The Indian Economy Is A One Pony Trick, With Huge Implications For Its’ Youth!
India can’t hope to grow forever on the back of its services sector alone. Agreed, Indians are good at writing code and answering calls! But, what about its Millions of Youth who lack the “social capital” to be employed in its “gleaming” towers that dot the landscapes of Bengaluru, Gurugram, Hyderabad and other Metros?
The Indian Economy is fast becoming a “One Pony Trick”! India’s GDP (Gross Domestic Product) growth is powered by the services sector, which accounts for more than 50% of the total GDP. It has generated a tad more than a quarter of all jobs in the formal economy, in addition to indirectly creating another 10% of employment or the so-called “multiplier” effect. While India’s services sector has suffered a significant setback due to the pandemic, what with its’ GVA (Gross Value Added) sinking to 30% in 2020-’21, the rebound in the last year or so has been spectacular. Indeed, it can be said that the Indian Economy’s fortunes rest on the shoulders of its Software, Call Center, Banking, and Financial Services professionals.
Why India Cannot Become Another China Without A Manufacturing Revolution
While the much celebrated “Indian Rennaisance” owes a lot to the Indian Services Sector, a situation where it has had a disproportionate weight in the…
