Future of Indian economy beyond 2023

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Quite a lot has been reported about the growth in Indian economy by different rating agencies both at National and Interrnational levels..According to the latest data explained for the last quarter for 2022-23,  India emerged stronger from Pandemic than initially assumed with growth steady momentum which has been keeping revised thereafter.Exports increased probably due to the depreciated currency against the Dollar.

But the question remains that if the economy is growing so fast, why it can't produce enough jobs?.This disconnect is probably result of India's uneven growth which is enjoyed and powered by the country's upper class. The growth is not shelling out enough jobs for the educated youth who enter workforce every year. Larger number of Indians have been going for informal sector where they have been badly effected by the inflation,especially in food prices. The disconnect is a result of uneven growth which Pandemic has dignified throwing millions of Indians into extreme poverty while billionaires have surged. 

On one hand, Govt. reported that economy has expanded to 8.7 percent to Dollars 3.3 trillion but, on the other, with the domestic investment lacklustre, it is hiring slowly. The handing  over of subsidised food, fuel and housing for the poorest to address the joblessness besides giving free foodgrains to two-third of the population have pushed inequality in India to its lowest levels in decades. Knowing well that that these subsidies cannot be used forever, millions of new college graduates, farmers looking to leave the fields,women taking to work, are expected to seek flood of non-farm workforce in the coming years. But for Politicians, high unemployent is not of concern rather than inflation which affects the voters.   

Regarding Inflation, a simple logic is that when workers receive higher pay they become able to spend more which increases demand. This can lead to a possible wage price spiral inflation which is hard to control because the method to fight it out such as higher interest rates take time to effect the economy. The overall worry is that if they don't buy now, they will have to pay more later. The pain of inflation is something where the consumers feel about inflation causes them to make decisions on how they spend their money. Inflation does not effect only the final product prices but on raw materials also used to make the product. Second problem is the wages, if they remain flat, price increase will make all poorer.It is time to rethink the foundation and framework of monetary policy. This question is more compelling for reason due to Pandemic and Rissia Ukraine war effected the supply side events.

In order to control the creation of Black money, collection of stamp duty be scrapped and all Property deals should be brought under GST thereby making it mandatory.. 

Similarly, control Brain Drain of educated youth from India, providing good education and jobs prospects, use of Artificial inelligence in developing technology, rural development, environment susrainabil;ity will effect a long way to boost the economy for future as well.  


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