

  31. Ask your Trumpy and SuperPower Xi Jumping.

    Does SuperPower China want any economic competition with the Great Country India.

    Xi replied… No… Not at all.

  32. Still long way to go .policy corruption but people keep moving forward with the flow.its unfortunate people have useless thugs over them.

  33. The picture and video of INDIA present is not true … kindly show the city which are developed and clean too.

  34. Just saw the Chandrayaan 2 taking it was not just a normal launch but was also the taking off of neoliberal India working on the promise of free market and high growth that’s taking off. Jai hind! Hopefully all those Indian expats come back and enrich the country even more. People migrating abroad should stop at least after this and settle dues with their motherland first. Vande Mataram!

  35. What economy development??
    India since 2014 we have not experienced any economy growth
    Govt for sake they miss guiding poor people of india

    Unemployment is increasing day by day in our country

  36. 1:11 " India ia granted independence from Great Britain" and CNBC shows you Jinnah smiling and waving on a rickshaw!
    Come on CNBC!

  37. India needs to more infrastructure in schools, sanitation and hospitals.
    Don't be fooled by US fund pampering for counterintelligence operations.

  38. Hi Indians, just mass downvote CNBC's videos. They are showing only the bad poor sides of us, tarnishing our image. Media like this is why Westerners look down on us.

  39. Quite weird that this video is about economic progress but no mention about GST. Grow up West! Your propaganda won't work anymore. This entire video was about demonitisation and 10 million jobs while completely ignoring all other initiatives taken from 2000 to 2018. A Indian economy video with agricultural and services but no mention about manufacturing.

  40. What kind of development…automarkt is all time low..

    Jobs are all time low

    Gdp plummeting…

    Where did you get this research?
    Or is it bjp it cell?

  41. KEEP EDUCATING YOUR INDIANS. SHOW THEM MORE AND MORE VIDEOS ABOUT SASHI THAROOR and him schooling the british! teach your children ENGLISH, MATH, BIOLOGY, GENERAL/ORGANIC CHEMISTRY, PHYSICS, AND NEUROSCIENCES, not to mention PHYSIOLOGY

  42. This video has become irrelevant now. There was even an article from an ex-economic advisor who stated India inflates its growth by 2.5%.

  43. Western Media Alwasy Shows Hate Between Asian Neighbor & Viral ,,,
    Even Though india have Good Infrastructur, then why show less Developed Area, Next time CNBC Should Show New york's Bronsville.

  44. "India The Great Nation of world"

    ● Indian economy is the 3rd largest GDP ( economy ) in the world by PPP.
    ●In the present time indian economy fastest growing economy of the world.
    ●Indian economy is the number of 5 largest GDP in the world by nominal.
    ●India is a 4th Superpower country of the world.
    ●India has 2nd largest and powerful soldiers force in the world after china.
    India has the second largest active military force in the world.
    ●Buddhism was born in india as well. and gautam buddha was an of the indian.
    ● India has number 4rth advance defence system for nuclear war in the world after USA, Russia, israel.
    ●India is the 6th advance country of the world with the view of technology.
    ●India has the 3rd largest number of billionaires in the world.
    ● india is the 3rd Global power of world.
    ●India 3rd largest manufacturer country after china and america.
    ● india is the 4rth largest cars manufacturer country of the world after china, USA, japan.
    ●India is the world largest millk producer country.
    ●India is a second largest population country of the world.
    ●India has world largest Young population.
    ●India is the world largest Mobile manufacturer country.
    ● India's apace agency ISRO is the 5th biggest space agency in the world and India's space agency ISRO 3rd successful space agency in the world.
    ●India is the number 1 producer of milk, mobiles, cycles, Ginger, bananas, turmeric, mangoes, papaya, safflowe oil, castor oil seeds, rice, lemon, lime, fruits….. In the world.
    ●world's most expensive home is also in mumbai (india) and in living the richest family of Asia.
    ● World 3rd biggest film industry bollywood is in the mumbai and bollywood make more than 2000 movies every year which is the most in the world.
    ●India is the world largest democracy.
    ●India has the 2nd largest number of internet users in the world.
    ●India has the largest postal network in the world.
    ● World tallest statue " statue of unity" also in India.
    ●World richest actor also indian name shahrukh khan.
    ●Indian prime minister shree narendra modi he is a number 1 powerful person in the world 2019 by British herald.
    ● India produce the most amount of spices in the world.
    ● india maked smallest satellite of the world.
    ● india is the largest languages spoken country of the world. Total 1652 languages spoking in India.
    ● indian space agency ISRO successfully launched 104 satellites it is the world largest number of satellites launch on a single flights.
    ● every religion peoples living in india and all live peacefully.
    ● the world biggest youtube channel also is indian youtube channel. Name T series.
    ● india is the second largest internet using country of the world.
    ● world biggest school also in india. And world biggest family is indian family and total 181 members live in family.
    ● indian "chenab bridge" is biggest rail bridge in the world.
    ● India is a second largest English language spoken county of the world.
    ● 15% gold of the world so just the have of indian women and world 2 biggest golden statues also in delhi Akshrdham (india).
    ● india has world cheapest technology. Indian mars mission successful complete. And thet cost only $73 million. And india is a first country to successfully send an satellite on mars in first attempt.
    ● India's rank 2nd in the world in making doctors and Engineers.
    ● 36% indian engineers working in NASA. 34% indian engineers working in Microsoft. 28% indian engineers working in IBM.
    ● india celebrities largest festivals in the world.
    India is number of 4 in car produce.
    ● yoga,civil engineering, architecture, martial art, constitution, mathematics, plastic surgery, toilest, shampoo, agriculture, carbon pen, USB,sirts button,dimonds, snooker,chess,sneke charmer,kabaddi, medicine, point, calender, numbers, navigation, spirituality, astronomy, constitution of natural law and more these all india has given to the world.

    ● our india was the richest country in the world before 18 century. But the British come to India and take over the india.the total property of USA in present. 7 time more than that british looted from india.😭😭😭😭😭
    ◆ I know india is the second largest populated country in the world and that causes india to face most of the problems. But then again In the present time indian economy is the one of the fastest growing economy of world and india is a one of the fastest growing country in the world. World top 10 fastest growing cities and world top 10 fastest growing state all are indian. But then india has a very low debt. And present time india is developing into next superpower of world.
    India is the peacefully country of the world.
    We indian think "वसुधैव कुटुम्बकम" (vasudhaiv kutumbakam) means "the world is one family"
    😇😊😇😊😇😊😇😊😇

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