As a populous country like China, India has a total population of about 1.4 billion and more than 100 ethnic groups, which can be described as a veritable populous country, so many times, India likes to benchmark with China, take the economic development in recent years, India's GDP growth rate reached 8 in the first half of 20224%, and in the context of the global economic downturn, in the first quarter of 2023 achieved a GDP growth rate of about 6%, judging from the numbers alone, it is not easy for India to achieve such development results, which also gave Indian Prime Minister Modi great confidence, and shouted that in the next 5 years, India will develop into one of the top three economies in the world. At the same time, PwC is even more important, and India is on track to become the world's second-largest economy by 2050 in terms of purchasing power parity.
But what is the truth behind the numbers?
First, the gap between rich and poor in India is extremely severe. Despite the glittering GDP figures, India still accounts for the majority of the poor. This means that the fruits of economic growth have not benefited the population at large, but have been monopolized by a few wealthy people. Therefore, GDP growth figures alone do not provide a complete picture of the real standard of living of the Indian people.
Second, despite India's large population, the quality of the population is relatively low, and the education system has not kept pace with economic development. Although labor costs are low, it is difficult for India to form a real demographic dividend due to the lack of high-quality talents and core technologies. In addition, the employment environment in India is not ideal, and many of the trained talents cannot find suitable jobs at home, and even have to choose to develop abroad.
In addition, India's economic model is relatively simple, mainly relying on the software outsourcing industry in Europe, the United States and developed countries. This economic model lacks autonomy, and if the external environment changes, India's economy will be severely affected. In addition, India has not yet formed a complete industrial production chain, which makes its position in the global industrial chain relatively weak.
Finally, India's population growth has not given impetus to its economic development, but has become a burden. As the population continues to increase, so does the pressure on India's resources. This not only affects the quality of life of the people, but also hinders the sustainable development of the economy.
To sum up, while India's economic growth in recent years has been impressive, the truth behind the numbers is worrying. To realize Indian Prime Minister Narendra Modi's vision, India will need to make tremendous efforts on several fronts. In particular, India still has a long way to go in solving the problem of poverty in the country, improving the quality of the population, improving the education system, developing a diversified economic model, and optimizing the population structure.