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



India's facing an important election year an outside of recent tensions of 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 surpassed 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 in 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 5-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 regulations 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 in the first Gulf War disrupted the flow of cash coming from Indian workers in the Middle East so when you come through about 1990 India is still a very poor country 1991 was a watershed year when economic reforms were launched substantially bit of liberalization 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 will continue until about 2004 all the command and control systems were dismantled the foreign trade was opened up and then Indian economy began to grow a bit faster in 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 IT sector following the liberalized economy Indian entrepreneurs quickly realized that the IT 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. IT workers US companies Citibank and Texas Instruments took notice and hired some of the talent validating a country's new sector by 2007 India's IT sector was posting revenues of 23.5 billion by 2018 it was bringing in 167 billion IT 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 five hundred and one thousand rupee notes would be taken out of circulation the economy faced a severe cast shortage and some economists argued the move costs the economy about 1.5 million jobs despite India's reputation as a tech and services hub the country's workforce remains largely and then formal 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 economies actually in the informal sector just to give you an example in India 95% of enterprises in India employ five or fewer people so these are really mom and pop stores that's that's about the informality at which it operates while India's economy is booming its unemployment rate is at a forty five 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 and 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 rescale 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 wage distribution there when you look at unskilled or low-skilled workers they're 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 twelve point four percent of the country lives at the international poverty level surviving on less than one u.s. dollar and ninety cents a day however the country has made progress in between 2005 and 2016 271 million people moved out of poverty half in the poverty rate to 28% 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 have large swathes 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. How can job not grow when the infrastructre growth is highest in 35 years. 3k million rs already distributed for self employment. And the unemployment figure that you show are from unpublished report that is still being compiled. Internet connectivity growing by 115%. All this do you not think have produced jobs?

  2. India suffers from the same political gridlock that squanders the good will and effort of those who want India to progress. A dysfunction brought on by implementing western ideologies instead of the appropriate policies that would actually grow it.

  3. India should know that population increase will add GDP, not because the industry grew, but just population increases. The cost of GDP increase is at the cost of increase in population. This is not sustainable. Also, India's corruption in the democracy system is at the incredible level.

  4. The at time parliament general election 2019 and tim 2014 to 2019 it,s 5 year india good for images the gov economy and year big poss any good why country and would ,s india economy police and would ,s second populous and good for life comm the chiming why big country and big city it,s town and would good for images india thank,s

  5. Why only show slums? Is it a superiority complex that makes you degrade or image? Or is it just sheer ignorance? Next time when you show New York or LA, why not just show the more downtrodden parts?

  6. First india should ban the religion and cast system and educate the indian society. Then our country will become world no 1

  7. As an Japanese I'm soo close to India from always but the fact is I've some Indian friends who told me that govt. Is proceeding towards development but all the contract are given to politicians rather than district magistrate if they're given to dms that would make development so fast but politicians never focus on development the only they're always focused about making their influence making themselves rich and about 95% times they're uneducated and really very slum minded I'm Japanese but unfortunately I feels bad for India 🙁

  8. I THINK THIS VIDEO WAS MADE BY THE CHINESE WHOR WHO HAD PREVIOUSLY MADE SIMILAR VIDEO. That CUND writes attractive headline and establish the exact opposite.

  9. Rich indian don't leave make new business or put money in India . Jobs are problems if your in high mountains and look down look everything looks lower.

  10. I am from China. They said the same thing about China's economy 30 years ago, look what happened now. I have faith in India, it's growth rate has already surpassed that of China, in the next 30 years, India will be the largest economy in the world, go, India!

  11. I am so lucky that born in india. India will definatly be superpower upto 2050 as our growth is picking up. Thanks to our pm Narendra damodardas modi.

  12. The explosion of jobs is coming modi is ready to take the fruits by the trees he growed in there 4 to 5 years.

  13. India A BIG messy Democracy… It's so Big with 900 million eligible voters, never before in the History of Humanity so many people had the power to choose their Leader and their destiny… Our weakness ( Democracy ) is Our Strength.

  14. same SH1T POVERTY P0RN. We indians want ban on all WESTERN "MEDIA" especially BBC, THE GUARDIAN, NYT, cnbc etc. from india for the next 62 years.

  15. I am Chinese. Although many Western media are leading China-India disputes, I still like India. There are many similarities between our two countries. We should develop together instead of mutual hatred.

  16. Yes we are not rich as western world but we had develop much better than we were used to be
    Remember their was a time India was richest, thanx british to empower us 😑

  17. 4things that India can never become a developed country;
    1: no control on population
    2: large scale of superstition
    3: Democracy
    4: national pride from nowhere.

  18. 满满的意识形态。从来不信啥imf和世界银行 国家只有靠自己才能富强 能富强的办法都是好办法 其他都是扯淡

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