Finance

Economic growth in India

The global COVID-19 pandemic saw some of the strongest economic powers suffer. With the fallout of the pandemic slowly settling, many countries are beginning to recover economically.

One country that felt the blow of the pandemic was India. After having an impressive year following the blunders of covid, with exports at record highs and the rich getting richer, it is curious to see that employment hasn’t also risen.

Certain economists are discussing the increase in India’s elite and the spending that has occurred over the last year. Referring to it as ‘revenge spending’ the country has seen a rise in leisure spending.

While this may seem positive and prosperous for India, unemployment is also in a dire state. The significant growth has failed to create new jobs for those living in poverty. Those living with low incomes are subject to inflated prices, especially with food. This is the harsh result of India’s relatively uneven growth.

Class Divide

The growth of India’s economy is the result of the country's upper class whose spending does not exceed beyond their own strata. Having mass spending have an effect on the working class is difficult when the working class are unable to work for their money. There has always been a clear and obvious divide in India, however, the pandemic ironed out the divide significantly. This is clear by looking at the uneven growth that occurs across the nation. Whilst the upper classes remain safe, millions of Indians are falling into poverty on a daily basis.

Indian Prime Minister Narendra Modi has promised that he would double the size of India's economy by 2024, of course with a global pandemic and a war occurring, this may not be the case. A report from the government in May stated that Indias economy had grown by 8.7% over the last year to $3.3 trillion. Even with this increase, government employment has slowed down, subsidised fuel, food and housing and free grains now reach over 2/3 of the country due to 1.3 billion people unable to afford food.

New generation

The inadequate creation of jobs across India will continue to push more and more into poverty. It is important to recognise that whilst the pandemic could not have been stopped, the negative effects of the fallout can be. Many young people across India are studying ruthlessly to pass exams and finish higher education. Some are beginning to question what the point is. They are unable to get the jobs that they are so tirelessly working toward. Some have also claimed to have received their first graduate job almost ten years after completing their studies.

The rising unemployment rate can be seen across India. Many Indians are beginning to leave farms and agricultural jobs for jobs in different industries. As well as this, more women are seeking jobs, unable to find a sufficient amount of income.

Some have stated that whilst unemployment is bad, the focus remains on inflation – especially as that affects everyone nationwide.

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